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Friday, April 26, 2013

Section Summary – Monitor and Control Risks

In the previous few chapters in this section, we had taken a detailed look at the Monitor and Control Risks process, its inputs and the tools and techniques used in this process. Let us quickly recap what we have learnt so far:

• The purpose of this process is - To implement risk response plans, track identified risks, monitor residual risks, identify new risks, evaluate the effectiveness of risk response plans and of the risk management process.
• An important point to remember here is the fact that, during this process, we could uncover new risks as well. In such cases, we typically go back and analyze those risks and then take those risks through the full risk management process cycle
• As risk responses are implemented and risks are tracked, any corrective actions required are submitted through the monitor and control risks process
• This process uses a total of 4 inputs. They are:

1. Risk Register
2. Project Management Plan
3. Work Performance Information
4. Performance Reports
• There are a total of 6 tools and techniques that we will be using in this process. They are:

1. Risk Reassessment
2. Risk Audits
3. Variance and Trend Analysis
4. Technical Performance Measurement
5. Reserve Analysis
6. Status Meetings
• There are three aspects of Risk Reassessment that you must remember for the RMP Exam. They are:

1. Identifying New Risks
2. Closing Risks that are no longer applicable
3. Keeping tab on existing risks to figure out if any further action is required
• Risk Audits are concerned with:
1. Measuring the effectiveness of the risk responses
2. Measuring the effectiveness of the risk management processes in the project
• Workaround is - An unplanned response to a negative risk that has occurred/materialized
• The key difference between workarounds and the contingency/fallback plans is the fact that – Workarounds are unplanned and utilized on the fly whereas we meticulously plan contingency and fallback plans
• Reserve Analysis is an analytical technique to determine the essential features and relationships of components in the pm plan to establish a reserve for the schedule duration, budget, estimated costs or funds for a project
• If the Risk Management team was inefficient in calculating the reserves or if the numbers they calculated were insufficient, the reserve analysis can identify such gaps and help salvage the project
• The purpose of Variance & Trend analysis is to forecast any potential cost and/or schedule deviations in the project at completion
• We will be using Earned Value Calculations during Variance & Trend Analysis
• Though Estimation Techniques and Cost Benefit Analysis are not explicitly listed down as tools and techniques for this process, we need to be aware of them to apply the other actual tools and techniques for the process
• There are three types of Estimation – Analogous, Parametric and Bottom up
• Cost benefit analysis compares the cost of producing a service, product or result to the benefits that the organization (doing/creating it) receives as a result of it.
• The purpose of Technical Performance Measurement is to uncover any deviations that may exist, such as differing functionalities, than what was planned for the Project.
• Any team meeting that addresses risk management in the project as an Agenda Item for discussion would be considered a Status Meeting from Risk Management perspective
• The more often risks are addressed, the easier we can identify and deal with them
• The amount of time we spend discussing risks in our status meetings, depends on the number of risks, their complexity, their probability and impact etc.

Prev: Technical Performance Measurement & Status Meetings

Next: Introduction to Practice Standard for Risk Management

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