1
Chapter 11:
Project Risk Management
2
Learning Objectives
• Understand what risk is and the
importance of good project risk
management.
• Discuss the elements involved in risk
management planning and the contents
of a risk management plan.
• List common sources of risks in
information technology projects.
3
Learning Objectives (cont’d)
• Describe the risk identification process, tools,
and techniques to help identify project risks, and
the main output of risk identification, a risk
register.
• Discuss the qualitative risk analysis process and
explain how to calculate risk factors, create
probability/impact matrixes, apply the Top Ten
Risk Item Tracking technique, and use expert
judgment to rank risks.
4
Learning Objectives (cont’d)
• Explain the quantitative risk analysis process
and how to apply decision trees, simulation, and
sensitivity analysis to quantify risks.
• Provide examples of using different risk
response planning strategies to address both
negative and positive risks.
• Discuss what is involved in risk monitoring and
control.
• Describe how software can assist in project risk
management.
5
The Importance of Project Risk
Management
• Project risk management is the art and science of
identifying, analyzing, and responding to risk
throughout the life of a project and in the best
interests of meeting project objectives.
• Risk management is often overlooked in projects,
but it can help improve project success by helping
select good projects, determining project scope,
and developing realistic estimates.
6
Research Shows Need to Improve
Project Risk Management
• Study by Ibbs and Kwak shows risk has the
lowest maturity rating of all knowledge areas.
• KLCI study shows the benefits of following good
software risk management practices.
• KPMG study found that 55 percent of runaway
projects—projects that have significant cost or
schedule overruns—did no risk management at
all.*
*Cole, Andy, “Runaway Projects—Cause and Effects,” Software World, Vol. 26, no. 3, pp. 3–5
(1995).
