Lesson7.pdf - ©2014 JKUAT SODeL JOMO KENYATTA UNIVERSITY OF...

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JOMO KENYATTA UNIVERSITY
OF
AGRICULTURE & TECHNOLOGY
SCHOOL OF OPEN, DISTANCE AND eLEARNING
P.O. Box 62000, 00200
Nairobi, Kenya
E-mail: [email protected]
HEPM 3101 Fundamentals of Project Management
LAST REVISION ON September 22, 2014

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HEPM 3101 Fundamentals of Project Management
This presentation is intended to covered within one week.
The notes, examples and exercises should be supple-
mented with a good textbook. Most of the exercises have
solutions/answers appearing elsewhere and accessible by
clicking the green Exercise tag. To move back to the same
page click the same tag appearing at the end of the solu-
tion/answer.
Errors and omissions in these notes are entirely the re-
sponsibility of the author who should only be contacted
through the Department of Curricula & Delivery
(SODeL) and suggested corrections may be e-mailed to
[email protected] .
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HEPM 3101 Fundamentals of Project Management
LESSON 7
Managing project risk
Project Risk Management includes the processes of conduct-
ing risk management planning, identification, analysis, response
planning, and monitoring and control on a project. The objec-
tives of Project Risk Management are to increase the probability
and impact of positive events, and decrease the probability and
impact of negative events in the project.
The following is an overview of Project Risk Management
processes, which are as follows:
1. Plan Risk Management - The process of defining how
to conduct risk management activities for a project.
2. Identify Risks - The process of determining which risks
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HEPM 3101 Fundamentals of Project Management
may affect the project and documenting their characteris-
tics.
3. Perform Qualitative Risk Analysis - The process of
prioritizing risks for further analysis or action by assessing
and combining their probability of occurrence and impact.
4. Perform Quantitative Risk Analysis - The process
of numerically analyzing the effect of identified risks on
overall project objectives.
5. Plan Risk Response s - The process of developing op-
tions and actions to enhance opportunities and to reduce
threats to project objectives.
6. Monitor and Control Risks - The process of imple-
menting risk response plans, tracking identified risks, mon-
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HEPM 3101 Fundamentals of Project Management
itoring residual risks, identifying new risks, and evaluating
risk process effectiveness throughout the project.