Time
5 hours 14 minutes
Difficulty
Intermediate
CEU/CPE
10

Video Description

This lesson focuses on identifying risk. Identifying risk creates the risk register. The risk register is a document which contains risks, triggers, probability, planned responses and risk owners. [toggle_content title="Transcript"] The next process in risk is identifying risk. Identifying risk is the process that creates the risk register. The inputs to this is risk management plan, cost management plan, schedule management plan, quality management plan, human resource management plan, scope baseline, activity cost estimates, activity durations estimates, stakeholder register, procurement documents, enterprise environmental factors, and organizational process assets. If you watched the previous videos, for each one of these knowledge areas, you will notice that as you develop each one of these knowledge areas, looking at risk for a lot of these, cost management plan you are looking at budget and how it can impacts the project for risk. Schedule management plan you are looking at the schedule time frame is happening and what risk can affect time. Quality management plan, how risk can have an impact on quality. Human resource plan, do you have all the staff you need? As you are going through the human resource plan. You are looking at risk. Same thing with scope baseline, if you remember your WBS, WBS dictionary and scope statement. Activity cost estimates how much things should cost and how much they will cost. So you are assessing it based on what's probable, what's most optimistic, what's probable and looking at from pessimistic. Activity duration estimates, same thing, you are trying to figure out how long things will take. Stakeholder register, you are going to engage your stakeholder and see if they have any inputs on risks. Procurement documents...there is a risk when you are contracting things out or buying material. Enterprise environmental factors those are to determine what organization process assets you might have, templates to figure out risks and the environment that you are dealing with risks. Tools that are used are documentation review. So you can go through documentation and see if you can identify risks. Information gathering techniques, you can use the Delphi technique, the which is an anonymous way of surveying people or people can survey anonymously and then you get all that information. You get suggestions on what risks can be. Checklist analysis...you can look at past projects and basically go through a check list like will this occur if we do this type of project? You can basically look at past performance and assess whether there is risk potential on your project. Diagram techniques...you are trying to diagram back to the reports of what risks could be. Remember the obvious which we just ran over. The SWOT analysis...you are looking at strengths, weaknesses, opportunities and threats of the project and expert judgement to be able to identify what risks can occur. The output is a risk register. This is a review document so as the project is going on you are constantly updating and trying to figure out if new risks are occurring or new risks could happen. It contains your risks, triggers, what happens to identify that there is risk could occur. Probability, is it a ten percent chance is it a fifty percent, ninety percent. Plan responses so if this risk...if this trigger happens, how we are going to respond to that risk and risk owners. Who is responsible if this risk trigger happens. What is the plan response and who is acting on it. Here is my example of a risk register, take a risk number so I just made them sequential. Identifier, so this risk register I said it earlier, I am going to dig a well. First risk, not finding water, trigger, no water at fifty feet. Probability, based on statistics, there is a thirty percent chance that this could happen. Cost impact... could cost me a whole day of digging out once bad then I have to fill the whole, I am going to say its a thousand dollars. Response, I am going to keep digging to a 100 feet. The owner, perhaps it's the guy who is drilling the hole so if he doesn't find water at fifty feet, his response is to dig to a hundred feet. The reserve, I am taking the cost impact multiplying by the probability, I am going to make this a $300 reserve for the project. [/toggle_content]

Video Transcription

00:04
the next process and risk is identify risk.
00:07
Identify risk is the process that creates the risk register.
00:11
Um, the inputs to this is the risk management plan Cost Management plan schedule management plan quality management plan, human resource management playing sculpt, baseline
00:21
activity, cost estimates, activity durations,
00:25
estimates stakeholder right, Mr Procurement Documents, Enterprise, environmental factors and organizational process assets.
00:31
So if you wants the previous videos for each one of these knowledge Cherries,
00:36
you will notice that
00:38
as you
00:39
develop eats one of these knowledge Jerry's here
00:42
looking at risk for a lot of these cost management plan. You're looking at,
00:46
um, budget and how that could impact the project for risk
00:51
scheduled management plan. You're looking at how the schedule time frame is happening and
00:56
what risk can affect time
00:58
quality management planning.
01:00
Um,
01:02
however, it's gonna have an impact on quality
01:04
human resource plan. Do you have all the staff that you need? Um,
01:08
so as you're going to the human resource plan
01:12
here looking at risk,
01:15
same thing with a scope baseline. If remember, that's here. W B S, W. B s dictionary and
01:21
um, scope statement
01:23
activity cost estimates. How what's things should cost and how much they will cost. So you're assessing it
01:30
based on
01:32
what's probable, What's most, what's the most optimistic, what's probable and looking at it from pessimistic
01:38
activity, duration estimates. Same thing. Trying to figure out how long things will take.
01:44
Stakeholder, Write this story. You're gonna
01:46
engage your stakeholders and see if they have any inputs on risk
01:51
procurement documents. Um,
01:53
there is risk when you're contracting things out or buying material
01:57
than environmental our enterprise. Environmental factors, those air pretty common with organisational process assets, you might have templates to figure out risk
02:07
and the environment that you're
02:08
dealing with risk
02:10
tools that are used are
02:13
documentation reviews, so
02:15
you can go through documentation and see if you can identify risk
02:19
information gathering techniques. You could be used the Delphi technique,
02:23
which is on an anonymous way of serving people or people conserving anonymously. And then you gather all that information,
02:30
um,
02:31
to get suggestions on what risk can be
02:36
check with analysis so you could look at past projects,
02:40
and this we go through a checklist like,
02:43
um,
02:45
will this occur? If we do this type of project, you could,
02:47
um,
02:50
basically look at past performance and,
02:53
um,
02:54
assess whether or not there's risk potential on your project.
03:00
Dr. Gramm techniques. So you're tryingto diagram back to the root cause of what risk could be,
03:05
Um, remember the R B s, which we just went over
03:08
the SWAT analysis. So you're looking at strength, weaknesses, opportunities and threats of the project
03:15
and expert judgment Thio field identify what risk can occur.
03:23
So the output is your risk register.
03:24
This is a living document. So as the projects going on,
03:29
um, you're constantly updating it and trying to figure out
03:32
if risks, um, new risk are occurring, our new risk could happen.
03:38
It contains your risks.
03:40
Trigger is what
03:43
happens. Thio
03:45
identify that this risk could occur
03:47
probability. Like, Is this a 10% chance of that 50%? 90%
03:53
plan responses. So if this risk
03:57
if this trigger happens,
03:58
how are you going to respond to that risk
04:00
and risk owners who is responsible? If this risk trigger happens,
04:05
what's the plan response and
04:09
who's ah, who's acting on it?
04:14
So here's my example of a risk when the strike took a risk number, so I just
04:18
made him sequential.
04:20
Um, identify WR
04:23
So
04:24
this
04:25
risk register. I said, I I'm gonna dig a well. So
04:29
first risk not finding water
04:30
trigger. No water at 50 feet.
04:33
Probability. Uh, based on statistics, it's a 30% chance that this could happen.
04:39
Cost impact?
04:41
Well, it could cost me a whole day of digging at one spot, and then I have to fill the hole. So I'm gonna say it's $1000
04:47
response. I'm gonna keep digging to 100 feet.
04:50
And the owner, um, Bob's a guy who's drilling the hole. So
04:56
if he doesn't,
04:58
if he doesn't find water at 50 feet,
05:00
his responses to take to 100 feet,
05:02
um,
05:03
the reserve I'm taking the cost impact multiplied by the probability
05:09
I'm gonna make this a $300 reserve for the project.

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