Analyze the effects of risks; provide the risk response plans; implement and monitor the response plans. Part 2 of the project must be submitted as an addition to the Part 1 document. Part 2 will add 10 to 15 pages without counting cover page, reference page, or appendix. You will assess what you have done in Part 1 and continue to develop the key risk management processes presented in the PMBOK® Guide, and Project Risk Management text, or other risk management resources you would like to use.
The team will perform Quantitative Risk Analysis, analyzing the effect of identified individual project risks and other sources of uncertainty on overall project objectives and overall project risk exposure. Using the risk register, the team will perform a quantitative analysis on the high exposure "red" positive and negative risks. Use the recorded highest-level combined probability and impact risks.
Quantitative data analysis techniques that may be used for Part 2 during this process include but are not limited to simulations such as Monte Carlo analysis; sensitivity analysis such as the tornado diagram; decision tree analysis; expected monetary value; fault tree analysis; sensitivity analysis and influence diagrams. The quantitative analysis will provide additional information to support risk response planning.
In addition, the team will create detailed response plans for the identified positive and negative risks. This should include both proactive responses and reactive contingency plans as appropriate. The response plans will show how implementing the risk response plan for negative risk should have minimized the probability of occurrence and Impact, and conversely its implementation should have increased the probability of occurrence and impact for positive risks.
Next, identify any secondary risks and update the risk register. Please provide a dual Probability x Impact (P and I) Matrix, using the reassessed values found for P and I from the step above. Provide the steps used in the risk monitoring section to include: Risk and Responsibilities of the Monitoring Process, Policies and Procedures to Follow; Major and Minor Review Schedule, and Risk Report Schedule.
As you write this documents, pay special attention to how the above mentioned processes are related and select the process that you will use in creating a document that could assist you in the future to write your own risk management plan. Provide a justification for the processes selected.
Sample Outline for the Team Risk Management Course Project - Part 2
Table of Contents
Perform Quantitative Risk Analysis: Perform quantitative risk analysis by numerically analyzing the combined effect of identified individual project risks and other sources of uncertainty on overall project objectives. Quantify overall project risk exposure to support risk response planning.
Plan Risk Responses: Creating detailed response plans for the identified positive and negative risks. This should include both proactive responses and reactive contingency plans as appropriate. Next, proceed to update your Risk Register.
Implement Risk Responses: Identify any secondary risks and update the register. The implementation of your risk response plan for negative risks should have minimized the probability of occurrence and the effect of impact. Conversely, its implementation should have increased the probability of occurrence and the effect of impact for positive risks. At this point, you should have a complete risk register. Please provide a dual P-I Matrix, using the reassessed values found for P and I from the step above.
Monitor Risks: This section could include: Risk and Responsibilities of the Monitoring Process, Policies and Procedures to Follow; Major and Minor Review Schedule, and Risk Report Schedule.