ITPROF 2 Project Management PDF

ITPROF 2 – PROJECT MANAGEMENT Reduce the impact if the risk occurs Transfer risk to a third party (e.g., insurance) Introduction to Risk Management Develop contin...

ITPROF 2 – PROJECT MANAGEMENT Reduce the impact if the risk occurs Transfer risk to a third party (e.g., insurance) Introduction to Risk Management Develop contingency plans Risk management: A process enabling Accept the risk and deal with outcomes (based understanding and management of activities on probability and impact assessment) and events within a project Key Artifacts in Risk Management Ensure successful project outcomes by Risk Management Plan: reducing threats and increasing opportunities Details the entire risk management "Risk management is about anticipating what process for an organization might not go to plan and putting in place actions Set up at project start and routinely required to either reduce the uncertainty to a accessed/updated tolerable level or prevent them from happening Risk Register (Risk Log): entirely" Repository for documenting, analyzing, and tracking risks Projects are inherently risky, risk management Includes impact, likelihood, and helps maintain control and enables appropriate prioritization of risks responses Provides visual overview for project The Risk Management Process managers Identify Risks: Recognize potential issues that Tools for Risk Management could affect project outcomes Project management software (e.g., Analyze Risks: Assess likelihood and impact of Smartsheet) each identified risk Spreadsheet software (e.g., Microsoft Excel) Communication tools (e.g., Microsoft Teams, Plan Responses: Develop strategies to handle Outlook) potential risks Templates for quick risk register creation Take Action: Implement planned strategies to Risk analysis and modeling software mitigate or avoid risks Note: A risk is anything that can affect a project's outcome, including - These tools help create artifacts, analyze risks, scope, cost, or quality and facilitate communication Key Activities in Risk Management Benefits of Risk Management Identify risks proactively Easier identification of troubled projects Establish probability of each risk occurring Fewer surprises for project stakeholders Understand potential impact of risks Better data quality to drive decisions Plan appropriate responses Reduced guesswork in project management Track and monitor risks throughout the project Clearer expectation setting lifecycle Improved team focus Communicate risks and responses to all project Faster and easier decision-making and stakeholders escalations Lower uncertainty and increased project Risk Management Strategies control Remove the risk entirely (prevention) Reduce the likelihood of risk occurrence Example 1: Coffee Shop Risk Management Review of historical data from similar projects Scenario: Opening a new coffee shop location Expert interviews risk: Low customer traffic strategy: Mitigate risk Delphi technique (anonymous expert opinions) by: Root cause analysis Checklist analysis based on industry standards Choosing a location with high foot traffic Selecting an area with few competing coffee Risk Assessment Matrix shops Tool for prioritizing risks based on probability Analyzing similar successful stores in the and impact vicinity Typically uses a 3x3 or 5x5 grid Axes: Probability (Low to High) and Impact (Low - This approach helps reduce the risk of business to High) failure due to poor location choice Helps visualize which risks need immediate attention Example 2: Outdoor Activity Center Risk Example categories: Management Low risk (Green): Low probability, low Scenario: Weather-dependent business Risk: impact Financial loss during bad weather seasons Medium risk (Yellow): Medium Strategies: probability, medium impact High risk (Red): High probability, high Consistently maintain low spending during impact risky periods Build up cash reserves to cover potential losses Risk Response Planning Diversify activities to include indoor options For each significant risk, develop a response Offer weather insurance for bookings plan: Risk description These strategies help mitigate the financial Potential impact on project objectives impact of unpredictable weather patterns Warning signs or triggers Response strategy (avoid, transfer, mitigate, or Risk Management Best Practices accept) Record, analyze, and monitor risks consistently Specific actions to implement the strategy Understand the situation thoroughly before Resource requirements planning Responsible team member Plan ahead for potential risks Timeline for implementation Take action based on risk analysis and plans Review and adjust strategies as the project progresses Implement risk management from project initiation to conclusion Risk Identification Techniques Brainstorming sessions with project team SWOT analysis (Strengths, Weaknesses, Opportunities, Threats)