Showing posts with label Managing Risk. Show all posts
Showing posts with label Managing Risk. Show all posts

Monday, December 29, 2014

Planning the project

Planning is very important, and all projects must be planned.

The project manager plans the project with input from the team and stakeholders, not on his or her own.

Part of planning involves deciding which processes oink PMBOK Guide should be used on each project and how to tailor those processes to the project.

There are plans for how the knowledge areas of scope, time, cost, quality, human resources, communications, risk procurement, and stakeholder management will be planned, managed , and controlled.  These are called management plans, and every project has one for every knowledge area.

If at all possible, all the required work and all The stakeholders are identified before the project work actually begins.

The project manager determines metrics to be used to measure quality.

The project manger has a plan for continually improving processes.

The project manager creates a system to reward team members and stakeholders.

All roles and responsibilities are CLEARLY documented and assigned to specific individuals on the project.  These may include things like reporting responsibilities, reeks management assignments, and meeting attendance as well as project work.

The project manager focuses extensively on identifying risks.

The stakeholders, as well as team members, are assigned risk identification and risk management  duties.

The project manager realizes that managing risks saves the project time and money.

Project cost and schedule cannot be finalized without completing risk management.

The project manager assesses whether the project can meet the end date and other project constraints and objectives. He or she then meets with management to resolve any differences BEFORE the project work starts.  The project manager knows unrealistic schedules are his or her fault.

The project manager plans when and how to measure performance against the performance measurement baseline, as documented in the project management plan, but he or she also has other measurements to use to determine how the project is performing while the work is being done.

The project management plan is realistic, and everyone believes it can be achieved.

The exam defines a kickoff meeting in a way that maybe different from your understanding of a kickoff meeting.

Tuesday, December 9, 2014

Purpose of assessing overall risk...


  1. Build support for less risky projects and cause cancellation for some higher -risk projects.
  2. Compare projects and help set relative priorities.
  3. Provide data for renegotiating over-constrained project objectives
  4. Assist in determining management reserve. 
  5. Facilitate effective communication and build awareness of project risk.
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Risk Management


  1. Risk qualitative Analysis: Evaluates key characteristics of individual risks enabling them to be prioritized for further action.  Select risk characteristics => Collect and analyze data => Prioritize Risks => Categorize risk causes => Document results.
  2. Qualitative risk ratings: An indication of the potential impact of risks on a project.  Typically a measure of the following characteristic; probability , Impact.  Typically expressed as Low, Medium, High.
    • High Risk: 50% or higher ( Likely)
    • Medium Risk : Between 10% and 50% ( Unlikely)
    • Low Risk: 10% or lower ( Very unlikely)
      • High probability can be expressed 
        • as a %
        • As a values statement
        • As a comparison
        • As a frequency
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Risk identification output

Risk identification output is the RISK REGISTER:


  1. List of all risks ( properly stated)
  2. Risk owners
  3. Cause ( if known)
  4. Effect ( if known)
  5. Trigger Event ( signals the occurrence of risk)
  6. Preliminary Responses
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Thursday, October 4, 2012

PERT—Program Evaluation Review Technique


•Assumes each activity duration has a range that statistically follows a beta distribution.
•Uses three time estimates for each activity: optimistic, pessimistic, and a weighted average to represent activity durations.
–Knowing the weighted average and variances for each activity allows the project planner to compute the probability of meeting different project durations.





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Risk - Change Control System Process


1.Identify proposed changes.
2.List expected effects of proposed changes
on schedule and budget.
3.Review, evaluate, and approve or disapprove
of changes formally.
4.Negotiate and resolve conflicts of change, condition, and cost.
5.Communicate changes to parties affected.
6.Assign responsibility for implementing change.
7.Adjust master schedule and budget.
8.Track all changes that are to be implemented

Tuesday, October 2, 2012

Managing Risk

Terms to be familiar with -

•Risk–Uncertain or chance events that planning can not overcome or control.
•Risk Management–A proactive attempt to recognize and manage internal events and external threats that affect the likelihood of a project’s success.
•What can go wrong (risk event).
•How to minimize the risk event’s impact (consequences).
•What can be done before an event occurs (anticipation).
•What to do when an event occurs (contingency plans).






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