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Project Management ToolBox: Tools and Techniques for the Practicing Project Manager by Dragan Z. Milosevic

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9

Risk Planning

If you take no risks, you will suffer no defeats. But if you take no risks, you win no victories.

Richard Nixon

Major topics in this chapter are risk planning tools:

  • Risk Response Plan
  • Monte Carlo Analysis
  • Decision Tree

These tools are instrumental in identifying risks to the project, assessing their potential impact, and developing actions to mitigate them (see Figure 9.1). The preparation of such a risk baseline requires two-way exchange of information with scope, cost, and schedule baselines. Also important in this process is the coordination with other tools of organizational, quality, and procurement planning. During the implementation phase, the fortune of risk control will start off and be measured against the risk baseline. In a nutshell, risk planning tools create a strategy to fend off undesired events in projects.

images

Figure 9.1 The role of risk planning tools in the standardized project management process.

The purpose of this chapter is to support practicing and prospective project managers in their quest to

  • Learn how to use various risk planning tools
  • Pick risk planning tools that are most appropriate for their project situation
  • Customize the tools of their choice

Internalizing these skills plays a central role in project planning and building the standardized PM process.

Risk Response Plan

What Is the Risk Response Plan?

The Risk Response Plan assesses ...

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