PROJECT

PLANNING
PART-III

INSTRUCTOR
RIZWAN RASHEED
 KEY DISCUSSIONS

 Risk Management Plan

 RISK MANAGEMENT PLAN
What is a Risk?
 In project management, risk is any unexpected event that has the potential
to affect the project goals – positive or negative.
 Risks can influence the resources, deliverables, processes, and objectives
of a project.
 Risks can be classified as positive or negative risks according to their
impacts.
 The risk management process includes identification, evaluation,
prioritization, and response.
 RISK MANAGEMENT PLAN

1. Plan Risk Management

 Plan Risk Management is the process of defining how to conduct risk
management activities for a project.
 The key benefit of this process is that it ensures that the degree, type, and
visibility of risk management are proportionate to both risks and the
importance of the project to the organization and other stakeholders.
 This process is performed once or at predefined points in the project.
 RISK MANAGEMENT PLAN

1. Plan Risk Management

 Risk categories. Provide a means for grouping individual project risks. A common
way to structure risk categories is with a Risk Breakdown Structure (RBS), which is a
hierarchical representation of potential sources of risk.
 Technical Risk
 Management Risk
 Commercial Risk
 External Risk
 RISK MANAGEMENT PLAN
2. Identify Risks
 Identify Risks is the process of identifying individual project risks as well
as sources of overall project risk, and documenting their characteristics.
 The key benefit of this process is the documentation of existing
individual project risks and the sources of overall project risk.
 It also brings together information so the project team can respond
appropriately to identified risks.
 This process is performed throughout the project.
 RISK MANAGEMENT PLAN

2. Identify Risks- Risk Register

 The risk register captures details of identified individual project risks.
 The results of Perform Qualitative Risk Analysis, Plan Risk Responses,
Implement Risk Responses, and Monitor Risks are recorded in the risk
register as those processes are conducted throughout the project.
 The risk register may contain limited or extensive risk information
depending on project variables such as size and complexity.
RISK MANAGEMENT PLAN
 RISK MANAGEMENT PLAN

3. Perform Qualitative Risk Analysis

 Perform Qualitative Risk Analysis is the process of prioritizing individual
project risks for further analysis or action by assessing their probability of
occurrence and impact as well as other characteristics.
 The key benefit of this process is that it focuses efforts on high-priority
risks.
 This process is performed throughout the project.
 RISK MANAGEMENT PLAN

Probability and Impact Matrix

Impact and probability are the two main
components of Risk analysis. Looking at
impact versus probability is common in
order to categorize and prioritize risks as
some risks may have a severe impact on
projects objectives but only happen on rare
occasions, while other have a moderate
impact but occur more frequently.
 RISK MANAGEMENT PLAN

5. Plan Risk Responses

 Plan Risk Responses is the process of developing options, selecting strategies, and
agreeing on actions to address overall project risk exposure, as well as to treat
individual project risks.
 The key benefit of this process is that it identifies appropriate ways to address overall
project risk and individual project risks.
 This process also allocates resources and inserts activities into project documents and
the project management plan as needed.
 This process is performed throughout the project.
 RISK MANAGEMENT PLAN
Risk Treatment/Response
A risk treatment is an action that is taken to manage a risk. In general, there are four
types of risk treatment:
Avoid : change your strategy or plans to avoid the risk.
Transfer: Transfer the risk to a third part. For example, purchase fire insurance for an
unfinished building.
Mitigate: Take action to reduce the risk. For example, work procedures and equipment
designed to reduce workplace safety risks.
Accept: Decide to take the risk.
 Key Topics Discussed

Risk Management Plan

 Key Activities

 Risk Register
 Probability and Impact Matrix
 REFERENCES

•A guide to the Project Management Body of Knowledge (PMBOK)

Sixth Edition by PMI
THE END