The Standard for Risk Management in Portfolios, Programs, and Projects

The Standard for Risk Management in Portfolios, Programs, and Projects

by Project Management Institute
Released April 2019
Publisher(s): Project Management Institute
ISBN: 9781628255669

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Book description

The Standard for Risk Management in Portfolios, Programs, and Projects is an update and expansion upon PMI’s popular reference, The Practice Standard for Project Risk Management.

Risk Management addresses the fact that certain events or conditions—whether expected or unforeseeable during the planning process—may occur with impacts on project, program, and portfolio objectives. These impacts can be positive or negative and may cause deviation from the intended objectives. Risk Management processes allow for the consideration of events that may or may not happen by describing them in terms of likelihood of occurrence and possible impact.

This standard will:

• Identify the core principles for risk management,
• Describe the fundamentals of risk management and the environment within which it is carried out,
• Define the risk management life cycle, and
• Apply risk management principles to the portfolio, program, and project domains within the context of an enterprise risk management approach

The standard focuses on the “what” of risk management (i.e., the key considerations for effective risk management). It is primarily written for portfolio, program, and project managers, but is a useful tool for leaders in risk management, business consumers of risk management, and other stakeholders of the portfolio, program, and project management professions.

Table of contents

  1. Cover Page
  2. Title Page
  3. Copyright Page
  4. Notice
  5. Table of Contents
  6. List of Tables and Figures
  7. 1. Introduction
    1. 1.1. Purpose of This Standard
    2. 1.2. Approach of This Standard
    3. 1.3. Principles of Risk Management
      1. 1.3.1. Strive to Achieve Excellence in the Practice of Risk Management
      2. 1.3.2. Align Risk Management with Organizational Strategy and Governance Practices
      3. 1.3.3. Focus on the Most Impactful Risks
      4. 1.3.4. Balance Realization of Value Against Overall Risks
      5. 1.3.5. Foster a Culture That Embraces Risk Management
      6. 1.3.6. Navigate Complexity Using Risk Management to Enable Successful Outcomes
      7. 1.3.7. Continuously Improve Risk Management Competencies
    4. 1.4. Structure of This Standard
  8. 2. Context and Key Concepts of Risk Management
    1. 2.1. Key Concepts and Definitions
      1. 2.1.1. Risk
      2. 2.1.2. Opportunities
      3. 2.1.3. Threats
      4. 2.1.4. Risk Attitude
      5. 2.1.5. Risk Appetite
      6. 2.1.6. Risk Threshold
    2. 2.2. Risk Management in Organizations
    3. 2.3. Domains of Risk Management
      1. 2.3.1. Enterprise
      2. 2.3.2. Portfolio
      3. 2.3.3. Program
      4. 2.3.4. Project
    4. 2.4. Key Success Factors
  9. 3. Framework for Risk Management in Portfolio, Program, and Project Management
    1. 3.1. Business Context of Risk Management in Portfolio, Program, and Project Management
      1. 3.1.1. Organizational Framework
      2. 3.1.2. Organizational Context
      3. 3.1.3. Strategic and Organizational Planning
      4. 3.1.4. Linking Planning with Execution through Portfolio, Program, and Project Management
    2. 3.2. Scope of Accountability, Responsibility, and Authority
      1. 3.2.1. Accountability at the Enterprise Level
      2. 3.2.2. Accountability at the Portfolio Level
      3. 3.2.3. Accountability at the Program Level
      4. 3.2.4. Accountability at the Project Level
    3. 3.3. General Approaches to Risk Management
      1. 3.3.1. Factors for Evaluating Risk
  10. 4. Risk Management Life Cycle in Portfolio, Program, and Project Management
    1. 4.1. Introduction to the Risk Management Life Cycle
    2. 4.2. Plan Risk Management
      1. 4.2.1. Purpose of Plan Risk Management
        1. 4.2.1.1. Risk Appetite in Plan Risk Management
        2. 4.2.1.2. Tailoring and Scaling the Risk Management Plan
      2. 4.2.2. Success Factors for Plan Risk Management
    3. 4.3. Identify Risks
      1. 4.3.1. Purpose of Identify Risks
      2. 4.3.2. Key Success Factors for Identify Risks
    4. 4.4. Perform Qualitative Risk Analysis
      1. 4.4.1. Purpose of Perform Qualitative Risk Analysis
      2. 4.4.2. Key Success Factors for Perform Qualitative Risk Analysis
    5. 4.5. Perform Quantitative Risk Analysis
      1. 4.5.1. Purpose of Quantitative Risk Analysis
      2. 4.5.2. Key Success Factors for Perform Quantitative Risk Analysis
    6. 4.6. Plan Risk Responses
      1. 4.6.1. Purpose of Plan Risk Responses
      2. 4.6.2. Key Success Factors for Plan Risk Responses
    7. 4.7. Implement Risk Responses
      1. 4.7.1. Purpose of Implement Risk Responses
      2. 4.7.2. Key Success Factors for Implement Risk Responses
    8. 4.8. Monitor Risks
      1. 4.8.1. Purpose of Monitor Risks
      2. 4.8.2. Key Success Factors for Monitor Risks
  11. 5. Risk Management in the Context of Portfolio Management
    1. 5.1. Portfolio Risk Management Life Cycle
      1. 5.1.1. Portfolio Risk Identification
      2. 5.1.2. Portfolio Risk Qualitative and Quantitative Analyses
      3. 5.1.3. Portfolio Risk Response Strategies
      4. 5.1.4. Implementing Portfolio Risk Responses
      5. 5.1.5. Monitoring Portfolio Risks
    2. 5.2. Integration of Risk Management into the Portfolio Management Performance Domains
      1. 5.2.1. Portfolio Strategic Management
      2. 5.2.2. Portfolio Governance
      3. 5.2.3. Portfolio Capacity and Capability Management
      4. 5.2.4. Portfolio Stakeholder Engagement
      5. 5.2.5. Portfolio Value Management
      6. 5.2.6. Portfolio Risk Management
  12. 6. Risk Management in the Context of Program Management
    1. 6.1. Program Risk Management Life Cycle
      1. 6.1.1. Program Risk Identification
      2. 6.1.2. Program Risk Qualitative and Quantitative Analyses
      3. 6.1.3. Program Risk Response Strategies
      4. 6.1.4. Implementing Program Risk Responses
      5. 6.1.5. Monitoring Program Risks
    2. 6.2. Integration of Risk Management into the Program Management Performance Domains
      1. 6.2.1. Program Strategy Alignment
      2. 6.2.2. Program Benefits Management
      3. 6.2.3. Program Stakeholder Engagement
      4. 6.2.4. Program Governance
      5. 6.2.5. Program Life Cycle Management
      6. 6.2.6. Supporting Program Activities
  13. 7. Risk Management in the Context of Project Management
    1. 7.1. Project Risk Management Life Cycle
      1. 7.1.1. Project Risk Identification
      2. 7.1.2. Qualitative and Quantitative Project Risk Analyses
      3. 7.1.3. Project Risk Response Strategies
      4. 7.1.4. Implementing Project Risk Responses
      5. 7.1.5. Monitoring Project Risk
    2. 7.2. Integration of Risk Management into Project Management Process Groups
      1. 7.2.1. Initiating Processes
      2. 7.2.2. Planning Processes
      3. 7.2.3. Executing Processes
      4. 7.2.4. Monitoring and Controlling Processes
      5. 7.2.5. Closing Processes
  14. Appendix X1. Development of the Standard for Risk Management in Portfolios, Programs, and Projects
  15. Appendix X2. Contributors and Reviewers of the Standard for Risk Management in Portfolios, Programs, and Projects
    1. X2.1. The Standard for Risk Management in Portfolios, Programs, and Projects Core Committee
    2. X2.2. Significant Contributors
    3. X2.3. Reviewers
      1. X2.3.1. SME Review
      2. X2.3.2. Consensus Body Review
      3. X2.3.3. Public Exposure Draft Review
    4. X2.4. PMI Standards Program Member Advisory Group
    5. X2.5. Harmonization Team
      1. X2.5.1. Core Team
      2. X2.5.2. PMI Staff
    6. X2.6. Production Staff
  16. Appendix X3. Portfolio Risk Management Controls
    1. X3.1. The Purpose of Portfolio Risk Management Controls
    2. X3.2. Risk Management Controls for Portfolio Strategic Management
    3. X3.3. Risk Management Controls for Portfolio Governance
    4. X3.4. Risk Management Controls for Portfolio Capacity and Capability Management
    5. X3.5. Risk Management Controls for Portfolio Stakeholder Engagement
    6. X3.6. Risk Management Controls for Portfolio Value Management
    7. X3.7. Risk Management Controls for Portfolio Risk Management
  17. Appendix X4. Program Risk Management Controls
    1. X4.1. The Purpose of Program Risk Management Controls
    2. X4.2. Risk Management Controls for Program Strategy Alignment
    3. X4.3. Risk Management Controls for Program Benefits Management
    4. X4.4. Risk Management Controls for Program Stakeholder Engagement
    5. X4.5. Risk Management Controls for Program Governance
    6. X4.6. Risk Management Controls for Program Life Cycle Management
    7. X4.7. Risk Management Controls for Supporting Program Activities
  18. Appendix X5. Project Risk Management Controls
    1. X5.1. The Purpose of Project Risk Management Controls
    2. X5.2. Risk Management Controls for Project Integration Management
    3. X5.3. Risk Management Controls for Project Scope Management
    4. X5.4. Risk Management Controls for Project Schedule Management
    5. X5.5. Risk Management Controls for Project Cost Management
    6. X5.6. Risk Management Controls for Project Quality Management
    7. X5.7. Risk Management Controls for Project Resource Management
    8. X5.8. Risk Management Controls for Project Communications Management
    9. X5.9. Risk Management Controls for Project Risk Management
    10. X5.10. Risk Management Controls for Project Procurement Management
    11. X5.11. Risk Management Controls for Project Stakeholder Management
  19. Appendix X6. Techniques for The Risk Management Framework
    1. X6.1. Risk Management Planning
    2. X6.2. Identify Risks
      1. X6.2.1. Assumptions and Constraints Analysis
      2. X6.2.2. Brainstorming
      3. X6.2.3. Cause and Effect (Ishikawa) Diagrams
      4. X6.2.4. Checklists
      5. X6.2.5. Delphi Technique
      6. X6.2.6. Document Review
      7. X6.2.7. Expert Judgment
      8. X6.2.8. Facilitation
      9. X6.2.9. Historical Information
      10. X6.2.10. Interviews
      11. X6.2.11. Prompt Lists
      12. X6.2.12. Questionnaire
      13. X6.2.13. Root-Cause Analysis
      14. X6.2.14. SWOT Analysis
    3. X6.3. Qualitative Risk Analysis
      1. X6.3.1. Affinity Diagrams
      2. X6.3.2. Analytic Hierarchy Process
      3. X6.3.3. Influence Diagrams
      4. X6.3.4. Nominal Group Technique
      5. X6.3.5. Probability and Impact Matrix
      6. X6.3.6. Risk Data Quality Analysis
      7. X6.3.7. Assessment of Other Risk Parameters
      8. X6.3.8. System Dynamics
    4. X6.4. Quantitative Risk Analysis
      1. X6.4.1. Contingency Reserve Estimation
      2. X6.4.2. Decision Tree Analysis
      3. X6.4.3. Estimating Techniques Applied to Probability and Impact
      4. X6.4.4. Expected Monetary Value
      5. X6.4.5. FMEA/Fault Tree Analysis
      6. X6.4.6. Monte Carlo Simulation
      7. X6.4.7. PERT (Program or Project Evaluation and Review Technique)
    5. X6.5. Plan Risk Responses
      1. X6.5.1. Contingency Planning
      2. X6.5.2. Force Field Analysis
      3. X6.5.3. Multicriteria Selection Technique
      4. X6.5.4. Scenario Analysis
      5. X6.5.5. Simulation
    6. X6.6. Response Plan Implementation
    7. X6.7. Monitor Risks
      1. X6.7.1. Data Analytics
      2. X6.7.2. Reserve Analysis
      3. X6.7.3. Residual Impact Analysis
      4. X6.7.4. Risk Audit
      5. X6.7.5. Risk Breakdown Structure
      6. X6.7.6. Risk Reassessment
      7. X6.7.7. Sensitivity Analysis
      8. X6.7.8. Status Meetings
      9. X6.7.9. Trend Analysis
      10. X6.7.10. Variance Analysis
    8. X6.8. Risk Management Techniques Recap
  20. Appendix X7. Enterprise Risk Management Considerations for Portfolio, Program, and Project Risk Management
  21. Appendix X8. Risk Classification
  22. References
  23. Glossary

Product information

  • Title: The Standard for Risk Management in Portfolios, Programs, and Projects
  • Author(s): Project Management Institute
  • Release date: April 2019
  • Publisher(s): Project Management Institute
  • ISBN: 9781628255669