PROJECT RISK ANALYSIS

AND MANAGEMENT

PMO
Achieve Without Borders
2029 Gen Mascardo St., Makati City MM Philippines
 Incorporated in June 2012, Makati City, Philippines
Founded by seasoned IT and business professionals
with strong corporate social responsibility (CSR)
conviction
Envisioned to become a premium provider of IT
solutions and business advisory services across
different industries worldwide
Offices located in Makati, Cebu, and Miami Beach,
FL, USA
Leadership team comprised of industry veterans from
Accenture, NEC, NetSuite and Oracle.

Copyright © Achieve Without Borders, Inc.

 OVERVIEW OF RISK ANALYSIS AND
MANAGEMENT
WHAT IS PROJECT RISK
MANAGEMENT?
RISK RISK
Project Risk Management is a key IDENTIFICATION EVALUATION

project management practice to

ensure that the least number of
project risks occur until a project is
completed. It should address issues MONITORING RISK RESPONSE
that could endanger achievement of AND CONTROL PLANNING

critical objectives.

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 OVERVIEW OF RISK ANALYSIS AND
MANAGEMENT

WHAT IS RISK?
WHO IDENTIFIES RISKS?

Project Risk an uncertain event or ✔ Project Managers

condition that, if it occurs, has a ✔ Functional Consultants
positive or negative effect on a ✔ BPOs
project’s objectives ✔ Business Analysts
✔ Dev Team
✔ Account Managers
✔ Project Sponsors

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 OVERVIEW OF RISK ANALYSIS AND
MANAGEMENT
WHY IS PROJECT RISK
MANAGEMENT IMPORTANT?

• Ensures project progress as desired, with the least amount of

deviations or surprise, and in line with project and organizational
objectives
• Assist on early and effective communication of project issues to
organization and project stakeholders
• Provides an effective team building tool, as team buy-in and
acceptance is assured.

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 RISK MANAGEMENT FRAMEWORK

RISK MANAGEMENT PLAN

RISK RISK Nothing is as easy as it looks. Everything

IDENTIFICATION EVALUATION
takes longer than you expect. Anything
that can go wrong will go wrong… and
at the worst possible moment.
- Murphy’s Law

MONITORING RISK RESPONSE

AND CONTROL PLANNING

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 RISK MANAGEMENT PLAN

RISK IDENTIFICATION

Risk identification is done throughout the

project life cycle, with special emphasis
Project Risk Risk
Identification Evaluation during the key milestones.

Risk identification is one of the key topics in

the regular project status and reporting
MONITORING meetings. Some risks may be readily
Risk Response
AND
Planning apparent to the project team—known risks;
CONTROL
others will take more rigor to uncover, but
are still predictable.
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 RISK MANAGEMENT PLAN

RISK IDENTIFICATION Project Risk Risk

Identification Evaluation

Risk sources are both internal and external to the

project. As the project progresses, additional sources of MONITORING
AND
Risk Response
Planning
risk can be identified. CONTROL

• Uncertain or incomplete requirements

• Unrealistic schedule estimates or allocation
• Inadequate staffing and skills
• Cost or funding issues
• Disruptions to the continuity of operations
• Regulatory constraints (e.g. security, safety,
environment)
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 RISK MANAGEMENT PLAN

RISK IDENTIFICATION Project Risk Risk

Identification Evaluation

IDENTIFYING RISK
MONITORING
Risk Response
AND
Repository of possible risks identified from Planning
Risk Bank CONTROL
similar projects.

Identification done by subject matter experts,

Expert Judgement
or experienced project members.

Project Status Meetings, Project Reports.

Project Status Basedon current and progress of other risks,
issues and relevant projects.

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 RISK MANAGEMENT PLAN

RISK IDENTIFICATION Project Risk Risk

Identification Evaluation

RISK ASSIGNMENT
MONITORING
Risk Response
AND
Is it something that should be resolved on the CONTROL
Planning
Responsible Party
client side or AWB side?

Who is the person leading the work towards

Assign an Accountable
managing the mitigation and contingency
Person
plan?

Can someone not part of the Project

team be responsible for a Project Risk?

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 RISK MANAGEMENT PLAN

RISK ASSESSMENT

Risk assessment overlaps both the

Project Risk Risk identification of potential risk and the
Identification Assessment
evaluation of the potential impact of the
risk. A risk mitigation plan is designed to
eliminate or minimize the impact of the risk
events—occurrences that have a negative
MONITORING
AND
Risk Response impact on the project.
Planning
CONTROL

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 RISK MANAGEMENT PLAN

RISK ASSESSMENT Project Risk Risk

Identification Assessment

IMPACT CATEGORY MONITORING

AND
Risk Response
Planning
CONTROL
Risk that may hinder achievement of project
Project Completion
objectives.
Cost Risks that can incur additional costs.
Risks that can cause delay or require
Timeline
additional time to work.
Resources Risk that can require additional resources.

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 RISK MANAGEMENT PLAN

RISK ASSESSMENT Project Risk Risk

Identification Assessment

Risk Probability – is the chances that the risk "may"

occur. The probability of it occurring can range MONITORING
Risk Response
AND
anywhere from just above 0 percent to just below 100 CONTROL
Planning

percent.
RISK PROBABILITY

High (80 % ≤ x ≤ 100%)

Moderate (50 % ≤ x < 80%)
Low (0 % < x < 50%)

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 RISK MANAGEMENT PLAN

RISK ASSESSMENT Project Risk Risk

Identification Assessment

Risk Impact – how much damage the risk would

cause to the project. MONITORING
Risk Response
AND
Planning
RISK IMPACT CONTROL

Large impact which has potential for major

Critical costs or delays, may hinder achievement of
project objectives.
Impact can be felt, but can be managed by
standard controls. Results can fall below
Moderate
optimum but still within minimum acceptable
levels.
Impact may be safely ignored, can be
Low
addressed by routine management.
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 RISK MANAGEMENT PLAN

RISK ASSESSMENT Project Risk Risk

Identification Assessment

Probability
MONITORING
High Moderate Low AND
Risk Response
Planning
CONTROL

Critical High High Moderate

Impact Matrix
Imp
Moderate High Moderate Low
act

Low Moderate Low Low

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 RISK MANAGEMENT PLAN

RISK ASSESSMENT Project Risk Risk

Identification Assessment

Probability
MONITORING
High Moderate Low AND
Risk Response
Planning
CONTROL

Critical High High Moderate

Impact Matrix
Imp
Moderate High Moderate Low
act

Low Moderate Low Low

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 RISK MANAGEMENT PLAN

RISK RESPONSE PLANNING

After the risk has been identified and

Project Risk Risk evaluated, the project team develops a risk
Identification Assessment
mitigation for each identified risk and
contingencies in cases risk cannot be
averted.
MONITORING
Risk Response
AND
Planning
CONTROL

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 RISK MANAGEMENT PLAN

RISK RESPONSE PLANNING Project Risk Risk

Identification Assessment

Risk Mitigation –captures the risk mitigation approach

for each identified risk event and the actions the project MONITORING
Risk Response
AND
management team will take to reduce or eliminate the CONTROL
Planning

risk.

Risk Mitigation should be aimed at:

• Eliminating the risk

• Lowering the probability of risk occurrence
• Lowering the impact of the risk on the project
objectives
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 RISK MANAGEMENT PLAN

RISK RESPONSE PLANNING Project Risk Risk

Identification Assessment

Contingency Plan – alternative method for

accomplishing a project goal when a risk event has MONITORING
Risk Response
AND
been identified and cannot be mitigated. CONTROL
Planning

Consequently when a risk has materialized, it now

becomes an ISSUE, which should be managed with
Issue Management.

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 RISK MANAGEMENT PLAN

RISK MONITORING AND

CONTROL

Risk MONITORING AND CONTROLling or

Project Risk Risk risk review is an iterative process that uses
Identification Assessment
the Risk Register and deliverable status to
monitor and control risks

MONITORING
Risk Response
AND
Planning
CONTROL

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 RISK MANAGEMENT PLAN

RISK MONITORING AND

Project Risk Risk
CONTROL Identification Assessment

Risk MONITORING AND CONTROL includes:

MONITORING
Risk Response
AND
• Continuous Risk Identification CONTROL
Planning

• Risk Register Maintenance

• Risk Reclassification
• Risk Reporting

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 RISK MANAGEMENT PLAN

RISK MONITORING AND

Project Risk Risk
CONTROL Identification Assessment

Risk MONITORING AND CONTROL includes:

MONITORING
Risk Response
AND
• Continuous Risk Identification CONTROL
Planning

Risks are to be identified and dealt with as early as possible in

the project. Risk identification is done throughout the project
life cycle, with special emphasis during the key milestones.

• Risk Register Maintenance

• Risk Reclassification
• Risk Reporting

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 RISK MANAGEMENT PLAN

RISK MONITORING AND

Project Risk Risk
CONTROL Identification Assessment

Risk MONITORING AND CONTROL includes:

MONITORING
Risk Response
AND
• Continuous Risk Identification CONTROL
Planning

• Risk Register Maintenance

Keeping track of existing risks to check if:
o Reassessment of risks is necessary
o Any of risk conditions have been triggered
o Monitor any risks that could become more critical over time
o Tackle the remaining risks that require a longer-term, planned, and
managed approach with risk action plans
• Risk Reclassification
• Risk Reporting
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 RISK MANAGEMENT PLAN

RISK MONITORING AND

Project Risk Risk
CONTROL Identification Assessment

Risk MONITORING AND CONTROL includes:

MONITORING
Risk Response
AND
• Continuous Risk Identification CONTROL
Planning

• Risk Register Maintenance

• Risk Reclassification
For the risks that cannot be closed, the criticality has to go
down over a period of time due to implementing the action
plan. If this is not the case then the action plan might not be
effective and should be re-examined.
• Risk Reporting

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 RISK MANAGEMENT PLAN

RISK MONITORING AND

Project Risk Risk
CONTROL Identification Assessment

Risk MONITORING AND CONTROL includes:

MONITORING
Risk Response
AND
• Continuous Risk Identification CONTROL
Planning

• Risk Register Maintenance

• Risk Reclassification
• Risk Reporting
Risk Reviews are a mandatory item of milestone meetings
and/or regular project meetings, but they can also be
executed during separately planned risk review meetings.
These risk reviews must be held regularly. The frequency
could also be determined based on the overall risk level of a
project.
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 +63(2) 869-1736; +63 (2) 831-3534
+63(2) 831-0485; +63 (2) 956-1278
inquire@achievewb.com
www.achievewithoutborders.com

26
 +63(2) 869-1736; +63 (2) 831-3534
+63(2) 831-0485; +63 (2) 956-1278
inquire@achievewb.com
www.achievewithoutborders.com

27