Risk Management PMI Knowledge Areas Importance of

Transcript:Risk Management PMI Knowledge Areas Importance of:
Risk Management PMI Knowledge Areas Importance of Project Risk Management The art and science of identifying, analyzing, and responding to risk throughout the life of a project and in the best interests of meeting project objectives Risk management is often overlooked in projects 2 Project Management Maturity by Industry Group and Knowledge Area* 3 KEY: 1 = LOWEST MATURITY RATING 5 = HIGHEST MATURITY RATING Benefits from Software Risk Management Practices* 4 *Source: Kulik and Weber, KLCI Research Group Risk Can Be Negative & Positive Negative risk: understanding potential problems that might occur in the project and how they might impede project success Positive risks: risks that result in good things happening (opportunities) 5 CGI Case What are the negative and positive risks associated with the project CGI was taking on? 6 Risk Utility Risk utility or risk tolerance is your willingness to accept or avoid risk. 7 What is your risk tolerance? Risk Utility You are on a TV game show and can choose one of the following. Which would you take? $1,000 in cash A 50% chance at winning $5,000 A 25% chance at winning $10,000 A 5% chance at winning $100,000 You have just finished saving for a "once-in-a-lifetime" vacation. Three weeks before you plan to leave, you lose your job. You would: Cancel the vacation Take a much more modest vacation Go as scheduled, reasoning that you need the time to prepare for a job search Extend your vacation, because this might be your last chance to go first-class 8 Project Risk Management Processes It is all about planning Planning risk management Identifying risks Performing qualitative risk analysis Performing quantitative risk analysis Planning risk responses Controlling and Monitoring Controlling risk 9 Planning Process Group: Planning Risk Management The main output of this process is a risk management plan—a plan that documents the procedures for managing risk throughout a project Key Parts to Plan: Budget and schedule Risk categories Risk probability and impact Revised stakeholders’ tolerances Tracking 10 Contingency and Fallback Plans, Contingency Reserves Contingency plans Fallback plans Contingency reserves or allowances 11 Common Sources of Risk in Information Technology Projects The Standish Group developed an IT success potential scoring sheet based on potential risks 12 Broad Categories of Risk Market risk Financial risk Technology risk People risk Structure/process risk 13 Risk Breakdown Structure A risk breakdown structure is a hierarchy of potential risk categories for a