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PMP Certification: A Beginner s Guide
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Updates to Project Documents
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For peace of mind and for audit purposes, you need to keep the project plan documents up to date and accurate I recommend a Wiki (electronic, easy-access team room) or a similar central repository to hold the master project control book (PCB) No matter what tools or techniques you choose, they must be managed effectively; otherwise, they will get outdated and may cause misinformation or confusion, all of which is counterproductive on the project
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Summary of Risk Management
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Risk happens, so plan for it! Make sure you have identified and analyzed the risks You also need to have assigned risk owners and a documented action (response) plan for the top risks Report status promptly and with conviction Be diligent in looking for future risks Wouldn t it be great if all the risks that occurred on your project were identified, analyzed, assigned, and addressed as planned When a risk event happens, nothing is more satisfying than being able to report, The risk was identified in our plan, the owner assigned to the risk has implemented the approved response according to the plan, and everything is under control The best motto for risk management is, Be prepared for anything No one likes surprises on their project Remember the definition of risk is uncertainty, so even if the risk is a known risk, we don t always know if or when it will occur The following list represents some common pitfalls and errors made in the area of risk management:
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Not conducting a thorough risk identification process with all stakeholders Not assigning owners to high-profile risks (and having a backup plan) Not documenting the risk response strategy clearly Not communicating the probability or impact to the project in a timely manner Not having adequate reserves to cover risks when they occur Not doing risk assessment early or often enough (and completely) Missing categories of risks (such as market impact, cultural risks, and customer risks) Conducting risk management with an unclear objective, scope, or target schedule
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11: Project Risk Management
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Not obtaining project sponsor commitment to the project and the risk plan Not involving the team and all stakeholders in the risk management process Not monitoring your risk register regularly
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When it comes to managing risk on your project, the best approach involves the same three takeaway points mentioned in other chapters:
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1 Stay focused on the end results (especially on risk management) 2 Use the tools and resources available on your project to ensure effective risk management,
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such as the summary level sample shown in Figure 11-4 at the end of this chapter (For the latest and complete risk management template from Dr Gary Evans at CVR/IT Consulting LLC, go to http://wwwcvr-itcom/Samples/XRisk_Management_Plan_Templatepdf)[7]
3 Work as a team This is especially true when managing risks
References
1 Stanley, Liana Heroics Behind the Miracle on the Hudson New American (January 20,
2009), http://wwwthenewamericancom/culture/family/698
2 DeVault, Travis ISU alumnus works to cut down bird strikes, Indiana State
University (January 29, 2009), http://wwwindstateedu/news/newsphp newsid=1613
3 Pritchard, Carl On the Edge: Setting the Thresholds, ProjectConnections, http://
wwwprojectconnectionscom/articles/063000-pritchardhtml
4 Larson, Lee W The Great USA Flood of 1993, http://wwwnwrfcnoaagov/floods/
papers/oh_2/greathtm
5 Wikipedia, http://enwikipediaorg/wiki/Mind_map 6 Tyco Electronics Regulatory Agencies and Compliance Requirements, http://www
elotouchcom/Products/agenciesasp
7 CVR/IT Consulting LLC, http://wwwcvr-itcom/Samples/XRisk_Management_Plan_
Templatepdf
PMP Certification: A Beginner s Guide
Project Name: Prepared by: Date (MM/DD/YYYY):
Risk Management Strategy
1 Define the risk management methodology to be used: Section 1 of this table defines your risk management process The process is scalable to ensure that the level, type, and visibility of risk management on your process
Risk Identification: Identify risks through discussion with all major stakeholders Also use the Risk Assessment and Project Planning Assessment Checklist, and other project-specific risks, as appropriate Risk Categorization: Group the risks into categories by using the Risk Assessment The project manager can create additional categories, as required Risk Probability and Impact Assessment: Enter all risks into the Risk Response Plan document For each risk identified, assess the risk event in terms of likelihood of occurrence (Risk Probability) and its effect on project objectives if the risk event occurs (Risk Severity = Impact Score) Risk Prioritization: Risks that meet the threshold criteria will be so noted in the Risk Register Risk Response Planning: For each risk in the Risk Register that is above the Risk Threshold:
Determine options and actions to reduce the likelihood or consequences of impact to project objectives Describe the actions to be taken to mitigate the risk, and actions to be taken when risk event occurs Assign responsibilities for each agreed-upon response, and due date where risk responses are time sensitive Determine impact on project budget and schedule and make appropriate changes to the project plan Incorporate this information into the Risk Register Dates and the actions taken to mitigate the risk Actions taken when the risk event occurred (contingency plan) Incorporate this information into the Risk Register
Risk Response Tracking:
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