Risk Management Professional

Course Objectives

• Learn how to encapsulate Risk Management methodology and principles in their respective organizational environments
• It will also encourage insight into the primary risk control measures adopted within generic organizational scenarios
• Discover how to assimilate risk management prerequisites into the organizational culture with a view to developing a risk-averse proactive risk culture
• Learn and practice how to consistently and constructively manage risk to deliver on all your organization’s relevant primary objectives
• Recognize how to spot and avoid common errors when reviewing existing risk management plans
• Acquire an understanding of the principles, procedure and protocol pertaining to the implementation of Risk Management methodology including its potential and impact
• Display knowledge and understanding of the main sources of Risk Management methodology and how it is used to streamline organizational efficiency and simultaneously optimize value extraction
• Identify and critically evaluate the main weaknesses of procedure and protocol pertaining to current Risk Management methodology in your organization
• Understand the practical impact of applying Risk Management principles in your organization
• Understand the roles, functions and responsibilities of various actors, organizations, and institutions in the Risk Management genre

Course outline

Risk Strategy and Planning – 22%

Perform a preliminary document analysis

• Gather and review documents
• Give examples of preliminary documents to review prior to risk identification includes industry benchmarks (if available), previous lessons learned, historical data, and the sources of the above information.
• Determine and assign who is responsible for the preliminary document analysis (e.g., project manager, risk manager, financial controller)
• Establish documents relevant to the risk process

Assess project environment for threats and opportunities

• Determine which OPA / EEF / project methodology is needed (e.g., agile, waterfall, hybrid, etc.)
• Analyze the different environmental factors to be considered in the planning phase (e.g., PESTLE, SWOT analysis)
• Determine the organizational and cultural risk appetite o Analyze environment for risk culture maturity
• Evaluate the project management information system process and data
• Conduct a stakeholder analysis
• Analyze constraints to risk management
• Government, market laws/rules, and organizational, environmental, and technical risks
• Focus stakeholders on creating a culture of risk awareness
• Determine business driver of project, including key assumptions, benefits, and materialization of project.

Confirm risk thresholds based on risk appetites

• Align project risk thresholds to organizational risk appetite
• Calculate the risk the organization can absorb (e.g., financial, scope, environmental, technical, legal, schedule, quality, contract, etc.)
• Discuss risk thresholds
• Lead conflict resolutions between stakeholders in agreeing on risk appetite

Establish risk management strategy

• Establish risk processes and tools
• Provide risk management templates/forms
• Determine risk metrics
• Identify risk categories
• Coach/mentor team on risk management best practices (servant leadership)
• Lead stakeholders to adopt the risk strategy

Document the risk management plan

• Define organizational risk roles and responsibilities
• Align roles and responsibilities with a project RAM (e.g., RACI) chart
• Prepare a list of the key artifacts/resources that will be used to compile a risk management plan
• Outline the list of key risk management activities (e.g., who, what, when, where, how)
• Explain how the Risk Breakdown Structure (RBS) can be used to support the risk management plan
• Define a risk communication plan
• Define risk prioritization criteria
• Define stakeholder empowerment and education strategy

Plan and lead risk management activities with stakeholders

• Collaborate with the team that would conduct the risk planning on the project
• Leverage stakeholder analysis done by the project manager
• Manage stakeholder risk appetite and attitudes
• Engage stakeholders in the risk prioritization process
• Set appropriate expectations with stakeholders on the rules of engagement
• Tailor risk communication for stakeholders
• Lead stakeholder empowerment for risk strategies in the risk management plan
• Train, coach, and educate stakeholders in risk principles and processes in order to create shared understanding of principles and processes, and foster engagement in risk management

Risk Identification – 23%

Conduct risk identification exercises

• Conduct meetings, interviews, focus groups, and other SME support activities
• Perform detailed analyses of risk identification exercise results
• Analyze documents, audio transcripts, telemetry data, etc. and understand business context of information
• Indicate risks as threats or opportunities

Examine assumption and constraint analyses

• Leverage the results of the assumption and constraint analysis
• Categorize assumptions and constraints
• Assess the risk associated with each assumption and/or constraint
• Recognize the relationship between assumptions and/or constraints, and project objectives (e.g., predict the cascade effect of project stakeholder holiday schedules on project timelines)
• Encourage stakeholders to challenge assumptions and constraints

Document risk triggers and thresholds based on context/environment

• Assess, confirm, and document risk compliance thresholds, and categories against updated risk data
• Assess and document risk triggers, causes and timing
• Assess and document risk consequences and/or impact
• Empower stakeholders to challenge existing thresholds

Develop risk register

• Analyze the validity of identified risks and triggers
• Examine the risk attributes like probability, impact, urgency
• Establish risk origin and ownership e.g., internal/external
• Classify risks as threats or opportunities

Risk Analysis – 23%

Perform qualitative analysis

• Perform a nominal classification or risks in the RBS using classifications from the risk management plan (e.g., environment, organizational, project management, technical, etc.)
• Estimate the impact of risk on project schedule, budget, resources, and scope
• Prioritize the risk based on impact, and urgency
• Apply the risk matrices
• Agreed-upon assessment approach, Historical information, Definitions of probability and impact, Risk categories, Pre-established criteria
• Perform an ordinal classification
• Coach stakeholders on risk categorization strategies

Perform quantitative analysis

• Analyze risk data and process performance information against established metrics
• Analyze a project's general risks
• Perform a forecast and trend analysis on new and historical information
• Perform sensitivity analysis
• Monte Carlo, decision trees, critical path, expected monetary value, etc.
• Perform risk weighting and calculate risk priority

Identify threats and opportunities

• Assess project risk complexity
• SWOT analysis, Ishikawa, Tree Diagram
• Perform an impact analysis on project objectives o project scopes, schedule cost, and resources, quality, and stakeholders
• Assess project compliance objectives against organizational strategic objectives procedures, project plans, corporate, and project governance, regulatory governance
• Empower stakeholders to independently identify threats and opportunities

Risk Response – 13%

Plan risk response

• Determine appropriate risk response strategy
• avoid, accept, mitigate, enhance, contingency planning etc.
• Decide the risk response actions (time bound) based on the risk response strategies and identify action owners
• Assess the effectiveness of the risk response actions against the identified strategy and the project objectives impact
• cost/schedule/environment etc., effect of the action on the probability or the risk impact
• Illustrate and communicate effectiveness of the risk response strategies
• risk burndown chart, dot plots
• Determine the work around
• Allocate responsibilities
• Outline an appropriate responsibility matrix for a metricized project environment
• Re-evaluate organizational risks

Implement risk response

• Execute the risk response plan(s)
• Execute the contingency plan(s)
• Encourage stakeholders to provide feedback on the risk response
• Evaluate and react to secondary and residual risks from the response implementation
• Improvise as needed

Monitor and Close Risks – 19%

Gather and analyze performance data

• Reconcile performance data & reports from risk relevant work packages
• Analyze data to determine the completion status against the baseline
• Perform a variance analysis
• Monitor impact against overall project risk exposure to enterprise

Monitor residual & secondary risks

• Monitor risk response and document residual risk
• Monitor risk response for secondary risks
• Assess impact of residual and secondary risks on project objectives
• Update and communicate impact of residual and secondary risks

Provide information required to update relevant project documents

• Aggregate and summarize risk data, and update project documents o risk register, lessons learned, project management plan, change logs etc.
• Monitor and close out expired risks

Monitor project risk levels

• Assess project risk level
• Prepare reports for different stakeholders
• Communicate risk levels to key stakeholders