Project Risk Management

Plan the risk management process by defining stakeholders, responsibilities, timing, and budget for risk analysis. Develop the risk management plan with procedures, approaches, and internal and external risk categorization.

Identify and manage project risks with a systematic, proactive approach from work breakdown structure to activities, addressing safety hazards, change orders, site conditions, and material availability.

Apply project risk management by categorizing external, internal, and technical risks, with external split into unpredictable and predictable, and analyze each risk by its cause, event, and impact.

Identify project risks using checklists, expert interviews, what-if scenarios, brainstorming, and SWOT analysis, distinguishing internal strengths and weaknesses from external opportunities and threats.

Assess risks through qualitative analysis by scoring likelihood and impact, calculating a risk score, and prioritizing extreme and high-probability risks using a green, yellow, orange, and red scale.

Learn how to use the risk score matrix to decide which risks to accept and which to move to the total project risk, using thresholds like 10% or 15%.

Move high risks from qualitative to quantitative analysis to numerically assess impacts and determine risks requiring a response, with quantified probabilities such as 75% to finish in nine months.

Explore schedule uncertainty in project risk management by turning quantity, crew, and productivity into duration, then use two-point and three-point estimates with triangular and beta distributions.

Explore triangle distribution and beta distribution to estimate project duration by averaging optimistic, most likely, and pessimistic values, and apply the results to risk analysis with a 75% completion chance.

Use triangle and beta distributions to refine project duration estimates, showing how an example yields about 20.2 days instead of exactly 20 and highlights schedule uncertainty across many activities.

Register risks as threats or opportunities, then analyze them through pre-mitigation, mitigation, and post-mitigation stages, evaluating probability and impact on schedule, cost, and performance.

Explore the distribution analyzer tool in project risk management, showing how risk registers and mitigation affect cost and schedule through cumulative s-curve analysis, post-mitigation savings, and risk scores.

In project risk management, the tornado diagram visualizes the magnitude of risks in descending order to identify the most sensitive activities so you can mitigate them and save money.

Plan risk responses by applying avoid, mitigate, transfer, and accept strategies for threats, and exploit, enhance, share, or accept opportunities; use the risk register as a guide.

Identify residual risk, which remains after risk responses, and secondary risk, which arises from implementing those responses, and learn to address both in project risk management.

In project risk management, create a contingency plan with specific actions to mitigate, avoid, or transfer risks, and a fallback plan for residual or secondary risks.

Learn how to set contingency and management reserves to protect project profit and schedule, accounting for known unknown residual risks and unknown unknowns while updating cost budgets and critical path.