PMP® Risk Management | PMP® Risk Management Stepwise Guide | PMP® Risk Management Guide
Managing project risks is a crucial aspect of project management, and the Project Management Professional (PMP) certification from the Project Management Institute (PMI) includes a specific knowledge area called “Project Risk Management.” This knowledge area is an essential part of the PMP exam, and it involves several key steps. Here’s a stepwise guide to PMP Risk Management:
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Plan Risk Management:
- Identify stakeholders: Identify all parties that may have an interest in or influence over project risks.
- Define the approach: Decide how risk management will be structured, documented, and executed for the project.
- Develop a risk management plan: Document the risk management strategy, including roles and responsibilities, risk categories, probability and impact scales, and reporting formats.
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Identify Risks:
- Brainstorming: Gather a group of project team members and stakeholders to generate a list of potential risks.
- Documentation: Create a risk register that includes all identified risks, their potential impacts, and their probability of occurrence.
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Perform Qualitative Risk Analysis:
- Prioritization: Assess each identified risk’s impact and probability and assign a risk rating.
- Use tools like the Probability-Impact Matrix to rank risks and determine their importance.
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Perform Quantitative Risk Analysis:
- Numerical analysis: Use quantitative techniques like Monte Carlo simulation or decision tree analysis to assign specific values to risk impacts and probabilities.
- Determine the expected monetary value (EMV) for each risk.
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Plan Risk Responses:
- Develop strategies: For each significant risk, decide how to respond. Common strategies include Avoid, Mitigate, Transfer, and Accept.
- Create contingency and fallback plans: Develop specific actions and plans for responding to risks.
