Risk Management. BSBPMG508A

Diploma Project Management Captain Cook College

Sharon Boyle

Activity 1 & 2 Discuss results for Activity 1 & 2 Written & Oral sections Discussed outstanding assessments Discussed & began Communications

Assessment Item due 19 October

Complete outstanding assessments ?

Last week’s progress in Comms

All seems Ok – keep up good work Just read the question carefully

Feedback from LMS answers

1. Determine project risks 2. Monitor and control project risks 3. Assess risk management outcomes

Risk Management

Identify, document and analyse risks, in consultation with stakeholders and higher project authority

Use established risk management techniques & tools, within delegated authority, to ◦ analyse risks, ◦ assess options◦ recommend preferred risk approaches

Develop risk management plans, secure agreement of stakeholders and communicate plans

Establish designated risk management processes and procedures

1. Determine project risks

personal experience subject matter experts conducting or supervising qualitative and/or

quantitative risk analysis,

◦ schedule simulation – using multiple Gantt charts ◦ decision analysis ◦ contingency planning – what if? ◦ alternative strategy development – what if?◦ using specialist risk analysis tools

Techniques & tools

What are they?◦ – think what might happen

For each risk - How likely is it to happen?◦ Hit by meteor ◦ Vs ◦ getting sleepy tonight

What are the consequences of this thing happening?◦ Hit by meteor – possibly end of world as we know it◦ Vs◦ Getting a good night’s sleep

Assessing Risk – two silly examples

Hit by Meteor◦ Likelihood – extremely low◦ Consequence – Catastrophic – end of world

Getting sleepy tonight ◦ Likelihood – extremely high◦ Consequence – Insignificant

Risk assessment is a way of sorting and prioritizing risks or events or hazards

To describe these two events or risks

Risk Assessment  

1. Determining the Level of Risk This worksheet can be used to identify the level of risk and help to prioritize any interventions or control measures.  

 

Consider the consequences and likelihood for each of the identified risks and use the matrix* below to establish a risk level.  

NB: This workbook will record the quality of your planning process - it will not ensure it. 

Consequence Criteria  

The "area of consideration" example used below is injury to people.  

You should copy this template and adjust these criteria for each "thing you value".  

 

1 – Insignific

ant

2 – Minor

3 – Moderate

4 – Major 5 – Catastrophic  

Dealt with by in-house first

aid, etc

Medical help

needed. Treatment by medical professional/hospital outpatient,

etc

Significant non-

permanent injury.Overni

ght hospitalisation (inpatient)

Extensive permanent injury

(eg loss of finger/s) Extended

hospitalisation

Death. Permanent disabling injury (eg blindness, loss of

hand/s, quadriplegia)

 

Almost certain to occur in

most circumstances

Medium (M)

High (H) High (H) Very High (VH) Very High (VH)  

Likely to occur

frequently

Medium (M)

Medium (M)

High (H) High (H) Very High (VH)  

Possible and likely to occur at some

time

Low (L)Medium

(M)High (H) High (H) High (H)  

Unlikely to occur but could happen

Low (L) Low (L)Medium

(M)Medium (M) High (H)  

May occur but

only in rare and exceptio

nal circumstances

Low (L) Low (L)Medium

(M)Medium (M) High (H)  

Risk Assessment  

1. Determining the Level of Risk This worksheet can be used to identify the level of risk and help to prioritize any interventions or control measures.  

 

Consider the consequences and likelihood for each of the identified risks and use the matrix* below to establish a risk level.  

NB: This workbook will record the quality of your planning process - it will not ensure it. 

Consequence Criteria  

The "area of consideration" example used below is injury to people.  

You should copy this template and adjust these criteria for each "thing you value".  

 

1 – Insignific

ant

2 – Minor

3 – Moderate

4 – Major 5 – Catastrophic  

Dealt with by in-house first

aid, etc

Medical help

needed. Treatment by medical professional/hospital outpatient,

etc

Significant non-

permanent injury.Overni

ght hospitalisation (inpatient)

Extensive permanent injury

(eg loss of finger/s) Extended

hospitalisation

Death. Permanent disabling injury (eg blindness, loss of

hand/s, quadriplegia)

 

Almost certain to occur in

most circumstances

Medium (M)

High (H) High (H) Very High (VH) Very High (VH)  

Likely to occur

frequently

Medium (M)

Medium (M)

High (H) High (H) Very High (VH)  

Possible and likely to occur at some

time

Low (L)Medium

(M)High (H) High (H) High (H)  

Unlikely to occur but could happen

Low (L) Low (L)Medium

(M)Medium (M) High (H)  

May occur but

only in rare and exceptio

nal circumstances

Low (L) Low (L)Medium

(M)Medium (M) High (H)  

Getting sleepy

Meteor

1. Project Risk Register

Reference - Issue No. : and/or Issue Date: Future Review date:

Identified Risks Analysis & Evaluation

Existing controls described & evaluated Further Actions

Risk Statement (e.g. description of each specific risk scenario with regard to people, information, physical assets, finances, reputation, and any other "things you value")

Consequence (1, 2, 3, 4, or 5 - see Sheet 1)

Likelihood (A, B, C, D or E - see

Sheet 1)

Risk level (L,

M, H or

VH - see

Sheet 1)

What we are doing

now to manage this

risk.

Effectiveness of our strategies (

Accept Risk (Yes

or No)

Further Action Needed

& Opportunities

for improvement -

Include milestone(s) & target date(s)

Assigned To

Revised Risk level (L, M, H or VH - see Sheet 1)

No

Opportunities for

improvement 

Record by rows and cells as necessary.

    VH     No VH

      VH     No VH

           

Signed:

 

Signed:

 Date: Date:Project Manager

Name:

Project Manager

Name:

Note re effectivenessN = Not generally applied or only applied in isolated situations for example in less than 20% of cases; P = Partially applied, not usually documented or applied in less than 50% of cases; L = Largely applied, formally documented and largely repeatable or applied in up to 85% of cases; F = Fully applied, formally documented and fully repeatable or applied in more than 85% of cases.)

Doggy day out Draft up a risk management plan

◦ the what ◦ the how◦ Who we report to◦ How we track

Scope some risks Assess the risks Think up some strategies for the high risk

See hand out & LMS

A group discussion:practice for Fred’s risk management plan

Morning Tea

Please fill in and submit Talk it over and let’s discuss

Great Tastes of Manly

Lunch

communication with stakeholders, dispute resolution & modification procedures

implementation of risk control trigger mechanisms measurement of actual progress against planned

milestones – ◦ remember our baselines (or starting point)?

recording and reporting of major variance◦ how far are we from the baseline?

setting key milestones◦ If we have reached this milestone how are our risks?

Processes & procedures

Remember you have one in front of you…

What goes into Risk Management Plan

Manage using established project & risk management plans to ensure achievement of objectives

Monitor progress against project plans to ◦ identify variances ◦ recommend responses

Implement agreed ◦ risk responses◦ modify plans to reflect changing

2. Monitor and control project risks

Review project outcomes to determine effectiveness of risk management processes and procedures

Identify & document ◦ risk issues and ◦ recommend improvements◦ pass on to higher project authority for application

in future projects

3. Assess risk management outcomes

Powerpoint pres.◦ Last week’s progress & Some feedback re LMS quizzes◦ Introduction to Risk Management & PM

Determine project risks Monitor and control project risks

Morning TeaDiscussion 1. – Great Taste of Manly

◦ Structuring a Risk management plan◦ Scoping risks◦ Risk assessment – due 12 October

Lunch◦ Fred’s Shed RMP – due 2 November◦ Start LMS Activities 1, 2 & 3 only◦ Complete assessment items – do what you haven’t yet finished

Lesson plan 11 October

Risk & other components of PMP Quality, Scope, Cost, Schedule Morning Tea Risk Management Plan for Fred’s shed Lunch Continue Risk Management Plan Or Activities 1,2 & 3.

Lesson Plan 12 October

Brainstorming – you are the experts on Fred’s Shed

Let’s to identify risks in Fred’s shed