Podcast
Questions and Answers
What is the primary focus of Risk Planning in a project?
What is the primary focus of Risk Planning in a project?
What is the purpose of aligning Risk Management throughout the organization?
What is the purpose of aligning Risk Management throughout the organization?
Which of the following is NOT a Risk Identification Tool or Technique?
Which of the following is NOT a Risk Identification Tool or Technique?
What is the primary purpose of the Nominal Group Technique in Risk Identification?
What is the primary purpose of the Nominal Group Technique in Risk Identification?
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What is the next step in the Risk Management process after Risk Planning?
What is the next step in the Risk Management process after Risk Planning?
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Which of the following Risk Identification Tools or Techniques is used to analyze the cause and effect of a problem?
Which of the following Risk Identification Tools or Techniques is used to analyze the cause and effect of a problem?
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What is the primary goal of Risk Mitigation Strategies?
What is the primary goal of Risk Mitigation Strategies?
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What is the purpose of Qualitative Analysis in Risk Management?
What is the purpose of Qualitative Analysis in Risk Management?
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What is the purpose of STEP 4 in risk management?
What is the purpose of STEP 4 in risk management?
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Which of the following is a risk mitigation strategy?
Which of the following is a risk mitigation strategy?
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What is the purpose of a Risk Response Plan?
What is the purpose of a Risk Response Plan?
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Which of the following is a type of risk reserve?
Which of the following is a type of risk reserve?
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What is the purpose of Risk Reviews?
What is the purpose of Risk Reviews?
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What is the purpose of lessons learned and best practices in risk management?
What is the purpose of lessons learned and best practices in risk management?
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Which of the following is a characteristic of a risk mitigation strategy?
Which of the following is a characteristic of a risk mitigation strategy?
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What is the purpose of STEP 5 in risk management?
What is the purpose of STEP 5 in risk management?
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Which of the following is a risk identification tool?
Which of the following is a risk identification tool?
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What is the primary focus of risk assessment?
What is the primary focus of risk assessment?
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Which of the following is a qualitative approach to risk analysis?
Which of the following is a qualitative approach to risk analysis?
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What is the formula for calculating risk?
What is the formula for calculating risk?
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What determines which risks require a response?
What determines which risks require a response?
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Which of the following is a risk identification tool that involves identifying and mapping possible causes and effects of a problem?
Which of the following is a risk identification tool that involves identifying and mapping possible causes and effects of a problem?
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What is the purpose of a risk check list?
What is the purpose of a risk check list?
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Which of the following is a characteristic of a risk that requires a response?
Which of the following is a characteristic of a risk that requires a response?
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Study Notes
Risk Management Process
- The risk management process consists of five steps: Create a Risk Plan, Identify Risks, Analyze Risks, Develop Risk Strategies, and Monitor and Control Risk.
Step 1 – Create a Risk Plan
- Requires a firm commitment by all stakeholders to the entire Risk Management (RM) approach.
- RM should align throughout the organization.
- Risk Planning focuses on preparation.
- Systematic preparation and planning can help minimize adverse effects on the project while taking advantage of opportunities as they arise.
Step 2 – Identify Risks
- Risk Identification Tools & Techniques:
- Learning Cycles
- Brainstorming
- Nominal Group Technique
- Delphi Technique
- Interviews
- Checklists
- SWOT Analysis
- Cause & Effect (a.k.a.Fishbone/Ishikawa)
- Past Projects
- Risk Identification Framework:
- Funding for the project has been secured
- Funding for the project is sufficient
- Funding for the project has been approved by senior management
- The project team has the requisite skills to complete the project
- The project has adequate manpower to complete the project
- The project charter and project plan have been approved by senior management or the project sponsor
- The project’s goal is realistic and achievable
- The project’s schedule is realistic and achievable
- The project’s scope has been clearly defined
- Processes for scope changes have been clearly defined
Step 2 – Identify Risks through Nominal Group Technique
- 1.Each individual silently writes their ideas on a piece of paper
- 2.Each idea is then written on a board or flip chart one at a time in a round-robin fashion until each individual has listed all of his or her ideas
- 3.The group then discusses and clarifies each of the ideas
- 4.Each individual then silently ranks and prioritizes the ideas
- 5.The group then discusses the rankings and priorities
- 6.Each individual ranks and prioritizes the ideas again
- 7.The rankings and prioritizations are then summarized for the group
Step 3 – Analyze Risks
- Risk assessment focuses on prioritizing risks so that an effective strategy can be formulated for those risks that require a response.
- Risk = f(Probability * Impact)
- Qualitative Approaches:
- Expected Value & Payoff Tables
- Decision Trees
- Risk Impact Table & Ranking
- Tusler’s Risk Classification
- Which risks require a response?
Step 4 – Develop Risk Strategies
- Strategies to respond to opportunities with potential positive impacts on the project goal and objectives:
- Exploitation – attempt to take advantage of the situation
- Sharing of Ownership – e.g.joint partnerships or joint ventures with customers or vendors
- Acceptance – PM and project team members’ minds are open in order to take advantage of opportunities as they arise
- Accept or Ignore
- Management Reserves – Released by senior management
- Contingency Reserves – Part of project’s budget
- Contingency Plans
- Avoidance
- Mitigate – Reduce the likelihood or impact (or both)
- Transfer – e.g.insurance
Step 5 – Monitor and Control Risk
- Risk Audits – External to project team
- Risk Reviews – Internal
- Risk Status Meetings & Reports
- Risk Response Plan:
- A trigger which flags that the risk has occurred
- An owner of the risk (i.e., the person or group responsible for monitoring the risk and ensuring that the appropriate risk response is carried out)
- A response based on one of the four basic risk strategies
- Adequate resources
- Risk Evaluation:
- Lessons learned and best practices help us to:
- Increase our understanding of IT project risk in general.
- Understand what information was available to managing risks and for making risk-related decisions.
- Understand how and why a particular decision was made.
- Lessons learned and best practices help us to:
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Description
Learn about strategies to respond to opportunities with positive impacts on project goals and objectives, including exploitation, sharing of ownership, and acceptance.