risk management notes

7/25/2019 Risk Management Notes

1/4

Risk management Notes

Exercise: Test yourself explain why each of the following inputs to risk management is needed

before you can adequately perform the risk management process. This is an important test. The

following answer table is what you should know for the exam.

Ans.

There can be many answers. Here are some possible ones.

Sl

no.

Input To Risk

Management

Why Is This Input Needed

! Project

ackground

!nformation

"orrespondence from before the project was appro#ed$ articles written

about similar projects$ and other such information will help identify risks.

%Project background information is part of organi&ational process

assets.'" (rgani&ational

process assets

These records may ha#e information about risk from past$ similar project

$ including risk categories$ formats for stating risks$ and risk

management templates$ plus lessons learned that are rele#ant to

managing risk on the current project.

"ompany processes and procedures for project management and risk

management$ or the lack such standardi&ed procedures$ may help

identify additional risks.

(rgani&ational process assets are inputs into most of the planning

processes of risk management.

# )nterprise

en#ironmentalfactors

*nowing the degree of risk the organi&ation is willing to accept and the

areas where there is willingness to accept risk % organi&ational riskappetites$ tolerances$ and thresholds' helps to identify the impact of

risks$ rank risk $ and determine which risk response strategies to use .

+ company,s culture can add or diminish risk and should be considered

when identifying risks.

)nterprise en#ironmental factors are inputs into most of the planning

processes of risk management.$ Project "harter The project charter indicates the initial $ high - le#el risks identified on

the project and helps you see if the o#erall project objecti#es and

constraints are generally risky or not. The charter also helps identifyrisks based on what is and what is not included in the project.

The project charter is an input to the plan risk management process and

the identify risks process % included as part of project documents in

identify risks'

% Project

management

The entire project management plan is an input to the plan Risk

anagement and "ontrol Risks processes$ as all of the management


2/4

Plan plans must be taken into account. +dditionally$ specific management

plans are inputs to other risk management processes. They are listed

separately within this table.

& /cope baseline Part of the project management plan$ the scope baseline can help you

assess how complex the project will be and what le#el of risk

management effort is appropriate. This also contains information aboutboundaries$ constraints$ and assumptions$ which can indicate risks for

the project.

The scope baseline is an input to identify Risks and Perform 0ualitati#e

Risk +nalysis.' Network

1iagram

The network diagram is the only place where paths that con#erge into

one acti#ity can be easily seen. /uch path con#ergence makes the

acti#ity riskier than if there were no path con#ergence. The network

diagram also helps determine the critical path and near - critical paths.

The tighter the schedule the risk the project has.

The network diagram %part of project documents' is an input to identify

risks.

( Time and cost

estimates

*nowing the estimates helps you determine the risk of the project not

meeting the time and cost objecti#es. !nitial estimates are an input to

risk management$ and detailed estimates are an output of risk

management.) /chedule

management

Plan

The aggressi#eness of the schedule objecti#es pro#ides an indication of

the risk of meeting those objecti#es.

The schedule management plan is an input to !dentify risk and perform

0uantitati#e Risk +nalysis.

!* "ost

management

Plan

This plan details cost processes that may help identify risk to achie#ing

the project budget.

The cost management plan is an input to !dentify Risks and Perform

0uantitati#e Risk analysis.

!! "ommunicatio

n management

plan

The P(* guide does not specifically list the communication

management plans as an input to risk management$ but it is part of the

project management plan $ which is an input to Plan risk anagement

and "ontrol risks . The communication management plan can be usedto structure communication around risk. !t can also help identify risk. The

communication management plan helps answer question such as2 +re

there a lot of people to communication so important that communication

errors can actually add risk to the project3 !s your communication

management plan effecti#e3 /ince the number one problem many

people ha#e on project is poor communication$ there is a strong

connection between planning communication and decreasing risk.


3/4

!" 0uality

anagement

plan

The metrics documented in this plan $ an input to !dentify Risks $ will

help you identify quality risks . the documented processes in this plan

can also help minimi&e threats or enhance opportunities$ and can help

you manage risks. The process impro#ement plan is another output of

quality management that can be useful in risk management2 althoughthe P(* guide does not specifically list this plan as an input to

!dentify Risk it can be proacti#ely identify risks while the project is

underway.

!# Human

resource

management

Plan

The human resource management plan describes what resource are

needed %roles and responsibilities' $ identifies the resources a#ailable to

the project $ and explains how the resources will be managed $ including

how they will be mo#ed on and off the project . *nowing this information

will help you identify risks related to resources.

The human resource management plan is an input to identify risks.

!$ Procurementdocuments

How many contracts will there likely be on the project3 4hat is the le#elof expertise of those handling the contracts3 4as the project manager

in#ol#ed before any contracts wre signed3 if not the project will ha#e

more risk and is likely to cost more. "ontracts are a way to mitigate or

transfer risks in risk response planning.

Procurement documents are an input to identify risks.

!% Project

documents

!n addition to the project charter and network diagram %pre#iously

discussed'$ project documents include the project schedule$ quality

checklist$ issue log$ agreements$ and statement of work.

Project documents are an input to identify Risks.

!& /takeholder

Register

/takeholder will #iew the the project from different perspecti#es and thus

will be able to see risks that the team can not. /takeholders are in#ol#ed

in many aspects of risk management.

The stakeholder register is an input to Plan risk management and

!dentify Risks.

!' Risk

anagement

Plan

"reated as an output of Plan Risk management$ The risk management

plan will define how risk management is conducted throughout the

project$ and is therefore an input to all of the remaining risk processes.

!( Risk Register "reated as an output of !dentify Risks$ the risk register is an input to all

of the remaining risk processes. The risk register is the repository of

information on identified risk for the project$ and as such is an important

input for prioriti&ing and analy&ing risks$ planning risk responses and

controlling risks.

!) 4ork These are both input to the control Risks process. Project work will


4/4

performance

data and

reports

generate raw data and measurements % work performance data'$ which

are analy&ed in "ontrol Risks to e#aluate the impact of #ariance and its

relationship to identified risks. The work performance report are the

outputs of other control processes $ such as "ontrol /chedule $ "ontrol

/cope $ etc. These report pro#ide the analy&ed data from these

processes in a format that can be used to do risk reassessment $reser#e analysis$ analysis of trends and #ariance $ etc.

risk management notes

Documents