IT PMO Weekly Update: project risk management

Project Risk Management includes the processes of conducting risk management planning, identification, analysis, response planning, and controlling risk on a project. The objectives of project risk management are to increase the likelihood and impact of positive events (i.e., opportunities), and decrease the likelihood and impact of negative events in the project.

The six Project Risk Management processes are as follows:

• Plan Risk Management– The process of defining how to conduct risk management activities for a project.
• Identify Risks– The process of determining which risks may affect the project and documenting their characteristics.
• Perform Qualitative Risk Analysis– The process of prioritizing risks for further analysis or action by assessing and combining their probability of occurrence and impact.
• Perform Quantitative Risk Analysis-The process of numerically analyzing the effect of identified risks on overall project objectives.
• Plan Risk Responses-The process of developing options and actions to enhance opportunities and to reduce threats to project objectives.
• Control Risks– The process of implementing risk response plans, tracking identified risks, monitoring residual risks, identifying new risks, and evaluating risk process effectiveness throughout the project.

This preceding information was taken directly from the following:

(2013) A guide to the project management body of knowledge (PMBOK guide) Fifth edition. Newtown Square, Pa.: Project Management Institute, Inc., pg. 309.

Next week we’ll look at strategies for managing negative project risks or threats.