George LewisProgram/Project Manager| DXC Technology CompanyHeredia, Costa Rica
What other questions would you ask when Studying Project Risk Management?
1. What’s the difference between Risk Management Plan and Project Management Plan?
2. What are the types of Risks?
4. How many communications channels do you have now?
5. What's the relation between Risk Management and Communications Management?
6. What importance does Risk Management has in closing?
7. What strategy should a project manager use to keep stakeholders aware of Risks?
Basics first, What is Risk?
What is a risk breakdown structure?
What are cause and effect? Saving Changes...
Kgobalale John MalatjiProjects Portfolio Manager | Noko-impJohannesburg, Gauteng, South Africa
Jul 12, 2016 7:22 AM
Replying to Aejaz Shaikh
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What are Strategies for Negative Risk or Threat?
Risk management includes the treatment of the risk causes or the treatment of the risk item itself.
Risk treatment is undertaken in the following order depending on the risk item and the Project or client's tolerance on that particular risk.
1. Terminate
This applies to risk items that are too high (fatal flaw) for the project or company and can not be feasibly transferred or reduced to a manageable or acceptable level. This means the activity that introduces the risk must be terminated. Example: If the project wanted to mine a small deposit of mineral in a geologically unstable ground and it is unsafe to employ conventional methods yet too expensive for any alternative methods.
2. Transfer
This is a second level of addressing risk and applies to risk items that can be transferred to different safe location, experts or time. Example: If a project wanted to perform a welding operation in a mine with methane gas. The hot work will be transferred to surface where it is safe to perform welding.
3. Treat
This is sometimes referred to "Risk Engineering". It involves devising and deployment of means and procedures to completely eliminate or reduce the probability or severity of the risk to an acceptable level. Example: It is unsafe for people work in a noisy environment, hence machinery like compressors are fitted with silensors to engineer out the noise risk.
4. Tolerate
This is the lowest level of managing risk. It involves putting in place management processes and procedures to live with the risk. This is generally applied to risk items that have low severity or impact to the project or company if it occurs. Example: People put on Personal Protective Equipment like hand cloves when they handle sharp or hot objects. Saving Changes...
Kgobalale John MalatjiProjects Portfolio Manager | Noko-impJohannesburg, Gauteng, South Africa
Jul 11, 2016 8:13 PM
Replying to Demetrius Williams
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What is the difference between a risk and an issue?
A risk is an event that has not occurred yet but has a probability of occurring and may have an effect on the project if it occurs. A suitable mitigation plan must be devised and provision be allowed to deal with identified risk. Mitigation plan may be in one or more of the following steps applied in the given order. 1. Terminate, 2. Transfer, 3. Treat, 4. Tolerate
An issue is an event or risk that has already materialized or occurred. An issue need to be analysed/ evaluated for the extend of effect and the devised mitigation plan has to be applied as planned or amended to suit if the effects are different from the anticipated. Saving Changes...
George LewisProgram/Project Manager| DXC Technology CompanyHeredia, Costa Rica
I would append...
What's the difference between EMV (Expected Monetary Value) and EVM (Earn Value Management) Saving Changes...
What are risk drivers?
What is a tornado diagram?
What is monte carlo analysis? Saving Changes...
George LewisProgram/Project Manager| DXC Technology CompanyHeredia, Costa Rica
I would append
What Increments Cost the most Fast Track or Crashing? Saving Changes...
George LewisProgram/Project Manager| DXC Technology CompanyHeredia, Costa Rica
I would append What is the difference between Contingency Plan vs. Risk Response Plan?
Contingency Plan vs. Risk Response Plan
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1 reply by Stéphane Parent
Jul 15, 2016 9:25 AM
Stéphane Parent
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A tougher version of that question, George, would be:
What is the difference between contingency plan and fallback plan?
Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
Jul 15, 2016 8:53 AM
Replying to George Lewis
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I would append What is the difference between Contingency Plan vs. Risk Response Plan?
Contingency Plan vs. Risk Response Plan
A tougher version of that question, George, would be:
What is the difference between contingency plan and fallback plan? Saving Changes...
Stéphane ParentSelf Employed / Semi-retired| Leader MakerPrince Edward Island, Canada
What are the components of risk? Saving Changes...
Kgobalale John MalatjiProjects Portfolio Manager | Noko-impJohannesburg, Gauteng, South Africa
Jul 12, 2016 3:13 AM
Replying to Radhika Namburi
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Other question may be: What is the difference between mitigation plan and contingency plan?
Contingency plan is a mitigation plan but not vise-versa.
When a risk is identified, and mitigation plans are being devised, one of the mitigation plans may be to allow or provide for contingency to deal with the risk if it materialise. This falls under risk control or treatment and risk tolerance. Contingency plan is devised but not actioned until the risk becomes an issue. Contingency can be provided in the form of extra resources, extra time or float, etc. On the other side, mitigation plans may be the elimination or transfer of risk source or activity.
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1 reply by Stéphane Parent
Jul 15, 2016 10:58 AM
Stéphane Parent
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I'm currently studying for my PMI-RMP, John. I'm sorry to say that you would be wrong on a few exam questions.
According to the PMI material, mitigation plan is what you will do to reduce the probability and/or impact of the risk should it happen. The contingency plan is what you will do after the risk happens, regardless of any previous mitigation activity.
The elimination of risk - risk avoidance - and risk transfer do not require mitigation.
