Risk Management Concepts and Guidance, Fifth Edition

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 PracticesA Systematic Process Summary Risk ConceptsRisk 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 SummaryThe 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 SummaryRISK MANAGEMENT TECHNIQUESExpert Interviews Technique Description When Applicable Inputs and OutputsMajor Steps in Applying the TechniqueUse of Results Resource RequirementsReliabilitySelection Criteria Resource Requirements Applications OutputsSummary Planning Meetings/The Risk Management PlanTechnique DescriptionWhen ApplicableInputs and Outputs Major Steps in Applying the TechniqueUse of ResultsResource Requirements Reliability Selection Criteria Resource Requirements Applications Outputs Summary Risk Practice MethodologyTechnique Description When Applicable Inputs and Outputs Major Steps in Applying the Technique Use of Results Resource RequirementsReliability Selection Criteria Resource Requirements Applications Outputs SummaryDocumentation Reviews Technique DescriptionWhen Applicable Inputs and Outputs Major Steps in Applying the TechniqueUse of Results Resource RequirementsReliability 100Selection Criteria Resource Requirements Applications Outputs Summary Analogy ComparisonsTechnique Description When Applicable Inputs and Outputs Major Steps in Applying the TechniqueUse of Results Resource RequirementsReliability 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 OutputsMajor Steps in Applying the Technique Use of ResultsResource RequirementsReliability Selection Criteria Resource Requirements Applications Outputs SummaryDelphi Technique Technique Description When Applicable Inputs and Outputs Major Steps in Applying the TechniqueUse of ResultsResource Requirements Reliability Selection Criteria Resource Requirements Applications Outputs Summary Brainstorming Technique DescriptionWhen Applicable Inputs and Outputs Major Steps in Applying the TechniqueUse of ResultsResource Requirements Reliability Selection Criteria Resource Requirements Applications Outputs SummaryCrawford Slip Method (CSM) Technique Description When Applicable Inputs and OutputsMajor Steps in Applying the Technique Use of Results Resource Requirements Reliability Selection Criteria Resource Requirements Applications Outputs Summary SWOT Analysis Technique DescriptionWhen 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 TechniqueUse 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 OutputsSummary Root Cause Identification and AnalysisTechnique DescriptionWhen Applicable Inputs and Outputs Major Steps in Applying the Technique Use of Results Resource Requirements Reliability Selection Criteria Resource Requirements Applications Outputs SummaryRisk Registers/Tables Technique DescriptionWhen Applicable Inputs and OutputsMajor Steps in Applying the Technique Use of ResultsResource Requirements Reliability Selection Criteria Resource Requirements Applications Outputs Summary Project Templates Technique DescriptionWhen 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 DescriptionWhen 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 DescriptionWhen Applicable Inputs and Outputs Major Steps in Applying the Technique Use of ResultsResource RequirementsReliabilitySelection Criteria Resource Requirements Applications Outputs Summary Network Analysis (Excluding PERT ) Technique Description When Applicable Inputs and OutputsMajor Steps in Applying the Technique Use of Results Resource RequirementsReliability Selection Criteria Resource Requirements Applications Outputs Summary PERTTechnique DescriptionWhen Applicable Inputs and Outputs Major Steps in Applying the Technique Use of Results Resource Requirements ReliabilitySelection Criteria Resource Requirements Applications Outputs Summary Other Diagramming Techniques Technique Description When ApplicableInputs and Outputs Major Steps in Applying These Techniques Flowcharts Ishikawa (Fishbone) Diagrams Force Field Diagrams Use of Results Resource RequirementsReliability Selection Criteria Resource Requirements Applications Outputs Summary Rating Schemes Technique DescriptionWhen Applicable Inputs and OutputsMajor Steps in Applying the Technique Scheme Development Scheme ApplicationUse of Results Resource RequirementsReliability Selection Criteria Resource Requirements Applications Outputs Summary Urgency AssessmentTechnique Description When Applicable Inputs and Outputs Major Steps in Applying the Technique Use of Results Resource RequirementsReliabilitySelection Criteria Resource Requirements Applications OutputsSummaryFutures ThinkingTechnique DescriptionWhen Applicable Inputs and OutputsMajor Steps in Applying the Technique Use of Results Resource Requirements Reliability Selection Criteria Resource Requirements Applications OutputsSummaryRisk Modeling Technique DescriptionWhen ApplicableInputs and Outputs Model Development Model ApplicationMajor 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 TechniqueUse of Results Resource Requirements Reliability Selection Criteria Resource Requirements Applications Outputs SummaryMonte Carlo Simulations Technique Description When Applicable Inputs and Outputs Major Steps in Applying the TechniqueUse of Results Resource Requirements Reliability Selec

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 carl@carlpritchard.com.