PMI RMP – IDENTIFY RISKS Part 2

5. TOOLS AND TECHNIQUES

Hi and welcome back again. So now we had all the inputs I need to start the Identifiers process. What are the tools and techniques which can be useful in order to identify the product press? It will be a long lecture. I’m going to explain all the tools and techniques for the Identifier risks process based on the project management body of knowledge that PM book in addition to the practice Standard Risk of Management Appendix Deep.

So I will be starting with the expert Judgment, which is judgment provided upon expertise as an application area, knowledge area, or discipline as appropriate for the activity being performed. It’s the most commonly used tool in the project management processes in general. I’m going to consult with any experts within the organization experts, sorry who have an expertise in the risk identification process. So making use of those experts within the organization is called an expert judgment tool. Then we have few data gathering techniques. The techniques or the tools and techniques in general usually falls into one of the three categories data gathering, data analysis, or data representation techniques. Starting with the data gathering techniques and the most commonly used one is the brainstorming sessions.

It’s amazing to come up with ideas or solve problems. I’m going to explain the brainstorming session in detail. It’s frequently used in the risk identification workshops. So the general high level definition is that a brainstorming is a meeting to come up with ideas or to solve problems. It can be used for risk identification process as well as for other project management issues. We are going to highlight the usage of the brainstorming session for risk identification purposes. It’s commonly used in facilitated risk identification workshop in order to identify the highest number of the project risks.

The outputs of the brainstorming are the group’s thoughts or group thinking, not individual thoughts. During the session’s, arrest idea will arise as a result of hearing a risk someone else identifies. This is the core value or the core benefit of using the brainstorming sessions and the risk identification process. If you are participating in a brainstorming session, you might hear someone else discussing a risk, a new risk or a new idea will arise from hearing someone else identifies a risk. So it’s a result of the group thoughts. It’s not about the individual thoughts. Risk identification brainstorming sessions can be led by an outside facilitator to keep everyone focused and to add direction.

Usually the risk identification workshops are led by the project manager as the facilitator or by the risk manager. Sometimes you need to hire an outside facilitator to keep everyone focused and to add direction into the workshops. Follow the steps below for brainstorming sessions to identify the project risks. First of all, determine who to involve in the brainstorming sessions. Who will participate in the brainstorming sessions? Find two scribes to write down the ideas. It’s the responsibility of two persons, not only one person. Have a comfortable meeting room or a comfortable room. Instruct the scribe to record risks by sticky notes or on a computer.

State the objectives of the brainstorming session clearly. Usually you will start the brainstorming session with a question of what are the rests related to the project as a whole? You will start with a high level with a generic question. Then you need to ask a more specific one what are the rests related to each activity? And then you need to get to more details. What are the risks by category? These three questions are commonly asked during the brainstorming sessions. Then you need to group risks into categories.

Ask for a clarification of the risks and discuss them with the team. State all the risks you gathered in the cause risk effect format, which is the meta language I explained in the introduction lecture. These are the steps you need to follow while you are brainstorming the project risks. Now, the advantages of the brainstorming session first of all, it’s familiar and most of the people already understand the rules of brainstorming as it’s commonly used in project management. So everybody is familiar with the brainstorming sessions. It can generate large number of tasks quickly. One idea will bounce off another idea. These are the three advantages of the brainstorming session. But disadvantages as it’s familiar, it could be boring sometimes. Not everyone will contribute because some attendees are quieter and this will lead to unequal contribution.

So as a facilitator, you need to give an attention for people who are not participating. Also, you cannot rely only on the brainstorming as it will not cover all the project risks. Now, the outputs of the brainstorming session are the group’s tolls or group thinking, not individual tolls. During a session or during decisions, a risk idea will arise as a result of hearing someone else identified. And the brainstorming session should be led by a facilitator, either the project manager, the risk manager, or somebody from outside the project. But at all the ways the rules to get the most out of the brain storming session are first of all, you don’t need to evaluate responses right now. You are performing the brainstorming session only to gather ideas to create a very large list of risks so there is no time to evaluate the responses.

Find a way to make sure everyone attending the brainstorming session is participating. Make sure no one person takes up too much time. Everybody should participate. Facilitate the meeting with a set of rules and stick to them. Make the list of risks as long as possible. This is the primary output of a successful brainstorming session. You need to have a list, a very long list of risks. This is all for the brainstorming session as a data gathering technique and risk identification. The second data gathering technique is the check lists a list of items, actions or points to be considered. It’s often used as a reminder as it’s a checklist, it has already prepared earlier, so it can be very useful. As a reminder, risk checklists are developed based on historical information and knowledge that has been accumulated from previous similar projects.

An organization may maintain a risk checklist based on its own completed projects or may use generic checklists from the industry. So you need to search for the checklists within the organizational process assets quick and simple to use, but it cannot be used alone to identify the project risks checklists are very useful in data gathering and risk identification. For me they are very easy, they are very quick and they are very simple to use. Here’s an example of a checklist showing a risk category technical risk showing the subcategory for example the scope definition. So example risks scope changes may arise during the project as a project manager or as a person radio. In this checklist you just need to click here by yes or no. This is why it works.

As a reminder, you will need a lot of examples here and you just need to decide that this risk will affect your project or not by stating yes or no. The third data gathering technique is the interviews. It’s sometimes called expert interviews. In risk management. It’s often experts, the customer and senior management that a project manager needs to interview to obtain risks. Risk identification interviews should include all main stakeholders and be conducted by an independent skilled interview using a structured agenda in an atmosphere of confidentiality, honesty and mutual trust. In order to take the maximum benefit of the expert interviews, you can use the RBS, the risk breakdown structure. You can use a checklist which I just explained, or a prompt list which I’m going to explain in the coming lectures. It can be used as a framework for risk interviews and in order to perform an expert interview you need to follow these steps. First of all, be prepared with what you want to gain from the interview and specific questions you need to prepare for the expert interview.

Start by explaining why you are there and why you need to talk to the experts. It’s always better for the expert interview to be conducted by three persons. Generally, one person will ask the question, another will write down the answer and the third person will look for nonverbal communications. Then you need to ask an open ended question to get their individual thoughts before you cloud their thinking by asking your prepared questions. Usually these interviews will start with an open end questions, not specific ones. Ask questions to clarify the interviewee’s responses. Ask the prepared questions which you already prepared before the interview. Ask follow up questions for each question you ask. Clarify responses, usually by repeating them. Ask for other ideas. Tell them you may need to meet them again for the experts. Tell them how to get in touch with you. Thank them for their time. These are the twelve steps you need to implement for a professional expert interview. The advantages of using the expert interviews first of all to obtain understanding of unfamiliar parts of the project, then to uncover new risks. Gain information about probability, impact, contingency and fallback plans. I’m going to explain the contingency and fallback plans in the coming lectures.

Gain the expert support for the project when you are performing an interview in a professional manner with an expert automatically you will gain the support of this expert to your project. Now, the expert interviews disadvantages first of all, they will consume a lot of time, they will take time, they require careful preparation, they are hard to correct if they were done poorly and experts usually are hard to reach and gain cooperation. These are the advantages and disadvantages of using the expert interviews. So we are done with the three data gathering techniques the brainstorming sessions using the checklists and the experts interviews.

Now what are the data analysis techniques I can use while identifying the project risk? I will be starting with the root cause analysis typically used to discover the underlying causes that lead to a problem and to develop a preventive action. It seeks to identify basic causes of risk that may be visible symptoms of more functional forces. It may also identify common sources of several risks leading to broad reaching risk response strategies. So as from the name it’s the root cause. It’s not about only knowing what is the cause of a risk or the cause of a problem.

We need to discover the root causes, the underlying causes that are leading to a problem. The root cause analysis are useful for risk identification by starting with a problem statement and exclude which threats might result in that problem. Accordingly, you can do also the same for opportunities but by starting or by stating a benefit statement and explore which opportunities might result in that benefit being realized. Here is an example of the root cause analysis. Here are or here is the statement of the issue which might lead you to discover a few threats ignoring faith entry prerequests might come from the incomplete requirements or from the incorrect reports. The risks that you might discover reward, extra cost schedules, less low morale of the team, repeated audits and mess trust. This is an example of applying the root cause analysis.

You will put the statement of the issue or the benefit here and you will discover the underlying causes. The second data analysis technique is the assumption and constraints analysis. This is why you will need the assumption logged as an input to the identifier risks process. An assumption is a belief of what you assume to be true, but it do not necessarily end up being true. It’s made based on knowledge, experience or information available unhappy most of the assumptions are made in the initiating and early planning of the project in order to do estimates and we will do a lot of assumptions in the initiating because we have very less information. So in order to find out the estimates you will assume things. All assumptions made should be written on a list as you should continually look at them. If one is false, then arrest was found. This is why you are going to analyze the project assumptions and constraints. Usually this technique requires only three simple steps.

First of all, you need to list the assumptions and constraints for the project. In our case, it’s already listed in the assumption log. You need to test the assumptions and constraints by asking two questions only could the assumption or the constraint be false? If it were false, would one of project objectives be affected positively or negatively? If both questions answers were yes, then arrest was generated. This is exactly how we are going to apply the assumption and constraint analysis for the risk identification. We have also the data analysis technique SWAT Analysis SW O T. It identifies four characteristics of a given situation strengths, weaknesses, opportunities and threats. Commonly used in strategic decision making for risk identification purposes. It can be adapted by changing the interpretation of the four perspectives such as the strengths and weaknesses relate to the characteristics of the organization conducting the project, while the opportunities and threats identify the project.

This is how we are going to use the SWAT analysis. We will consider the points of strength and the point of weaknesses for the organization where the project is running as a part of and we will think about how these weaknesses will lead to threats to my project and how these strengths might lead to opportunities for my project. It starts with the identification of strengths and weaknesses of the organization, focusing on either the project organization or the business areas in general. The analysis then identifies any opportunities for the project that may arise from strengths and any threats resulting from weaknesses. Here is an example of the SWAT analysis.

So what are the strengths in this scenario? First of all, experienced senior management, support of the human resources department, relatively high salary scale, strong company repetition and business. These are the strengths of the organization. What are the opportunities which I can define depending or relying on these strengths underserved markets, discovery of customer needs. So what are the weaknesses in this scenario? Heavy workload culture, highly brilliant on the one staff member. The threats which I can define increased market share by the competition, new products offered by competitors. So this is how we are going to use the SWAT analysis for the risk identification and additional data analysis technique is the document analysis where risks also can be identified by careful review of project documentation. Such documents includes first of all the project charter where the high level risks and project objectives were mentioned. You review also the contract terms and conditions for the penalties, for the hours for the incentives.

It can be a potential source of risk. The statement of work of the project. The WBS or the Odd program structure is a hierarchy of all the project deliverables decomposed in smaller activities and work packages. You might look and review and analyze the work breakdown structure to find out the project risks. The critical path defines the longest sequence of activities in a project plan which must be completed on time for the project to complete on due date. This is the definition of the critical path which I’m going to explain in detail in the math section of this course. And activity on the critical path is more risky than others since it has zero flow. Any activity located on the critical path have a zero flow. This makes the activities located on the critical path riskier than others. This is why you need to analyze the critical path on your project.

Any delay of this activity the activity located in the critical path will delay the project itself. As a professional project manager you should give attention for the activities which are not on the critical path, but they have small float since any problem will easily make this activity on the critical path. So while performing the document analysis technique, you need to review these five documents and more also in order to find out the project risks. Now we have the interpersonal and team skill that includes the Facilitation, which improves the effectiveness of many of the techniques used to identify the project risks. We have the Facilitation as the interpersonal and team skills and we have also the nominal group techniques. So what are the nominal group techniques? It’s a technique which used when you need a technique to gain a group’s opinion rather than individuals opinions. The result of a nominal group technique is the group’s bio to the total group opinion on the specific risks of the product. You can consider the nominal group technique as an adoption of the brainstorming and you need to follow these steps for the nominal group technique for risk identification purposes. First of all you need to determine who should be invited to suggest risks.

Who should be invited to attend the nominal group. Form the groups of entities. Collect a list of risks from each group member. Provide a group with list of all their risks. So first of all you need to ask each team member for a list of risks.

Then you return back the whole group with all the lists of the groups. Ask each group member to rate each risk using a rating from one to ten. Tabulate all the ratings to obtain the group’s opinion of the top risks. The advantages of using the nominal group techniques they are fast way to get group thinking, use ranking gains, buy into the results and they are useful to explore high level risks. The Disadvantages a major risk can be identified by a member but not accepted by the group in their final top lists of risks. So this risk will not be considered. Now we were done with the data analysis techniques, data gathering techniques and the interpersonal and team skills. Now we are going to discuss few data representation techniques and the first one is the fishbone diagram shown in front of you. It’s also called the cause and effect diagram or the Ishikawa diagrams. It presents a diagrammatic form that causes would contribute to this outcome.

Each cause can be split further into sub causes. The diagram then identifies risks as those uncertain events which could result in occurrence of the impact. This is the effect, these are the causes and these are the sub causes. How we are going to use this diagram. The diagram then identifies risk as those uncertain events which could result in occurrence of the impact. To use this technique for risk identification the outcome should be stated as an effect on the project objective. The diagram then identifies risks as those uncertain events which could result in occurrence of the impact. This technique uses for risk identification can lead to a confusion between the risk and the issue. You need to consider this there is a big difference between the risk which is an uncertain cause or an uncertain event and the issue which is a fact.

A risk is an uncertain course of the impact while an issue is a certain cause of the impact. A cause and effect diagram is a visual tool to help a person or group see the potential cause and identify new ones. Here is an example of the cause and effect diagram with the effect of staff leaving. It might come from the career prospects, ambition, environment, satisfaction or remuneration. For example, the satisfaction cause might have the some causes of the variety, challenges or recognition. This is an example of the root and coke sorry. This is an example of the cause and defect diagram. And for the example you need to know that the fish bone diagram ishikawa diagram and coz and defect diagram. Three terms refer to the same technique.

We have also as a data representation technique the Influence diagrams. It’s a diagrammatic representation of a project situation showing the main entities decision points, uncertainties and outcomes and indicating the relationships or influences between them. This is the exact definition of the influence diagram. How we are going to use the influence diagram to identify risks when combined with sensitivity analysis or Monte Carlo simulation. Both techniques I will explain in the performing quantitative risk analysis but using the influence ground combined with sensitivity analysis or Monte Carlo simulation to reveal sources of risk quizzes a project. Here is an example of the influence diagram for select the best bit here is all the entities of the system decision points and relationships and influences between them. Locking into the influence diagrams and analyzing them will be very useful in risk identification. Another particular application of the influence diagrams is called the system dynamics. It’s a particular application of influence diagrams which can be used to identify risks within a project situation.

The SD or the system dynamics model represents entities and information flows within a project. The results of the system dynamics analysis can show the impact of risk events on the overall project results such as the cost or schedule results to be expected. Analysis of changes in the model or assumptions can indicate the system sensitivity to specify events, some of which may be risks. Here is an example of the system dynamics. It’s very similar to the influence diagram with the only difference is that the system dynamics is a flow from a point to appointment tool and technique number six are the prompt lists. So what’s the prompt list? It’s a predetermined list of risk categories that might give rise to individual project risks and could also act as sources of overall project risks. So it’s something predetermined, it’s something you will not prepare for the project.

 It can be used as an aid to project team an idea generation when using risk identification techniques, some common strategies frameworks are more suitable for identifying sources of the overall project risks. For example, first of all we have the pistol prompt list p for political, E for economics, S for social, T for technological, L for legal and E for environmental. We have the TCOP T for technical, E for environmental, C for commercial, E for operational and P for political vehicle V for volatility, uncertainty, complexity and ambiguity spectrum, social, political, economic, competitive, technology, regulatory uncertainty and markets. So these are the most commonly used prompts less here is an example of the pistol one. So you can find the pistol analysis or the pistol prompt list through doing an online search. You can use such list as an age for your project team members to define additional individual projects. Let’s take an example of the political here P for government policy, political stability, corruption, tax policy, labor law and trade restrictions.

If for the economics we have the economic growth for example the exchange rate, the interest rate, the inflation rates, the disposable income and the unemployment rate all these can be categories of risks on your project. This is how we are going to use the prompt list number seven a very important technique called the Delphi technique as per the name of the person who found out or created this technique. It’s one of the most important techniques used in the project management since it prevent any type of bias. Mainly it’s used to collect requirements and identify risks process. So you use the Delphi technique in the collect requirements process as a part of the scope management and the Identifier risks process as a part of the risk management. In brief, it’s a request for information as sent to experts who participate anonymously.

The responses are compiled, the results are sent back to the experts for further review until they reach an agreement. So it’s a technique to gather the experts opinion agreement. It’s a group decision making technique and risk management. It can be used to obtain consensus of expert opinion on what work should be performed, what risks exist in the project. What’s the facilitator role in performing the Delphi technique? It’s the facilitator’s responsibility to distribute the project details and request the experts opinions, collect the responses and then study the individual reports to define the areas of commonality and the areas of divergence. This is the role of the facilitator in Adelphi technique. Wherever consensus is missing, the facilitator initiates a repeat of the process and tries to create a sentence for final acceptance by all experts. It’s important that the facilitator doing the Delft technique avoids interjecting any personal bias, belief or principle of his or her own into the process. The facilitator should not affect the decisions of the experts or the opinions into the process as this would taint the results. He or she should be neutral as much as possible. Now, what are the steps I need to follow in performing that Delphi technique?

First of all, determine who will be the facilitator. You can do this role as a project manager or you can find a neutral person within your organization. The facilitator should be familiar with data collection methods. So the first step is to find out the facilitator. Then you need to determine the panel of experts, but keep the list an enormous. An expert is any individual with relevant knowledge and experience of particular topic. So you need to determine the facilitator and then you need to determine the panel of experts who will participate with you in the Delphi technique. Define the subject you are willing to take the expert opinions about. Then send out a specific request with attached details of the projects to each expert in the list and ask for the opinion. Collect expert opinions and compile them into one list while keeping the experts names an enormous. This is the key word of the Deaf technique. You don’t need to share the expert names with the experts themselves. Start round two and resend this list to every expert so they can review all thoughts.

Ask them for further comments based in the compiled list. Try to reach consensus more rounds as well if needed. What are the advantages of the Delphi technique? It gets consensus of experts opinions and it can be done virtually. It’s not necessary to do it with physical existence of the experts. It can focus on the tease of the project or overview risks. The disadvantages you may need to wait long periods of time for experts to respond. It requires the ability to interpret expert opinions. So these are the advantages and the disadvantages of the Delphi technique. Number eight we have the force field analysis. They are typically used in the change management context in front of you. Now it’s shown the force field analysis model. It’s adapted for risk identification.

How? By identifying driving forces, forces for changes and restraining forces, forces against changes which cannot affect the project objectives. Risks then can be identified as an uncertain events or conditions which would lead to change in the strength of one or more of the identified forces. Here are the forces of changes like the customers want new products, improve speed of production, raise volumes, output control, rising maintenance costs. All these are forces of changes. And here are the restraining forces against changes. Lots of stuff over time. Stuff threatened of new technology, cost disruption, environment impact, new technology. So we can adapt this model, the force field analysis for risk identification by identifying the forces, the driving forces and the restraining forces which can affect one of the project objectives and be arrest.

Failure would affect analysis, what’s also known as a fault tree analysis. It’s a methodology for analyzing potential reliability problems early in the development cycle as it’s easier to take actions in order to overcome these issues. Used to assess the potential reliability of the product, the failure mood effect analysis was first created for engineers for high complex engineering designs. It looks at the potential failure moods of a system or a product, determine the effect on the operation of the product, then identify solutions to mitigate those failure moves. This is how we are going to identify risks by listing the failure modes. First, the team working on this process should formally as extensive all possible failures as possible. The main goal of the failure mode effect analysis is to design the failure out of the product. The best time to use this technique is in the earlier stage of the project. In the earlier stage it was used by engineers in order to improve quality and reliability of the design. Here, by applying the failure mode effect analysis to project management, we will consider usage of this technique in identifying risks and creating and developing the risk register. Few types of the failure mood effect analysis first of all. First one is the system, which will focus on the system or the system functions design, which will focus on the components of the product process, which will focus on manufacturing and assembling phase, the service which will focus on service function and the software which will focus on software functions. These are the five common types of the failure mode effect analysis. Once the team is done with listing failure modes, failure mode effect analysis will rate the different risks associated with failure with each failure mode.

Failure modes with highest ranking are handed and documented in the risk management process as risks highest ranking. Here is described with the risk priority number, the RPN. It’s a term used with the failure mode effect analysis risk priority number or the RPN. Below are the steps you should follow to perform the failure mode effect analysis in the identifier risk process. And here’s an example of the failure mode effect analysis or the fourth three analysis. First of all, check if your organization. Have a standard failure mode effect analysis worksheet or you need to prepare one on the project. Start listing items or functions with all possible failure moves. This is first you need to brainstorm with your team about all the failure moves that might happen on the project. Describe the potential effects of these failure moves you just listed in step two.

Establish a numerical ranking of severity as a scale from one to ten. So this is the first term we want in order to find out the risk priority number of the Rpm, the severity of the risk. Identify causes of each failure mode listed. Establish a numerical probability factor occurrences as a scale again from one to ten, which indicates how likely this cause will happen. So the first item you need to determine the severity on a scale from one to ten. Then the occurrences on a scale also from one to ten. Identify current controls which may prevent this cause to happen. Then you need to determine the likelihood of detection. Detection is an assessment of the likelihood that the current controls will detect the cause of the failure mode, thus preventing it from reaching the customer. Now you have the severity, you have the occurrences and you have the deductibility.

You can find out the risk priority number in order to rank out the risks. Identify recommended actions to address risks with the highest RPN value, assign responsible and target date for those risks, indicate actions taken and keep updating the failure mode fit analysis sheet. I know it’s complicated, you just need to understand the process in high level approach for the exam. Now, what are the benefits of applying this technique? Determine risks and actions taken to reduce risks, focuses on product improvement and development, increase customer satisfaction and emphasize problems prevention. As I mentioned earlier, this technique should be applied in the early phases of the project. So early identification and elimination of potential product or process failure modes. And in addition to the customer satisfaction, you will improve the product reliability and quality. Tool and technique number ten is to conduct a pre mortem.

It’s a very simple one, the pre mortem. Simply it’s a meeting to come up with ideas. But how we are going to conduct this meeting? The assembled group, the participants of this meeting will be asked to imagine that the project is completed or the project was terminated, it has failed to meet one or more of its objectives. This is what we are asking the participants of the premortem meeting to imagine that the project was Italian. The group is then asked to describe why the project has failed. The same shall be repeat while imagining that the project is a success to find the opportunities. So if I ask you to imagine that the project was a failure and I ask you what are the possible reasons of this failure? Those possible reasons you are going to list will be the risks you are identifying in this technique and the opposite. If the project was a success, what were the opportunities which helped to reach this success? This is how we are going to use the pre mortem in order to find out the threats and the opportunities, the advantages. They are fun and unusual. It involves looking at the project from different perspectives.

It’s very useful in instances when the participants are too familiar with the details of the project to view it from another perspective. It encourages thinking outside the box. The disadvantages of using the pre mortar it will not result in identifying all risks. Some people have hard time imagining the failure of the project. Number eleven is the affinity diagram. The trick of using this technique is to look for missing categories using affinity diagram. So this technique is very useful at the late stages of risk identification workshops. In this technique, the ideas generated from any risk gathering techniques other you performed already are sorted into groups by similarities as shown in front of you. Each group is then given a title like the Planning or the Implementation. This sorting makes it easier to see additional risks that have not been identified.

So the affinity diagram is very useful at the late stages of the risk identification workshops. In order to lock for missing categories. The last tool we have is the use of the risk breakdown structure, the RBS. What’s the RBS? It’s a hierarchical framework of potential responses of a risk to a project. An organization can develop a generic RBS for use across all of the projects, or a project may use a project specific RBS. It contains RBS level twelve and so on, categorizing each group of risks in the first level. Here is an example of the RBS. The first level L zero, showing all sources of project risks. Then l one is the categories like the management risk or the commercial risk management risk can be from project management, program portfolio management, operations management, organization, resourcing, communication, et cetera.

You can have another level here or L three. Now, how to use the risk breakdown structure for the risk identification? First of all, the RBS serves as more than just a database for identifying risks to the project. The RBS provides a vector for risk analysis and reporting and risk comparison across projects. And the most important, the RBS is the tool for risk identification. When you sit with the team to identify risks, the RBS will be very useful. Categories could serve as a great reminder. While brainstorming the RBS is just one way to categorize risks, it’s not a tool or technique by itself. But analyzing the RBS is a tool or technique and it should be included as a part of the risk management’s plan. As I explained in the previous process, once you come up with a list of risks, you will label each risk with one of these categories since that will make it easier to figure out how to deal with risks later.

The first level of the RBS can be used as a sanity check to make certain that all topics that might include risk are covered during the risk identification process. Using these five points, you can identify a lot of risks using the Risks breakdown structure. This is all for the tools and techniques used in the identify risks process. Sorry for the long lecture, but this content is very important for the PMI RMP exam. Expect a lot of questions questions in the exam about the risk identification tools and techniques, and I advise you again and again to read the Appendix D of the Practice Standard of Risk Management where the details of these tools and techniques are mentioned. Thank you so much. I see on the next lecture.

6. OUTPUTS

Hi and welcome back again. So, what are the outputs I will have from the Identifiers process? The tools and techniques I explained in the previous lecture are very important for the PMI RMP exam. Now, once you are done with the risk identification process, what are the primary outputs you will have? First of all and the primary output will be the risk register. It’s a project document which captures details on identified project risks. It will be constantly updated with information as risk management processes are completed. On completion of risk identification process, risk register may include now keep in mind that the primary output of the Identifier risks process is the risk register. However, the risk register will be updated as an output of each risk management process and these outputs of each risk management process that will be an update for the risk register are important and you need to understand and memorize for the PMI RMP exam.

So now, as an output of the Identifier risks process, what are the components of the risk register? First of all, you will have a list of the identified risks. Each individual project risk is given a unique identifier with defined risks should be identified in the code risk effect format which I explained earlier in the introduction lecture the Rest meter language. So all the list of the identified risks should be recorded using the code risk effect format. This is the first component of the risk register. We will have also the potential risk owners when identified during this process, the risk owner is recorded in the risk register. This will be confirmed in the plan that responses process.

So, who is the risk owner? Actually, he is the person responsible of managing the project identify the risk. Each risk should have a risk owner. He will monitor the risk, who will monitor the risk craigs, and he will be responsible to implement the risk response plan. So, potential risk owners can be documented as a part of the risk register, while the finalized list of the risk owners will be documented as a part of the planned risk responses process. Also will have a list of potential risk responses where a potential risk response has been identified during the identified risks process, it is recorded in the risk registered.

This will be confirmed during the plan risk responses process. So, the same story of the risk owner. Few identified risks might have a potential risk response. There is no issue to document this risk response as a part of the identified risks process, but the primary focus of identifying all the risk responses will be done in the plan risk responses process. So, this is the risk register as an output of the Identifiers process and here the components or the information available within the risk register at this point of time. Here is an example of the risk register showing the Identifier of the risk, the risk statement, the risk owner, the expected probability as a percentage, the impact of the risk on the scope, quality, schedule and cost the score.

Of the risk which will be calculated in the perform qualitative risk analysis. The response, the revised probability and the revised impact, the revised score, the responsible party. The actions need to be taken, the status of the risk and the comment. So this is the risk registered. Now we are done only with the identify risks process so the ID and the risk statement will be enough for now. Now, the second output of this process will be the risk report that presents information on overall project risk together with summary information on identify the project risks. The risk report is developed progressively throughout the project risk Management on completion of the risk identification process, the risk report may include first of all sources of overall project risk indicating which are the drivers of the overall project risk exposure and the summary information of the identified individual project risks such as number of identified threats and opportunities, matrix and trends.

So the risk register is a detailed oriented document. The risk report is just a high level representation of the project rest exposure. The last output will be few. Project documents Updated the assumption log might be updated with the new assumptions made in the Identifiers process. The issue log should be updated to capture any new issues uncovered or changes in the currently locked issues and if you have any new license learned regarding the risk identification, you need to document them in the Listens land register. This is all as an output of the Identifiers profit. Thank you so much, I will see you the next lecture.