PMI RMP – RISK GOVERNANCE

1. ROLES AND RESPONSIBILITIES OF RISK GOVERNANCE

Hi and welcome back again. So we were done with the seven risk management processes. Before we move to the Communications Management Policy area in the following section, I have to pass by to this simple topic, which is the risk management governance on the organizations. Now, risk governance involves oversight of the entire risk management process, making sure the risk management activities are consistent and they are continuously improved throughout the organization. So the risk governance is about having a clear system, clear policies, procedures, processes regarding the risk management for the entire organization.

For all the projects, it’s a matter of none starting from scratch on each project, but rather from benefiting from the successes and failures of projects that have gone before this project. When having risk governance on the organization, you will have no project that will start from scratch. Each project will benefit from the previous experience. The responsibility for the risk governance falls to the project manager, Project Management Office, risk Management department, or management of the organization. And usually it falls on the Project Management office. I explained the idea of the PMO at the starting of the introduction lectures of this course.

The Program Manager in case your project is running as a part of the program, the program manager in the organization would be involved in overseeing the risk management function for all the projects in the program and making sure the risk management effort is appropriate for the size and importance of the project. So if your project falls as a part of the program, it’s the responsibility of the program manager to oversee the risk management efforts on your project and to make sure that the efforts are appropriate to the size and complexity of the project. Now, the PMO or the Project Management Office might create some policies and procedures and serve as a government’s body overseeing all projects, including how projects manage risks.

Some of the policies, standards and procedures that might be set up for all projects include first of all, here is an example of a policy, organizational risk tolerances and thresholds methods to use for identifying project risks. The methods used on Project A within the organization should be the same methods used on Project B and Project C and so on. Definitions of probability and impact ratings to be used in the perform qualitative risk analysis process and standard probability and impact matrix. Here are some examples of the policies, standards and procedures that you can use for the risk governance and for the lessons’learned.

It’s the government’s body function to ensure that listens learned related to risk management are captured on all projects and then made available for use on other projects. Listens learned are created by the project manager and involve the input of the project team members and the key stakeholders. They are created throughout the life of the project and finalized at the project end. So it’s the responsibility of the governance body to make sure that risk related lessons learned are captured listens. Learned may be sent to other project managers, to peers or departments that might benefit from them. This is all for the roles and responsibilities of the governance. And I thank you so much. I will see you at the next lecture.

2. RISK METRICS

Hi and welcome back again to a simple topic the risk matrix which are standards of performance that once evaluated till how the work is performing against the plan. Risk governance involves the creation of matrix for risk management activities in the organization. As I explained in the plan risk management process, risk management matrix are created in the early phases of the planning of the risk management in order to compare the actual performance regarding risk management to these matrix. Matrix are valuable to provide an additional measure of progress and to warn of potential problems. Why the project manager is having performance measurement baselines for the project. An example of a matrix risk management activities should take up one out of eight of the project planning time.

So at the end of the project you will find out if your risk management efforts consume more than this time or this time or less than this time. Another matrix here, projects that have more than five major unidentified risks occur must be replant. These risk matrix can then become the baseline for risk management performance on projects throughout the organization. Matrix make it possible to measure the performance of one project against other projects. This will make it very useful for the reward system as the project manager’s performance will be able to be quantitatively measured against other using standard organizational matrix. So the risk matrix will give you an additional tools in order to compare between the projects within the organization regarding the risk management effectiveness.