This document discusses project risk management. It begins by defining risk as an uncertain event that could affect a project's objectives. It emphasizes the importance of risk identification as the first step in risk management. Several methods for identifying risks are presented, including meetings, brainstorming, and assumptions analysis. The document then discusses risk analysis, including qualitative and quantitative approaches. It introduces the risk matrix as a key tool for analysis. The final sections cover selecting appropriate risk responses and controlling risks ongoing. Throughout, examples are provided and exercises proposed to help explain the concepts.
3. What is Risk…?
02/21/18
Statement Risk (Yes / No)
I have not taken my exams and I think I will not be
able to move to next class this year
I worked very hard, there is chance that I might
secure first position in exams
Project Manager has resigned
Fuel prices might increase further after next year
budget
Labor from project A might be available for Project B
4. An uncertain event which, should it occur, will have an
effect on the achievement of the projects objectives
02/21/18
Is it possible to have no Risks in our lives or in project or in business……?
Statement
USA might experience extreme winter next year
PML(N) may not come in power after next elections
USD – Kuwaiti Riyal exchange rate might change
Uncertainty
Impact (positive
or negative)
What is Risk…?
Do all events matter…?
10. 02/21/18
Let’s Identify Risks…?
A Risk cannot be managed unless it is identified
But why…?
What’s the big
deal…?
Risk identification is considered the most important step in Risk Management
19. 02/21/18
Let’s Analyze Identified Risks…?
Usually applied in most of the projects
May not be applied to many simple or
moderately complex projects
Consider all the risks identified in the identify
risk process
only considers the risks which are marked for
further review after Qualitative Risk Analysis
Does not analyze the risks mathematically
Stakeholders inputs (expert judgment) are used
to judge the probability and impact
Uses the mathematical and simulation tools to
calculate the probability and impact
Assesses individual risks by assigning numeric
ranking of probability and impact, usually the
rank of 0 to 1 is used where 1 demonstrates high
This predicts likely project outcomes in terms of
money or time based on combined effects of
risks
21. 02/21/18
Exercise # 02: On the given Risk Register format, analyze the identified risks
Let’s Analyze Identified Risks…?
S. No.
Risk Identification Risk Analysis Risk Response
Monitoring &
Control
Cause Risk Effect
Inherent Risk
Action Plan Timeline
P I P x I
1
Due to delay in
shipment
delivery of major
equipment may get
late
which might effect
Project COD
2
Due to rise in safety
incident
work at site may get
suspended
resulting in overall
project delay
22. 02/21/18
What is Risk Management…?
Next is “Selecting appropriate
Responses to Analyze Risks”..!
23. ■ To determine the set of actions, which increases the impact or
likelihood of opportunities and decrease the impact of likelihood of
threats
■ Risk Action Owner shall be assigned with clear responsibilities
■ Response Trigger conditions shall be identified
■ Should take into account organization culture (Risk Averse vs Risk Seeking)
■ Should be appropriate to the severity of the Risk
■ Focus on both Threats and Opportunities
02/21/18
Risk Responses
26. 02/21/18
Exercise # 03: On the given Risk Register format, mention risks responses
S. No.
Risk Identification Risk Analysis Risk Response
Monitoring &
Control
Cause Risk Effect
Inherent Risk
Action Plan Timeline
P I P x I
1
Due to delay in
shipment
delivery of major
equipment may get
late
which might effect
Project COD
2
Due to rise in safety
incident
work at site may get
suspended
resulting in overall
project delay
Risk Responses