Project Risk Analysis and Quality

Assurance
MSPM1-GC2020.100
The Session Number 3
 Planning for Project
Management Risk
MSPM1-GC2020.100

Elements of the project risk can impact

Agenda Levels of risk
Risk project planning Getting started
Risk management criteria
Barriers to success
Tools and techniques
Elements of a good risk plan
Examples of risk plan formats
Exercise

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 Planning for Project
Management Risk
MSPM1-GC2020.100

• Risk and lack of risk management

• Types of risk
• Levels of risk
Review • Benefits of project risk management
• Critical success factors
Sessions 1 & 2 • Project Risk Management Process
• Project Managers Role
• What is quality?
• Who is the judge of quality?
• Quality management process
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 Introduction and Overview
MSPM1-GC2020.100

Six Component Representation

Bottom line – a project that adds value to its stakeholders

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Risk
What is risk?
Lack of risk management
• Crisis management
• reactive

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 Introduction and Overview
MSPM1-GC2020.100

Benefits of Project Risk Management

• Reduced chaos
• Rapid, pre-planed response
• lifeboat drill
• CYA
• Senior management awareness
• Focus on the most important risks

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Project Risk Management

Key factors
• Uncertainty – probability
• Effect - impact

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Project Risk Management

Types of risk
• Known
• Known – unknown
• Unknown - unknown

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Project Risk Management

Levels of Risk
• Individual risks
• Overall project risks

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Project Risk Management

Critical Success Factors
• Recognize the value of risk management
• Individual commitment/responsibility
• Open and honest communications
• Organizational commitment
• Risk effort scaled to the project
• Integration with the project
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 Planning for Project
Management Risk
MSPM1-GC2020.100

Project Risk Management

Common Mistakes
• Not understanding the benefits
• Not providing adequate time for risk management
• Not using the standard approach – process
• Lack of commitment by stakeholders
• stakeholder responsibility

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Project Risk Management

The Process
• Plan Risk Management
• Identify Risks
• Perform Qualitative Risk Analysis
• Perform Quantitative Risk Analysis
• Plan Risk Responses
• Produce Risk Management Plan PMI – Practice and Standard
for Project Risk Management

• Monitor and Control Risks 12

 Planning for Project
Management Risk
MSPM1-GC2020.100

Project Risk Management

Project Managers Role
• Encourage senior management support
• Determine acceptable levels of risk
• Develop risk plan
• Promote the Project Management Risk process
• Facilitate good, open and honest communications
between team, management, and stakeholders
• Participate in all aspects of the Project Risk
Management process PMI – Practice and Standard

• Approve risk response and actions for Project Risk Management

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Project Risk Management

Project Managers Role cont.
• Apply project contingency funds
• Oversee risk management by subcontractors and
suppliers
• Regularly report risk status
• Escalate identified risks to senior management
• Monitor the Project Risk Management process
• Audit risk responses
PMI – Practice and Standard
for Project Risk Management

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 Introduction and Overview
MSPM1-GC2020.100

Quality
What is quality?
• Appearance
• Form and function
• Durability/ reliability
• Service
• Brand

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 Introduction and Overview
MSPM1-GC2020.100

Who is the judge of quality?

The customer
And who is the customer?

In the end….Your project will be judged on its quality

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 Introduction and Overview
MSPM1-GC2020.100

Project Quality Management

Focus on product and process
Quality planning
Quality assurance
Quality control

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Planning for Project Risk

Uncertainty is inevitable

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Planning for Project Risk

Elements of the project risk can impact
• Estimating resource requirements, cost, or duration
• Assessing the impact of proposed scope changes
• Planning or re-planning the strategy of the project
• Allocating resources to tasks
• Reporting progress to stakeholders and management

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Planning for Project Risk

Elements of the project risk can impact
• Estimating resource requirements, cost, or duration
• Assessing the impact of proposed scope changes
• Planning or re-planning the strategy of the project
• Allocating resources to tasks
• Reporting progress to stakeholders and management
Risks exist only in relation to the components of the project
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 Planning for Project
Management Risk
MSPM1-GC2020.100

Planning for Project Risk

Different projects have different levels of risk
Areas impacted
• Available resources
• Methodology and processes used
• Tools and techniques used
• Supporting infrastructure
• Review and update frequency
• Reporting requirements
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 Planning for Project
Management Risk
MSPM1-GC2020.100

Planning for Project Risk

Start with the ignition step for a common
understanding of scope and objectives
• Define objective against risks will be identified
• Determine how the elements of the risk process
will be scaled for this project
• Define risk threshold and tolerances

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Planning for Project Risk

Purpose and Objective

• Develop an overall risk management strategy

• Creation of a Risk Management Plan

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Planning for Project Risk

Critical Success Factors
• Acceptance by stakeholders
• Involve project stakeholders
• Clear definition of project objectives
• Alignment with external and internal
constraints and practices
• Balance between cost and benefit
• An integral part of the project

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Planning for Project Risk

Strategies for positive risks
• Exploit
• Enchase
• Share
• Accept

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Tools and Techniques

• Planning sessions
• Risk Management Plan

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Tools and Techniques

Planning Sessions
• Team
• Vendors
• Stakeholders
• Management

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Risk Management Plan

Elements
• Introduction
• Project definition
• Risk management methodology
• Risk management organization
• Roles, responsibilities, authority
• Stakeholder risk tolerance
• Risk breakdown structure
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 Planning for Project
Management Risk
MSPM1-GC2020.100

Risk Management Plan

Elements (cont)

• Criteria for success

• Risk management tools
• Threshold and definitions
• Templates
• Communications plan
• Strategy
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 Planning for Project
Management Risk
MSPM1-GC2020.100

Risk Management Plan

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Risk Management Plan

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Risk Management Plan

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Risk Management Plan

Essential Elements
• Event - identify risks
• Consequences
• Probability
• Impact
• Priority
• Mitigation Response
• Contingency 33
 Planning for Project
Management Risk
MSPM1-GC2020.100

EXERCISE
For the Case Study

• Evaluate elements of the Risk Plan

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 Planning for Project
Management Risk
MSPM1-GC2020.100

Elements of the project risk can impact

Levels of risk
Recap Getting started
Risk management criteria
Session 3 Barriers to success
Tools and techniques
Elements of a good risk plan
Examples of risk plan formats
Exercise

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