A Guide to Project Management

014 010 006 002 036 028 020 012 004 072 056 040

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ent plan List of prioritized risks Risk ranking of the project Prioritized list of quantified risks Probabilistic analysis of the project Probability of achieving the cost and time objectives List of potential responses Risk thresholds Risk owners Common risk causes Trends in qualitative and quantitative risk analysis results geE L geE PL P Tools & Techniques .1 .2 .3 .4 Avoidance Transference Mitigation Acceptance .1 .2 .3 .4 .5 Outputs Risk response plan Residual risks Secondary risks Contractual agreements Contingency reserve amounts needed .6 Inputs to other processes .7 Inputs to a revised project plan 11.5.1 Inputs to Risk Response Planning .1 Risk management plan. This plan is described in Section 11.1.3. .2 List of prioritized risks. This list from qualitative risk analysis is described in Section 11.3.3.2. .3 Risk ranking of the project. This is described in Section 11.3.3.1. 140 NAVIGATION LINKS ACROYMNS LIST ACRONYMS LIST ACROYMNS LIST A Guide to the Project Management Body of Knowledge (PMBOK Guide) 2000 Edition 2000 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Chapter 11--Project Risk Management Decision Definition (Decision Name) Decision Node (Cost of the Decision) Chance Node (Probability and Payoff) Net Path Value (Payoff Cost) Strong 65% 80 Build New Plant FALSE 120 200 Product Demand 41.5 35% Weak 90 65% 120 30 Build or Upgrade? Decision 49 Upgrade Existing Plant A Guide to the A Guide to the TRUE 50 Weak Strong 70 This decision tree shows the plant decision with construction costs and probabilities and rewards of different product demand scenarios. Solving the tree indicates that the organization should choose to upgrade the existing plant since the value of that decision is $49 (vs. $41.50 for the new plant decision). Figure 116. Decision Tree Analysis .4 Prioritized list of quantified risks. This list from quantitative risk analysis is described in Section 11.4.3.1. .5 Probabilistic analysis of the project. This is described in Section 11.4.3.2. .6 Probability of achieving the cost and time objectives. This is described in Section 11.4.3.3. .7 List of potential responses. In the risk identification process, actions may be identified that respond to individual risks or categories of risks. .8 Risk thresholds. The level of risk that is acceptable to the organization will influence risk response planning (see Section 11.1.3). .9 Risk owners. A list of project stakeholders able to act as owners of risk responses. Risk owners should be involved in developing the risk responses. .10 Common risk causes. Several risks may be driven by a common cause. This situation may reveal opportunities to mitigate two or more project risks with one generic response. .11 Trends in qualitative and quantitative risk analysis results. These are described in Sections 11.3.3.4 and 11.4.3.4. Trends in results can make risk response or further analysis more or less urgent and important. Project Project Managemen...
View Full Document

Ask a homework question - tutors are online