Project Risk Management - Control Risks

This process implements risk response plans, tracking identified risks, monitors residual risks, identifies new risks, and evaluates risk process effectiveness throughout the project. It improves efficiency of the risk approach throughout the project life cycle to continuously optimize risk response.

Purposes of control risk:

• Variance and trend analysis – use of performance information generated throughout the project
• Project assumptions are still valid
• Analysis shows an assessed risk has changed or can be retired
• Risk management policies and procedures are being followed
• Contingency reserves for cost or schedule are modified

Let's look at the Inputs, Tools and Techniques and Outputs of this process.

1)     Project Management Plan

·        Includes the risk management plan that provides guidance for risk monitoring and controlling

2)     Risk Register

·        Identified risks and risk owners

·        Agreed-upon risk responses

·        Control actions for assessing the effectiveness of response plans

·        Specific implementation actions

·        Symptoms for warning signs of risk

·        Residual and secondary risks

·        Watch list

3)     Work Performance Data

·        Related to various performance results possibly impacted by risks includes:

·  Deliverable status

·  Schedule progress

·  Cost incurred

4)     Work Performance Reports

·        Take information from performance measurements and analyze it to provide project work performance information. This includes:

·  Variance analysis

·  Earned value data

·  Forecasting data

5)     Risk Reassessment

·        Control risks include identifying new risks, reassessment of current risks and closing of risks that are outdated.

6)     Risk Audits

·        Examines and documents the effectiveness of risk responses in dealing with identified risks and their root causes, as well as the effectiveness of the risk management process. (meetings)

7)     Variance and Trend Analysis

·        Compares the planned results to the actual results.

·        Trends should be reviewed using performance information.

·        Earned value analysis – used for monitoring overall project performance

8)     Technical Performance Measurement

·        Compares technical accomplishments during project execution to the schedule of technical achievement.

·        Includes weight, transaction times, number of delivered defects, and storage capacity.

9)     Reserve Analysis

·        Compares the amount of the contingency reserves remaining to the amount of risk remaining at any time in the project in order to determine if the remaining reserve is adequate

10) Meetings

·        Frequent discussions about risk make it more likely that people will identify risks and opportunities.

11) Work Performance Information

·        Provides a mechanism to communicate and support project decision making.

12) Change Requests

·        May include:

·  Recommended corrective actions

·  Recommended preventive actions

13) Project Management Plan Updates

·        Plan Risk Responses process will be updated

14) Project Document Updates

·        Risk Register updates may include:

·  Outcomes of risk reassessments, risk audits, and periodic reviews.

·  Actual outcomes of the project’s risk and of the risk responses.

15) Organizational Process Assets Updates

·        May include:

·  Templates for the risk management plan

·  Risk breakdown structure

·  Lessons learned

Source: PMBOK 5^th ed.