Scribd Logo
Upload

Welcome to Scribd!

  • 13 views

    QLDA - Chapter 7-Managing Risk

    Uploaded by

    Bien Van Anh
    This document discusses risk management for projects. It describes the risk management process and identifies the key steps as risk identification, risk assessment, risk response development, and risk response control. It also covers topics such as contingency planning, opportunity management, and change control management.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    QLDA - Chapter 7-Managing Risk

    Uploaded by

    Bien Van Anh
    13 views5 pages
    This document discusses risk management for projects. It describes the risk management process and identifies the key steps as risk identification, risk assessment, risk response development, and risk response control. It also covers topics such as contingency planning, opportunity management, and change control management.

    Original Title

    7. QLDA- Chapter 7-Managing Risk

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document discusses risk management for projects. It describes the risk management process and identifies the key steps as risk identification, risk assessment, risk response development, and risk response control. It also covers topics such as contingency planning, opportunity management, and change control management.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    13 views5 pages

    QLDA - Chapter 7-Managing Risk

    Uploaded by

    Bien Van Anh
    This document discusses risk management for projects. It describes the risk management process and identifies the key steps as risk identification, risk assessment, risk response development, and risk response control. It also covers topics such as contingency planning, opportunity management, and change control management.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 5

    1/9/2024

    CHAPTER 7:
    UNIVERSITY OF FINANCE - MARKETING
    FACULTY OF BUSINESS ADMINISTRATION MANAGING RISK

    CHAPTER 7:
    MANAGING RISK

    Course ID number: 010808


    QUẢN TRỊ DỰ ÁN ĐẦU TƯ

    You’ve got to go out on a limb sometimes because that’s where


    the fruit is.
    Lecturer: Dr. PHAM HAI CHIEN
    January, 2024 —Will Rogers—
    Faculty of Business Administration
    CHAPTER 7: MANAGING RISK 2

    LEARNING OBJECTIVES CHAPTER OUTLINE

    1. Describe the risk management process. 1. Risk Management Process


    2. Understand how to identify project risks. 2. Step 1: Risk Identification
    3. Assess the significance of different project risks.
    3. Step 2: Risk Assessment
    4. Describe the four different responses to managing risks.
    5. Understand the role contingency plans play in risk 4. Step 3: Risk Response Development
    management process.
    5. Contingency Planning
    6. Understand opportunity management and describe the four
    different approaches to responding to opportunities in a 6. Opportunity Management
    project.
    7. Contingency Funding and Time Buffers
    7. Understand how contingency funds and time buffers are
    used to manage risks on a project. 8. Step 4: Risk Response Control
    8. Recognize the need for risk management being an ongoing 9. Change Control Management
    activity.
    9. Describe the change control process 10. Summary
    CHAPTER 7: MANAGING RISK 3 CHAPTER 7: MANAGING RISK 4
    1/9/2024

    1. RISK MANAGEMENT PROCESS 1. RISK MANAGEMENT PROCESS

    Risk Event Graph

    CHAPTER 7: MANAGING RISK 5 CHAPTER 7: MANAGING RISK 6

    2. STEP 1: RISK IDENTIFICATION 2. STEP 1: RISK IDENTIFICATION

    Organizations use Risk Breakdown Structures (RBSs) A risk profile is a list of questions that address traditional
    areas of uncertainty on a project.

    CHAPTER 7: MANAGING RISK 7 CHAPTER 7: MANAGING RISK 8


    1/9/2024

    3. STEP 2: RISK ASSESSMENT 3. STEP 2: RISK ASSESSMENT

    1. Scenario analysis is the easiest and most commonly Risk Assessment Form

    used technique for analyzing risks in terms of:


     Probability of the event.

     Impact of the event.

     Risk Value = Impact × Probability

    2. Probability Analysis
     PERT (Program Evaluation And Review Technique) and PERT
    simulation can be used to review activity and project risk.

    3. Sensitivity analysis
    Risk Severity Matrix
    4. Decision trees
    CHAPTER 7: MANAGING RISK 9 CHAPTER 7: MANAGING RISK 10

    4. STEP 3:RISK RESPONSE DEVELOPMENT 5. CONTINGENCY PLANNING

    1. Escalating Risk  A contingency plan is an alternative plan that will be used if


    a possible foreseen risk event becomes a reality.
    2. Mitigating Risk
     Some of the most common methods for handling risk are:
    3. Avoiding Risk technical risks, schedule risks, cost risks, funding risks.
     Risk Response Matrix:
    4. Transferring Risk
    5. Accepting Risk

    CHAPTER 7: MANAGING RISK 11 CHAPTER 7: MANAGING RISK 12


    1/9/2024

    6. OPPORTUNITY MANAGEMENT 7. CONTINGENCY FUNDING AND TIME BUFFERS

    1. Escalating Opportunity 1. Escalating Risk 1. Contingency funds are established to cover project
    risks—identified and unknown.
    2. Exploiting Opportunity 2. Mitigating Risk
     Budget reserves are set up to cover identified risks; these
    3. Sharing Opportunity reserves are those allocated to specific segments or
    VS 3. Avoiding Risk
    deliverables of the project.
    4. Enhancing Opportunity 4. Transferring Risk  Management reserves are set up to cover unidentified risks and
    are allocated to risks associated with the total project.
    5. Accepting Opportunity 5. Accepting Risk

    CHAPTER 7: MANAGING RISK 13 CHAPTER 7: MANAGING RISK 14

    7. CONTINGENCY FUNDING AND TIME BUFFERS 8. STEP 4: RISK RESPONSE CONTROL

    1. Time buffers to cushion against potential delays in the 1. Risk control involves executing the risk response
    project. strategy, monitoring triggering events, initiating
    contingency plans, and watching for new risks.
    2. For example, buffers are added to:
     Activities with severe risks. 2. Document: issue log, lesson learned register, risk
    register, risk report, etc.
     Merge activities that are prone to delays due to one or more
    preceding activities being late. 3. Method:
     Noncritical activities to reduce the likelihood that they will create  Data analysis: Technical performance analysis and Reserve
    another critical path. analysis
     Activities that require scarce resources to ensure that the  Audits: the effectiveness of the risk management process
    resources are available when needed.
     Meetings
    CHAPTER 7: MANAGING RISK 15 CHAPTER 7: MANAGING RISK 16
    1/9/2024

    9. CHANGE CONTROL MANAGEMENT 9. CHANGE CONTROL MANAGEMENT

    Change Control Process Sample Change Request


    Change management systems involve reporting,
    controlling, and recording changes to the project baseline
    as follows:
    1. Identify proposed changes.
    2. List expected effects of proposed change(s) on schedule and
    budget.
    3. Review, evaluate, and approve or disapprove changes formally.
    4. Negotiate and resolve conflicts of change, conditions, and cost.
    5. Communicate changes to parties affected.
    6. Assign responsibility for implementing change.
    7. Adjust master schedule and budget.
    8. Track all changes that are to be implemented
    CHAPTER 7: MANAGING RISK 17 CHAPTER 7: MANAGING RISK 18

    9. CHANGE CONTROL MANAGEMENT 10. CHAPTER SUMMARY

    Change Request Log


    1. Risk management is proactive not reactive. It reduces the
    number of surprises and prepares people for the
    unexpected.
    2. Contingency plans increase the chance that the project can
    be completed on time and within budget. Contingency plans
    can be simple “work-arounds” or elaborate detailed plans.
    3. Responsibility for risks should be clearly identified and
    documented.
    4. Use of contingency reserves should be closely monitored,
    controlled, and reviewed throughout the project life cycle.
    5. Risk management is an iterative process that occurs
    throughout the lifespan of the project.
    CHAPTER 7: MANAGING RISK 19 CHAPTER 7: MANAGING RISK 20

    You might also like