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Project Risk Management

ADVISORY ARTICLE

By Dr. T D Jainendrakuma

Madhyapradesh, India


Project Risk Management is the processes of conducting risk management planning, identification, analysis, response planning and monitoring and control on a project. The Objectives are to increase the probability and impact of positive events and decrease the probability and impact of negative events in the project

Plan Risk Management

This is the first process in this knowledge area which comes in planning process group for defining how to conduct risk management activities for a project. And it take care of the Importance to provide sufficient resources and time for risk management activities, and to establish an agreed upon basis for evaluating risk.

Plan Risk Management: Inputs

  1. Project Management Plan (all the approved subsidiary plans as well as base lines should be considered)
  2. Project Charter (Includes the high level description of Risk, high level project descriptions and high level requirements)
  3. Stakeholder Register (contains the role of each and every stakeholder)
  4. Enterprise Environmental Factors (Risk attitudes and stakeholder risk tolerance etc.,
  5. Organizational Process Assets, include but not limited to:
  • Risk Categories
  • Common definitions of concepts and terms
  • Risk statement formats
  • Standard templates
  • Roles and responsibilities
  • Authority levels for decision making
  • Lessons learned

Plan Risk Management T&T

  1. Analytical Techniques (along with risk scoring sheets, stakeholder risk profile analysis should be done to understand the risk tolerance)
  2. Expert Judgment (Seek expertise from senior management0
  3. Meetings (Project team with all stakeholders)

Plan Risk Management: Outputs

  1. Risk Management Plan

a)  Methodology (Strategic approach to carry out risk management plan)

b)  Roles and Responsibilities (Risk management activities has to be assigned to team members)

c)  Budgeting (Contingency reserve & Management reserve has to be included)

d)  Timing (all the anticipated risk should be included in the schedule)

e)  Risk Categories (Grouping of risk in a risk breakdown structure)

f)  Definition of probability and impact( Defining the probability of occurrence of risk and its impact on quality and credibility of risk analysis)

g)  Probability and Impact Matrix (Risks are prioritized by multiplying probability of occurrence with the impact score which is kept in a separate table in consultation with the stakeholders and risks are ranked and priorities are fixed.

h)  Revised stakeholders’ tolerance (the stakeholders capacity to risk tolerance)

i)  Reporting format (Format for risk management documentation and control)

j)  Tracking (tracking documents for auditing)

More…

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About the Author

 

pmwj36-Jul2015-Jainendrakumar-PHOTODr. T D Jainendrakumar

India

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Dr. T D Jainendrakumar, Hon’ PhD, MCA, PMP is an international PMP trainer, EX-Scientist/Principal Scientist/Joint Director, N.I.C, Ministry of Information and Communication Technology, Government of India. At present he is working as the head of the department, Department of Computer Science and Applications in the St. Joseph’s College of Engineering and Technology, Palai, Kerala, India.

He has over 25 years’ of extensive experience in the areas of IT Project management in e-governance at Ernakulam District Collectorate, District Courts of Kerala, Central Administrative Tribunal Ernakulam, Rajeev Gandhi National Drinking Water Mission (400 crore project), New Delhi and Principal Systems Analyst in National Informatics Centre, Madhya Pradesh State Centre especially in the following areas of specialization: IT practice management (Project Management Methodologies, Tools and techniques, Standards & Knowledge);IT Infrastructure Management (Project Governance, Assessment, Organizational Instructions & Facilities and Equipment’s); IT-Resource Integration Management (Resource Management, Training & Education, Career Development & Team Development);IT-Technical Support (Project Mentoring, Project Planning, Project Auditing and Project Recovery); and Business Alignment Management (Project Portfolio management, Customer Relationship Management, Vendor Management & Business performance management).

Teaching Project Management & ICT Subjects for professionals and post graduates. Holding a degree in Master of Computer Applications (MCA), a three year post graduate course dealing with software Engineering and Project Management from a premier institute Anna University Campus, Chennai, India.

He is a PMP of PMI USA since 2008. Resource person of PMI, you can see his name in the PMBOK 4th edition and 5th edition published by PMI, USA under the list of contributors for project management. Scored 4.11 out of 5 in the project management (2005) examination conducted by brainbench.com, secured a Masters Certificate in Project Management, and is one among the top scorers (First in India and 3rd position in the world in the experienced category).

Published paper in UNICEF in 1995, and published many international journal papers in PM World Today since 2008 having cumulative index factors more than 2 in the areas of specialization of Project Management & Information Technology.

Holding a Hon’ Doctorate from Cosmopolitan University, USA in Project Management & Information Technology. Presently working as an independent project management consultant and an International Project management (PMP) trainer. Provided PMP training to the senior officials of big MNCs like M/S. Earnest & Young and He is a visiting professor and sharing his knowledge and experience and to handle classes in Management Information Systems, Quality Management, Project Management and Software Engineering to some of the big universities. He can be contacted at [email protected].

To view other works by this author, visit his author showcase in the PM World Library at http://pmworldlibrary.net/authors/t-d-jainendrakumar/