Expect the unexpected.
You’ve heard the saying, “There are no guarantees in life.” There are also no guarantees in project management. Uncertainty hides in every project, in many forms. Using risk management processes, you can better ensure the success of your project.
Project risk management is a six- process approach defined in the Project Management Body of Knowledge® — based on collaborative insight from working project managers — designed to deal with uncertainty in projects and project environments.
- Develop a risk management plan for dealing with uncertainty
- Identify and document project risks.
- Perform qualitative risk analysis to prioritize risk for further analysis.
- Perform quantitative risk analysis to analyze the effect of risks on the project objectives.
- Plan risk responses to enhance opportunities and reduce threats to the project objectives.
- Monitor and control risks throughout the project life cycle.
Sample Course Topics
Each week, you’ll focus on a new centralized topic as it relates to the overall objectives of this course. While weekly topics are subject to change based on course and instructor, sample topics may include but are not limited to the following.
- Overview of Risk Management
- Identify Risks
- Analyze Risks
- Risk Response Planning
- Monitor and Control Risks
- Risk Techniques
- Risk Topics
- Risk Reflections
Using these processes, you’ll be able to develop a risk management plan that includes the key elements tailored to the size and complexity of a project while differentiating between negative and positive risk events (threats and opportunities).
When project teams begin to think about risk management, they often start by creating a long list of one-word, ambiguously stated risks (such as weather and leadership). Formal risk management techniques enhance the risk identification process and ensure that concise, coherent potential risk events are documented. You’ll learn to identify the necessary inputs, apply effective risk identification tools and techniques, and capture the characteristics of each risk in a well-designed risk register.
Using a project scenario, you’ll research risk concepts and apply risk management techniques from the six risk processes to develop a comprehensive approach to identifying risks, prioritizing the most likely and impactful risks, quantifying the results if risks occur, and developing meaningful risk response strategies.
Performing qualitative risk analysis consists of using techniques to better understand individual risks, their characteristics, and the relationships between risks. The primary output of risk analysis is a prioritized list of significant risks. Quantitative risk analysis is performed only on a select number of significant risks or on the project as a whole and yields a probability that the project will meet its time and cost objectives. You’ll see how tools are chosen effectively prioritize and evaluate risks.
After creating a prioritized list of risks and quantifying the most significant risks, they will merit careful, proactive planning to minimize threats by mitigation, transfer, or avoidance and to optimize opportunities through exploiting, sharing, or enhancing risks. You’ll examine ways to accept residual risks and develop contingency plans.
Once a plan is in place, continuous monitoring and review of risk ensures that new risks are detected and managed and that action plans for risk responses and contingency plans are implemented and continuously monitored. You’ll discover how to implement an ongoing review process and conduct major risk reviews at significant milestones.
Your Learning Objectives
In PRM 614 Project Risk Management, you’ll examine key concepts in managing uncertainty and determine the tolerance for uncertainty within an organization.
- Identify potential problems and opportunities within a project.
- Analyze the likelihood of the risk occurring and its impact.
- Determine appropriate responses to significant risks.
- Monitor and control risk events during projects.
- Evaluate the traditions and practices in the field that are often accepted unquestioningly.
*Disclaimer: Course content and outcomes may vary and are subject to change without notice.