This article contains most of the important information you need to know about control risk process in order to answer questions related to this topic in the PMI-RMP Exam, I recommend you review this type of articles 1 week before your exam date, all information mentioned are based on PMBOK Guide 5th edition , Practice Standard for Risk Management and Risk Management Tricks of the trade for Project Managers and PMI-RMP Exam Prep Guide , 2nd Edition by Rita Mulcahy ., ITTO refers to Inputs, Tools & Techniques and outputs.
This process is a part of Monitoring and control Process group and Risk Management Knowledge Area with the following ITTO’s
- Project management plan
- Risk Register
- Work Performance data
Tools and Techniques:
- Risk Reassessment
- Risk Audits
- Variance and trend analysis
- Technical Performance Measurements
- Reserve Analysis
- Work Performance Information
- Change Requests
- Project Management plan updates
- Project Document Updates
- Organizational Process assets update.
- Primary objectives of this process are to track identified risks, monitor residual risks, identify new risks, ensure risk response plans are executed at the right timing, and evaluate their effectiveness through project lifecycle.
- Project Manager should ensure periodic risk reassessments are repeated on reasonable intervals; in addition risk audits should be identified to determine strengths and weaknesses in handling risks within the project.
- While project closure is performed, a description should be given of the closure of each risk in the risk register like didn’t occur, occurred and contingency plan invoked.
- Critical Success Factors for the Monitor and control risks process :
- Integrate risk monitoring with project monitor and control phase.
- Continuously monitor risk trigger conditions.
- Maintain risk awareness, it should be regular item in every status meeting.
- During the Monitor and control risks process, risk owners will respond to risk triggers by implementing contingency plans and fallback plans if needed .
- Highest risk score path on the network diagram critical path should be managed closely.
- Major Tools and techniques used in this process includes but limited to the following :
- Reserve Analysis, Contingency reserves will be used only for identified risks, Management reserves will be used for risks were not identified ( Unknown unknowns ) , you should be careful if something outside the project scope occurred , no reserves should be used , a change order should be created.
- Workarounds, unplanned response to an unidentified risk that occurs , it is a reactive action while project management is supposed to be proactive, a high number of workarounds during the project indicates improper project risk planning , studies shows that between 75 to 100 times more expensive to fix a problem than prevent it.
- Risk Review, it is a way to control risks and manage changes, it looks forward in time to check what should happen for risk, a Risk review board may be created for this purpose, it include people who have not been part of the risk management process for the project to date , it generally doesn’t include the project manager.
- Risk Audits, takes a look at what the project team has done for risk management and whether it has worked, it looks backward in time to what has occurred , it includes reviewing risk owners and their effectiveness , usually results in corrective actions , contingency plans adjusted, and risk owners changed , it can be executed by project manager but preferred to be executed through a third party outside the project.
- Earned Value analysis, Used to quantitatively measure and monitor overall project performance against project baseline.
- Technical Performance Reviews , mainly includes looking for risks during the verify scope process to check any deviations from project and product requirements
- Risk Reassessment, there are two major times when risk reassessment may occur , when new risks are identified, when changes occur on the project , mainly it is the role of project manager to look and identify new project risks , risk reassessment means doing all risk management planning activities again for any new identified risk.
- You should note the difference between an issue and risk , an issue is an unforeseen , minor problem that has occurred and it might be listed in action item log or “ issue Log “ in order to be managed.
- Risk Performance might be measured in Control risks process bu evaluating the following metrics :
- Number of identified risks that were not in original risk evaluation.
- Number of workarounds needed.
- Communicate about Risks , a professional project manager will keep the stakeholders up to date on the status of the project , information’s about risks should be delivered to key stakeholders on regular basis, Risk information in the monthly project report keeps focus on the risks, a bar chart can be used for communicating risks , include the risk score and risk owner as text columns .
- Risk Reverse Report, Keeps a running balance of the remaining reserve and helps the project manager control reserves.
- A real lessons learned should be recorded in risk activities closure , it should take a look on the following
- Monitor and Control risks process outputs :
- Risk Register updates : Outcomes of risk reassessment and audits, closing of risk didn’t occur, lessons learned.
- Change Requests.
- Project Management Plan Updates.
- Project Document Updates.
- Organization Process assets updates like new risk templates created.