Day 4project RiskMitigation Plannint& Monitoring

Day 4
Risk Mitigation Planning, Implementation,

and Progress Monitoring
Prepared & Presented by

Jackson J. Kilimba
Management Consultant
2/4/23 jacksonkilimba@gmail.com 1
Risk Management Concepts/Terms
Risk Management Planning Framework
• 1. Identify Risks & List
• 2. Analyse
• 3. Prioritise
• 4. Response Planning
• 5. Execute
• 6. Evaluate &
• 7. Document
The cycle is endless until the project is completed.
Risk Identification Guidelines
• Ensure that risk events are specific and fully
defined
• Use the WBS /Project Cycle stages as a bases for risk
identification
• Develop as comprehensive a list of risks as possible
• Perform risk identification tasks as a team or as
groups of team members
• Focus on identifying all the risks; don’t try to
analyze at this point
Types of Risks Your Project May Face
• Strategic risk
• Compliance risk
• Operational risk
• Financial risk
• Reputational risk
1. Strategic Risk Issues
• Is the project/business highly dependent on a
particular technology that could be superseded?
Donor?
• What if the cost of our project inputs doubled?
• Can target audience/people survive without our
product/service?
• What would happen if a powerful competitor entered
the “market” and started a “value addition” war?
• Is there a chance that what we provide will simply go
out of fashion, and do we have a plan to adapt?
2. Compliance Risk Issues
• Are we expanding to any “new frontiers” that
may expose us to new regulatory requirements?
• How sure are we that we’ve been complying with
every single rule and regulation that applies to
our project/business?
• What if there’s a rule we’ve unwittingly been
breaking, and we have to be sanctioned?
• If we hire more employees, does that expose us
to any new employment regulations?
… Compliance
• What if the government decided to put new,
onerous restrictions on our core business
activity?
3. Operational Risk Issues/Concerns
• How reliable are our systems and technology? How often
do they fail/or likely to fail?
• What would happen if we lost power for more than 24
hours?
• Do we have sufficient controls on the flow of money in and
out of the project/business?
• Are we liable to losses either from abuse/scams or from
human error?
• What natural disasters are possible in our location(s)?
• Would the loss of a key employee cause serious problems
to our project?
4. Financial Risk Issues
• What if our biggest “client” went bust and couldn’t pay its
latest bill/value for money?
• How much money do our clients owe us, and what would
happen if many of them were late paying?
• Do we have a high debt load? How much of it is at variable
rates? (Commercial Projects)
• What if the interest rate on our loans increased
dramatically? Could we still pay? (commercial project)
• Are we doing business internationally, or planning to?
• How vulnerable are we to financial & technology changes?
5. Reputational Risk Issues
• What would happen if we got a negative review from a very
influential media, magazine or website?
• What if one of our key employees became involved in a
public scandal?
• Is there a chance of a major lawsuit against us from
customers or other businesses?
• Do we have any effective ways of gauging public
sentiments?
• Do we have PR people or other staff who are / will be
capable of managing a crisis?
• How would our project/business be affected by a mass of
bad reviews or negative comments on social media?
Project Management Risks - Continued
We can also break project management risks down
into five elements:
• Risk event: What might happen to affect your
project?
• Risk timeframe: When is it likely to happen?
• Probability: What’s are the chances of it happening?
• Impact: What’s the expected outcome?
• Factors: What events might forewarn or trigger the
risk event?
Assessing Project Risks
• The first thing you'll want to do is prepare a

Risk Assessment to get a better understanding
of the kinds of risks you’re facing and their
possible consequences.
• Here's how, step-by-step:
Risk Identification
Step 1: Identify potential risks.
• Sit down and create a list of every possible risk
and opportunity you can think of.
• If you only focus on the threats, you could
miss out on the chance to deliver unexpected
value to the customer or client.
• Ask your project team to help you brainstorm
during the project planning process, since they
might see possibilities that you don't.
Determine Risk Probability
Step 2: Determine probability.
• What are the odds a certain risk will occur?
• For example, It’s a lot more likely that a key
team member will be out for a week with the
flu than develop total amnesia.
• Rate each risk with high, medium, or low
probability.
Impact Determination
Step 3: Determine Risk Impact.
• What would happen if each risk occurred?
Would your final delivery date get pushed
back? Would you go over budget?
• Identify which risks have the biggest effect on
your project's outcomes, and
• Rate them as high impact.
• Rate the rest as medium or low impact risks.
Estimating Likelihood of Risk Taking Place
A simple five-point scale can be sufficient for

most businesses. For example:
• Very unlikely
• Quite unlikely
• Medium likelihood
• Quite likely
• Very likely
Estimating the Impact
If this risk materialized, how would it affect our
project/business? Would it be an inconvenience, or a
major threat to institutional survival?
As before, you can use a simple five-point scale:
• Minimal impact
• Low impact
• Medium impact
• High impact
• Devastating impact
Creating a Risk Scorecard
• By this stage, you should have a list of specific
risks that could affect your project/company,
and two scores next to each of them: one for
likelihood, and one for impact.
• Now we shall create a risk scorecard that
summarizes these risks and their relative
importance.
• It’s actually very simple to do this. Just multiply
the two numbers together, to give an overall
risk score for the third column.
Basic Risk Management Plan
There are a few essential items to include in a
risk management plan, however. Here they are:
• a list of individual risks;
• a rating of each risk based on likelihood and
impact;
• an assessment of current controls;
• a plan of action.
Deciding What do with Identified Risk
• The next step is to decide what to do about

each risk, so that we can manage them best.
In the world of risk management, there
are four main strategies:
• Avoid it.
• Reduce it.
• Transfer it.
• Accept it.
Deciding …
• Each strategy has its own advantages and
disadvantages, and you’ll probably end up
using all four.
• Sometimes it may be necessary to avoid a risk,
and other times you’ll want to reduce it,
transfer it, or simply accept it.
Discussion Exercises
• 1. A Listing of Best Practice Risk Mitigation was
delivered in this presentation. Do you agree
with the list? Discuss & Explain.
• 2. Not all project risks require mitigation plans.
Explain why this is often the case.
• 3. Prioritize Your Top-5 Risks from Highest to
Lowest, for a project familiar to you/your
group/team.
… Exercises
• 4. During the execution of a project, a risk is identified by a
team member. This newly identified risk is currently not in
the Risk Register. As a Project Manager, what is the first
action you would take after being notified of the risk?
• a) Discuss the risk with the team to ascertain the impact
and probability of the risk
• b) Analyze the risk.
• c) Hold a meeting with the team leads to determine
dependency and secondary risks.
• d) Update the Risk Register.
… Exercises
5. Which of the following processes has the Risk
Register as the primary output?
• a) Perform Qualitative Risk Analysis
• b) Monitor and Control Risks
• c) Plan Risk Management
• d) Identify Risks
Discussion Exercises
6. During which stage of risk planning are risks
prioritized based on probability and impact?
• a) Perform Qualitative Risk Analysis
• b) Monitor and Control Risks
• c) Planning Risk Management
• d) Identify Risks
… Exercises
7. If the cost of insurance is $10,000, the value of the
property is $100,000, and the probability of loss is ten
percent, then the insurance is ________.
• a) the same as the cost of the probable loss and there
is no advantage
• b) desirable because it will cost less than the probable
losses
• c) undesirable because it costs more than the probable
losses
• d) none of the above
… Exercises
• 8. “Projects deliver change and business value.” Do you
agree? Discuss.
• 9. A risk response strategy used under tool of Strategies
for negative Risks or Threats through which the project
team decides to acknowledge the risk and not take any
action unless the risk occurs is called ...
• i. Mitigate
• ii. Transfer
• Iii. Accept
• Iv. Avoid
… Exercises
• 10. The strategy used under Strategies for Positive
Risks or Opportunities that is used to increase the
probability and/or the positive impacts of an
opportunity is called ...
• i. Share
• ii. Accept
• Iii. Enhance
• Iv. Exploit
… Exercises
11. What is the correct sequence for the
following processes of Project Risk Management:
• 1. Plan Risk Management
• 2. Perform Qualitative Risk Analysis
• 3. Identify Risks
• 4. Perform Quantitative Risk Analysis
• 5. Plan Risk Responses
• 6. Control Risks (continue to next slide)
… Exercises
• A) 1-2-3-4-5-6
• B) 1-3-2-4-5-6
• C) 1-3-4-2-5-6
• D) 3-1-2-4-5-6
12. By looking at the Decision Tree below,
which decision would you take?

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Day 4

Risk Mitigation Planning, Implementation,

Prepared & Presented by

• The first thing you'll want to do is prepare a

A simple five-point scale can be sufficient for

• The next step is to decide what to do about

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