This video examines the primary considerations for determining the type(s) or risk responses that will be most suitable for a specific risk and incorporating risks into a risk plan for your particular project.
- I have a problem. I love building risk plans, but sometimes I forget I have those plans when I get into the day to day excitement of project execution. So, how do I ensure the risk activities I plan for are executed when I need them? The answer is create a risk response plan, a document that captures your risks, the analysis you've performed, and guides your actions going forward. Let's talk about what to include in your risk response plan.
First, the risk response plans lists your risks, including identified risk causes, descriptions, and potential impacts. Second, include your qualitative and quantitative analysis results and your response plan for each risk. You may include a primary and secondary risk response plan if appropriate. Third, include contingency reserve funds that have been allocated. If you have risks that include contract-related actions you'll discuss with your vendors, note these as well.
After these fundamentals are in your risk response plan, these additional elements can turn a risk response plan into a powerful control document. The most significant item to add to each risk is the timing for when you need to either A, assess the status of the risk, or B, execute a response action. These can be added as tasks in your project schedule and assigned to a specific individual. Here's an example. When I was moving from the US to a work assignment in Australia and having my household goods sent to Australia by sea, I didn't know when I packed the container, whether it would go from LA to Sydney directly or via Singapore.
Therefore, when I arrived in Australia, I didn't know if I needed to get a short-term furnished apartment or arrange for a permanent place to live where I would have my furniture delivered. I had a housing risk to manage. I had to know two timing-critical actions against that risk. When to check the schedule status of my shipment to determine if my furniture would be available and when I needed to find a temporary furnished apartment if needed. The next significant item to have in your risk response plan are status dates for your vendors, or to check on products from areas not under your control.
Going back to my furniture shipment, I had another risk to manage. The customs agent in Australia could decide to inspect my goods shipment or hold it in quarantine for a period of time. I had to monitor the progress of my household goods through Australia customs. I had no control over them and had to establish dates when I needed to get temporary housing, even though my furniture might be in the country with me. By ensuring your plan is robust and helps you track the actions required to monitor and execute responses against risks, you can dramatically reduce the impact of risk on your project and not experience things like getting stuck with a house but no furniture.
Note: This course follows the latest guidance from Project Management Institute, Inc., as outlined the PMBOK® 6 Guide.
- Explore why dealing with risks needs to be part of the everyday process used to manage a project.
- Learn to outline the most common, pragmatic approaches to identifying risks specific to a project.
- Recall methods for qualifying and quantifying your risks to determine specific risks and manage their costs.
- Examine the primary considerations for a project risk plan and what components should be included in every plan.
- Assess techniques that help you identify the overall risk a project presents to your business.
- Examine several risk analysis and filtering examples that help ensure you've addressed individual risks properly on your project.