Your project technical lead quits, and no one can take over his tasks

Your subcontractor suddenly quits

Customer requirements change significantly at the end of the project

Project members are incompetent for their jobs

The project encountered difficult technical problems

Continuous heavy rains have made it impossible to carry out outdoor construction and the progress is seriously behind schedule.

Laptop was stolen and all construction materials were lost

Project risk management includes risk management planning, risk identification, risk analysis, and risk response

Objectives of project risk management in various processes such as planning and risk monitoring It is to increase the probability and impact of positive project events and reduce the probability and impact of negative project events.

Project risk-free management plan

Incomplete risk identification, no analysis and countermeasures

No one is responsible for risk management

Risks are not continuously identified and monitored

Failure to rely on the strengths of the organization and project team to manage risk Project managers work alone and rely on experience

Risk is an uncertain event that, when it occurs, will have a positive or negative impact on the project.

Risk is a type of uncertainty.

necessary conditions for risk

Project risks include both threats to project objectives and opportunities to further project objectives

Risks and opportunities often coexist.

Project risks occur throughout the entire project life cycle, and there are different risks at different stages of the project.

Risks change as the project progresses, and its uncertainty generally decreases.

The greatest uncertainty exists in the early stages of a project, and decisions made in the early stages have the greatest impact on later stages and the achievement of project goals.

Project risk management is an activity undertaken to mitigate the impact of potential adverse events on a project.

Risk management is an investment and costs money.

In any case, the costs of project risk management should not exceed the potential benefits of the project.

Efforts need to be made to find the balance between risks and opportunities in all aspects of the project.

Project risk management aims to identify and manage risks that are not managed by other project management processes.

Three elements of risk

Risk of myopia

Residual risk vs secondary risk

randomness of risk events

relative risk

risk variability

Divided by risk consequences

By risk source

Classified by whether the risk is manageable

Divided by risk impact scope

Divided by risk predictability

Divided by risk bearers

Increase the probability and/or impact of positive risks

Reduce the probability and/or impact of negative risks

Limiting the consequences of risk accidents to an acceptable level is a basic task in the planning and implementation stages of risk management.

A risk contingency plan refers to the predetermined actions that the project team will take if an identified risk event occurs.

The main options for risk response include risk prevention, risk avoidance, risk transfer, risk mitigation, risk retention and loss control.

Using these methods, corresponding response measures can be developed for different risk events.

What are the project risks?

Why is taking or not taking this risk important to project goals?

What are the specific risks and their impact?

What are risk mitigation deliverables?

Risk response plan: How will the risk be mitigated?

Who is responsible for implementing the risk management plan?

When will the milestone events related to the mitigation approach occur?

How many resources are needed to mitigate risk?

project management plan

Project Charter

Stakeholder register

business environment factors

organizational process assets

Stakeholder analysis (data analysis)

expert judgment

Meeting

risk management plan

Risk categories are constructed using the Risk Breakdown Structure (RBS).

A risk breakdown structure helps project teams consider all possible sources of risk for a single project, Particularly useful for identifying risks or categorizing identified risks.

Risk-seeking

risk neutral

Risk averse

A reference basis for objective qualitative risk analysis

Risk identification includes

Risk identification is divided into three steps

risk management plan

cost management plan

progress management plan

quality management plan

Human Resource Management Plan

Scope Baseline

Activity cost estimates

Activity duration estimate

Stakeholder register

project files

Procurement documents

business environment factors

organizational process assets

Document review

information collection technology

Checklist analysis

What-if analysis

Illustration techniques

SWOT analysis

expert judgment

risk register

Don’t miss important risks

It is impossible to identify all risks

The level of detail in risk identification is related to the budget of the project

The level of detail in risk identification is related to the importance of the project

Conduct an analysis of assumptions and constraints to explore the validity of assumptions and constraints and determine which of them will cause project risks.

Threats can be identified from inaccurate, unstable, inconsistent or incomplete assumptions

Opportunities are created by removing or relaxing constraints that affect the execution of a project or process.

It is a preset list of risk categories that may give rise to individual project risks and that may be sources of overall project risk.

When employing risk identification techniques, a prompt list can be used as a framework to assist the project team in developing ideas.

The risk categories at the bottom of the risk breakdown structure can be used as a reminder list to identify individual project risks.

Common strategic frameworks identify sources of risk

Refers to the process of assessing the impact and likelihood of identified risks.

The qualitative risk analysis process requires the use of the results of the risk management planning process and the risk identification process

Qualitative risk analysis focuses on the concept and impact of risk.

This process prioritizes risks based on their potential impact on project objectives. and lays the foundation for quantitative risk analysis.

The main work

risk management plan

Scope Baseline

risk register

business environment factors

organizational process assets

Risk probability and impact assessment

Probability and Impact Matrix

Risk data quality assessment

Risk classification

Risk Urgency Assessment

expert judgment

Project file updates

The goal is to quantitatively analyze the probability of each risk and its consequences on the project objectives, Analyze the degree of overall project risk.

After planning risk responses, the quantitative risk analysis should be re-implemented as the monitoring risk process proceeds to determine whether the overall project risk has been satisfactorily reduced.

Repeated quantitative risk analysis can understand the development trend of risks and reveal the necessity of increasing or decreasing risk management measures.

risk management plan

cost management plan

progress management plan

risk register

business environment factors

organizational process assets

Data collection and presentation techniques

Quantitative risk analysis and modeling techniques

expert judgment

Project file updates

Helps determine which individual project risks or other project outcomes have the greatest potential impact.

The results of sensitivity analysis are often represented by a tornado diagram.

Use decision trees to select the best course of action among several alternative courses of action.

In a decision tree, different branches are used to represent different decisions or events, that is, alternative paths for the project.

By calculating the expected monetary value EMV of each branch, the optimal path can be selected.

Risk value (EMV) is used together with decision trees to take into account both probability and impact factors.

risk management plan

risk register

Negative Risk (Threat) Coping Strategies

Active risk (opportunity) response strategies

emergency response strategies

expert judgment

Project Management Plan (updated)

Project file updates

Threat response

opportunity response

The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating the effectiveness of risk processes.

Project management activities to minimize the probability of risk accidents and reduce the magnitude of losses.

risk control objectives

project management plan

risk register

job performance data

job performance report

risk assessment

risk audit

Deviation and trend analysis

technical performance measurement

Reserve analysis

Meeting

job performance information

change request

Project Management Plan Update

Project file updates

Organizational process asset updates

Monitor content