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This chapter covers key concepts related to Project Risk Management.
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The knowledge area of Project Risk Management consists of the following processes -
Risk Management Processes
| Process | Project Phase | Key Deliverables |
| Plan Risk Management | Planning | Risk Management Plan |
| Identify Risks | Planning | Risk register |
| Perform Qualitative Risk Analysis | Planning | Risk register updates |
| Perform Quantitative Risk Analysis | Planning | Risk register updates |
| Plan Risk Responses | Planning | Risk related contract decisions |
| Monitor and Control Risks | Monitoring and Controlling | Risk register updates |
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A project risk is a potential source of deviation from the project plan. Project risks can have
a negative or positive impact on the project. Project risks that are negative are called threats.
Project risks that are positive are called opportunities.
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Responses to threat include --
- Reducing the probability of risk
- Developing contingency plans
- Passively accepting consequences.
- Transferring risk
Insurance is an example of transferring risk.
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Non-critical risks should be documented. They should be revisited and reviewed
regularly.
- Risks are identified in all phases.
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Work-around refers to how to handle risks that have occurred but are not part of
risk response plan. This happens in risk monitoring and control phase.
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Delphi technique is most commonly used to obtain expert opinions on technical issues. It can
be used to get inputs on Scope, Estimates or Risks. Some characteristics of the Delphi technique are -
- The experts identities are anonymous. They are not in the same room.
- The PM tries to build a consensus among the experts.
Questions on Project Risk Management are available in
Risk Questions.
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