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Risk Management Notes

This document provides an explanation of why each of 16 different inputs to the risk management process are needed before adequately performing risk management. For each input, 1-3 sentences are given describing how that input helps identify risks or is used in the risk management process. The key inputs include the project charter, risk management plan, risk register, project documents, stakeholder register, and work performance data, which help identify risks, define the risk management approach, track identified risks, and evaluate the impact of variances. Understanding these various inputs is important for the risk management exam.

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Vishnuu Kumar Singh
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786 views

Risk Management Notes

This document provides an explanation of why each of 16 different inputs to the risk management process are needed before adequately performing risk management. For each input, 1-3 sentences are given describing how that input helps identify risks or is used in the risk management process. The key inputs include the project charter, risk management plan, risk register, project documents, stakeholder register, and work performance data, which help identify risks, define the risk management approach, track identified risks, and evaluate the impact of variances. Understanding these various inputs is important for the risk management exam.

Uploaded by

Vishnuu Kumar Singh
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Risk management Notes

Exercise: Test yourself explain why each of the following inputs to risk management is needed
before you can adequately perform the risk management process. This is an important test. The
following answer table is what you should know for the exam.
Ans.
There can be many answers. Here are some possible ones.
Sl
no.
1

Input To Risk
Management
Project
Background
Information

Organizational
process assets

Enterprise
environmental
factors

Why Is This Input Needed?


Correspondence from before the project was approved, articles written
about similar projects, and other such information will help identify risks.
(Project background information is part of organizational process
assets.)
These records may have information about risk from past, similar project
, including risk categories, formats for stating risks, and risk
management templates, plus lessons learned that are relevant to
managing risk on the current project.
Company processes and procedures for project management and risk
management, or the lack such standardized procedures, may help
identify additional risks.
Organizational process assets are inputs into most of the planning
processes of risk management.
Knowing the degree of risk the organization is willing to accept and the
areas where there is willingness to accept risk ( organizational risk
appetites, tolerances, and thresholds) helps to identify the impact of
risks, rank risk , and determine which risk response strategies to use .
A companys culture can add or diminish risk and should be considered
when identifying risks.

Project Charter

Project
management

Enterprise environmental factors are inputs into most of the planning


processes of risk management.
The project charter indicates the initial , high level risks identified on
the project and helps you see if the overall project objectives and
constraints are generally risky or not. The charter also helps identify
risks based on what is and what is not included in the project.
The project charter is an input to the plan risk management process and
the identify risks process ( included as part of project documents in
identify risks)
The entire project management plan is an input to the plan Risk
Management and Control Risks processes, as all of the management

Plan

Scope baseline

Network
Diagram

plans must be taken into account. Additionally, specific management


plans are inputs to other risk management processes. They are listed
separately within this table.
Part of the project management plan, the scope baseline can help you
assess how complex the project will be and what level of risk
management effort is appropriate. This also contains information about
boundaries, constraints, and assumptions, which can indicate risks for
the project.
The scope baseline is an input to identify Risks and Perform Qualitative
Risk Analysis.
The network diagram is the only place where paths that converge into
one activity can be easily seen. Such path convergence makes the
activity riskier than if there were no path convergence. The network
diagram also helps determine the critical path and near critical paths.
The tighter the schedule the risk the project has.
The network diagram (part of project documents) is an input to identify
risks.

Time and cost


estimates

Schedule
management
Plan

10

11

Cost
management
Plan

Communicatio
n management
plan

Knowing the estimates helps you determine the risk of the project not
meeting the time and cost objectives. Initial estimates are an input to
risk management, and detailed estimates are an output of risk
management.
The aggressiveness of the schedule objectives provides an indication of
the risk of meeting those objectives.
The schedule management plan is an input to Identify risk and perform
Quantitative Risk Analysis.
This plan details cost processes that may help identify risk to achieving
the project budget.
The cost management plan is an input to Identify Risks and Perform
Quantitative Risk analysis.
The PMBOK guide does not specifically list the communication
management plans as an input to risk management, but it is part of the
project management plan , which is an input to Plan risk Management
and Control risks . The communication management plan can be used
to structure communication around risk. It can also help identify risk. The
communication management plan helps answer question such as: Are
there a lot of people to communication so important that communication
errors can actually add risk to the project? Is your communication
management plan effective? Since the number one problem many
people have on project is poor communication, there is a strong
connection between planning communication and decreasing risk.

12

Quality
Management
plan

The metrics documented in this plan , an input to Identify Risks , will


help you identify quality risks . the documented processes in this plan
can also help minimize threats or enhance opportunities, and can help
you manage risks. The process improvement plan is another output of
quality management that can be useful in risk management: although
the PMBOK guide does not specifically list this plan as an input to
Identify Risk it can be proactively identify risks while the project is
underway.
The human resource management plan describes what resource are
needed (roles and responsibilities) , identifies the resources available to
the project , and explains how the resources will be managed , including
how they will be moved on and off the project . Knowing this information
will help you identify risks related to resources.

13

Human
resource
management
Plan

14

Procurement
documents

15

Project
documents

Procurement documents are an input to identify risks.


In addition to the project charter and network diagram (previously
discussed), project documents include the project schedule, quality
checklist, issue log, agreements, and statement of work.

16

Stakeholder
Register

Project documents are an input to identify Risks.


Stakeholder will view the the project from different perspectives and thus
will be able to see risks that the team can not. Stakeholders are involved
in many aspects of risk management.

The human resource management plan is an input to identify risks.


How many contracts will there likely be on the project? What is the level
of expertise of those handling the contracts? Was the project manager
involved before any contracts wre signed? if not the project will have
more risk and is likely to cost more. Contracts are a way to mitigate or
transfer risks in risk response planning.

The stakeholder register is an input to Plan risk management and


Identify Risks.
17

Risk
Management
Plan

Created as an output of Plan Risk management, The risk management


plan will define how risk management is conducted throughout the
project, and is therefore an input to all of the remaining risk processes.

18

Risk Register

19

Work

Created as an output of Identify Risks, the risk register is an input to all


of the remaining risk processes. The risk register is the repository of
information on identified risk for the project, and as such is an important
input for prioritizing and analyzing risks, planning risk responses and
controlling risks.
These are both input to the control Risks process. Project work will

performance
generate raw data and measurements ( work performance data), which
data
and are analyzed in Control Risks to evaluate the impact of variance and its
reports
relationship to identified risks. The work performance report are the
outputs of other control processes , such as Control Schedule , Control
Scope , etc. These report provide the analyzed data from these
processes in a format that can be used to do risk reassessment ,
reserve analysis, analysis of trends and variance , etc.

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