Project Risk Management (CONEN 523) Course Outline PDF

3/09/2023 LEC 1 - PROJECT RISK MANAGEMENT Topics in Construction Management (CONEN 523) 1 COURSE OUTLINES 1. Risk Management for Construction Projects 2. Value Engineering in Constructi...

3/09/2023 LEC 1 - PROJECT RISK MANAGEMENT Topics in Construction Management (CONEN 523) 1 COURSE OUTLINES 1. Risk Management for Construction Projects 2. Value Engineering in Construction 3. Construction Project Monitoring & Control 4. Construction Project Time Reduction 5. Construction Fast Tracking 6. Introduction to Infrastructure Asset Management (IAM) 7. Developing Policy of IAM & Level of Service (LoS) 8. Human Resource Management 2 1  3/09/2023 COURSE LEARNING OBJECTIVES Evaluate project performance with respect to budgets and schedules (ABET SO1) Apply crashing and fast-tracking to reduce project duration with minimal costs (ABET SO1) Analyze the policy of Infrastructure Asset Management (ABET SO 1) Evaluate the Level of Service of an Asset (ABET SO1) Apply value engineering concept to make decisions about cost-effective products (ABET SO 4) Assess risks qualitatively & quantitatively and manage possible project risks (ABET SO4) Develop integrated human resource management system in construction. (ABET SO5) 3 ASSESSMENT PLAN Tasks Grade Assignments 5% Quizzes 20% Mid-terms 40 Final 35% 4 2  3/09/2023 LEC 1 - PROJECT RISK MANAGEMENT Topics in Construction Management (CONEN 523) 5 TOPIC OUTLINE Introduction Risk Management planning Risk Identification Risk Assessment Risk Mitigation Risk Monitoring and Control 6 3  3/09/2023 I - INTRODUCTION 7 TABLE 11-1. PROJECT MANAGEMENT MATURITY BY INDUSTRY GROUP AND KNOWLEDGE AREA* KEY: 1 = LOWEST MATURITY RATING 5 = HIGHEST MATURITY RATING Engineering/ Telecommunications Information Hi-Tech Knowledge Area Construction Systems Manufacturing Scope 3.52 3.45 3.25 3.37 Time 3.55 3.41 3.03 3.50 Cost 3.74 3.22 3.20 3.97 Quality 2.91 3.22 2.88 3.26 Human Resources 3.18 3.20 2.93 3.18 Communications 3.53 3.53 3.21 3.48 Risk 2.93 2.87 2.75 2.76 Procurement 3.33 3.01 2.91 3.33 *Ibbs, C. William and Young Hoon Kwak. “Assessing Project Management Maturity,” Project Management Journal (March 2000). 8 4  3/09/2023 DEFINITIONS What is Risk ? “an uncertain event or condition that, if it occurs, has a positive or negative effect on at least one project objective” (PMI, 2013) 9 RISK CAN BE POSITIVE? There are two types of risk: 1. Negative risk, called also threat which has negative impact on the project 2. Positive risk, called also opportunity which has positive impact on the project 10 5  3/09/2023 RISK AND UNCERTAINTY Risk Uncertainty Uncertain event that Risk affects objectives 11 RISK AND ISSUE – An Issue is a situation or circumstance that has occurred, is occurring, or has a 100% probability of occurring; and will have a detrimental impact on a program’s schedule, cost, customer satisfaction, technical or quality objectives – Issues can be initiated as a result of findings or failure to mitigate risks. 12 6  3/09/2023 HOW RISK CAN AFFECTS YOUR PROJECT? PROJECT MANAGEMENT INTEGRATION INFORMATION / SCOPE COMMUNICATIONS Life Cycle and Expectations Environment Variables Ideas, Directives, Data Feasibility Exchange Accuracy Risk affects all aspects of your QUALITY Requirement s Standards PROJECT Availability Productivity HUMAN RISK RESOURCE project – budget/Cost , schedule, scope, quality, and etc… Services, Plant, Materials: Time Performance Cost Objectives, Objectives, Constraints Restraints CONTRACT / TIME COST PROCUREMENT 13 RISK PARAMETERS 1. Likelihood / Probability: It is the chance of a risk / an event to occur - the chance of having face every time you toss a coin is 50%. When the probability/Likelihood of an event is same as zero, then the event is said to be impossible. When the probability/Likelihood is same as one then the event is said to be sure or certain. In both case, it is not a risk a.k.a. a certain / impossible event is not a risk. 14 7  3/09/2023 RISK PARAMETERS 2. Consequence/impact: It is the cost of a risk/an event if it does occur. - the cost of breaking your phone is the cost of new screen and its replacement fee. When the Cost/ Impact of an event is same as zero, then the event is free of charge. When the Cost/Impact is infinity then the event is said to be act of God ( i.e. earthquake). In both case, it is not a risk a.k.a. a risk should have limited positive/negative cost that can be evaluated or quantified. 15 WHY RISK MANAGEMENT IS IMPORTANT? “Risk Management is required to increase the probability and impact of positive events (i.e. Opportunities), and decrease the probability and impact of negative events (i.e. threats) adverse to the Project.” 16 8  3/09/2023 WHAT IS RISK MANAGEMENT Identifying, analyzing, prioritizing, and responding to risk events Integration of risk management activities into your other project management functions Developing responses to risk to meet your project objectives Project risk management is a PROACTIVE ,not reactive, process 17 RISK MANAGEMENT PROCESS 18 9  3/09/2023 RISK MANAGEMENT PROCESSES Risk Planning – this is how you plan on conducting risk management. You wouldn’t start managing your project without a plan, so why would you approach risk management that way? Identify Risks – this is the phase where you attempt to identify most of your risks Qualitative analysis – this is a subjective analysis of your risks that produces a risk ranking, usually in the order of high, medium, low, or on an ordinal scale. Rankings are by agreement of your project team, sponsors and key stakeholders 19 RISK MANAGEMENT PROCESSES Quantitative Analysis – a numerical analysis of the probability and impact of the risk on your project Plan Risk Response– a course of action you will take to deal with your risks should they go from risk to issue Monitor & Control Risks – monitoring your lists (there are two lists which I will discuss later) of risks to enact a risk response plan, to move a risk from one list to the other, or to remove a risk because it is no longer a risk. 20 10  3/09/2023 TERMS AND CONCEPT Uncertainty: a lack of knowledge about an event that reduces confidence Risk averse: someone who does not want to take risks. Risk Prone – Someone who is willing to take big risk Risk tolerances: area of risk that are acceptable / unacceptable. Risk thresholds: the point at which a risk become unacceptable Risk Areas: Project Constraints (scope, time, cost, etc) 21 II – RISK MANAGEMENT PLANNING 22 11  3/09/2023 RISK MANAGEMENT PLANNING The process concerned with producing the risk management plan focusing on how risks will be approached on the project. Input s Tools & Techniques Outputs 1. Project management plan 1. Analytical techniques.1 Riskmanagement plan 2. Project charter 2. Expert j udgment 3. Stakeholder register 3. Meetings 4. Enterprise environmental factors 5. Organizational process assets Source: PMBOK 5th Edition 23 RISK MANAGEMENT PLAN - COMPONENTS  Methodology Defines the tools, approaches, and data sources that may be used to perform risk management on the project.  Budgeting A budget for project risk management should be established and included in the risk management plan.  Role & Responsibility Defines the lead, support, and risk management team membership for each type of action in the risk management plan. 24 12  3/09/2023 RISK MANAGEMENT PLAN - COMPONENTS  Timing Defines how often the risk management activities will be performed throughout the project life cycle.  Risk categories Documentation such as risk breakdown structures (RBSes) or categories from previous projects will help identify and organize risks.  Definitions of risk Risks and their probabilities are probability & impact defined for use in Qualitative Risk Analysis using a scale of ―very Unlikely to ―almost certain. 25 RISK MANAGEMENT PLAN - COMPONENTS  Stakeholder tolerances – Stakeholders have a low risk tolerance than impact is high. That information should be taken into account to rank cost impacts higher than if the low tolerance was in another area. Tolerances should not be implied, but uncovered in project initiating and clarified or refined continually.  Reporting – Describes reports related to RM and how they will be used and what they will include.  Tracking – Auditing, documentation regarding RM 26 13  3/09/2023 RISK CATEGORIES - (RBS) RBS is very Important. It helps in the identification process of risks. 27 DEFINITION OF RISK PROBABILITY AND IMPACT Example 28 14  3/09/2023 QUIZ An uncommon state of nature, characterized by the absence of any information related to a desired outcome” , is a common definition for: A. An act of God B. An amount at stake C. Uncertainty D. Risk aversion 29 III – RISK IDENTIFICATION 30 15  3/09/2023 RISK IDENTIFICATION - DEFINITION The risk identification process on a project where potential risks associated with the project will be identified. This process typically uses one method of the common risk identification techniques including : 31 QUIZ Who should be involved in Risk Identification process? A. Higher Management personals B. Project Management Team C. Project Manager along with Functional Managers D. All Project team members 32 16  3/09/2023 RISK IDENTIFICATION – TOOLS AND TECHNIQUES There are several techniques that can be 6. Checklists Analysis used for risk identification. the common 7. SWOT Analysis risk identification techniques including : 8. Assumption Analysis 1. Brainstorming 9. Influence Diagram 2. Documentation Review 10. Cause and effect Diagram 3. Delphi Techniques 11. Flowcharts 4. Interviewing 12. Others 5. Root Cause Analysis 13. Combination of two or more techniques 33 RISK IDENTIFICATION – THINGS TO REMEMBER Identify Risks can’t be completed without the project scope statement and Work Breakdown Structure (WBS) Identify Risks happens at the onset of the project and throughout the project Risks can be identified at any time and during any phase of the project Risk management is an iterative process, you should work to identify risk during any changes to the project, working with resources, and when dealing with issues 34 17  3/09/2023 QUIZ Risk tolerances are determined in order to help …………. A. the team rank the project risks. B. the project manager estimate the project. C. the team schedule the project. D. management know how other managers will act on the project. 35 RISK IDENTIFICATION – TOOLS AND TECHNIQUES 36 18  3/09/2023 RISK IDENTIFICATION - OUTPUT Risk Register is the output of the risk identification process. A typical risk register at the risk identification phase may include the following: Effect Risk Number Entry Date Risk Category Cause (If this happens…) (Then this may happen…) Date and Time 1.0 11-Jan-08 2.0 11-Jan-08 Technical/ Design Project Mgmt Risk cause 1 Risk cause 2 Risk cause 1 Risk cause 2 Risk Type / Category 3.0 11-Jan-08 4.0 11-Jan-08 Development Development Risk cause 3 Risk cause 4 Risk cause 3 Risk cause 4 Root causes of risks 5.0 12-Mar-08 Supply Chain 6.0 12-Mar-08 Mfg/ Risk cause 5 Risk cause 6 Risk cause 5 Risk cause 6 Operations Risk Effect 7.0 19-Mar-08 Supply Chain 8.0 19-Mar-08 Technical/ Risk cause 7 Risk cause 8 Risk cause 7 Risk cause 8 Design 37 CLASS ACTIVITY I Use any of the information gathering techniques (i.e. Brainstorming) to identify five cost risks associated with a construction project? 38 19  3/09/2023 IV – RISK ASSESSMENT 39 ANALYSIS AND PRIORITIZATION IS A MUST? At the beginning of the project When: – A new risk is identified – An existing risk changes – Influential factors change – New information surfaces – The customer proposes a change – Market conditions change – Significant personnel leave the project 40 20  3/09/2023 RISK ASSESSMENT – QUALITATIVE ANALYSIS Qualitative Risk Analysis – prioritizing risks for subsequent further analysis or action by assessing and combining their probability of occurrence and impact. (PMI, 2013) Uses subjective values like high, medium, and low or other combinations Requires common understanding of preferred ranking system 41 RISK ASSESSMENT – QUALITATIVE ANALYSIS Tools and Techniques Outpu ts 1. Risk management plan 1. Risk probabil[ty and.1 Project documents 2. Scope baseline impact assessment updates 3. Risk register 2. Probability and impact 4. Enterprise environmental matrix factors 3. Risk data quality.5 Organizat,ional process assessment assets 4. Risk categorization 5. Risk urgency assessment 6. Expert judgment 42 21  3/09/2023 RISK ASSESSMENT – TOOLS AND TECHNIQUES Probability & Impact Matrix – a matrix that creates a consistent evaluation of high, medium, or low for your projects. This helps to make the risk rating process more repeatable between projects. Risk Data Quality Assessment – What is the quality of the data used to determine or assess the risk? Think about the following Extent of the understanding of the risk Data available about the risk Quality of the data Reliability & Integrity of the data 43 RISK ASSESSMENT – TOOLS AND TECHNIQUES Risk Categorization – Which of your categories has more risk than others? Which of your work packages could be most affected by risk? Risk Urgency Assessment – Which of your risks could occur soon, or require a longer planning time? Risk urgency assessment helps move these risks more quickly through the rest of the project management process 44 22  3/09/2023 RISK ASSESSMENT – QUALITATIVE ANALYSIS Risk Matrix is the common method that is used for qualitative analysis the matrix could be any dimension however the most common is 3x3 and 5x5 Probability Impact (Select the column that the risk impacts the most): Schedule Cost Scope 5 Risk may prevent “On Risk may impact Risk may result in a shortfall in > 50% 5 Time Delivery” of Key project NRC budget operational performance that will NOT be High High Customer Milestones. in the order of 10%. accepted by Customer. Risk may result in a Customer 3 Risk may incur schedule Risk may impact 10% to 50% 3 Specification non compliance, but overall slippage, but within project NRC budget Med. Med. operational performance will be accepted Customer Milestones. in the order of 2%. by Customer. 1 Risk may have a Risk may have < 10% 1 Risk will not impact on any Customer negligible impact on negligible impact on Low Low Specification compliance. schedule. project budget. 45 RISK ASSESSMENT – QUALITATIVE ANALYSIS 𝑹𝒊𝒔𝒌 𝑺𝒄𝒐𝒓𝒆 𝑷𝒓𝒐𝒃𝒂𝒃𝒊𝒍𝒊𝒕𝒚 𝑰𝒎𝒑𝒂𝒄𝒕𝒔 Probability Risk Score: 5 10 15 20 25 5 Very Likely >75% Chance 5 4 51-75% Chance 4 4 8 12 16 20 Probability 3 26-50% Chance 3 6 9 12 15 3 2 10-25% Chance 2 4 6 8 10 2 1 Unlikely 2 Mon. Slip Impact 4 Some Impact - Redesign Minor Components, 1-2 Mon. Slip 3 Some Impact - Min. redesign, 2-4 Wk. Slip 2 Some Impact - Min. redesign, 0-2 Wk. Slip 1 Minimal - No redesign or Schedule Impact Standard criteria should be part of the business risk management procedure 46 23  3/09/2023 RISK ASSESSMENT - CONSIDERATIONS Risks can interact in unanticipated ways A single risk can cause multiple effects Opportunities for one may be a threat to another Mathematical tools can create a false impression of precision andreliability 47 RISK ASSESSMENT – OUTPUT The output of the qualitative assessment includes: Ranked risks Prioritized risks Updated risk register 48 24  3/09/2023 CLASS ACTIVITY II 1. Use the five cost risks identified in activity I and do the qualitative analysis of your risk using the risk matrix shown below ? 2. Identify among those five need to be managed assuming that the company response to the risk that high moderate risk score or higher? 3. prioritize those risks? Risk Score: 5 10 15 20 25 5 Risk Score 4 8 12 16 20 Extremely High 4 Probability High 3 3 6 9 12 15 Moderate 2 2 4 6 8 10 Low 1 2 3 4 5 1 Extremely Low 1 2 3 4 5 Impact 49 RISK ASSESSMENT – QUANTITATIVE ANALYSIS Quantitative Risk Analysis – Quantitative Risk Assessment (QRA) or Probabilistic Risk Assessment (PRA) as it is sometimes known, a numerical estimate is made of the probability that a defined harm will result from the occurrence of a particular event. It is a numerical evaluation of the risk (i.e. more objective) This process may be skipped. 50 25  3/09/2023 RISK ASSESSMENT – QUANTITATIVE ANALYSIS Purpose of this process Determine which risk events warrant a response. Determine overall project risk (risk exposure). Determine the quantified probability of meeting project objectives. Determine cost and schedule reserves. Identify risks requiring the most attention. Create realistic and achievable cost, schedule, or scope targets. 51 RISK ASSESSMENT – QUANTITATIVE ANALYSIS Input s Tool s 8c Techniques Outputs 1. Risk management plan 1. Data gathering and.1 Project documents 2. Cost management plan representation updates 3. Schedule management techniques plan 2. Quantitative risk analysis 4. Risk register and modeling techniques 5. Enterprise environmental 3. Expert judgment factors 6. Organizational process assets 52 26  3/09/2023 RISK ASSESSMENT – QUANTITATIVE ANALYSIS EMV – Expected Monetary Value – What is the probability of the risk occurring multiplied by the impact if the risk does occur? If the risk occurs, what could the financial or time loss be to your project? In the example below, this project has an EMV of ($58,250), this means that you need to put aside $58,250 in your risk reserve account for potential risks Risk Probability Impact EMV A 20% $ (100,000.00) $(20,000.00) B 90% $ 10,000.00 $ 9,000.00 C 5% $ 30,000.00 $ 1,500.00 D 65% $ (75,000.00) $(48,750.00) Total $(58,250.00) 53 QUIZ If a project has a 60% chance of a US $ 100,000 profit and a 40% chance of a US $ 50,000 loss, the expected monetary value for the project is : A. $ 100,000 profit B. $ 60,000 loss C. $ 20,000 profit D. $ 40,000 loss 54 27  3/09/2023 RISK ASSESSMENT – QUANTITATIVE ANALYSIS Decision Tree – used for planning on individual risks instead of planning for the whole project Takes into account future events to make a decision today Can calculate the EMV in more complex situations Involves mutual exclusivity 55 RISK ASSESSMENT – QUANTITATIVE ANALYSIS Monte Carlo Analysis – A technique that uses simulation to show the probability of completing your project on time and within budget. Determines the overall risk of the project, not the task Determines the probability of completing the project on a specific day and for a specific cost Takes into account path convergence (places in the network diagram where many paths converge into one activity) Used to evaluate the impact to your schedule and budget Due to the complicated mathematical computations used, Monte Carlo analysis is usually done with a computer program Creates a probability distribution – triangular, normal, beta, uniform or lognormal 56 28  3/09/2023 RISK ASSESSMENT – OUTPUT Risk Register Updates Prioritized list of quantified risks Amount needed for contingency reserves for time and cost Confidence levels of completing the project on a certain date for a certain amount of money The probability of delivering the project objectives 57 RISK ASSESSMENT – CONTINGENCY Contingency- Since risk in construction project is unavoidable , contingency is often used for risk management for an exceptional risk that, though unlikely, would have catastrophic consequences. Contingency plans are often devised by governments or businesses. For example, suppose many employees of a company are traveling together on an aircraft which crashes, killing all aboard. The company could be severely strained or even ruined by such a loss. 58 29  3/09/2023 EXAMPLE OF QUANTITATIVE ANALYSIS OUTCOMES What are the risks that are most likely to cause trouble? To affect the critical path? That need the most contingency reserve? “The project requires another 50,000 and two months of time to accommodate the risks on the project?” “We are 95 percent confident that we can complete this project on May 25th for $989,000 budget?” “We only have a 75 percent chance of completing the project within the $800,000 budget.” 59 CLASS ACTIVITY III 1. Using the data obtained in Class Activity I and Class Activity II to perform the quantitative analysis of the prioritized risks using EMV method? 2. Calculate the cost contingency required for the project? 60 30  3/09/2023 V – RISK MITIGATION 61 RISK MITIGATION Risk Mitigation – It is the process by which an organization introduces specific measures to minimize or eliminate unacceptable risks associated with its operations. Risk mitigation measures can be directed towards reducing the severity of risk consequences, reducing the probability of the risk materializing, or reducing the organizations exposure to the risk. (Source: http://www.investorwords.com/19332/risk_mitigation.html#ixzz5ccox1LjR) 62 31  3/09/2023 RISK MITIGATION PROCESS Input s Tools 8c Techniques Outputs 1. Risk management plan 1. Strategies for negative 1. Project management plan 2. Risk register risks orthreats updates 2. Strategies for positive 2. Project documents risks oropportunities updates 3. Contingent response strategies 4. Expert judgment 63 RISK MITIGATION – TOOLS AND TECHNIQUES STRATEGIES FOR NEGATIVE RISKS OR THREATS Avoidance  Risk prevention  Changing the plan to eliminate a risk by avoiding the cause/source of risk  Protect project from impact of risk Mitigation  Seeks to reduce the impact or probability of the  risk event to an acceptable threshold  Be proactive: Take early actions to reduce impact/probability and don’t wait until the risk hits your project 64 32  3/09/2023 RISK MITIGATION – TOOLS AND TECHNIQUES STRATEGIES FOR NEGATIVE RISKS OR THREATS Transfer  Shift responsibility of risk consequence to  another party  Does NOT eliminate risk  Most effective in dealing with financial exposure 65 RISK MITIGATION – TOOLS AND TECHNIQUES STRATEGIES FOR POSITIVE RISKS OR OPPORTUNITIES Exploit: Ensure opportunity is realized Enhance: Increase the probability and/or the positive impact of the opportunity Share: Allocating some or all of the ownership to third part best able to capture the opportunity 66 33  3/09/2023 RISK MITIGATION – TOOLS AND TECHNIQUES STRATEGIES FOR BOTH THREATS AND OPPORTUNITIES Acceptance: It is a strategy to accept the risk however, there are two types of acceptance: Active Acceptance: Develop a contingency plan to execute if the risk occur Contingency plan = be ready with Plan B Fall back plan = plan C if B fails Passive Acceptance Deal with the risks as they occur = Workarounds Usually for low ranked risks 67 RISK MITIGATION - FRAMEWORK Risk Opportunities Threats Accept Exploit Avoid Transfer Enhanc e Active Passive Mitigate Share Contingenc Fallback y Plan Workaround Plan 68 34  3/09/2023 RISK MITIGATION – OUTPUT Updates to Risk Register Residual Risks – risks that are left over after Plan Risk Response Contingency Plans – plans of action in case the risk does occur Risk Response Owners – the person on the team responsible for monitoring the risk, risk triggers, developing a response strategy, and implementing the strategy should the risk occur Secondary Risks – new risks that result from the implementation of the contingency plans for the primary risks 69 RISK MITIGATION – OUTPUT Updates to Risk Register Risk Triggers – early warning signs that there is a high probability the risk will occur Fallback Plans – a secondary contingency plan, in case the contingency plan does not work or is not effective Reserves – There are two types of reserves: Contingency reserves – covers the cost for ‘known unknowns’ discovered during risk management; covers the residual risks. The contingency reserve is calculated and made part of the baseline. Management reserves – these are estimated and made part of the project budget, not the baseline. Management approval is needed to use the management reserve. 70 35  3/09/2023 RISK MITIGATION – OUTPUT 71 QUIZ Replacing a doubtful supplier with an expensive but reliable one is an example of: A. Mitigation B. Transference C. Acceptance D. Avoidance 72 36  3/09/2023 QUIZ A Reserve is generally intended to be used for: A. Rework activities. B. Compensate for inaccurate project cost estimates. C. Reducing the risk of missing the cost or schedule objectives. D. Compensate for inaccurate project schedule estimates. 73 CLASS ACTIVITY IV 1. Select a risk response / mitigation strategy for each of your risk? 2. re-evaluate the probability, impact and risk score after mitigation? 3. Calculate the contingency reserve required for the project? 74 37  3/09/2023 VI – RISK MONITORING AND CONTROL 75 RISK MONITORING AND CONTROL Monitoring and Control is the process of: implementing risk response plans tracking identified risks monitoring residual risks identifying new risks and evaluating risk process effectiveness throughout the project – risk audit. 76 38  3/09/2023 RISK MONITORING AND CONTROL Tools 8c Techniques Outputs 1. Project management plan 1. Risk reassessment 1. Work performance 2. Risk register 2. Risk audits information 3. Work performance data 3. Variance and trend 2. Change requests.4 Work performance analysis 3. Project management plan reports 4. Technical performance updates measurement 4. Project documents 5. Reserve analysis updates 6. Meetings 5. Organizational process assets updates 77 RISK MONITORING AND CONTROL – TOOLS AND TECHNIQUES Workaround – a response to a risk that has occurred when no contingency plan exists. Risk audit – a team of experienced project team members reviews the risk management process and response strategies to see if you’ve effectively identified the major risks on the project and developed effective strategies for dealing with them. 78 39  3/09/2023 RISK MONITORING AND CONTROL – TOOLS AND TECHNIQUES Risk Reassessment – Risk management is iterative, you should review the risks on your project throughout the project to update their qualitative and quantitative values. Status meetings – status meetings should be used to identify new risks or changes to existing risks. This is a great opportunity to discuss with your team and stakeholders existing risks and new risks. Reserve analysis – has the reserve kept up with changes to the risk list? Does the reserve still cover the costs of these risks should they occur? 79 RISK MONITORING AND CONTROL – TOOLS AND TECHNIQUES Closing of risks – Risks are expected to happen during a particular phase of the project. When that phase has passed and the risk is no longer probable, the risk should be removed from the risk list and any reserve associated should be freed up. Updates to Risk Register  Outcomes of the risk reassessments and risk audits  Closing of risks that are no longer applicable  Details of what happened when risks occurred  Lessons learned 80 40  3/09/2023 RISK MONITORING AND CONTROL – TOOLS &TECHNIQUES 81 CLASS ACTIVITY V Assume that everything is going as planned and mitigation strategy worked well update the new score after the implementation of the select mitigation strategy to response to the risk of the risks in previous activity? 82 41  3/09/2023 83 42