Master Project Risk Management - 5 PDUs

Master the PMI PMBOK Risk Management Knowledge Area - and earn Five PDUS for your Certification Continuing Education
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  • Lectures 61
  • Length 6.5 hours
  • Skill Level All Levels
  • Languages English
  • Includes Lifetime access
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About This Course

Published 1/2016 English

Course Description

We are a PMI Registered Education Provider:

  • Instructingcom, LLC #4082
  • Master Project Risk Management; Activity ID 16825424170
  • 5 PDU hours

Risk is an uncertain event or condition that may have a negative or positive effect on the project objectives. Not all risks are negative; some risks, called opportunities, are positive events that can bolster the project budget, schedule, and even the project scope.

In project management, risks must be:

  • Identified
  • Planned for
  • Pass through Qualitative Analysis
  • Quantified with Quantitative Analysis
  • Responded to accordingly
  • Monitored and Controlled

In this course you’ll learn all of the risk management processes, the nuances of project risk management, and the approach you should take as a project manager to control risks within a project. We’ll discuss the importance of risk management and how the project manager leads the charge in risk management. Communication with stakeholders, stakeholder management strategies, and teamwork are key ingredients for successful risk management.

This course, offered by Instructingcom, LLC (a PMI Registered Education Provider) offers five Professional Development Units (PDU) for your PMI certification education. This course is based on the PMI book Risk Standard for Project Management and The Guide to the Project Management Body of Knowledge (PMBOK Guide, fifth edition).

What are the requirements?

  • At least a fundamental understanding of project management

What am I going to get from this course?

  • Plan for project risk management
  • Identify risks within a project
  • Perform qualitative risk analysis
  • Complete quantitative risk analysis
  • Plan project risk responses
  • Monitor and control project risks
  • Earn five PMI Professional Development Units (PDUs)

What is the target audience?

  • Project managers
  • Program managers
  • Risk management individuals
  • PMP and PMI certificants seeking to maintain their PMI certifications
  • New project managers seeking to better understand project risk management

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: Introduction to Project Risk Management
01:14

Welcome to project risk management. This project management knowledge area is crucial to project management success. In this introductory lecture I'll discuss:

  • Goals of the course
  • Project risk management
  • Integrated nature of risk management
  • How you can use this course to earn five Professional Development Units (PDUs) from PMI
03:38

In this lecture I'll discuss the PMI publications and standard on project risk management. Project Management Institute (PMI) practice standards are guides to the use of a tool, technique, or process identified in A Guide to the Project Management Body of Knowledge or other PMI standards. Practice standards are targeted at audiences who participate in the management of projects. This includes project managers, project personnel, contract personnel, supervisors, and other project stakeholders.

A PMI practice standard describes processes, activities, inputs, and outputs for a specific Knowledge Area. It provides information on what the significant process, tool, or technique is, what it does, why it is significant, when it should be performed or executed, and, if necessary for further clarification, who should perform the process. A practice standard does not prescribe how the process is to be implemented, leaving that subject for other forums such as handbooks, manuals, and courses.

03:39

According to the PMBOK Guide, “Project Risk Management includes the processes concerned with conducting risk management planning, identification, analysis, responses, and monitoring and control on a project.” The PMBOK Guide also states: “The objectives of Project Risk Management are to increase the probability and impact of positive events, and decrease the probability and impact of negative events in the project.” In the PMBOK Guide “project risk is an uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives.” Project objectives include scope, schedule, cost, and quality.

Project Risk Management aims to identify and prioritize risks in advance of their occurrence, and provide action-oriented information to project managers. This orientation requires consideration of events that may or may not occur and are therefore described in terms of likelihood or probability of occurrence in addition to other dimensions such as their impact on objectives.

08:47

Project Risk Management is not an optional activity: it is essential to successful project management. It should be applied to all projects and hence be included in project plans and operational documents. In this way, it becomes an integral part of every aspect of managing the project, in every phase and in every process group.

Many of the project management processes address planning the project, from concept to final design and from procurement through daily management of execution and close-out. These processes often assume an unrealistic degree of certainty about the project and, therefore, they need to include treatment of project risks.

03:47

Project Risk Management is a valuable component of project management and it enhances the value of the other project management processes. As with all of these processes, Project Risk Management should be conducted in a manner consistent with existing organizational practices and policies. In addition, like the other processes involved in project management, Project Risk Management should be conducted in a way that is appropriate to the project. Project Risk Management should recognize the business challenges as well as the multi-cultural environment associated with an increasingly global environment including many joint venture projects and customers, suppliers, and workforces spread around the globe.

05:37

There are some specific success criteria for project risk management. In this lecture we'll discuss:

  • Recognize the Value of Risk Management
  • Individual Commitment/Responsibility
  • Open and Honest Communication
  • Organizational Commitment
  • Risk Effort Scaled to Project
  • Integration with Project Management
01:06

Congratulations on reaching the end of this section. In this video we'll review the key points from this section and I'll share some final thoughts about these topics. Great job!

34 pages

Slides and workbook for this module. You can print these out, if desired, but please don't share them. Thanks!

Section 2: Principles and Concepts of Project Risk Management
01:06

This chapter introduces the key ideas required to understand and apply Project Risk Management to projects following the approach described in Chapter 11 of the PMBOK Guide. These principles and concepts are generally consistent with other approaches to Project Risk Management commonly used although the terminology may differ in some details.

04:03

The word “risk” is used in many ways in everyday language and in various specialist disciplines. Its use in the PMBOK Guide is consistent with other risk management standards and process descriptions. The defi nition of project risk given in the PMBOK ® Guide – Fourth Edition is as follows:

Project risk is an uncertain event or condition that, if it occurs, has a positive or a negative effect on a project’s objectives.

This definition includes two key dimensions of risk: uncertainty and effect on a project’s objectives. When assessing the importance of a project risk, these two dimensions must both be considered. The uncertainty dimension may be described using the term “probability” and the effect may be called “impact” (though other descriptors are possible, such as “likelihood” and “consequence”).

03:59

The risk attitudes of the project stakeholders determine the extent to which an individual risk or overall project risk matters. A wide range of factors influence risk attitude. These include the scale of the project within the range of stakeholders’ overall activities, the strength of public commitments made about the performance of the project, and the stakeholders’ sensitivity to issues such as environmental impacts, industrial relations, and other factors.

02:29

It is the nature of projects that circumstances change as they are being planned and executed. The amount of information available about risks will usually increase as time goes on. Some risks will occur while others will not, new risks will arise or be discovered, and the characteristics of those already identified may change. As a result, the Project Risk Management processes should be repeated and the corresponding plans progressively elaborated throughout the lifetime of the project.

02:53

Communication is paramount to successful project risk management.

Risk identification and analysis depend on comprehensive input from stakeholders in a project to ensure that nothing significant is overlooked and that risks are realistically assessed. The credibility of the process and the commitment of those who should act to manage risks can be assured only if the way the process operates and the conclusions it produces are understood and seen as credible by all concerned. This demands effective and honest communication from the Project Risk Management process to the rest of the project team and other project stakeholders.

02:40

It may be considered simplistic to say “risk management is everyone’s responsibility.” However it is important that management of project risk is not left to a few risk specialists. Project Risk Management should be included as an integral part of all other project processes. Since project risks can affect project objectives, anyone with an interest in achieving those objectives should play a role in Project Risk Management.

00:59

Congratulations on reaching the end of this section. In this video we'll review the key points from this section and I'll share some final thoughts about these topics. Great job!

37 pages

Slides and workbook for this module. You can print these out, if desired, but please don't share them. Thanks!

Section 3: INTRODUCTION TO PROJECT RISK MANAGEMENT PROCESSES
00:40

In this lecture I'll discuss, at a high-level, the project management processes of risk management. This lecture will describe:

  • Project management and risk management
  • Project risk management processes
05:04

All projects are uncertain. Uncertainty is inevitable since projects are unique and temporary undertakings based on assumptions and constraints, delivering project results to multiple stakeholders with different requirements. Project management can be seen as an attempt to control this uncertain environment, through the use of structured and disciplined techniques such as estimating, planning, cost control, task allocation, earned value analysis, monitoring and review meetings, etc. Each of these elements of project management has a role in defining or controlling the uncertainty which is inherent in all projects.

08:47

The defined steps of Project Risk Management describe a structured approach for understanding and managing risk on a project. This chapter outlines the steps required for effective Project Risk Management. Each step is described in more detail in subsequent chapters.

It is essential at the start of the Project Risk Management process to clearly define the objectives. It is also clear that different projects are exposed to different levels of risk, so each step in the Project Risk Management process should be scalable to meet the varying degrees of risk.

00:37

Congratulations on reaching the end of this section. In this video we'll review the key points from this section and I'll share some final thoughts about these topics. Great job!

17 pages

Slides and workbook for this module. You can print these out, if desired, but please don't share them. Thanks!

Section 4: PLAN RISK MANAGEMENT
01:21

In this overview lecture I'll discuss planning risk management. Specifically, I'll touch base on:

  • The process of planning risk management
  • Critical success factors for planning risk management
  • Tools and techniques for planning
  • Results of the planning process
03:43

The objectives of the Plan Risk Management process are to develop the overall risk management strategy for the project, to decide how the risk management processes will be executed, and to integrate Project Risk Management with all other project management activities.

Effective risk management requires creation of a risk management plan. This plan describes how the risk management processes should be carried out and how they fit in with the other project management processes. On a broader level, it describes the relationships among Project Risk Management, general project management, and the management processes in the rest of the organization.

03:26

The principal criteria for a valid risk management plan are acceptance by the stakeholders, alignment with the internal and external constraints on the project, balance between cost or effort and benefit, and completeness with respect to the needs of the Project Risk Management process. In this lecture I'll discuss:

  • Barriers to Successful Project Risk Management
  • Project Stakeholders in Project Risk Management
  • Comply with the Organization’s Objectives, Policies, and Practices
03:32

The tools and techniques are the actions and items you'll utilize to effectively manage risks within a project. In this section I'll discuss the need for planning sessions and using templates. Planning sessions are recommended in order to build a common understanding of the project’s risk approach between project stakeholders and to gain agreement on the techniques to be used for managing risk.

In order to benefit from experience and existing best practice, risk management planning should take into account relevant existing templates for work products, such as risk status reports, risk breakdown structures or the risk register. A decision should be made as to which templates are relevant to the project, and these should then be adapted and included in the risk management plan.

03:12

The results of risk management planning are documented in the risk management plan. The plan serves to provide all project stakeholders with a common view of how the risk-related activities of the project will be handled, what has been agreed upon, and a description of the stakeholders’ involvement and responsibilities in these activities.

01:17

Congratulations on reaching the end of this section. In this video we'll review the key points from this section and I'll share some final thoughts about these topics. Great job!

14 pages

Slides and workbook for this module. You can print these out, if desired, but please don't share them. Thanks!

Section 5: IDENTIFY RISKS
01:26

In this overview lecture I'll discuss risk identification in project management. Specifically, I'll touch base on:

  • The process of risk identification
  • Critical success factors for risk identification
  • Tools and techniques for identifying risks in any projects
  • Results of the risk identification process
08:05

In this lecture I'll discuss these success factors for identifying risks within a project:

  • Early identification of risk events
  • Iterative Identification
  • Emergent Identification
  • Comprehensive Identification
  • Explicit Identification of Opportunities
  • Multiple Perspectives
  • Risks Linked to Project Objectives
  • Complete Risk Statement
  • Ownership and Level of Detail
  • Objectivity
05:00

In this lecture I'll discuss the major components of tools and techniques for risk identification in a project:

  • Historical review of projects for risk events (the past)
  • The current assessment of the project (the present)
  • Creativity techniques for forecasting risk events (future)
02:15

The results from the Identify Risks process should be recorded in order to capture all relevant information currently available for each identified risk. The main output from the Identify Risks process is the risk register. This includes a properly structured risk description and the nominated risk owner for each risk, and may also include information on the causes and effects of the risk, trigger conditions, and preliminary responses.

00:28

Congratulations on reaching the end of this section. In this video we'll review the key points from this section and I'll share some final thoughts about these topics. Great job!

24 pages

Slides and workbook for this module. You can print these out, if desired, but please don't share them. Thanks!

Section 6: PERFORM QUALITATIVE RISK ANALYSIS
01:13

Qualitative risk analysis qualifies the risk for additional analysis. In this overview lecture I'll discuss qualitative risk analysis. Specifically, I'll touch base on:

  • Objectives for qualitative risk analysis
  • The process of qualitativerisk analysis
  • Critical success factors for planning qualitative risk analysis
  • Tools and techniques for completing qualitative risk analysis
  • Results of the qualitative risk analysis process
02:12

Qualitative analysis qualifies the risk.

The Perform Qualitative Risk Analysis process assesses and evaluates characteristics of individually identified project risks and prioritizes risks based on agreed-upon characteristics. Assessing individual risks using qualitative risk analysis evaluates the probability that each risk will occur and the effect of each individual risk on the project objectives. As such it does not directly address the overall risk to project objectives that results from the combined effect of all risks and their potential interactions with each other.

04:00

Several factors that lead to successful qualitative risk analysis are described in this lecture. Agreement of the project stakeholders is a fundamental criterion and a common theme. The agreed-upon approach is the foundation of process credibility. Then, agreed-upon definitions enable high-quality information to be collected. Finally, with these conditions in place, the process can be executed reliably, which contributes to the credibility of its outputs.

05:20

Using the right tool or technique at the right time is crucial to qualitative risk analysis. In this section we'll discuss:

  • Selecting risk characteristics
  • Collecting and analyzing data
  • Prioritizing risks
  • Categorizing risk causes
  • Documenting results
00:35

Congratulations on reaching the end of this section. In this video we'll review the key points from this section and I'll share some final thoughts about these topics. Great job!

21 pages

Slides and workbook for this module. You can print these out, if desired, but please don't share them. Thanks!

Section 7: PERFORM QUANTITATIVE RISK ANALYSIS
01:23

Qualitative risk analysis quantifies the risk for additional analysis. In this overview lecture I'll discuss qualitative risk analysis. Specifically, I'll touch base on:

  • Objectives to quantitative risk analysis
  • The process of quantitative risk analysis
  • Critical success factors for planning quantitative risk analysis
  • Tools and techniques for completing quantitative risk analysis
  • Results of the quantitative risk analysis process
04:16

The Perform Quantitative Risk Analysis process provides a numerical estimate of the overall effect of risk on the objectives of the project, based on current plans and information, when considering risks simultaneously. Results from this type of analysis can be used to evaluate the likelihood of success in achieving project objectives and to estimate contingency reserves, usually for time and cost that are appropriate to both the risks and the risk tolerance of project stakeholders.

It is generally accepted that analyzing uncertainty in the project using quantitative techniques such as Monte Carlo simulation may provide more realism in the estimate of the overall project cost or schedule than a non-probabilistic approach which assumes that the activity durations or line-item cost estimates are deterministic.

03:57

In this lecture I'll discuss the key elements of successful quantitative risk analysis:

  • Prior Risk Identification and Qualitative Risk Analysis
  • Appropriate Project Model
  • Commitment to Collecting High-Quality Risk Data
  • Unbiased Data
  • Overall Project Risk Derived from Individual Risks
  • Interrelationships Between Risks in Quantitative Risk Analysis


06:58

Tools and techniques used appropriately for quantitative risk analysis have several characteristics that will be discussed in this lecture:

  • Comprehensive Risk Representation
  • Risk Impact Calculation
  • Quantitative Method Appropriate to Analyzing Uncertainty
  • Data Gathering Tools
  • Effective Presentation of Quantitative Analysis Results
  • Iterative Quantitative Risk Analysis
  • Information for Response Planning


01:29

The contingency reserves calculated in quantitative project cost and schedule risk analysis are incorporated, respectively, into the cost estimate and the schedule to establish a prudent target and a realistic expectation for the project. Contingency reserves may also be established to provide for the capture of opportunities that are judged to be priorities for the project. If the contingency reserve required exceeds the time or resources available, changes in the project scope and plan may result.

02:22

Congratulations on reaching the end of this section. In this video we'll review the key points from this section and I'll share some final thoughts about these topics. Great job!

Section 8: PLAN RISK RESPONSES
01:17

Every identified risk needs a planned response. In this lecture I'll discuss:

  • How to plan risk responses
  • Planning for risk response
  • Developing risk response strategies
  • The seven risk responses
03:23

The objective of the Plan Risk Responses process is to determine the set of actions which most enhance the chances of project success while complying with applicable organizational and project constraints. Once risks have been identified, analyzed, and prioritized, plans should be developed for addressing every risk the project team considers to be sufficiently important, either because of the threat it poses to the project objectives or the opportunity it offers. The planning entails agreeing upon the actions to be taken and the potential changes to budget, schedule, resources, and scope which these actions might cause.

08:51

In this lecture I'll discuss the critical success factors for planning risk responses, including:

  • Communication
  • Defining roles and responsibilities
  • Timing of responses
  • Resources, budgets, and schedule
  • Interactions among identified risks
  • Risk response accuracy and timeliness
  • Threats and opportunities
  • Developing strategies for risk events
03:30

The project manager should develop risk response strategies for individual risks, sets of risks, and project level risks. An overview of the steps in arriving at a complete set of responses will be discussed in this lecture. The affected stakeholders should be involved in determining the strategies. Once the strategies have been selected, they need to be agreed upon by the entity that approves those strategies. There are four strategies which address individual risks for threats and opportunities.

03:07

There are four categories of tools and techniques discussed in this lecture:

  • Creativity tools to identify potential responses
  • Decision-support tools for determining the optimal potential response
  • Strategy implementation techniques designed to turn a strategy into action
  • Tools to transfer control to the Monitor and Control Risks process
01:47

Risk response planning is based on the information placed in the risk register during execution of the Identify Risks and Perform Analysis processes. The corresponding risk response information is often referred to as the risk response plan, although it may in fact be an integral part of the risk register. The response-related information for each risk is recorded in the risk register and updated regularly. Any interested stakeholder should be able to rapidly access all the information required to verify their responsibilities and manage the risk in accordance with the risk response plan.

01:17

Congratulations on reaching the end of this section. In this video we'll review the key points from this section and I'll share some final thoughts about these topics. Great job!

26 pages

Slides and workbook for this module. You can print these out, if desired, but please don't share them. Thanks!

Section 9: MONITOR AND CONTROL RISKS
02:47

Throughout the project the project manager must monitor and control project risks. In this lecture I'll discuss these processes and:

  • Purpose and Objectives of the Monitor and Control Risks Process
  • Critical Success Factors for the Monitor and Control Risks Process
  • Tools and Techniques for the Monitor and Control Risks Process
  • Documenting the Results of the Monitor and Control Risks Process


05:46

The primary objectives of risk monitoring and controlling are to track identified risks, monitor residual risks, identify new risks, ensure that risk response plans are executed at the appropriate time, and evaluate their effectiveness throughout the project life cycle.

In addition to tracking and managing the risk response actions, the effectiveness of all of the Project Risk Management processes should be reviewed to provide improvements to the management of the current project as well as future ones.

02:48

From the start, the project management plan should include the actions required to monitor and control project risk. This should be set up early in the project planning cycle, and then adjusted in view of the risk response planning decisions adding, for example, the actions associated with monitoring specific conditions or metrics. Once risk response planning has been carried out, the project schedule should include all of the agreed-upon, response-related actions so that they can be carried out as a normal part of project execution and tracked accordingly.

03:02

There are several tools and techniques project managers may use to monitor and control project risks. In this lecture I'll discuss:

  • Managing Contingency Reserves
  • Tracking Trigger Conditions
  • Tracking Overall Risk
  • Tracking Compliance


01:36

The final control action of risk monitoring and controlling is to record actual data for future use. This includes all of the relevant information relating to risk management from start to finish of the project. The definition of what this information must include, as well as the storage mechanism, should have been previously specified in the risk management plan.

The goal is to ensure that the significant risk management information is recorded to provide concrete data to the lessons learned process for inclusion in a lessons learned document, report, or other communication vehicle.

01:26

Congratulations on reaching the end of this section. In this video we'll review the key points from this section and I'll share some final thoughts about these topics. Great job!

39 pages

Slides and workbook for this module. You can print these out, if desired, but please don't share them. Thanks!

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Instructor Biography

Joseph Phillips, PMP, PMI-ACP, Project+, Certified Technical Trainer

Joseph Phillips has more than 15 years’ experience as a project management consultant, educator, technology consultant, business owner, and technical writer. He has consulted as a project manager for a range of businesses, including startups, hospitals, architectural firms, and manufacturers.  Joseph is passionate about helping students pass the PMP certification exam.  He has created and led both in-person and web-based seminars on project management, PMP certification, IT project management, program management, writing, business analysis, technical writing, and related topics.  Joseph has written, co-authored, or served as technical editor to more than 35 books on technology, careers, project management, and goal setting for MacMillan, McGraw-Hill, Pearson Education, and AMA Press.

Certifications:

Project Management Professional (PMP)

PMI-Agile Certified Practitioner (PMI-ACP)

CompTIA Project+ Professional

CompTIA Certified Technical Trainer+

Author of:

PMP Project Management Professional Study Guide, McGraw-Hill

CAPM/PMP All-in-One Exam Guide, McGraw-Hill

PMP Project Management Lab Book, McGraw-Hill

The Certified Technical Trainer All-in-One Exam Guide, McGraw-Hill

IT Project Management: On Track from Start to Finish, McGraw-Hill

Project Management for Small Business, American Management Association 

Software Project Management for Dummies, For Dummies Publisher

The Lifelong Project, Amazon CreateSpace

Vampire ManagementWhy Your Job Sucks, Amazon CreateSpace

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