Risk Management

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Ready to Train for Training Materials

• Sample 30 of
• Project Risk Management

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Risk governance

• Module 1

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Risk and Uncertainty
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Risk versus Uncertainty
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Remember
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Types of Risk
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Types of Risk
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Elements of Risk
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Sources of Risks
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Sources of Risks
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Project Risk Definition
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When Risk is not a Risk?
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Distinguishing between cause and effect

• Definite fact or sets of circumstances about the
  project or environment
• Uncertainty that could affect project objectives
  if it occurs
• Contingent effect, either negative or positive on
  project objective(s)

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What is Risk Management?
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• Good management practice
• Process steps that enable improvement in decision
  making
• A logical and systematic approach
• Identifying opportunities
• Avoiding or minimizing losses

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Risk Management is the name given to a logical
and systematic method of identifying, analyzing,
treating and monitoring the risks involved in any
activity or process.
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• Risk Management is a methodology that helps
  managers make best use of their available
  resources

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• Risk Management process is well established.
  (International RM process standards.)

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Project Risk Management
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The Goal of Project Risk Management
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Why Project Risk Management Is Important?

• Success or failure (of a project) ultimately
  depends on how project leadership manage the full
  range of technical and non-technical issues.
  (Krigsman, 2008)

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• Create a flowchart of the risk process from
  Identify Risks through Plan Risk Responses.

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Anatomy of a Risk

• Once youre done with Plan Risk Management, there
  are four more risk management processes that will
  help you and your team come up with the list of
  risks for your project, analyze how they could
  affect your project, and plan how you and your
  team will respond if any of the risks materialize
  when youre executing the project.

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Anatomy of a Risk

• All four of these Risk Management processes are
  in the Planning process groupyou need to plan
  for your projects risks before you start
  executing the project.

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Identify Risk
Perform Qualitative Risk Analysis
The first thing you need to do when planning for
risks is to gather the team together and come up
with a list of every possible risk you can think
of.
Once youve got a list of risks, youll need to
get a good idea of the probability and impact of
each risk. Remember the probability and impact
guidelines in the Risk Management Plan? This is
where you use them to assign a probability and
impact to each risk!
The RBS you created during Plan Risk Management
will make it a lot easier to do this.
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Output Risk Register

• The point of the Identify Risks process is to
  identify risks. But what does that really give
  you? You need to know enough about each risk to
  analyze it and make good decisions about how to
  handle it.

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Output Risk Register
Its a good idea for your Identify Risks meetings
to include a discussion of how to respond to the
risks, but youll really dive into this later in
the Plan Risk Responses process.
This is where the results of your root cause
analysis go.
Each risk that you and the team come up with
should go here.
Root Causes Potential Responses Identified Risks
National weather services predict 35chance of high winds Reinforce tent stakes obtain weatherproof equipment High winds can lead to cliff disaster
Recent industry report cites higher than - expected failure dates for critical equipment's No responses were found by the team Equipment failure during project
You might discover new risk categories, like
Equipment. If you do, youll go back to the RBS
and add them.
Some risks do not have an obvious response.
Youll get a chance to come up with more
complete responses later.
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Output Risk Register

• The risk register is built into the Risk
  Management Plan. Updates to the risk register are
  the only output of the Identify Risks process.

You already created the Risk Management Plan in
the last process. Now youre going back
and updating it by adding the risk register.
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2 Mitigate Risk

• If you cant avoid the risk, you can mitigate it.
  This means taking some sort of action that will
  cause it to do as little damage to your project
  as possible.

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3 Transfer Risk

• One effective way to deal with a risk is to pay
  someone else to accept it for you. The most
  common way to do this is to buy insurance.

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4 Accept Risk

• When you cant avoid, mitigate, or transfer a
  risk, then you have to accept it. But even when
  you accept a risk, at least youve looked at the
  alternatives and you know what will happen if it
  occurs.

If you cant avoid the risk, you can mitigate it.
This means taking some sort of action that will
cause it to do as little damage to your project
as possible.
Looks like falling is the best option
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• Thank You

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