PMP - Risk Management Review

The process of identifying, analyzying and responding to risk factors throughout the life of a project

• - At the beginning of the project
• - during the planning for each phase of the project
• - before approval of major scope changes
• - continuously, throughout the entire project

• Risk event
• Risk Probability
• Amount at Stake

• - Warranties
• - Insurance
• - Subcontracting
• - Type of Contract

• - Avoid
• - Transfer
• - Mitigate
• - Accept

A contingency plan is a predefined action plan in case a risk event occurs later

A workaround is an unplanned response to a risk event when it actually happens.

Improve project performance by focusing on high-priority risks. Analyzing the probability and impact for each risk is an important part of this process

Management Reserve: a separately planned quantity used to allow for future situations which are impossible to predict (unknown unknowns). Use of the management reserve requires a change to the project's cost baseline

Contingency reserve is a separately planned quantity used to alow for future situations which may be planned for only in part (known unknowns) Contingency reserves are normally included in the project's cost and schedule baselines