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Topics: Risk Management
Risk Report & Escalation in Risk Management
Network:346



I would like to ask 2 questions in risk management

1. In the Perform Quantitative Risk Analysis Process, the output contains only Update Risk Report, why there is no update to Risk Register?

2. In the Plan Risk Responses Process, Escalate is one of the tools and techniques for Individual Project Risk but not a tool and technique for Overall project Risk. Why?
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Network:1007



Mohammed -

1. The Sixth Edition does indicate that there could be other documents other than just the risk report which get updated, but it is interesting that they shifted the emphasis from the Risk Register (in the Fifth Edition) to the Risk Report for this process in the Sixth Edition.

2. Escalate is a risk response (similar to Accept, Mitigate, Avoid and Transfer for negative risks and Exploit, Accept, Share & Enhance for positive risks) which would only apply to individual risks - why would we escalate the overall risk for a project? We'd certainly communicate with senior stakeholders to let them know about a high risk project, but escalate means that the response to the risk lies outside the project team so you'd be effectively abdicating any responsibility for the overall project's risk.

Kiron
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1 reply by Mohammed Elsheikh
Apr 17, 2018 8:13 AM
Mohammed Elsheikh
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You may update the risk register in qualitative analysis & risk response planning.
Network:36



I agree with Kiron. I think the answers to both questions are similar. It is less likely that you will update the risk register in Perform Quantitative Risk Analysis because the register lists individual risks and the concept of "expected monetary value of risk" is more applicable to total project risk or overall project risk than to for any specific risk. I'm not saying you never calculate EMV for a single risk, and PMBOK isn't saying you never type anything into the risk register in this process - it's just that the concept applies more to the project as a whole.... and EMV for the total project would be reported on the Risk Report. Just my opinion...could be wrong...
Network:346



Apr 16, 2018 10:10 AM
Replying to Kiron Bondale
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Mohammed -

1. The Sixth Edition does indicate that there could be other documents other than just the risk report which get updated, but it is interesting that they shifted the emphasis from the Risk Register (in the Fifth Edition) to the Risk Report for this process in the Sixth Edition.

2. Escalate is a risk response (similar to Accept, Mitigate, Avoid and Transfer for negative risks and Exploit, Accept, Share & Enhance for positive risks) which would only apply to individual risks - why would we escalate the overall risk for a project? We'd certainly communicate with senior stakeholders to let them know about a high risk project, but escalate means that the response to the risk lies outside the project team so you'd be effectively abdicating any responsibility for the overall project's risk.

Kiron
You may update the risk register in qualitative analysis & risk response planning.
Network:1007



The risk register is a great example of a living information repository.

We might populate it with some high-level risks very early in the life of the project while the charter is being created, then refine and add content through risk identification, and then elaborate on it through the remaining risk management processes and over the life of the project itself.

One of the sanity checks I used to do when performing delivery assurance checks on projects was to check the currency of risk register information. If it was obviously stale, it was a good indicator that the project wasn't being managed in a disciplined manner.

Kiron

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