PMI: Risk Management Professional (Part 1) Tutorials
Understanding Risk Management / What is Project Risk?
Subtitles of the Movie (PMI: Risk Management Professional (Part 1) / Understanding Risk Management / What is Project Risk?)
You most likely have an idea of what project risk entails, which is why you are taking this course. Just mentioning the word Risk brings several thoughts to mind, and for many they are unpleasant ones. But did you know that risk can also be a positive thing? There's a great deal of information provided to you on risk in this course and throughout VTC's Risk Management Course Series, so don't be too surprised if your idea of risk, and how you react to it, changes. According to PMI's Project Management Body of Knowledge, also known as the PMBOK Guide, Risk is defined as an uncertain event or a condition that, if it occurs, has a positive or negative effect on a project's objectives. Risk Management refers literally to the management of project risk and according to the PMBOK Guide, the Risk Management Knowledge Area overall involves the act of increasing the probability and impact the positive events, and decreasing the probability and impact of adverse events within a project. There is a lot that goes into planning and managing risk, and Risk Management refers to the entire process. Every project contains some level of risk, which is why Risk Management has become such an important aspect of project management. Throughout this course, I'll reiterate what I mentioned earlier, and that is that risk is not necessarily a negative thing. Positive risk represents opportunities and managing these opportunities is a significant aspect of Risk Management as well. The reason that risk exists in all projects, although to different degrees, is that project and business overall contains some level of uncertainty. It's this uncertainty that represents risk, therefore, the goal of risk management is to identify risks within the project and develop a response to either reduce the impact or probability that the negative risks will occur, and then increase the probability and impact of positive risks or opportunities. As you can imagine, much of Risk Management involves planning. To put it clearly, the purpose behind Risk Management is to identify risks by determining what are the existing factors that may impact project objectives: Whether the impact be positive or negative; Analyze the risk impact, prioritize, and quantify each risk; Reduce the impact through risk response planning; Monitor identified risks; and, Uncover and deal with any new risks that emerge. Risk Management is a pro-active approach to Project Management, and a way of having a greater level of control over the project's success. Because risk involves a level of uncertainty you can never completely control the outcome, though decreasing the probability of negative events and increasing the probability of positive events does heighten the level of control and management over the project and its outcome. We'll go through managing uncertainty in more detail within the next Section. A final note I'd like to mention is that project teams are often misguided in thinking that Risk Management is an optional part of Project Management, when in reality it should be central to Project Management. But now that you know how project risk exists in every project, but it can also bring about opportunities, and that Risk Management allows for greater control of the project's outcome, you may not be so inclined to sweeping risk under the rug and hoping that it won't materialize. And that concludes this movie on defining Project Risk Management. In the next movie you'll be introduced to the Risk Management Knowledge Area, found within the PMBOK Guide. The information found within the Risk Management Knowledge Area will play an important role within this course and you'll find me referring to it often.
Tutorial Information
| Course: | PMI: Risk Management Professional (Part 1) |
| Author: | Vanina Mangano |
| SKU: | 33982 |
| ISBN: | 1-935320-38-6 |
| Release Date: | 2009-04-08 |
| Duration: | 7 hrs / 109 lessons |
| Work Files: |
Yes |
| Captions: | No |
| Compatibility: |
Vista/XP/2000, OS X, Linux QuickTime 7, Flash 8 |
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