Project Risk Management: A Practical Implementation Approach

Project Risk Management: A Practical Implementation Approach

by Michael M. Bissonette
Released April 2016
Publisher(s): Project Management Institute
ISBN: 9781628251401

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Book description


In Project Risk Management: A Practical Implementation Approach, author Michael M. Bissonette not only provides insights into the best ways to implement the traditional techniques of risk management, but also explores innovative new methods that can help modern organizations build their culture, improve financial performance, and ultimately achieve greater success in all of their projects.

Table of contents

  1. Cover Page
  2. Title Page
  3. Copyright Page
  4. Table of Contents
  5. Table of Figures
  6. Acknowledgments
  7. Preface
  8. Chapter 1: Practical Application of Project Risk Management
    1. Overview
    2. Content
      1. Portfolio Project Risk Management—A Holistic Perspective
      2. Practical Project Risk Management Concerns
  9. Chapter 2: Risk Management—Integral to Project Management
    1. Project Risk Management Fundamentals
    2. General Process Cycles and Related Project Risks
      1. Project Life Cycle Structure
      2. Product Life Cycle
      3. Product Development Cycle
    3. Chapter 2: Summary
  10. Chapter 3: Risk Definitions and General Categories
    1. Definition of Risk
      1. Traditional Definition of Risk
      2. PMBOK® Guide Definition of Risk
    2. Causes versus Risks
      1. Risk Metalanguage Statement: Example 1
      2. Risk Metalanguage Statement: Example 2
      3. Risk Description Metalanguage Statement: Example 1
      4. Risk Description Metalanguage Statement: Example 2
    3. The Potential Impact of Risks to Major Project Objectives
      1. Risks to Major Project Objectives
      2. Risk-Severity Definition
      3. Risk Probability and Impact Scales
    4. Risk Categories and Groupings
      1. The Risk Breakdown Structure (RBS)
      2. The Work Breakdown Structure (WBS)
    5. Chapter 3: Summary
  11. Chapter 4: Classical Project Risk Management Practices
    1. Planning Risk Management
    2. The Risk Management Plan (RMP)
      1. 1.0: General Information
      2. 2.0: RPM Methodology
      3. 3.0: Roles and Responsibilities
      4. 4.0: Risk Management Budgeting
      5. 5.0: Risk Management Scheduling and Timing
      6. 6.0: Project Risk Categories
      7. 7.0: Individual (Qualitative) Risk Assessment Definitions
      8. 8.0: Project Stakeholder Tolerances
      9. 9.0: Risk Reporting Formats
      10. 10.0: Initial Project Assessment—Assumptions and Risks
      11. 11.0: Monitoring and Controlling Project Risks
    3. The Heart of the Risk Management Process
    4. Chapter 4: Summary
  12. Chapter 5: Determining Individual Project Risks
    1. Assumptions versus Risks
      1. Differentiating between Assumptions and Risks
      2. Project Assumption Register
    2. Identifying Individual Project Risks
      1. Practical Methods for Identifying Individual Project Risks
      2. Types of Risks
    3. Project RBS Categories: Causes of Unsuccessful Project Execution
      1. RBS Categories
      2. Practical and Relevant Questions to Ask for Identifying Risks
    4. Chapter 5: Summary
  13. Chapter 6: Project Risks Influenced by the Project Manager and Project Team
    1. Project Plans
      1. Poor Bases of Estimates
      2. Scope Omissions
      3. Invalid Assumptions
      4. Inadequate Contingencies
      5. Identifying Project Planning Risks
    2. Project Management Controls
      1. Poor Risk Management
      2. Inadequate Cost and Schedule Controls
      3. Poor Requirements Management
      4. Compliance (i.e., Product Quality) Verification Gaps
      5. Poor Metrics
      6. Poor Supplier Management
      7. Poor Trade-Off Analyses
      8. Identifying Project Management Controls Risks
    3. Project Communications
      1. Unclear Priorities
      2. Poor Decisions
      3. Poor Status Reporting
      4. Poor Team Direction
      5. Poor/Inadequate Escalation
      6. Identifying Project Communications Risks
    4. Project Leadership
      1. Inadequate Training/Development
      2. Dysfunction within Team or Organization
      3. Poor Project Manager Assignment Match
      4. Identifying Project Leadership Risks
    5. Chapter 6: Summary
  14. Chapter 7: Project Risks Influenced by Organizational and External Factors
    1. Product Development Processes
      1. Industry Mismatch
      2. Market Mismatch
      3. Development Process Gaps
      4. Process Nonadherence
      5. Identifying Product Development Process Risks
    2. Productivity and Infrastructure Tools
      1. Inadequate Productivity Tools
      2. Inadequate Infrastructure Tools
      3. Inadequate Training
      4. Identifying Project Infrastructure Tools and Training Risks
    3. Project Resources
      1. Insufficient Funds
      2. Insufficient Time
      3. Insufficient Furnished Equipment and/or Facilities
      4. Personnel Resource Gaps
      5. Identifying Project Resource Risks
    4. Business/External Factors
      1. Competitive Threats
      2. Company Health
      3. Team Physical Proximity
      4. Unrealistic Stakeholder Expectations
      5. Project Cancellation
      6. Identifying Risks Due to Project Business/External Factors
    5. Chapter 7: Summary
  15. Chapter 8: Individual Project Risk Analysis
    1. The Difference between Individual and Overall Risk Assessments
    2. Performing Individual (Qualitative) Analysis of Project Risks
    3. Risk Management Tools and Techniques for Qualitative Analysis
      1. Informal (i.e., Reactive) Risk Management
      2. Use of a Simple Risk Register
      3. Formal Risk Planning (Using a Risk Matrix)
      4. Formal Risk Management (Using Risk Matrix and Tracking Risks)
      5. Project Failure Modes and Effects Analysis (FMEA)
    4. Mechanics of Individual Risk Analysis
      1. Individual Risk Assessment Team
      2. How Individual Project Risks are Analyzed
      3. Individual Project Risk Prioritization
    5. Example: Application of Risk Management Tools and Techniques
      1. Notional Project Description
      2. Identifying, Assessing, and Planning Responses for Notional Project
      3. Notional Project Risk Burn-Down Schedule
    6. Chapter 8: Summary
  16. Chapter 9: Overall Project Risk Analysis
    1. Performing Overall (Quantitative) Project Risk Analysis
    2. Risk Management Tools and Techniques for Quantitative Analysis
    3. Determining Overall Risk via Interviewing and Expert Judgment
    4. Determining Overall Risk via Modeling and Simulation
      1. Description of Modeling and Simulation for Overall Project Risk Assessment
      2. Mechanics of Modeling and Simulation for Analyzing Overall Project Risks
    5. Organizational Assets that Benefit Overall Project Risk Analysis
    6. Chapter 9: Summary
  17. Chapter 10: Determining and Planning Project Risk Responses
    1. Planning Risk Responses
    2. Balancing Risk Tolerance, Response Costs, and Project Objectives
      1. Bottom-Up Project Risk Balancing
      2. Holistic Project Risk Balancing
      3. Combination of Bottom-Up and Holistic Project Risk Balancing
    3. Risk (Threats) and Opportunity Response Options
      1. Risk (Threat) Response Options
      2. Opportunity Response Options
      3. Concurrent Risk (Threat) and Opportunity Response Strategies
    4. Practical Questions for Determining Risk Responses
      1. Addressing Technical (Or Quality) Risks (Threats) and Opportunities
      2. Addressing Schedule Risks (Threats) and Opportunities
      3. Addressing Project Cost Risks (Threats) and Opportunities
    5. Chapter 10: Summary
  18. Chapter 11: Monitoring and Controlling Project Risks
    1. The Monitoring and Controlling Project Management Process Group
    2. Accommodating Project Changes Over Time
      1. Changes that Affect Project Risk
      2. Inherent Project Conflicts
    3. Active Risk Management throughout the Project Life Cycle
      1. Risk Reassessment Process
      2. Project Management Tools and Techniques to Monitor and Control Risks
    4. Some Practical Project Risk Management Tips to Consider
      1. Project Planning Tips to Reduce Project Risk
      2. Project Execution Tips to Reduce Project Risk
    5. Chapter 11: Summary
  19. Chapter 12: Project Management Tools and Techniques Affecting Project Risk
    1. Project Management Process Group and Knowledge Area Mapping
    2. Project Management Knowledge Areas versus Tools and Techniques Mapping
    3. Project Management Tools and Techniques for Risk Management
    4. Project Management Estimating Tools and Techniques
      1. Top-Down Estimating
      2. Bottom-Up Estimating
      3. Analogous Estimating
      4. Combination of Analogous and Bottom-Up Estimating
      5. Modeling and Simulation
    5. Project Management Scheduling Tools and Techniques
      1. Informal Scheduling
      2. Simple Gantt Chart Scheduling
      3. Integrated Master Scheduling (IMS)
      4. Modeling and Simulation Scheduling
      5. Line of Balance Scheduling
    6. Project Management Cost and Schedule Management Tools and Techniques
      1. Actual-Plus-Plan versus Time
      2. Earned Value Management (EVM)
      3. Earned Value Management System (EVMS)
    7. Project Management Quality Assurance Tools and Techniques
      1. Informal/Reactive Quality Assurance
      2. Six Sigma Lite Quality Assurance
      3. Six Sigma Quality Assurance
    8. Requirements Management Tools and Techniques
      1. Project Requirements Document
      2. Project Requirements Compliance Document and/or Checklist
      3. Requirements Change Control
      4. Requirements Reviews
    9. Project Management Communications Tools and Techniques
      1. Project Management Plans
      2. Project Statement of Work (SOW)
      3. Project Work Breakdown Structure (WBS)
      4. Project Work Authorization Documents (WADs)
      5. Project Customer and Management Meetings and Reviews
    10. Project Management HR Tools and Techniques
      1. Project Management Decision Making
      2. Project Management Leadership
    11. Supplier Management Tools and Techniques
      1. Project Sourcing Strategy and Plans
      2. Project Source Selection
      3. Project Supplier Management and Control
    12. Chapter 12: Summary
  20. Chapter 13: Project Manager Competencies versus Project Risk
    1. Basic Project Manager Capabilities to Consider
    2. Project Manager Abilities, Roles, and Responsibilities
    3. Leadership Abilities and Skills for Effective Project Management
      1. Project Manager Vision and Ability to Inspire
      2. Project Manager Communication Skills
      3. Project Manager Integrity
      4. Project Manager Enthusiasm and “Can Do” Attitude
      5. Project Manager Empathy and Compassion
      6. Project Manager Competence
      7. Project Manager's Ability to Delegate
      8. Project Manager's Composure
      9. Project Manager Team-Building Skills
      10. Project Manager Problem-Solving Skills
    4. Chapter 13: Summary
  21. Chapter 14: Various Project Risk Management Influencers
    1. Organizational Influencers
    2. Organizational Structure and Cultural Factors
      1. Team Physical Proximity
      2. Cultural Norms and Values
      3. Compliance Requirements
      4. Operating Environment
      5. Management Expectations
      6. Project and Functional Team Behaviors
      7. Personnel Development and Training Philosophy
      8. Functional versus Matrix versus Projectized Structures
    3. Organizational Process Assets
      1. Information Specific to the Performing Organization
      2. Organizational Knowledge Bases
    4. Project Stakeholders and Governance
      1. Project Stakeholders
      2. Project Governance
      3. Roles and Responsibilities
    5. Chapter 14: Summary
  22. Chapter 15: Project “Best Practices” and Postmortems
    1. Project “Best Practices”
    2. “Better-Than-Best Practices”
      1. Relatively Expensive Project Management “Better-Than-Best Practices”
      2. Relatively Cost-Effective Organizational “Better-Than-Best Practices”
    3. Interactions that Lead to the Establishment of “Best Practices”
    4. Project Postmortems
      1. Typical Postmortem Methodology
      2. Postmortem Cautions
      3. An Efficient and Effective Approach to Conducting Project Postmortems
    5. Chapter 15: Summary
  23. Chapter 16: Example Project Case Studies
    1. Comparable Aerospace and Commercial Industry Projects
    2. Comparable Commercial Industry Back-to-Back Projects
    3. Comparison of Two Distinctly Different Aerospace Projects
    4. Chapter 16: Summary
  24. Appendix A—Sample Project Traffic-Light Ratings
  25. Appendix B—Data Supporting EVM Example
  26. Appendix C—Project Profile Data
  27. Appendix D—Multiproject Postmortem Example
  28. References
  29. Glossary

Product information

  • Title: Project Risk Management: A Practical Implementation Approach
  • Author(s): Michael M. Bissonette
  • Release date: April 2016
  • Publisher(s): Project Management Institute
  • ISBN: 9781628251401