Risk Management

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 Project Management
process
• Project management is the application of
knowledge, skills , tools and techniques to
project activities to meet project
requirements.
• A process is a set of interrelated actions
and activities performed to achieve a pre-
specified objective.

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 Project Management
process
• Project management process are
grouped into five categories:
• - Initiating process.
• - Planning process.
• - Executing process.
• - Monitoring and controlling process.
• - Closing process.
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 Initiating Process
• Initiating Process :It is the process
performed to define a new project,
its initial scope and its initial
financial resources.
• The feasibility of the new project may
be established.
• Clear description of project
objectives are developed.
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• Planning Process: It is the process
performed to establish the total
scope, refine the objectives and
develop the courses of action
required to attain those objectives.
• Planning Process includes:
• - Scope Management.
• - Project time management.
• - Project cost management.
• - Project quality management.
• - Project procurement management.
• - Project risk management. 5
• Executing Process: It is the process
performed to complete the work
defined in the project management
plan to satisfy the project
specifications.
• Monitoring and Controlling Process:
It is performed to track, review, and
regulate the progress and
performance of the project.

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• Closing Process: It is the process
performed to finalized all activities
across the project.

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 Risk Definitions
• Project Risk: It is uncertain event or
condition that ,if occurs, has a
positive or negative effect on at least
one project objective.
• Risks: are potential problems that
may affect successful completion of
project.

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 Risk Characteristics
• - Risk is always in the future.
• - Risk is uncertain event that may or
may not happen. There are no 100%
risks ( those are called constraints).
• - A risk may have one ore more
causes and , if it occurs, it may have
one or more impacts.
• Risk involves potential losses.
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 Terminology of Risk
• Risk identification team should consider :
• 1- Threats: Risks that will have a
negative impact on a project
objective if it occurs.
• 2- Opportunities: Risks that will have a
positive impact on a project objective
if it occurs.

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 Risk Strategies
• Reactive Strategies:
• Very common, also known as fire
fighting

• Project team sets resources aside to

deal with problems

• Team does nothing until a risk becomes

a problem
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 Risk Strategies
• Proactive Strategies:
• Risk management begins long before
technical work starts, risks are
identified and prioritized by importance

• Team builds a plan to avoid risks if they

can or to minimize risks if they turn into
problems
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