Markus KopkoAI Enabler for Project & Program Mgmt | Founder PMotion.ai / The PM
AI Coach| PMotion.aiHamburg, Hamburg, Germany
Hello Community,
i saw a interesting topic wihtin another forum and want to ask the risk mgmt experts here what they think about:
"Can anyone of you provide any methodology or resources to get the overall project risk from the individual ones?"
I am not sure if there is something like the "overall project risk" and if this of use, but there is written that such a concept is described in PMI's risk mgmt standard.
So, who could shed some light on it, please? Saving Changes...
V PandeyAGM - Projects| Sarvotham Care LtdBhubaneswar, Odhisa, India
Hi Markus,
For me all the risk occurring at various stages of the projects need to be accounted for to determine the overall project risk mostly impacting on the cost , schedule and quality of the projects. This definition cannot be generic as it varies from project to project. for me if i talk about a pharma project i could foresee the risk at the construction stage which needs to be completed to take up the other dependent tasks , procurement stage for long lead items etc.Most important being how best you van qualify and then quantify the risk based on their probability and the impact on the cost , schedule and quality at the end of the project. Saving Changes...
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Hi Markus,
To start with, yes, there is something called: Overall Project Risk and it represents the effect of uncertainty on the project as a whole. PMBOK 5th Edition - Page 310
However, you can't just obtain ghe overall project risk by summing up the individual risks since it includes all sorts of project uncertainty.
You can however, obtain ghe overall project risk ranking and compare it with other similar projects. Saving Changes...
PANKAJ KUMAR JOSHIGeneral Manager| Transrail Lighting LimitedNainital, Uttrakhand, India
Generally we are not doing risk management in our projects similar to PMBOK and we don't have risk experts in our company.
Our idea of overall project risk is to sum up risks probability x impact/cost of all risks associated with a particular project. Saving Changes...
Refer to Practice standard for risk management. Overall risk is derived from individual risk and overall risk is done as part of quantitative risk analysis.
Monte carlo simulation should provide this output based on the input given by the project team. This is part of the risk management plan.
With this output, organization can compare the overall risk among projects and decide on the most appropriate project for investment and proceeding further for execution.
Overall risk is derived from individual risk and their variability range.
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1 reply by Rami Kaibni
Jan 31, 2016 2:37 PM
Rami Kaibni
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Balaji: Are you sure the above mentioned by you is for Overall Risk not for Overall Ranking ? There is a difference between both !
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Jan 31, 2016 1:44 AM
Replying to Ganesan Balaji PMP, RMP, PgMP
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Markus
Refer to Practice standard for risk management. Overall risk is derived from individual risk and overall risk is done as part of quantitative risk analysis.
Monte carlo simulation should provide this output based on the input given by the project team. This is part of the risk management plan.
With this output, organization can compare the overall risk among projects and decide on the most appropriate project for investment and proceeding further for execution.
Overall risk is derived from individual risk and their variability range.
Balaji: Are you sure the above mentioned by you is for Overall Risk not for Overall Ranking ? There is a difference between both ! Saving Changes...
Rami, it is overal risk. This method will help to rank the various projects' overall risk and choose the appropriate project for the next phase.
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1 reply by Rami Kaibni
Feb 01, 2016 5:08 PM
Rami Kaibni
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Thanks Balaji - The reason I am asking is because PMBOK 5th Edition - Page 310 mentioned the "Overall Risk" and states that you can't just obtain the overall project risk by summing up the individual risks since it includes all sorts of project uncertainty.
Can you shed more light on what you've explained above.
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Feb 01, 2016 10:43 AM
Replying to Ganesan Balaji PMP, RMP, PgMP
...
Rami, it is overal risk. This method will help to rank the various projects' overall risk and choose the appropriate project for the next phase.
Thanks Balaji - The reason I am asking is because PMBOK 5th Edition - Page 310 mentioned the "Overall Risk" and states that you can't just obtain the overall project risk by summing up the individual risks since it includes all sorts of project uncertainty.
Can you shed more light on what you've explained above. Saving Changes...
Markus KopkoAI Enabler for Project & Program Mgmt | Founder PMotion.ai / The PM
AI Coach| PMotion.aiHamburg, Hamburg, Germany
Hello Guys,
thank you all for your inputs and contributions.
Finally i have found this article at PMI webiste which should answer all the questions about
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