Search results for: Risk Management Planning

Risk Management Planning

Despite the most careful efforts, sometimes risk cannot be avoided. There will be a number of times over the course of the project’s respective life cycle that the project management team and or the project management team leader will find themselves in a position in which they realize that a particular component as to the project and or a particular facet of that project does in fact come with a set or series of inherent risk. After all of these likely and potential risks have been properly organized and categorized, it is up to the project management team and or the project manager to effectively determine the best way to deal with these risks. The most effective means of doing this is through the establishment of an effective risk management plan. A risk management plan is an input output document that outlines exactly how risk management will be performed on a given project. It can be an informal document, or it can be very specific and very formalized in nature, depending on what exactly is required. Information in these plans can vary widely depending on the project application area and or project size. The actual act of establishing this very project management plan can be referred to as project management planning.

This term is defined in the 3rd edition of the PMBOK but not in the 4th.

Risk Data Quality Assessment

The risk data quality assessment is a project management technique that is used to evaluate the level or degree to which data about risks is necessary for risk management. This technique also involves analyzing the dress which the risk is understood. It also looks into the accuracy, reliability, quality and integrity of the data concerning the risk.

This project management tool focuses on ensuring that the information being used in performing the risk analysis is credible and unbiased. It works on the premise that if the quality and credibility of the information cannot be trusted, how can the findings be reliable?

The risk data quality assessment evaluates the information by asking if the data is credible, of high quality, accurate and understood properly. Not evaluating the credibility of the information or data can often lead to an incorrect analysis that can make the project activities highly susceptible to risks.

If the information is not reliable, then fixing it is far less costly compared to the impact of risks if it materializes. These are the reasons why the risk data quality assessment is often employed in project management planning.

This term is defined in the 5th edition of the PMBOK.

Quality Management and Control Tools

Project management requires different types of quality planning tools. The Quality Management and Control tools refer to the tools that are used to sequence as well as provide links to the activities identified during project management planning. There are basically seven types of Quality Management and Control tools used as follows:

  • Affinity diagrams: This is similar to mind-mapping that is used to generate ideas that can be linked to create organized patterns of thoughts regarding a particular problem.
  • Process decision program charts: This tool is used to understand goals with respect to the steps on achieving them. It is a great method for contingency planning.
  • Interrelationship diagraphs: It refers to creating relationship of different ideas and scenarios to solve problems.
  • Tree diagrams: It is used to decompose hierarchies like the risk breakdown structure and work breakdown structure. It is also used in visualizing the relationship or hierarchies.
  • Prioritization matrices: This tool helps identify key issues for implementation. It is also used in determining suitable alternatives.
  • Activity network diagram: Also called the arrow diagram, it is used in projecting the scheduling methodologies.
  • Matrix diagrams: It is used to perform data analysis within a matrix to show the strength of the relationship between factors.

This term is defined in the 5th edition of the PMBOK.

Plan Risk Management

Risks are abundant in project management and if not properly mitigated, it can cause a lot of problems within the project life cycle. The Plan Risk Management is  the process that defines how risk management activities should be conducted for the project.

The benefit of this project management process is that it ensures that the type, visibility, and degree of the risk management are equal with the risks and importance of the  project. It is a vital process to communicate with the stakeholders as well as get support from them. Getting the support from the stakeholders is necessary so that the risk management process is  performed efficiently all throughout the project life cycle.

This process requires different inputs like the project, charter, stakeholder register, project management plan, organizational process assets and  the enterprise organizational factors. The Plan Risk Management process is also necessary for the development of the Risk Management Plan.

Careful planning is important as it increases the probability of success. It can provide project managers sufficient resources for risk management activities. Therefore, this process should start when the project is conceived but should be completed early during the planning and before the implementation.

This term is defined in the 5th edition of the PMBOK.

Plan Quality Management

The Plan Quality Management is a project management process that identifies the quality of the requirements and standards of the project as well as the deliverables. It is also responsible for documenting  how the project demonstrates compliance with the set standards and quality requirements.

The benefit of this process is that it guides and directs how the quality should be managed and validated all throughout the implementation of the project. To create the Plan Quality Management, inputs such as the project management plan, risk register, requirements documentation, stakeholder register, organizational process assets, and the enterprise  environmental factors are necessary. This project management process is necessary to create the quality management plan, quality metrics, and checklist. It can also lead to project document updates.

It is crucial to take note that quality planning should be done with other planning processes. For instance, the changes in the deliverables may need schedule and cost adjustment  as well as risk analyses to show how it impacts the entire plan. Quality planning is crucial in project management and the Plan Quality Management ensures that everything is in place before the project is implemented.

This term is defined in the 5th edition of the PMBOK.

Identify Risks

One of the important aspects of managing a project is the project risk management which involves identification, analysis, planning and controlling any risk present within the project. One element of risk management is to identify the risk. It is a process of determining the types of risks that can affect the project. It also involves the documentation of the characteristics of the risks.

The benefits of this particular process are that the existing documentation, as well as the knowledge of the project team members, provides everyone the ability to anticipate different types of events including risk.  To identify the risks, it is important to use information from the cost management plan, quality management plan, schedule management plan, scope baseline and other project documents to name a few to create a risk register.

Risk identification is often carried out by the project manager with the help of the team members, customers and even subject matter experts. This process is iterative since new risks can evolve during the middle of the project life cycle thus may not be included in the risk register.

This term is defined in the 5th edition of the PMBOK.