Proactive Risk Management: Stakeholder Tolerance Analysis, Buy-in, and Commitment
Many organizations are beginning to see the value of undertaking efforts to invest the time and personnel to identify and respond to those risks critical to the success of the organization’s projects, and keep the expectations of key stakeholders aligned with reality. Other organizations, however, continue to expend little effort within their project’s initiation and planning phases in identifying and responding to risks, leaving their project teams in a reactive, fire-fighting mode of managing projects when issues arise in the execution phase. These organizations often have to accept deliverables which don’t meet the performance objectives, in a project already late and over cost. This course is based on numerous project management process implementation efforts and project audits. It will discuss strategies to the seemingly typical response of some organizations to risk management—worried about the outcome, but hopeful that the project team will create a miracle. Through the application of directed discussions and accompanying tools, a project team and organization can begin the movement towards being prepared to respond to project risk events—a proactive approach which can also serve as a learning platform across the entire organization.
What You Will Learn
- Understand strategic risk management: project selection, opportunity identification, financial / benefit analysis
- Determine stakeholder risk appetite, tolerances and thresholds
- Identify, assess and evaluate risk events and triggers
- Name the essential principles of the project risk management processes: identification, analysis, response planning, and monitoring and controlling
- Recognize the importance of risk management on projects and identify the main areas of risk
- Understand the distinction between uncertainty (common cause variation) and risk (special cause variation)
- Know how to apply several risk management techniques and how to communicate the results of those techniques to the key project stakeholders
- Determine and develop proactive Risk Responses and control mechanisms.
- Recall the usage and communication of contingency reserve, management reserve, fallbacks and workarounds
- State how to communicate the occurrence of an identified risk event vs. an unidentified risk event (issue)
- Understand how to use the project phases to iteratively identify, assess, and respond to risk events and convey meaningful project information to decision makers. Manage future risks more effectively through organizational lessons learned
PDU Allocation TableThe table below displays the number of professional development units (PDUs) awarded for each PMI® credential, as they align to the PMI Talent Triangle®. Leadership and Strategic PDUs apply evenly across all credentials and Technical PDUs apply only to specific credentials. PDUs will be added in full to all eligible credentials.