1. Project Management Training Series Project Risk Management By Samuel Obino Mokaya BA, PGD, Ph.D. (Student) Jomo Kenyatta University of Agriculture and Technology, Nairobi, Kenya Telephone: 0722845562, 0734615008 E-mail: o’mokaya@rpe.jkuat.ac.ke, skomokaya@yahoo.com

4. Risk Management Process Risk identification Risk analysis Risk monitoring Risk planning Potential risks Prioritized risk list Risk avoidance & contingency Risk assessment

6. Matrix for Risk Analysis Risk Probability Effects Required training for staff not available Moderate Tolerable Time to complete project is underestimated Staff illness Organizational financial problems force reduction in project budget Defective inputs / components Key staff ill at critical times Impossible to recruit staff with required skills

9. Look at this!

10. Risk Management Matrix (Example) Risk Strategy Recruitment problems Early recruitment, proper timing, training existing staff etc. Organizational financial problems Prepare report to management showing contribution of project to business goals Defective inputs/components Replace with those of known reliability Staff illness Reorganize team for more work overlaps, make people understand each other’s job

13. PRACTICE WINDOW You have been appointed the Project Manager of a major project on the construction of the Prime Minister’s official residence in Nairobi. Identify potential risks and possible actions to tackle them Risk Action