Monday, January 26, 2009

Primary Risk Response Planning Outputs

As a project manager, you will often face sudden or unexpected risks—risks that were not identified or prepared for during risk response planning. The best way to respond to these kinds of risks is to monitor and try to control them by examining the primary risk response planning outputs.

In addition to the risk response plan, there are four primary risk response planning outputs that you can use to ensure successful project completion: residual risks, secondary risks, contractual agreements, and contingency reserve amounts.
  • residual risks
    The first output that will result from your project's risk response planning process is residual risks. These are the risks that remain after avoidance, transference, and mitigation responses have been implemented.

    Residual risks also include any minor risks that have been accepted and addressed during risk response planning through the addition of contingency amounts to the project budget or schedule.

  • secondary risks
    The second output that will result from your project's risk response planning process is secondary risks. These are risks that arise as a direct result of implementing a risk response.

    Secondary types of risks should be identified as soon as possible so that appropriate and effective risk responses can be planned. For example, due to the complexity and detail involved in most projects, it is possible that adding personnel resources to address one identified risk may result in a risk of cost or schedule overruns in another project phase.

  • contractual agreements
    Another risk response planning output that is useful in promoting project success is contractual agreements. These types of agreements help to ensure that all parties involved in a project's development are aware of their responsibilities and bound by law to fulfill all agreed-upon commitments.

    A contract is typically defined as a mutually binding agreement that obligates a seller to provide a specified product and requires a buyer to pay for it. As a result, contractual agreements are essential to risk management.

    Contractual agreements are also used to help specify each party's responsibility for specific risks. For example, a contract between an insurance provider and a company will detail the insurance provider's responsibility to pay out a certain amount of money to the company in the event that an insured risk occurs. Contractual agreements, as an output of risk response planning, will help you be confident that specific identified risks will be responded to in a timely and efficient manner.

  • contingency reserve amounts
    The final output that results from your project's risk response planning process is contingency reserve amounts. These reserve amounts are over and above the estimated amount of time and resources allotted for a particular project. These additional resources are set aside to help reduce the risk of overruns to project objectives as a result of risk.

    Contingency reserve amounts will help you lower potential overruns to a level that is acceptable to your project stakeholders.

    Contingency reserve amounts are usually determined by the project manager with the aid of the project's established risk thresholds and probabilistic analyses. These analyses are used to forecast potential project schedule and cost results.
As a project manager, it is important to remember that almost every risk response will have a corresponding effect. Most risk responses involve expenditures of additional time, cost or resources and therefore require changes to the project plan. The results of the risk response planning process must be incorporated into the project plan to ensure that agreed actions are implemented and monitored as part of the ongoing project.

Other risk response planning outputs contribute to project success. You will want to use them to ensure that your project is protected from threatening project risks and prepared for the risk monitoring and control process.

3 comments:

Anonymous said...


Tag: PM206A54. Let me share all of you about #5 Tips for Project Management Success,, I hope you enjoy it

1. Plan your day using time management techniques

As a project manager, time management skills are essential because you are dealing with a wide range of tasks that demand a quick turnaround time. Planning your day will go a long way in keeping you organized and increasing your productivity. Assist your task planning by using project management software which helps you track the work of you and your team.

If you are not very tech savvy, a simple to-do list can also be a great organizational tool. Prioritize your most important tasks by putting them at the top of the list and less important ones at the bottom. Having a visual plan of your daily tasks helps to keep you on track and aware of time.

Related post: Free ebook 104 secrets to become a great project manager

2. Include stakeholders in important project conversations

While you will have plenty of responsibilities regarding the project, don’t neglect your clients.

Good communication is essential is keeping both parties informed of project progression, curtailing scope creep, and apprised of changing requirements. Some clients may have different expectations when it comes to communication, so make sure to establish the frequency and type of communication (like emails, phone calls, and face-to-face conversations) at the beginning of your project.

Establishing communication expectations early helps alleviate stakeholder uncertainty about communication frequency and delivery.

3. Regularly communicate with your team

Daily team communication helps keep misunderstandings and unclear requirements under control. Keeping your team informed in every step of the project is essential to project management success.

For example, a study published by Procedia Technology found that good communication skills were the cornerstone of project management. The study examined over 300 “construction project managers, architects, construction managers, engineers and quantity surveyors” and their successes and failures on various construction projects.

4. Anticipate project setbacks

Even the best-laid plans often go awry.

Remember that even with a high amount of planning and attention to detail, your project may still encounter some challenges. Pay attention to complaints from stakeholders or colleagues, and other warning signs, like a missed deadline or cost overrun, that there may be a problem.

Preventing a crisis will keep your project running smoothly, save you a lot of time, and keep you, your team, and your stakeholders confident in progressing with the project.

Unfortunately not every complication can be avoided. Crisis management skills are essential for dealing with the unexpected. Project managers need to be flexible and pragmatic. Improvise and make sharp decisions when needed.

Related post: 92 free project management templates

5. Stay focused on the details

A common problem project managers encounter is having the project aims not aligned with the organization’s objectives. A great project manager will strategize a plan for the project to lead back to the overall success of the business.

Know your project’s scope by heart and avoid wandering outside of the project’s requirements. It’s too easy to get lost in minor details and forget what your focus is, so a well-planned project scope is essential for success.

And final, you should use KPI to measure effectiveness of the project, here are full list: 76 project management KPIs


Anonymous said...


Tag: PM206A54. Let me share all of you about #5 Tips for Project Management Success,, I hope you enjoy it

1. Plan your day using time management techniques

As a project manager, time management skills are essential because you are dealing with a wide range of tasks that demand a quick turnaround time. Planning your day will go a long way in keeping you organized and increasing your productivity. Assist your task planning by using project management software which helps you track the work of you and your team.

If you are not very tech savvy, a simple to-do list can also be a great organizational tool. Prioritize your most important tasks by putting them at the top of the list and less important ones at the bottom. Having a visual plan of your daily tasks helps to keep you on track and aware of time.

Related post: Free ebook 104 secrets to become a great project manager

2. Include stakeholders in important project conversations

While you will have plenty of responsibilities regarding the project, don’t neglect your clients.

Good communication is essential is keeping both parties informed of project progression, curtailing scope creep, and apprised of changing requirements. Some clients may have different expectations when it comes to communication, so make sure to establish the frequency and type of communication (like emails, phone calls, and face-to-face conversations) at the beginning of your project.

Establishing communication expectations early helps alleviate stakeholder uncertainty about communication frequency and delivery.

3. Regularly communicate with your team

Daily team communication helps keep misunderstandings and unclear requirements under control. Keeping your team informed in every step of the project is essential to project management success.

For example, a study published by Procedia Technology found that good communication skills were the cornerstone of project management. The study examined over 300 “construction project managers, architects, construction managers, engineers and quantity surveyors” and their successes and failures on various construction projects.

4. Anticipate project setbacks

Even the best-laid plans often go awry.

Remember that even with a high amount of planning and attention to detail, your project may still encounter some challenges. Pay attention to complaints from stakeholders or colleagues, and other warning signs, like a missed deadline or cost overrun, that there may be a problem.

Preventing a crisis will keep your project running smoothly, save you a lot of time, and keep you, your team, and your stakeholders confident in progressing with the project.

Unfortunately not every complication can be avoided. Crisis management skills are essential for dealing with the unexpected. Project managers need to be flexible and pragmatic. Improvise and make sharp decisions when needed.

Related post: 92 free project management templates

5. Stay focused on the details

A common problem project managers encounter is having the project aims not aligned with the organization’s objectives. A great project manager will strategize a plan for the project to lead back to the overall success of the business.

Know your project’s scope by heart and avoid wandering outside of the project’s requirements. It’s too easy to get lost in minor details and forget what your focus is, so a well-planned project scope is essential for success.

And final, you should use KPI to measure effectiveness of the project, here are full list: 76 project management KPIs


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