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Risk Management Tools and Techniques Risk Management

The document discusses various risk management tools and techniques used by project managers. It describes risk management as identifying, assessing, and controlling financial, legal, strategic, and security risks. Some key tools covered include the risk register for identifying and describing risks, root cause analysis for finding fundamental risks, SWOT analysis for evaluating strengths, weaknesses, opportunities, and threats, and probability and impact matrices for prioritizing risks based on likelihood and consequences. Brainstorming and data quality assessments are also summarized as risk management techniques.

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Kenneth Bulan
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144 views

Risk Management Tools and Techniques Risk Management

The document discusses various risk management tools and techniques used by project managers. It describes risk management as identifying, assessing, and controlling financial, legal, strategic, and security risks. Some key tools covered include the risk register for identifying and describing risks, root cause analysis for finding fundamental risks, SWOT analysis for evaluating strengths, weaknesses, opportunities, and threats, and probability and impact matrices for prioritizing risks based on likelihood and consequences. Brainstorming and data quality assessments are also summarized as risk management techniques.

Uploaded by

Kenneth Bulan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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RISK MANAGEMENT

TOOLS AND
TECHNIQUES
(WESTLAND, 2022)

Presented by: Bulan, Kenneth Christian C.| BSBA – FMGT 3C


I. What is Risk Management?

II. Risk Management Tools and


Techniques:

1. Risk Register
CONTENTS 2. Root Cause Analysis
3. SWOT Analysis
4. Risk Assessment Template for IT
5. Probability and Impact Matrix
6. Risk Data Quality Assessment
7. Brainstorming
WHAT IS RISK MANAGEMENT?
Risk management is the process of
identifying, assessing and
controlling financial, legal, strategic
and security risks to an
organization’s capital and earnings.
These threats, or risks, could stem
from a wide variety of sources,
including financial uncertainty, legal
liabilities, strategic management
errors, accidents and natural
disasters.
THE RISK MANAGEMENT TOOLS AND
TECHNIQUES
The following are some of the best risk management tools and
techniques that professional project managers use to build risk
management plans and guard against inevitable risks, issues and
changes:

1. Risk Register;
2. Root Cause Analysis;
3. SWOT Analysis;
4. Risk Assessment Template for IT;
5. Probability and Impact Matrix;
6. Risk Data Quality Assessment, and;
7. Brainstorming.
1. RISK REGISTER
♦ The fundamental tool in risk management.
♦ Created to identify and describe the risk.
♦ It provides space to explain the potential impact on
the project and what the planned response is for
dealing with the risk if it occurs.
2. ROOT CAUSE ANALYSIS
♦ Is a systematic process used to identify the
fundamental risks that are embedded in the project.
♦ This is a tool that says good management is not only
responsive but preventative.
3. SWOT ANALYSIS
♦ The method of evaluating the strengths, weaknesses,
opportunities and threats in an organization or project.
♦ A grid in which the four quadrants are filled with
examples of the strengths, weaknesses, opportunities
and threats to an organization or project.
4. RISK ASSESSMENT TEMPLATE FOR
IT
♦ This tool is developed for IT projects.
♦ It offers a numbered listing of the risks, along with the
control environment, control activities and any
additional pertinent information.
5. PROBABILITY AND IMPACT MATRIX
♦ It helps prioritize risk, which is important, as you
don’t want to waste time chasing a small risk and
exhaust your resources.
♦ This technique combines the probability and impact
scores of individual risks and then ranks them in terms
of their severity.
6. RISK DATA QUALITY ASSESSMENT
♦ This is used to then find the level to which
information about the risk is relevant to the project
manager.
♦ It helps the project manager understand the accuracy,
reliability, quality and integrity of the risk as related to
the collected data about it.
7. BRAINSTORMING
♦ To begin the brainstorming process, you must assess
the risks that could impact your project. This starts
with reviewing the project documentation, looking
over historic data and lessons learned from similar
projects, and reading over articles and organizational
process assets.
SUMMARY
THANK YOU!

REFERENCE:

Westland, J. (2022, July 7). The Best Risk Management Tools &
Techniques for PM Pros. Retrieved from ProjectManager:
https://www.projectmanager.com/blog/risk-management-tools-
techniques

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