The article provides knowledge on the topic of Risk Management for better preparation for exam.
In this article I shall provide a summary of the concept of risk management, as well as listing down Input, Tools and Techniques and outputs of all risk management processes.
Summary
The realm of risk management is extremely huge, to the extent of being ceaseless. From defining risk approaches, to identifying risks, to qualitatively and quantitatively analyzing each risk, then planning responses adequate enough to meet every such risk, even preparing plans for reduced or residual risks, and preparing fallback plans in case the previous plan fails, all this while keeping an eye open to continually assess the changing status of risks and on the lookout for new risks as well as any positive opportunities, well, sounds too much for one person or even a team of qualified people. Hence, risk management is the responsibility of every person on the team.
Important tip for all exam seekers: There is a long list of common risk management errors. There is no point in trying to summarize these, however, due attention must be paid to avoid each one.
- Risk identification should never be done in a hurry or completed before enough knowledge on the project deliverables
- Project risk must be evaluated using all techniques as necessary. Just a combination of few tools such as questionnaires, interviews or Monte Carlo analysis may not be enough
- Time spent in risk management must be appropriate for the type of project
- Risks identified must be specific and detailed rather than general
- Care should be taken to ensure that facts or certain events are not admitted as risks
- Never, ever rely on only one method of identifying the risks
- Avoid choosing the first risk response strategy as a risk response without evaluating the others
- During project execution, enough attention must be given to risk management
- Contracts must contain risk responses hence, must not be signed before project risks are discussed or assigned
- Risk management activities must be explained during early project planning meetings
Input, Tools and Techniques and Outputs (ITTOs)
This concludes the article series on Risk Management.
Rattan N Whig, PMP®
The views presented in this article are solely my personal views. I advise all the readers to exercise discretion while adopting any views listed in this article or anywhere in the other articles for their benefits. Another important aspect is that, whenever there is a difference or conflict in information presented in these articles and those listed in PMBOK® guide or any other publication by the PMI® institute, the dispute must be resolved in favor of the information published by PMI® institute.
PMP, PMI and PMBOK are registered trademarks of the Project Management Institute, Inc.
