Project Risk Management
Risk Management Plan
A Risk Management Plan is a document that a project manager prepares to analyze beforehand risks, estimate impacts, and define responses to issues. It also contains a risk assessment matrix. The risk management plan contains an analysis of likely risks with both high and low impact, as well as mitigation strategies to help the project avoid being derailed should common problems arise. Risk management plans should be periodically reviewed by the project team to avoid having the analysis become stale and not reflective of actual potential project risks.
Cost Management Plan
Cost management plan is the document contains all the estimated costs of the project. A common technique used in this area is Earned Value Management (EVM) where your forecast of expenditure is compared to the projects actual costs.
Schedule Management Plan
The Schedule Management Plan is the document of the selected scheduling methodology with the corresponding scheduling tool and techniques. Schedule management plan explains the development of the project schedule taking into account the processes to define activities, sequence activities, estimate activity resources and durations. Schedule management plan is used to compare the actual work with the schedule activity to achieve the project objective in a timely manner.
Enterprise environmental factors (EEF)
Enterprise Environmental Factors influences the organization, the project and its outcome. Every organization has to live and work within the EEF. The Enterprise Environment Factor can be either internal or external.
• Organizational structure of any organizations that are involved in the project
• Information systems in an organization and their ability to share information
• Human resources: their skills and availability
• Portfolio management policies and processes
• Project Management Office (PMO) policies and processes
• Estimating, risk, and defect-tracking databases
• Industry standards that apply to products or services
• Regulatory laws or codes you need to comply with
• Governmental policies, restrictions, and political climates
• Marketplace conditions that influence pricing and availability of materials and services
• Competitor information, such as the number of competitors, opportunities, and threats based on your competition
• Financing availability and rates
• Pending legislation that could impact your products, services, and processes
• Availability of resources, both physical and labor
• Changes in the market, either from competition or economic factors
• Economic influences, such as unemployment and availability of credit
Organizational process assets (OPS)
Organization keeps a database of all the information and records of the previous executed projects and this information are stored in a central repository called Organizational Process Assets. They can be such aspects as:
• Approaches or standards.
Other aspects include:
• project management policies
• safety policies
• performance measurement criteria
• financial controls
• communication requirements
• issue and defect management procedures
• change control procedures
• risk control procedures
• procedures used for authorizing work
• historical information (these should be examined when starting a project)
• lessons learned reports
Perform Quantitative Risk Analysis-Inputs