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                        Project Risk Management

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                        This chapter covers key concepts related to Project Risk Management.

                        1. 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
                        2. 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.
                        3. Responses to threat include --
                          • Reducing the probability of risk
                          • Developing contingency plans
                          • Passively accepting consequences.
                          • Transferring risk
                          Insurance is an example of transferring risk.
                        4. Non-critical risks should be documented. They should be revisited and reviewed regularly.
                        5. Risks are identified in all phases.
                        6. 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.
                        7. 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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