I.
Introduction to Project Risk Management Analytical Techniques – Risk profile
analysis, scoring sheets.
Project Risk Management involves identifying,
analyzing, and responding to risks throughout a Meetings – Discussions with stakeholders to
project's lifecycle to minimize negative impacts and create the risk management plan.
capitalize on opportunities. The main components
include: 3. Outputs
1. Plan Risk Management – Establishing the Risk Management Plan – Defines
approach to risk management. methodology, roles, budget, categories, and
tracking mechanisms.
2. Identify Risks – Recognizing potential risks
affecting the project.
3. Perform Qualitative Risk Analysis – III. Identify Risks
Prioritizing risks based on probability and 1. Inputs
impact.
Risk Management Plan
4. Perform Quantitative Risk Analysis –
Analyzing the numerical effect of risks on Cost, Schedule, and Quality Management
project objectives. Plans
5. Plan Risk Responses – Developing strategies Scope Baseline, Activity Cost Estimates, and
to mitigate or capitalize on risks. Stakeholder Register
6. Control Risks – Monitoring risks and Enterprise Environmental Factors
implementing response plans.
Organizational Process Assets
2. Tools and Techniques
II. Plan Risk Management
Documentation Reviews – Examining
1. Inputs project documents for risks.
Project Management Plan – Establishes the Checklist Analysis – Using historical data.
current state of risk-affected areas.
SWOT Analysis – Identifying strengths,
Project Charter – Defines high-level project weaknesses, opportunities, and threats.
boundaries.
Expert Judgment – Consulting industry
Stakeholder Register – Lists stakeholders professionals.
and their roles.
3. Outputs
Enterprise Environmental Factors –
Organizational risk attitudes, thresholds, and Risk Register – A list of identified risks and
tolerances. potential responses.
Organizational Process Assets – Includes
risk categories, templates, and historical data. IV. Perform Qualitative Risk Analysis
2. Tools and Techniques 1. Inputs
Expert Judgment – Consulting experienced Risk Management Plan
individuals.
Risk Register Expected Monetary Value (EMV) Analysis –
Calculating average outcomes.
Organizational Process Assets
Decision Tree Analysis – Mapping risk
2. Tools and Techniques consequences.
Risk Probability & Impact Assessment – Monte Carlo Simulation – Running multiple
Assigning probability and impact values. scenarios.
Probability & Impact Matrix – Prioritizing 3. Outputs
risks.
Probabilistic Analysis of the Project
Risk Data Quality Assessment – Checking
data reliability. Prioritized List of Quantified Risks
Risk Categorization – Grouping risks for Trends in Risk Analysis Results
targeted response.
Risk Urgency Assessment – Prioritizing
time-sensitive risks. VI. Plan Risk Responses
Expert Judgment – Consulting specialists for 1. Inputs
evaluations. Risk Management Plan
3. Outputs Risk Register
Updated Risk Register with new rankings, 2. Tools and Techniques
urgency, and watchlists.
Strategies for Negative Risks (Threats):
o Avoid: Eliminate the risk.
V. Perform Quantitative Risk Analysis
o Transfer: Shift the risk (insurance,
1. Inputs outsourcing).
Risk Management Plan
o Mitigate: Reduce probability or
Risk Register impact.
Schedule & Cost Management Plans o Accept: No proactive action, just
monitor.
Organizational Process Assets
Strategies for Positive Risks
2. Tools and Techniques (Opportunities):
Data Gathering & Representation – o Exploit: Ensure the opportunity
Interviewing experts and using three-point happens.
estimates.
o Enhance: Increase the likelihood or
Quantitative Risk Analysis & Modeling – impact.
Using probability distributions and
simulations. o Share: Partner with external
stakeholders.
Sensitivity Analysis – Determining high-
impact risks.
o Accept: Take advantage without Change Requests – Adjustments in project
proactive measures. scope, cost, or schedule.
Contingent Response Strategies – Project Management Plan & Document
Preparing actions if risk triggers occur. Updates – Reflecting new risk information.
Expert Judgment – Consulting specialists. Organizational Process Assets Updates –
Adding lessons learned and templates.
3. Outputs
Updates to:
VIII. Summary
o Project Management Plan
Project Risk Management ensures risks are
o Risk Register proactively identified and mitigated.
o Change Requests Risk Identification involves reviewing
o Contingency Plans project documents, SWOT analysis, and
expert judgment.
Qualitative Risk Analysis ranks risks by
VII. Control Risks priority, while Quantitative Risk Analysis
assigns numerical values to impacts.
1. Inputs
Risk Response Planning includes strategies
Project Management Plan for threats and opportunities.
Risk Register Risk Control is an ongoing process of
monitoring and updating risks.
Work Performance Data & Reports
2. Tools and Techniques Effective risk management leads to better project
predictability, cost control, and successful project
Risk Reassessment – Regular review of delivery.
risks.
Risk Audits – Evaluating risk management
effectiveness.
Variance & Trend Analysis – Comparing
actual vs. planned risk responses.
Technical Performance Measurement –
Checking key performance indicators.
Reserve Analysis – Ensuring adequate
contingency reserves.
Meetings – Regular discussions on risk
status.
3. Outputs
Work Performance Information –
Reporting risk response effectiveness.
