Points in Risk Management

Risk Management Plan defines WHAT LEVEL of risk will be considered tolerable for the project, HOW risk will be managed, WHO will be responsible for risk activities, the AMOUNTS OF TIME and COST that will be allotted to risk activities, and HOW risk findings will be COMMUNICATED.

Risk Breakdown Structure (RBS): It is not breaking down the actual risks, instead, it is breaking down the CATEGORIES of risks that we will evaluate. Documentation reviews is when you look at Organizational Process Assets and any documents to squeeze any possible risk out of them.

Most common Techniques used here are:
1. Brainstorming
2. Delphi Technique
3. Expert Interviews
4. Root Cause Identification

Diagramming Techniques:
1. Ishikawa/Cause-and-effect/Fishbone Diagram
2. Influence Diagram
3. System or Process Flow Charts.

SWOT is a tool to measure each RISK's SWOT. Each risk is plotted, and the quadrant where the Weakness (usually Internal) and Threats (usually External) are HIGHEST, and the quadrant where Strengths (usually Internal) and Opportunities (usually External) are HIGHEST will present the HIGHEST RISK on the project.

It is usually a RAPID and COST-EFFECTIVE means of establishing priorities for Plan Risk Responses and lays the foundation for Perform QUANTITATIVE Risk Analysis, if required. This process can

lead into Perform Quantitative Risk Analysis or directly into Plan Risk Responses.

Sensitivity Analysis (Tornado Diagram shows HOW SENSITIVE each analyzed area of the project is to risk. It ranks the bars from GREATEST to LEAST on the project so that the chart takes on a Tornado-like shape).

Expected Monetary Value Analysis (EMV): The EMV of OPPORTUNITIES will generally be expressed as POSITIVE VALUES, while those of THREATS will be NEGATIVE. EMV requires a Risk-Neutral assumption, neither risk averse, nor risk seeking. A common type is "Decision Tree Analysis".

Modeling and Simulation: Monte Carlo Analysis throws large numbers of scenarios at the schedule to see the impact of certain risk events.

Avoid: Undesirable Risks, Transfer/Deflect:to another party (Contractual Agreements and Insurance)

Mitigate: to make it less, Accept (Negative/Positive): best strategy may not be to Avoid, Transfer, Mitigate, Share, or Enhance it. Instead, the best strategy may be simply to Accept it and continue with the project. If the cost or impact of the other strategies is too greater, acceptance is the best strategy.

Exploit: trying to remove any uncertainty,

Share: improve their chances of the positive risk occurring by working with another party

Enhance: first we have to understand the underlying cause(s) of the risk. By influencing the underlying risk triggers, we can increase the likelihood of the risk occurring.

Risk Register Updates>>>Residual Risks,Secondary Risks, Contingency Plan, Risk Response Owners, Fallback Plans,Reserves/Contingency, and Risk Triggers.

Risk Register Updates outcomes of Risk Audits and Reassessments,Identification of New Risks, Closing Risks that no longer applicable, Details what happened when Risks occurred, and Lessons Learned.