Subtitles of the Movie

Project Risk Management is one of the nine knowledge areas covered within the Project Management body of knowledge, commonly referred to as the PMBOK Guide. This chapter of the PMBOK Guide provides a great deal of information on project risk and will be an important resource for this course. In this movie we'll look at the structure of risk management according to the PMBOK Guide. If you're wondering how to access a copy of the PMBOK Guide you may download a digital copy as a member of PMI, or if you're not a member, visit pmi.org and click on the menu item that says Marketplace. You'll be able to purchase a copy of the PMBOK Guide from there. One thing you'll notice is that there's a new version of the PMBOK Guide available, which is the fourth edition. Let's clarify which version you should use. If you are taking this course simply to learn more about risk management, use the Fourth Edition. If you are taking this course to study for the PMI Risk Management Professional Exam, use the Third Edition if your exam falls on or before July of 2009. Use the Fourth Edition if your exam falls on or after August of 2009. I'll point out any differences as we move along the course to avoid confusion. Within the Project Risk Management Knowledge Area, there are six processes that describe the flow of risk management within a project. These processes include: Planned risk management, called Risk Management Planning in PMBOK Guide Third Edition. This is the process of defining how to conduct risk management activities. In other words, the Project Management team determines how to approach, plan, and execute the project's risk management activities. Next is: Identify risks, or Risk identification. This process identifies risks and determines which risks may effect the project and then documents their characteristics. Perform qualitative risk analysis involves prioritizing risk for further analysis or action. This is done by assessing and combining their probability of occurrence and impact. Perform quantitative risk analysis involves numerically analyzing the effect of identified risks on the project objectives. Next, we have: Planned risk responses, or Risk response planning. This process develops options and actions to enhance the risk that may bring opportunities, and reduce those risks that are a threat to the project objectives. And lastly is: Monitor and control risks. This process is responsible for tracking the identified risk, identifying new ones, monitoring residual risks, executing the risk management plan, which is the subsidiary plan of the Project Management Plan, and then evaluating their effectiveness throughout the project's life cycle. As a side note, this course, PMI Risk Management Professional, Part 1, will cover Risk management planning and risk identification; Risk Management, Part 2, will cover Qualitative and quantitative risk analysis; and, Risk Management, Part 3, will cover Risk response planning and Risk monitoring and control. Aside from these processes, each course will cover additional material not included within the PMBOK Guide, or simply referenced within the PMBOK Guide. The flow of these processes is extremely logical and moves smoothly, handing off the output or the result of the process into the next process as an input. One thing you'll notice as you go through risk management processes within your own projects is that these processes are iterative, meaning that they occur multiple times, and that's because we're constantly on the look out for new risks and determining the status of risks already identified. Let's pause here, and in the next movie I'll go through the flow of the risk management processes.