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RISK MANAGEMENT
What is Risk Management?
• Risk is an uncertain event
  that may have a positive
  or negative impact on the
  project.
• Risk Management is the
  process of identifying and
  migrating risk.
Why is it important?
• Risk affects all aspects of your project – your
  budget, your schedule, your scope, the agreed
  level of quality, and so on
• Increase probability of positive event.
• Reduce the occurrence of negative event.
What does it include?
•   Risk Management Planning
•   Risk Identification
•   Qualitative Risk Analysis
•   Quantitative Risk Analysis
•   Risk Response Planning
•   Risk Monitoring and Control
How is it done in project?
•   Make Risk Management Part of Your Project
•   Identify Risks Early in Your Project
•   Communicate About Risks
•   Consider Both Threats and Opportunities
•   Clarify Ownership Issues
How is it done in project?
•   Prioritise Risks
•   Analyse Risks
•   Plan and Implement Risk Responses
•   Register Project Risks
•   Track Risks and Associated Tasks
Risk in Project Management

  Plan Risk                        Qualitative
                  Identify Risk
 Management                       Risk Analysis




  Quantitative     Plan Risk      Monitor and
  Risk Analysis    Response       Control Risk
Plan Risk Management
• Analysis and decision making
  to implement risk
  management.
• Appropriate to size and
  complexity of the project.
• Stakeholders will be involved
  in planning risk management.
Risk Management Plan
•   Schedule Risk
•   Cost Risk
•   Quality Risk
•   Scope Risk
•   Resource Risk
•   Customer Satisfaction Risk
Identify Risk
• Which risk has more probability of affecting
  the project?
• SWOT Analysis
• Information gathering
• Check-list Analysis
• Assumption Analysis
Qualitative Risk Analysis
• Assess impact and likelihood of the
  identified risk.
• Probability and Impact Matrix.
• Risk categorization.
• Risk urgency assessment.
Quantitative Risk Analysis
• Data gathering
  – Direct
  – Diagrammatic
  – Delphi
• Probability distribution
• Modeling Techniques
  – Decision tree Analysis
  – Sensitivity Analysis
  – Expert Judgment
Plan Risk Response
• Eliminate threats before they happen.
• Decrease impact of threat.
• Contingency plan ( Do something if risk
  happens)
• Fallback plan ( Do something if contingency
  plans are not effective)
Plan Risk Response
• Negative risk or threat
  – Avoid
  – Transfer
  – Mitigate
  – Accept
• Positive risk or opportunity
  – Exploit
  – Share
  – Enhance
Monitor and Control Risk
• Risk Reassessment (Scheduled regularly to
  identify new risk)
• Risk Audit (Examine the effectiveness of
  planned risk response)
• Trend analysis (Monitor overall project
  performance)
What are the benefits?
•   Effective use of resources
•   Promoting continuous improvement
•   Fewer shocks and failures
•   Strategic business planning
•   Raised awareness of significant risks.
What are the benefits?
•   Quick grasp of new opportunities
•   Enhancing communication
•   Reassuring stakeholders
•   Focus on internal audit programme
•   Recognition of responsibility and
    accountability.
How does Primavera help?
•   Keep track of issues.
•   Maintain threshold
•   Health of project
•   Track overall project progress to identify any
    deviation
Itaipu Dam
Thank You

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Risk management

  • 2. What is Risk Management? • Risk is an uncertain event that may have a positive or negative impact on the project. • Risk Management is the process of identifying and migrating risk.
  • 3. Why is it important? • Risk affects all aspects of your project – your budget, your schedule, your scope, the agreed level of quality, and so on • Increase probability of positive event. • Reduce the occurrence of negative event.
  • 4. What does it include? • Risk Management Planning • Risk Identification • Qualitative Risk Analysis • Quantitative Risk Analysis • Risk Response Planning • Risk Monitoring and Control
  • 5. How is it done in project? • Make Risk Management Part of Your Project • Identify Risks Early in Your Project • Communicate About Risks • Consider Both Threats and Opportunities • Clarify Ownership Issues
  • 6. How is it done in project? • Prioritise Risks • Analyse Risks • Plan and Implement Risk Responses • Register Project Risks • Track Risks and Associated Tasks
  • 7. Risk in Project Management Plan Risk Qualitative Identify Risk Management Risk Analysis Quantitative Plan Risk Monitor and Risk Analysis Response Control Risk
  • 8. Plan Risk Management • Analysis and decision making to implement risk management. • Appropriate to size and complexity of the project. • Stakeholders will be involved in planning risk management.
  • 9. Risk Management Plan • Schedule Risk • Cost Risk • Quality Risk • Scope Risk • Resource Risk • Customer Satisfaction Risk
  • 10. Identify Risk • Which risk has more probability of affecting the project? • SWOT Analysis • Information gathering • Check-list Analysis • Assumption Analysis
  • 11. Qualitative Risk Analysis • Assess impact and likelihood of the identified risk. • Probability and Impact Matrix. • Risk categorization. • Risk urgency assessment.
  • 12. Quantitative Risk Analysis • Data gathering – Direct – Diagrammatic – Delphi • Probability distribution • Modeling Techniques – Decision tree Analysis – Sensitivity Analysis – Expert Judgment
  • 13. Plan Risk Response • Eliminate threats before they happen. • Decrease impact of threat. • Contingency plan ( Do something if risk happens) • Fallback plan ( Do something if contingency plans are not effective)
  • 14. Plan Risk Response • Negative risk or threat – Avoid – Transfer – Mitigate – Accept • Positive risk or opportunity – Exploit – Share – Enhance
  • 15. Monitor and Control Risk • Risk Reassessment (Scheduled regularly to identify new risk) • Risk Audit (Examine the effectiveness of planned risk response) • Trend analysis (Monitor overall project performance)
  • 16. What are the benefits? • Effective use of resources • Promoting continuous improvement • Fewer shocks and failures • Strategic business planning • Raised awareness of significant risks.
  • 17. What are the benefits? • Quick grasp of new opportunities • Enhancing communication • Reassuring stakeholders • Focus on internal audit programme • Recognition of responsibility and accountability.
  • 18. How does Primavera help? • Keep track of issues. • Maintain threshold • Health of project • Track overall project progress to identify any deviation