What Is Risk Management In Projects? video transcript

Hello. I’m Jennifer Whitt, Director of projectmanager.com

Welcome to our whiteboard session today “What is risk management?”. A lot of people ask what it is and how often we do it. So today what we want to do is take a few minutes to clarify what it is and how to do it. First of all I want to mention the Triple Constraint. It’s an important part of the project, which talks about the scope, which are the deliverables of the project that we’re producing as a result of the project, the cost or the budget of the project, the time or the schedule and the components of quality which again is referenced as the Triple Constraint. Throughout the project, different events occur, maybe things happening with scope or cost or changes in the schedule or quality occur that could introduce risk or vice versa, different events can occur throughout the project that also can impact these components as well. Basically, from a high level, when we talk about the Project Management Plan, we know that the Project Management Plan has other plans, sub-plans, in it as well. Like the Time Management Plan, Scope Management, Budget, Quality, the Change Management Plan and Issues Management. But also the Risk Management Plan is a subset or a sub-plan of the Project Management Plan. Basically, what is detailed in the Project Risk Management Plan is the process; We want to know who needs to know, who can interject risk into the project, what’s the process, when do we do it, how do we do it – so basically the who, what, when, how to manage risk on the project. We also look at tools, we identify what tool set we’re going to use, so everyone on the project who needs to know or is involved will know what tools to use. So we’re going to use project management software. Now a lot of the project management software available today is great with helping to identify and manage risk. A lot of people still use Excel where they have logs and registers. And any kind of templates, the templates we may use to identify and evaluate risk. The activities included in the Project Management Plan are identified here. Basically, it’s all the activities that we use to manage risk throughout the entire project. So what are some of those activities? Risk management activities are about the activities to identify the risk, like how do we go about identifying what documents or what things do we look at, determining when we do identify those risks, we want to determine what’s the probability? What’s the probability that this will happen? And evaluating the impact to the project? Would it have a huge impact or a small impact? And with that we plan the responses. We document if these risk events do occur, then how will we respond to them. Then of course, we continue to document and track those risks all along the project so it’s not just a one-time thing. It’s important to keep them documented, keep them tracked, are we doing these, getting them responded to promptly and of course communicating those risks throughout the project to the appropriate members of the team.

What Is Risk Management In Projects? video

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