A Guide to Project Management

Reduce threats to the projects objectives it includes

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Unformatted text preview: cluding avoidance, transference, mitigation, or acceptance for each risk in the risk response plan. The level of residual risk expected to be remaining after the strategy is implemented. Specific actions to implement the chosen response strategy. Budget and times for responses. Contingency plans and fallback plans. .2 Residual risks. Residual risks are those that remain after avoidance, transfer, or mitigation responses have been taken. They also include minor risks that have been accepted and addressed, e.g., by adding contingency amounts to the cost or time allowable. .3 Secondary risks. Risks that arise as a direct result of implementing a risk response are termed secondary risks. These should be identified and responses planned. MP AM SA S 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 NAVIGATION LINKS ACROYMNS LIST ACRONYMS LIST 143 ACROYMNS LIST Chapter 11--Project Risk Management 11.5.3.4 | 11.6.2.5 .4 Contractual agreements. Contractual agreements may be entered into to specify each party's responsibility for specific risks, should they occur, and for insurance, services, and other items as appropriate to avoid or mitigate threats. .5 Contingency reserve amounts needed. The probabilistic analysis of the project (11.4.3.2) and the risk thresholds (11.1.3.1) help the project manager determine the amount of buffer or contingency needed to reduce the risk of overruns of project objectives to a level acceptable to the organization. .6 Inputs to other processes. Most responses to risk involve expenditure of additional time, cost, or resources and require changes to the project plan. Organizations require assurance that spending is justified for the level of risk reduction. Alternative strategies must be fed back into the appropriate processes in other knowledge areas. .7 Inputs to a revised project plan. The results of the response planning process must be incorporated into the project plan, to ensure that agreed actions are implemented and monitored as part of the ongoing project. ment ment 11.6 RISK MONITORING AND CONTROL Risk monitoring and control is the process of keeping track of the identified risks, monitoring residual risks and identifying new risks, ensuring the execution of risk plans, and evaluating their effectiveness in reducing risk. Risk monitoring and control records risk metrics that are associated with implementing contingency plans. Risk monitoring and control is an ongoing process for the life of the project. The risks change as the project matures, new risks develop, or anticipated risks disappear. Good risk monitoring and control processes provide information that assists with making effective decisions in advance of the risk's occurring. Communication to all project stakeholders is needed to assess periodically the acceptability of the level of risk on the project. The purpose of risk monitoring is to d...
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This document was uploaded on 09/27/2013.

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