Project Risk Management Professional Credential Arpat Omur, PMP, PMI-RMP [email protected].

Project Risk Management Professional Credential

Arpat Omur, PMP, [email protected]

Worldwide Status of Projects

• Business becoming increasingly projectized

• Global spending on projects many billions of $’s

• Common experience is that many projects fail

• What makes projects behave in a different way from our expectations?

The Problem?

• Track record of projects are poor, particularly for larger and difficult ones

• Study after study has shown real budget increases of up to 90%

• Researchers claim that traditional project management is simply counterproductive in big, complex and fast tracking projects, i.e. it creates self-inflicted problems

Importance of Managing Risks

• Experienced project managers include effective risk management in their project plans and execute ‘Successful Projects’

• These projects do not represent a majority in the organization’s business-lack of consistency

• “Hail The Hero” syndrome needs to be eliminated

• Organizations need to establish risk management as their culture to execute successful projects in a consistent manner

Need for Trained Risk Management Professionals

• Organizations need trained and experienced Risk Management Professionals (RMP) to start and maintain an effective risk management culture

• Credentialing process is one of the factors that plays a role in separating qualified individuals for this position

Need for Trained Risk Management Professionals

• All PM’s in an organization don’t need to have RMP credentials to execute successful projects

• One Risk Manager, with proper experience and credentials, can support several projects and train the project teams, as required

• RISK MANAGEMENT IS NOT A SEPARATE, INDEPENDENT FUNCTION IN PROJECT MANAGEMENT, I.E. RISK MANAGER’S BASIC RESPONSIBILITY IS TO SUPPORT THE PROJECT MANAGER

Some International Certifying Agencies• PMI-Project Management Institute• ISACA- Information Systems Audit and Control

Association• PRMIA-Professional Risk Manager’s

International Association• RMIA-Risk Management Institute of Australia• OGC-Office of UK Government Commerce• IRM-Institute of Risk Management • APM-Association for Project Management

Certified in Risk and Information Systems Control (CRISC) Certification

The first CRISC exam will be administered in the second half of 2011.

International Risk Certificates

The PMI Risk Management Professional (PMI-RMP) credential recognizes demonstrated skill and expertise in project risk management including identifying and assessing project risks, formulating plans to anticipate threats, and capitalizing on opportunities

PMI-RMPRisk Management Professional Credential

2009

12

What type of certification would you value?(Top 2 - Very interested and interested)

Certification Type Percent

Certification Program (Experience and Exam)

83.7%

Credential (Examination and Continuing education)

82.5%

Competency Evaluation (Experience, work evaluation or interview)

71.6%

Certification Course (Certification of completion)

71.3%

PMI’s Process to Develop Exam Spec

• Define responsibilities of recipients of credential (Role Delineation Study)

• Establish what individuals who manage project risk actually do on the job

• Specify performance areas (domains)• Prepare content-valid, multiple-choice exam,

drawing questions from every important area of the profession

PMI’s Process to Develop Exam Spec

• Exam question preparers have been selected from four major regions of the world (as currently defined by PMI):– EMEA (Europe, Middle East and Africa)– Asia Pacific– Latin America– North America

PMI’s Mission

• PMI will expand the levels and types of credentials and position them to meet the demands of the marketplace

• PMI will maintain standardized credentialing practices globally and drive innovative solutions that address regional and local stakeholders’ needs

Process

• Steps to Obtaining Credential: Application process + multiple-choice exam

• Exam Information: 3.5 hours; 170 questions• Fees: $520 for PMI members; $670 for non-

members• Credential Maintenance Cycles and

Requirements: 3 years; 30 PDUs in risk management

Exams

• Domains and questions prepared by an international group of subject matter experts

• Initial Credential Steering Committee (now called the Credential Committee is chaired by PMI and has 6 members with following nationalities:– (2) U.S.– (1) Brazilian– (1) South African– (1) Indian– (1) Australian

Relative Weightings/Domain

DomainNo. Domain Description Percentage of

Items on Test

I Risk Communication 27%

II Risk Analysis 30%

III Risk ResponsePlanning 26%

IV Risk Governance 17%TOTAL 100%

Domain I Risk Communication

Domain I Risk Communication

Domain I Risk Communication

Domain I Risk Communication

Domain II Risk Analysis

Domain II Risk Analysis

Domain II Risk Analysis

Domain II Risk Analysis

Domain III Risk Response Planning

Domain III Risk Response Planning

Domain III Risk Response Planning

Domain IV Risk Governance

Domain IV Risk Governance

Domain IV Risk Governance

Domain IV Risk Governance

Domain IV Risk Governance

Domain IV Risk Governance

Domain IV Risk Governance