As a project manager, you will find that the outputs from other risk management processes can be extremely useful when performing risk response planning. Two such processes include qualitative risk analysis and quantitative risk analysis. Both of these processes attempt to assess and analyze the probability and impact of potential project risks. As a result, qualitative and quantitative risk analysis outputs can serve as effective inputs to a project's risk response planning process.
A qualitative risk analysis attempts to assess the impact and likelihood of identified project risks. It also prioritizes risks according to their potential effect on project objectives and overall project outcomes. A quantitative risk analysis aims to numerically analyze the probability of each risk and its consequences on project objectives, as well as the extent of overall project risk.
As a result of both a qualitative and a quantitative risk analysis, you will receive a list of risks, together with a measure of their potential impact, that will need to be addressed in the risk response planning process.
The qualitative and quantitative risk analysis outputs that may be useful as inputs to risk response planning include:
- list of prioritized risks
- risk ranking of the project
- prioritized list of quantified risks
- probabilistic analysis of the project
- probability of achieving project objectives
- qualitative and quantitative risk analysis trend results
As a project manager, you can use this list of prioritized risks during risk response planning to help you decide which risks require your immediate attention. This list will also help you formulate responses for those risks that have the potential to negatively impact critical project objectives.
Another qualitative risk analysis output that you can use as an effective input to risk response planning is a risk ranking of the project. This ranking will indicate the overall risk position of a project relative to other projects by comparing the risk scores.
A risk ranking can also be used to assign resources to projects with different risk rankings, make a benefit-cost analysis decision about the project, or support a recommendation for project initiation, continuation or cancellation.
A risk ranking will help you decide which projects have the greatest needs and which projects will produce the greatest overall benefit. This will allow you to plan effectively for those projects that require immediate risk responses.
As a project manager, you can also use quantitative risk analysis outputs when preparing for risk response planning. These outputs can help you identify sensitive risk areas and formulate potential responses to threatening project risks.
A prioritized list of quantified risks will detail which risks pose the greatest threat or present the greatest opportunity to your project, together with a measure of their impact. This will help you identify risks that require an immediate risk response.
A probabilistic analysis of the project will forecast potential project costs and completion dates. This analysis will help you determine the type of risk response that is required to address threatening cost and scheduling risks.
An estimate of the probability of achieving project objectives under the current plan will indicate whether the project is progressing as planned, or whether it requires immediate risk response action in order to be completed successfully.
The last qualitative and quantitative risk analysis output that is useful as a risk response planning input is qualitative and quantitative risk analysis trend results. Trends can be defined as patterns of results that track in a particular direction. Once you've performed multiple risk analyses on your project, a trend of results may become apparent. This trend of results will indicate the level of urgency and the importance of the risk response.
As a project manager, you can use qualitative and quantitative risk analysis trend results to help you focus on those areas that would benefit from an immediate risk response the most.
Qualitative and quantitative risk analysis outputs will help you identify risks that require an immediate risk response so that you can reduce or eliminate their impact on project objectives and increase your project's chance of success.
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Tag: PM206A55. 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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