PMP Study Guide Chapter 6: Risk Planning. Chapter 6 Risk Planning Planning for Risks Plan Risk Management Identifying Potential Risk Analyzing Risks Using.

PMP Study Guide

Chapter 6: Risk Planning

Chapter 6 Risk Planning

• Planning for Risks

• Plan Risk Management

• Identifying Potential Risk

• Analyzing Risks Using Qualitative Techniques

• Quantifying Risks

• Developing a Risk Response Plan

Planning for Risks

• Risks are events that pose opportunities or threats to the project

• Risk is uncertainty—the more that’s known about risk, the better








Plan Risk Management

• The Plan Risk Management process determines and documents how to plan for risks

• The Plan Risk Management process establishes an agreed-upon basis for evaluating risk

• Determine and document stakeholder risk tolerance levels








Identifying Potential Risk

• Budgets/funding• Schedules• Scope or

requirements changes

• Project plan• Technical issues• Personnel

issues

• Hardware• Contracts• Political

concerns• Business risk• Legal risk• Environmental

risk


• Tools and techniques of the Identify Risk process:– Documentation reviews– Information-gathering techniques– Checklist analysis– Assumptions analysis– Diagramming techniques– SWOT analysis– Expert judgment


• Information-gathering techniques include:– Brainstorming– Delphi technique– Nominal Group technique– Interviewing– Root cause identification

• SWOT analysis


• Diagramming techniques include:– Cause-and-effect

• Fishbone diagram or Ishikawa diagram

– Flowcharts– Influence diagrams


• Risk register is the output of the Identify Risk process.

• Risk register should contain:– List of identified risks– List of potential resources



• Risk Management Planning





Analyzing Risks Using Qualitative Techniques

• Risk probability and impact assessment

• Probability and impact matrix

• Risk data quality assessment

• Risk categorization

• Risk urgency assessment

• Expert judgment

Risk Impacts Rating Matrix

5.1

Probability and Impact Matrix

Analyzing Risks Using Qualitative Techniques

• Risk register is updated at the end of the Perform Qualitative Risk Analysis process with:– Risk ranking (or priority) for identified risks– Risks grouped by categories– Causes of risk– List of risks requiring near-term responses– List of risks for additional analysis and

response– Watch list of low-priority risks– Trends in qualitative risk analysis results








Quantifying Risk

• Tools and techniques of the Perform Quantitative Risk Analysis process include:– Data gathering and representation

techniques• Interviewing• Probability distributions

– Quantitative risk analysis and modeling techniques

– Expert judgment

Quantifying Risk

• Perform Quantitative Risk Analysis and Modeling Techniques– Sensitivity analysis– Expected monetary value analysis– Decision tree analysis– Modeling and simulation

Quantifying RiskSensitivity Analysis

• Tornado diagram

Quantifying RiskDecision Tree Analysis








Developing a Risk Response Plan

Strategies for Negative Risks:

• Avoid• Transfer• Mitigate• Accept

Strategies for Positive Risk:

• Exploit• Share• Enhance


• Plan Risk Response Outputs– Risk register updates– Risk-related contract decisions– Project management plan updates– Project document updates


• Risk Register contains:– Prioritized list of risks– Risk ranking– Risk owners and responsibility– Outputs from Perform Qualitative

Analysis– Agreed-upon response strategies– Actions needed to implement

response plans . . .


• Risk register continued:– Cost and schedule activities

needed to implement risk responses

– Contingency plans– Fallback plans– List of residual and secondary risks– Contingency reserves

Chapter 6 Summary

• Risk management plan• Where potential risks may occur• Tools and techniques to identify risks• Qualitative techniques• Quantitative techniques• Strategies for negative risks• Strategies for positive risks• Risk register contents

PMP Study Guide Chapter 6: Risk Planning. Chapter 6 Risk Planning Planning for Risks Plan Risk Management Identifying Potential Risk Analyzing Risks Using.

Documents

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additional analysis

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