Project Risk Management
- An Overview
Hossam Maghrabi, PMP

Agenda
 Objectives & Outcome.
 Risk Definition & Impact.
 Risk Management Process.
 Risk Management Implementation.
 Q & A.

Objectives & Outcome.
Objectives
Provide an overview on Project Risk
Management.
High level explanation of Project Risk
Management Implementation.
Outcome
On completion of this session you will be able
to start your journey for managing a project’s
risks based on PMBOK Guide(5th Edition).

More than 60 % of companies have experience
project failure
Why?

Risk Definition
What is the risk?
Risk is a possible future event or condition that, if it occurs,
will result in a positive or negative impact to a project’s
objectives. Each Risk has a cause and, if it occurs, a
consequence.
Example,
A Project solution needs to be implemented in all of a company’s
worldwide locations, including those in developing countries. If the
telecommunications lines are not upgraded on time where
necessary, the solution will not be viable in those locations.
Is it a risk that you have to implement the solution in developing
countries?
No, that is the cause. It is a fact or a requirement.
Is it a risk that the solution will not be available in certain countries?
No, that is the potential effect of what might occur in this scenario.
Is it a risk that the necessary telecommunications upgrades are not
performed on time?
Yes, this is where the uncertainty lies.

Example,
Team may decide to utilize a new technology on its project because they
think it will result in dramatic effort and cost savings.
There is also a chance the new technology will not work.
However, the team introduces the risk because the potential for gain.
This is an example of intelligent risk taking or positive risk.
Risk Impact

Risk management process
• Risk management Planning
The process of deciding how to conduct risk management
activities for a project. ( Methodology, Roles and Responsibilities,
Budgeting, Timing, Scoring , Reporting and Tracking )
• Risk identification
The process of determining which risks may affect the project and
documenting their characteristics. (Stakeholder, The format of the risk
statements)
• Qualitative Risk Analysis
The process of prioritizing risks for further analyses or
action by assessing and combining their Probability
of occurrence and impact.

• Quantitative Risk Analysis
The process of numerically analyzing the effect of identified risks on
overall project objective.
• Risk response planning
The process of developing options and actions to enhance
opportunities and reduce threats to project objectives.
• Risk Monitoring and control
The process of implementing risk response plans, tracking identified
risk, monitoring residual risks, identifying new risks, revaluating risk
process effectiveness throughout the project.
Risk management process

Risk Management Implementation
• Terms
• Assumption
Something that is believed to be true. Assumptions can be about such things
as the deliverables, estimates, technical environment, experience level of staff,
and end-user responsibilities.
• Risk
A possible future event or condition that, if it occurs, will result in a positive or
negative impact to a project objective. Each Risk has a cause and, if it occurs, a
consequence.
• Issue
Something currently happening that needs resolution to avoid negative
impact to scope, timing, requirements, cost, quality, resources, or progress
according to the plan.

Threat
Probability = 100%
ISSUE
There is an action
and entry in the
issue log.
Probability < 100%
RISK (threat)
There is a Risk response plan.
Could be:
• Proactive:
 Transfer,
 Mitigate,
 Accept,
 Avoid
• Reactive:
 Contingency Plan
Opportuni
ty
Probability < 100%
There is a strategy for
each opportunity.
Could be:
Exploit , Enhance, Share ,
Accept
Low Probability ??
OR Low Impact??
Risk Management Implementation
Watch List
Assumption / Risk
A s s u m p t I o n
Low
Probability??
OR
Low Impact??

Risk Management Life Cycle
Identify Risks
Monitor & Control
Risks
Plan Risk Response
Risk Management
Close-out
Develop
Risk Management Plan
Risk
Budgeting
Analyze Risks
Update as
Appropriate
Repeats
Through the
Road Map
Minimum Weekly
Reviews

Questions

Thank You