Risk Management Professional (RMP)

The Planning Risk Management is part of a series of courses that together form the Risk Management Certification Program (PMI-RMP). The Program is PMBOK6 aligned and includes the courses on Identifying Risk, Analyzing Risk and Responding to Risk.

Plan Risk Management: Inputs, Tools & Techniques, and Outputs

The projects you'll manage will face many different risks. First of all, let's define what we mean by risk. Project risks have two characteristics. They're events that might happen, and they have the potential to impact one or more of the project objectives.

In this topic we're going to use our definition of project risk to examine more closely what it means that project objectives would be impacted by unforeseen events.

For risk management to succeed, you must respond proactively to risks. If you only respond once an event occurs, you will waste time and resources needlessly trying to manage it.

Risk management has two central roles, reducing uncertainty about identified risks, and determining appropriate responses for when risk events do occur.

Plan Risk Management: Data Flow Diagram

The Inputs to this process are Project charter, Project management plan, which includes All components, Project documents, which include Stakeholder register, Enterprise environmental factors, and Organizational process assets.

Imagine trying to manage a project where you aren't sure what the project's potential risks are. In order to effectively monitor and control the risks on a project, it is important to first plan for potential risks. To do so, you use specific tools and techniques. 

The plan risk management process has one output, the risk management plan. A typical risk management plan includes several important sections which are Methodology, Roles and Responsibilities, Budgeting, Timing, Reporting Formats, Tracking, and Risk Categories.

The risk management plan contains the overall plan for managing risk throughout the project's life cycle, broken down into different sections. In this topic, we're going to walk through a simple risk management plan. Tina is a project manager for a large urban hospital. 

Sample Risk Breakdown Structure (RBS)

An important part of the risk management plan is a section that defines how probability and impact will be defined for your particular project. This topic explains how to develop those definitions and create a probability and impact matrix. 

Example of Definitions for Probability and Impacts

Example Probability and Impact Matrix with Scoring Scheme

In this exercise, you'll demonstrate your ability to effectively manage potential risks by planning ahead and assessing their impact, probability, and cause. 

In this exercise, you'll demonstrate your ability to effectively manage potential risks by planning ahead and assessing their impact, probability, and cause. 

The Planning Risk Management is part of a series of courses that together form the Risk Management Certification Program (PMI-RMP). The Program is PMBOK6 aligned and includes the courses on Identifying Risk, Analyzing Risk and Responding to Risk.

In the second course you're going to learn what inputs you need to look at in order to identify risks.

Identify Risks: Inputs, Tools & Techniques, and Outputs

Identify Risks: Data Flow Diagram

After completing this topic, you should be able to identify the inputs to the Identify Risks process.

After completing this topic, you should be able to identify activities that should be part of a document analysis to identify project risks

After completing this topic, you should be able to identify guidelines for conducting a brainstorming session to identify project risks.

After completing this topic, you should be able to recognize when interviewing is a good method for gathering risk information

After completing this topic, you should be able to match types of causes of project risk with examples.

After completing this topic, you should be able to categorize items that would be used to perform a SWOT analysis

After completing this topic, you should be able to identify the questions that would be asked during an assumption and constraint analysis

After completing this topic, you should be able to identify two documents you may gather information from when using checklists to identify risks

After completing this topic, you should be able to identify the outputs of the Identify Risks process 

After completing this topic, you should be able to demonstrate your understanding of the Identify Risks project management process

After completing this topic, you should be able to demonstrate your understanding of the Identify Risks project management process

In the second course you're going to learn what inputs you need to look at in order to identify risks.

In the third course, we'll examine the two risk analysis processes of the project risk management knowledge area, namely, perform qualitative risk analysis and perform quantitative risk analysis.

Perform Qualitative Risk Analysis: Inputs, Tools & Techniques, and Outputs

Perform Qualitative Risk Analysis: Data Flow Diagram

After completing this topic, you should be able to recognize the inputs you use to perform qualitative risk analysis.

After completing this topic, you should be able to identify the tools and techniques you can use for the Perform Qualitative Risk Analysis process

After completing this topic, you should be able to prioritize risks based on given probability and impact ratings 

After completing this topic, you should be able to recognize project documents that may need to be updated as a result of qualitative risk analysis 

Perform Quantitative Risk Analysis: Inputs, Tools & Techniques, and Outputs

Perform Quantitative Risk Analysis: Data Flow Diagram

After completing this topic, you should be able to recognize the inputs to the Perform Quantitative Risk Analysis process 

After completing this topic, you should be able to recognize examples of information you should gather about risks during an interview 

After completing this topic, you should be able to identify the four common types of continuous distribution 

Example S-Curve from Quantitative Cost Risk Analysis

After completing this topic, you should be able to identify the purpose of sensitivity analysis 

Example Tornado Diagram

After completing this topic, you should be able to calculate the expected monetary value of a risk 

After completing this topic, you should be able to describe how to interpret a cost risk simulation graph 

Example Decision Tree

After completing this topic, you should be able to identify the sections of the risk report you typically update as a result of the Perform Quantitative Risk Analysis process 

After completing this topic, you should be able to demonstrate your understanding of how to perform qualitative and quantitative risk analysis for your project 

After completing this topic, you should be able to demonstrate your understanding of how to perform qualitative and quantitative risk analysis for your project 

In the third course, we'll examine the two risk analysis processes of the project risk management knowledge area, namely, perform qualitative risk analysis and perform quantitative risk analysis. 

The fourth course covers the final three processes in the project risk management knowledge area. Plan risk responses, implement risk responses and monitor risks. You'll learn about some common risk response strategies and how to monitor and control risks as they occur.

Plan Risk Responses: Inputs, Tools & Techniques, and Outputs

Plan Risk Responses: Data Flow Diagram

After completing this topic, you should be able to identify the inputs to the Plan Risk Responses process.

After completing this topic, you should be able to identify strategies for responding to negative risks.

After completing this topic, you should be able to identify strategies for responding to positive risks.

After completing this topic, you should be able to recognize examples of using contingent response strategy.

After completing this topic, you should be able to recognize the outputs of the Plan Risk Responses process.

Implement Risk Responses: Inputs, Tools & Techniques, and Outputs

Implement Risk Responses: Data Flow Diagram

After completing this topic, you should be able to recognize the purpose of the Implement Risk Responses process.

Monitor Risks: Inputs, Tools & Techniques, and Outputs

Monitor Risks: Data Flow Diagram

After completing this topic, you should be able to identify the inputs to the Monitor Risks process.

After completing this topic, you should be able to recognize examples of risk audit outcomes.

After completing this topic, you should be able to distinguish between technical performance analysis and reserve analysis measurement criteria.

After completing this topic, you should be able to recognize appropriate risk response strategies.

After completing this topic, you should be able to recognize the outputs of the Monitor Risks process.

After completing this topic, you should be able to demonstrate your understanding of the Plan Risk Responses, Implement Risk Responses, and Monitor Risk processes.

After completing this topic, you should be able to demonstrate your understanding of the Plan Risk Responses, Implement Risk Responses, and Monitor Risk processes.

The fourth course covers the final three processes in the project risk management knowledge area. Plan risk responses, implement risk responses and monitor risks. You'll learn about some common risk response strategies and how to monitor and control risks as they occur.

The Standard for Risk Management in Projects

Purpose of this Standard

Approach of this Standard

Principles of Risk Management

Strive to achieve excellence in the practice of risk management

Align risk management with organizational strategy and governance practices

Focus on the most impactful risks

Balance realization of value against overall risks

Foster a culture that embraces risk management

Navigate complexity using risk management to enable successful outcomes

Continuously improve risk management competencies

Structure of this standard

Context and key concepts of risk management

Key concepts and definitions

Risk

Opportunities

Threats

Risk attitude

Risk appetite

Risk threshold

Risk management in organizations

Domains of risk management

Enterprise 1

Enterprise 2

Portfolio

Program

Project

Key success factors

Framework for risk management in portfolio, program, and project management

Business context of risk management in portfolio, program, and project management

Organizational framework

Organizational context

Strategic and organisational planning

Linking planning with execution through portfolio, program, and project management

Scope of accountability, responsibility, and authority

Accountability at the enterprise level

Accountability at the portfolio level

Accountability at the program level

Accountability at the project level

General approaches to risk management

Factors for Evaluating Risk

41. Chapter 4 - Risk management life cycle in portfolio, program, and project management

Introduction to the risk management life cycle

Plan risk management

Purpose of plan risk management

Risk appetite in plan risk management

Tailoring and scaling the risk management plan

Success factors for plan risk management

Identify Risks

Purpose of identify Risks

Key success factors for identify risks

Perform qualitative risk analysis

Purpose of perform qualitative risk analysis

Key success factors for perform qualitative risk analysis

Perform quantitative risk analysis

Purpose of quantitative risk analysis

Key success factors for perform quantitative risk analysis

Plan risk responses

Purpose of plan risk responses

Key success factors for plan risk responses

Implement risk responses

The purpose of implement risk responses

Key success factors for implement risk responses

Monitor Risks

Purpose of Monitor Risks

Key success factors for monitor risks

Risk management in the context of portfolio management

Portfolio risk management life cycle

Portfolio risk identification

Portfolio risk qualitative and quantitative analyses

Portfolio risk response strategies

Implementing portfolio risk responses

Monitoring portfolio risks

Integration of risk management into the portfolio management performance domains

Portfolio strategic management

Portfolio governance

Portfolio capacity and capability management

Portfolio stakeholder engagement

Portfolio value management

Portfolio risk management