Project Management Presentation: Comprehensive Risk Analysis

This presentation provides an overview of risk management within project management, emphasizing its importance for business projects and various project management methodologies like Agile, PRINCE2, PMBoK, and Waterfall. It covers essential knowledge areas such as scope, schedule, quality, risk, cost, and resource management. The presentation defines risk, differentiating between positive and negative impacts, and outlines the phases of risk management: risk identification, analysis, evaluation, treatment, monitoring & control, reporting, and closure. It details various types of project-related risks, including schedule and budget overruns, communication gaps, and information security issues. Furthermore, it discusses risk identification techniques, analysis methods using probability and impact scores, evaluation based on risk rank, and treatment strategies like risk sharing, transfer, avoidance, and mitigation. The presentation also touches on risk monitoring, control, and reporting, highlighting the dynamic nature of treatment strategies. It concludes with a case study on mobile application development for healthcare, addressing potential risks like information security, technical faults, and ethical issues, suggesting appropriate treatment strategies. The presentation emphasizes the importance of preparing a risk management plan during the planning stage and references several academic papers on risk management in IT and construction projects.

Risk Management
in Project
Management

Project Management
 Essential for the Business Projects
 Project Management Methodologies – Agile,
PRINCE2, PMBoK, Waterfall
 Several Knowledge Areas under Project
Management
 Scope Management
 Schedule Management
 Quality Management
 Risk Management
 Cost Management
 Resource Management

Risk Management - Overview
 Risk: An event that may impact the
project flow.
 Positive risks have positive impacts
 Negative risks have negative impacts
 Various types of risks in projects
 Risk Management – Significant
knowledge area under project
management

Phases of Risk Management
Risk
Identification
Risk Analysis
Risk
Evaluation
Risk
Treatment
Risk
Monitoring &
Control
Risk Reporting
Risk CLosure

Types of Risks in a Project
 Project-Related Risks
 Schedule Overrun
 Budget Overrun
 Communication Gaps
 Lack of Cooperation
 Productivity Issues
 Quality Errors & Issues
 Ethical Issues
 Legal Obligations & Punishments
 Resource Risks
 Market Risks
 Health & Safety Issues
 Information Security Risks
 Operational Risks
 Technical Risks

Risk Identification
 Listing of the risks the project is exposed to
 Data Gathering Techniques
 Interviews
 Domain Analysis
 Observations
 Surveys
 Brainstorming Sessions
 Group Discussions
 Analysis of the data to identify the risks
 List of risks having risk id, risk name, and
description

Risk Analysis
 Analysis of the risks
 Probability Score
 Impact Score
 Risk Rank
 Calculated by multiplying the probability and
impact scores
 Severity and priority of the risks is
determined as per the risk rank

Risk Evaluation
 Evaluation is done as per the analysis
results
 Evaluation of the risk is done as
 Acceptable Risks: Risk probable of causing
damage to the project or any of its
components
 Non-Acceptable Risks: The ones that will not
do any harm to the project or are positive risks

Risk Treatment
 Risk treatment to be done as per risk
evaluation and risk rank
 Four types of strategies
 Risk sharing
 Risk transfer
 Risk avoidance
 Risk mitigation

Risk Monitoring & Control
 Tracking of the risks and the treatment
strategy
 The treatment strategy and risk rank is
dynamic
 It may change during project lifecycle
 The treatment effort shall be controlled
as per the risk status

Risk Reporting
 Risk Status Report: Showing the
completion and pending percentage of
the risk
 Risk Closure Report: The final report
when the treatment on the risk is
complete
 Risk Change Report: The details of the
changes made to the risk

Risk Closure
 Risk is marked as closed when the
treatment is complete
 Risk management is successful when all
the risks are in closed state
 Risk closure report is submitted as a
final deliverable
 Project Manager keeps a track of the
risks