5th Edition

Risk Management Concepts and Guidance, Fifth Edition

By PMP Pritchard Copyright 2015
    476 Pages 47 B/W Illustrations
    by Auerbach Publications

    474 Pages 47 B/W Illustrations
    by Auerbach Publications

    474 Pages 47 B/W Illustrations
    by Auerbach Publications

    This new edition of Risk Management: Concepts and Guidance supplies a look at risk in light of current information, yet remains grounded in the history of risk practice. Taking a holistic approach, it examines risk as a blend of environmental, programmatic, and situational concerns. Supplying comprehensive coverage of risk management tools, practices, and protocols, the book presents powerful techniques that can enhance organizational risk identification, assessment, and management—all within the project and program environments. Updated to reflect the Project Management Institute’s A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fifth Edition, this edition is an ideal resource for those seeking Project Management Professional and Risk Management Professional certification. Emphasizing greater clarity on risk practice, this edition maintains a focus on the ability to apply "planned clairvoyance" to peer into the future. The book begins by analyzing the various systems that can be used to apply risk management. It provides a fundamental introduction to the basics associated with particular techniques, clarifying the essential concepts of risk and how they apply in projects. The second part of the book presents the specific techniques necessary to successfully implement the systems described in Part I. The text addresses project risk management from the project manager’s perspective. It adopts PMI’s perspective that risk is both a threat and an opportunity, and it acknowledges that any effective risk management practice must look at the potential positive events that may befall a project, as well as the negatives.Providing coverage of the concepts that many project management texts ignore, such as the risk response matrix and risk models, the book includes appendices filled with additional reference materials and supporting details that simplifying some of the most complex aspects of risk management.

    RISK PROCESSES AND PRACTICES: WHY RISK MANAGEMENT?

    Risk Management Practices
    A Systematic Process
    Summary

    Risk Concepts
    Risk Attitudes and Appetites
    Classifying Risk
    Risk Breakdown Structure
    Risk Taxonomy
    Risk Facets
    Other Risk Categories
    Taxonomically Developed Risks
    Other Relevant Considerations
    Risk Management Perspectives
    Realities of Project Management
    Summary

    The Risk Management Structure
    Risk Management Planning
         Description and Project Summary
    Risk Environment 
         Approach to Risk Management 
         Application Issues and Problems 
         Other Relevant Plans 
         Risk Governance 
         Approach Summary 
         Bibliography 
         Approvals
    Identify Risks 
         Documentation Reviews 
         Information-Gathering Techniques 
         Checklists 
         Assumptions Analysis 
         Diagramming Techniques
    Perform Qualitative Analysis 
         Baselining Risk 
         Rating Schemes and Definitions 
         Assumptions Testing 
         Risk Modeling 
         Using Analogies 
         Conducting Data Quality Assessments 
         Risk Categorization 
         Risk Urgency Assessment
    Perform Quantitative Analysis 
         Expert Interviews
         Expected Monetary Value (EMV) 
         Decision Tree Analysis 
         Program Evaluation and Review Technique 
         Sensitivity Analysis 
         Simulations
    Plan Risk Responses
    Risk Avoidance
    Risk Transference
    Risk Mitigation
    Risk Acceptance
    Opportunity Exploitation
    Opportunity Sharing
    Opportunity Enhancement
    Opportunity Acceptance
    Monitor and Control Risks
    Summary

    RISK MANAGEMENT TECHNIQUES

    Expert Interviews

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements
         Applications 
         Outputs
    Summary

    Planning Meetings/The Risk Management Plan
    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements
         Applications 
         Outputs
    Summary

    Risk Practice Methodology

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements 
         Applications 
         Outputs
    Summary

    Documentation Reviews
    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability 100
    Selection Criteria 
         Resource Requirements 
         Applications 
         Outputs
    Summary

    Analogy Comparisons
    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria
         Resource Requirements 
         Applications 
         Outputs
    Summary

    Plan Evaluation
    Technique Description 
         Using the WBS for Risk Identification 
         Using Specifications for Risk Identification 
         Using Statements of Work (SOWs) for Risk Identification 
         Developing a Technical Risk Dictionary or Risk Register
         Using Other Plans for Risk Identification
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements 
         Applications 
         Outputs
    Summary

    Delphi Technique
    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results 
    Resource Requirements
    Reliability
    Selection Criteria
         Resource Requirements 
         Applications 
         Outputs
    Summary

    Brainstorming

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements
         Applications 
         Outputs
    Summary

    Crawford Slip Method (CSM)

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements 
         Applications 
         Outputs
    Summary

    SWOT Analysis

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria
         Resource Requirements 
         Applications 
         Outputs
    Summary

    Checklists

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements 
         Applications 
         Outputs
    Summary

    Risk Breakdown Structure

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements 
         Applications
         Outputs
    Summary

    Root Cause Identification and Analysis

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements
         Applications
         Outputs
    Summary

    Risk Registers/Tables
    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results 
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements
         Applications
         Outputs
    Summary

    Project Templates

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements 
         Applications 
         Outputs
    Summary

    Assumptions Analysis

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements
         Applications 
         Outputs
    Summary

    Decision Analysis–Expected Monetary Value

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements 
         Applications
         Outputs
    Summary

    Estimating Relationships
    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements
         Applications 
         Outputs
    Summary

    Network Analysis (Excluding PERT )

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements 
         Applications
         Outputs
    Summary

    PERT

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements 
         Applications
         Outputs
    Summary

    Other Diagramming Techniques

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying These Techniques
         Flowcharts 
         Ishikawa (Fishbone) Diagrams 
         Force Field Diagrams
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements 
         Applications 
         Outputs
    Summary

    Rating Schemes

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique 
         Scheme Development
         Scheme Application
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements 
         Applications 
         Outputs
    Summary

    Urgency Assessment

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements
         Applications
         Outputs
    Summary

    Futures Thinking

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements
         Applications 
         Outputs
    Summary

    Risk Modeling

    Technique Description
    When Applicable
    Inputs and Outputs
         Model Development 
         Model Application
    Major Steps in Applying the Technique 
         Model Development 
         Model Application
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria
         Resource Requirements 
         Applications 
         Outputs
    Summary

    Sensitivity Analysis
    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria
         Resource Requirements
         Applications 
         Outputs
    Summary

    Monte Carlo Simulations

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements 
         Applications 
         Outputs
    Summary

    Risk Factors

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements 
         Applications 
         Outputs
    Summary

    Risk Response Matrix /Pugh Matrix

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements 
         Applications 
         Outputs
    Summary

    Performance Tracking and Technical Performance Measurement

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Supplemental Information 
         Technical Performance
         Schedule Performance 
         Cost Performance
    Selection Criteria
         Resource Requirements 
         Applications 
         Outputs
    Summary

    Risk Reviews and Audits

    Technique Description
    When Applicable
    Inputs and Outputs
    Major Steps in Applying the Technique
    Use of Results
    Resource Requirements
    Reliability
    Selection Criteria 
         Resource Requirements 
         Applications 
         Outputs
    Summary

    Other Common Techniques

    Cost Performance Reports Analysis
    Independent Technical Assessment 
         Technique Description
         When Applicable 
         Inputs and Outputs
         Major Steps in Applying the Technique 
         Use of Results 
         Resource Requirements 
         Reliability 
         Selection Criteria
    Independent Cost Estimates

    Glossary


    Appendix A:
    Contractor Risk Management
    Appendix B: An Abbreviated List of Risk Sources
    Appendix C: Basic Probability Concepts
    Appendix D: Quantifying Expert Judgment
    Appendix E: Special Notes on Software Risk

    Index


    Biography

    Carl L. Pritchard is the principal of Pritchard Management Associates and is a widely recognized risk management authority and lecturer. He was the lead chapter author for the risk management chapter of A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Fourth Edition. Mr. Pritchard’s publications include courses in risk management, The Risk Management Memory Jogger (GOAL/QPC, 2012), as well as Project Management: Lessons from the Field (iUniverse, 2009), The Project Management Communications Toolkit, Second Edition (Artech House, 2012), How to Build a Work Breakdown Structure, and Precedence Diagramming: Successful Scheduling in the Team Environment. He co-produced (with ESI’s LeRoy Ward) the landmark 9-CD audio collection The Portable PMP® Exam Prep: Conversations on Passing the PMP® Exam (Fourth Edition). He is the U.S. correspondent for Project Manager Today, a project management journal published in the United Kingdom.

    Mr. Pritchard also designs and develops project management programs and was the original architect of ESI International’s landmark offerings in project management in a distance-learning format. He is a trainer both online and in the classroom.

    In his role as lecturer, Mr. Pritchard speaks regularly at national symposia on project management and serves as the "speaker’s coach" for several national conferences, providing guidance on how most effectively to share the project management gospel.

    He is active in professional project management associations and is a certified Project Management Professional (PMP®), a certified Risk Management Professional (PMI-RMP®), and an Earned Value Professional (EVP), as certified by the Association for the Advancement of Cost Engineering (AACE) International. Mr. Pritchard earned a B.A. in journalism from The Ohio State University.

    Mr. Pritchard can be reached via e-mail at [email protected].