29 November 2023

PMBok 7th Risk Management : Risk Strategy and Planning

PMBok 7th Risk Management : Risk Strategy and Planning

  • Task 1 : Perform a preliminary document analysis
    • Gather and review documents
      • Give examples of preliminary documents to review prior to risk identification
      • Preliminary documents
        • Industry benchmarks (if available)
        • Previous lessons learned
        • Historical data
        • And the sources of the above information.
    • Determine and assign who is responsible for the preliminary document analysis
      • e.g.
        • Project manager
        • Risk manager
        • Financial controller
      • Other
    • Establish documents relevant to the risk process
  • Task 2 : Assess project environment for threats and opportunities
    • Determine which OPA / EEF / project methodology is needed
      Other approach
    • Analyze the different environmental factors (EEF) to be considered in the planning phase
      • e.g.
        • PESTLE analysis
        • SWOT analysis
      • Other analysis
    • Determine the organizational and cultural risk appetite
      • Analyze environment for risk culture maturity
    • Evaluate the project management information system process and data
    • Conduct a stakeholder analysis
    • Analyze constraints to risk management
      • Government
      • Market laws/rules
      • Organizational risks
      • Environmental risks
      • Technical risks
      • Other risks
    • Focus stakeholders on creating a culture of risk awareness
    • Determine business driver of project, including key assumptions, benefits, and materialization of project.
  • Task 3 : Confirm risk thresholds based on risk appetites
    • Align project risk thresholds to organizational risk appetite
    • Calculate the risk the organization can absorb
      • e.g.
        • Financial
        • Environmental
        • Technical
        • Legal
        • Scope
        • Schedule
        • Quality
        • Contract
        • etc
    • Discuss risk thresholds
    • Lead conflict resolutions between stakeholders in agreeing on risk appetite
  • Task 4 : Establish risk management strategy
    • Establish risk processes and tools
    • Provide risk management templates/forms
    • Determine risk metrics
    • Identify risk categories
    • Coach/mentor team on risk management best practices (servant leadership)
    • Lead stakeholders to adopt the risk strategy
  • Task 5 : Document the risk management plan
    • Define organizational risk roles and responsibilities
      • Align roles and responsibilities with a project RAM
        • RACI chart
        • Other charts
    • Prepare a list of the key artifacts/resources that will be used to compile a risk management plan
    • Outline the list of key risk management activities
      • e.g.
        • Who ?
        • What ?
        • When ?
        • Where ?
        • How ?
      • Others
    • Explain how the Risk Breakdown Structure (RBS) can be used to support the risk management plan
    • Define a risk communication plan
    • Define risk prioritization criteria
    • Define stakeholder empowerment and education strategy
  • Task 6 : Plan and lead risk management activities with stakeholders
    • Collaborate with the team that would conduct the risk planning on the project
    • Leverage stakeholder analysis done by the project manager
    • Manage stakeholder risk appetite and attitudes
    • Engage stakeholders in the risk prioritization process
    • Set appropriate expectations with stakeholders on the rules of engagement
    • Tailor risk communication for stakeholders
    • Lead stakeholder empowerment for risk strategies in the risk management plan
    • Train, coach, and educate stakeholders in risk principles and processes in order to create shared understanding of principles and processes, and foster engagement in risk management

PMI-RMP Certification exam flashcards

Created : 22/05/2022

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