BSBPMG517A MANAGE PROJECT RISK PRESENTATION 5

PRESENTATION OBJECTIVES

At the end of this presentation you will know about:

• Documentation of risk-analysis outcomes for inclusion in the risk

register and risk-management plan

• Identifying and documenting existing risk controls

QUALITATIVE RISK ANALYSIS OUTPUTS

Project documents that may be updated as a result of qualitative risk

analysis include, but are not limited to:

• Risk register updates: as new information becomes available

through the qualitative risk assessment, the risk register is

updated. Updates to the risk register many include assessments of

probability and impacts for each risk, risk ranking, or risk

categorisation. An example risk register is provided on the

following page. This may also be referred to as a Risk

Management Matrix.

RISK REGISTER (RISK MANAGEMENT MATRIX)

Risk Definition Risk Analysis Risk Control

Risk #

Pri

Risk Description

Causes Consequences Likelihood Impact Risk Rating Risk Control Strategy

Owner Expected occurrence

Date / Phase

Expected Retirement Date / Phase

Status

1

             

Risk Definition Risk Analysis Risk ControlRisk #

PriRisk

DescriptionCauses Consequences Likelihood Impact Risk

RatingRisk Control Strategy Owner Expected

occurrence Date / Phase

Expected Retirement Date / Phase

Status

Eg

Fence will not be straight

Insufficient care taken during alignment. Fence foundations sink after installation

Fence will look bad. Damage to company reputation. Customer refuses to pay for fence Possible Major Extreme

Include hold points in project inspection and test plan that requires review and sign off by the project Client, Foreman and Project Manager;a - at completion of markoutb - prior to pouring foundation

Quality Manager

Foundation digging & pouring from 15th Jan 2014

30th Jan 2014

Open

ASSUMPTION LOG

As new information becomes available through the qualitative risk

assessment project assumptions could change. The assumption log

needs to be revisited to accommodate this new information.

Assumptions LogProject   Project #  Project manager   Sponsor

  Updated  

ID Description Comments Type StatusDate 

Entered1          2          3          

QUANTITATIVE RISK ANALYSIS OUTPUTS

Project documents that may be updated as a result of quantitative

risk analysis could include:

• Deliverable milestones

• Project budget

• Project schedule baselines

• Risk register

 

The risk register and assumptions log form part of the overall risk-

management plan.

RISK MANAGEMENT PLAN

To ensure a comprehensive risk management plan, judgment and

expertise should be considered from groups or individuals who have

specialised training and knowledge on the project subject. This may

include:

• Project stakeholders

• Project managers

• Subject matter experts and specialists

• Industry groups and consultants

• Professional and technical associations 

RISK MANAGEMENT PLAN WILL INCLUDE• Methodology - the approaches, tools and data sources that will be used to perform

risk management on the project

• Roles and responsibilities - defines the risk management team and their individual

responsibilities

• Budgeting - estimation of funds required, based on assigned resources. This is to be

included in the cost baseline

• Timing - defines how often the risk management process will be performed during the

project life cycle, schedules risk management activities so they can be included in the

project schedule.

• Risk categories - how risks will be grouped (risk breakdown structure)

• Definitions of risk probability and impact

• Probability and impact matrix

• Stakeholder tolerances

• Reporting format

• Tracking - strategies for recording and storing risk activity documentation

ESTABLISH RISK TREATMENTS AND CONTROLS

Risk controls:

A control is any measure or action that modifies risk. Controls include

any policy, procedure, practice, process, technology, technique,

method or device that modifies or manages risk. Risk treatments

become controls, or modify existing controls once they have been

implemented.

• Risk reviewing is to identify new risks, reassess risks likelihood,

impact and consequence

• Risk audit is the process of revising your project risk management

activities to ensure that you are effectively performing risk

management in accordance with your plan

RISK TREATMENT

Risk treatment is a risk modification process. It involves

selecting and implementing one or more treatment options.

Once a treatment has been implemented, it becomes a control

or it modifies existing controls. You have many treatment

options. You can avoid risk, you can reduce risk, you can

remove the source of risk, you can modify the consequences,

you can change the probabilities, you can share the risk with

others, you can simply retain the risk or you can even increase

the risk in order to purse an opportunity.

VARIANCE AND TREND ANALYSIS

Many control processes employ variance

analysis to compare the planned results to

the actual results. It is used to forecast any

potential cost and/or schedule deviations in

the project.

TECHNICAL PERFORMANCE MEASUREMENT

Compares technical accomplishments during project

execution to the project management plan’s

schedule. It is required that objectives will be

defined through quantifiable measures of technical

performance, in order to compare actual results

against targets.

RESERVE ANALYSIS

Compares the amount of remaining

contingency reserves (time and cost) to the

amount of remaining risks in order to

determine if the amount of remaining

reserves is enough.

STATUS MEETINGS

Project risk management should be an

agenda item at periodic status meetings, as

frequent discussion about risk makes it more

likely that people will identify risk and

opportunities or advice regarding responses.

DOCUMENT RISK CONTROLS

Existing risk controls will be documented in the Risk

Management Plan and Risk Register.

These risk documents may be updated as a result of the

outcomes of risk reassessments, risk audits and periodic risk

reviews. These outcomes will include new risks, update to

probability, impact, priority, response plans, and ownership.

The risk documents will also be updated from outcomes of

organisational projects “lessons learnt”.

PRESENTATION SUMMARY

Now that you have completed this presentation you know about:

• Documentation of risk-analysis outcomes for inclusion in the risk

register and risk-management plan

• Identifying and documenting existing risk controls