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Tutorial Part IV: Project Risk Management Tutorial Part IV: Project Risk Management

Tutorial Part IV: Project Risk Management

Other than the previous articles of this series, Part IV will only cover one module: Risk management. Risk management is perhaps the most crucial discipline to gain advantages for your organization or project in a competitive environment.

Before explaining the risk management module in CAMPR, we will cover a little bit of theory and definitions.

Risk – Definition

The Oxford Dictionary defines risk as “A situation involving exposure to danger.” In our case, the harm coming from the exposure to danger would be a financial loss, missed profit or of a timely manner – delay or missed time savings. To find a more accurate definition of risk suitable for project management, we should take a look at the PMBOK. Project Risk is split up into two terms: individual project risk and overall project risk. The individual project risk is defined as “an event or condition that, if it occurs, has a positive or negative effect on one more more project objectives”. The overall risk therefore has an effect on the project itself rather than just one or more objectives.

The important takeaway is that risk is a neutral term, rather than a strictly negative one.

Risk management

The PMI divides the risk management process into seven segments. The goal for this blog is not to repeat the material from the PMBOK, but rather to give you an overview how to utilize CAMPRs functionalities. Of the seven segments of risk management, you are able to reproduce five in this module:

  • Plan Risk Management
  • Qualitative Risk Analysis
  • Quantitative Risk Analysis
  • Plan Risk Responses
  • Monitor Risks

You can read about how CAMPR supports you in those steps in the next segment.

HOW CAMPR SUPPORTS YOUR PROJECT RISK MANAGEMENT

  1. The actual planning of the risk management is not directly supported by the module, but the developed output is important for a more efficient use. You can set up Risk Categories and Standard Measures that can be predefined in the admin section (more about the admin section later during the series!) and that will help you to set up and bundle risks later on. It is also important to define probability and impact of risks in order to make them comparable. The given risk matrix of the module is based on the values of probability and impact.
  2. Qualitative and quantitative risk analysis can be displayed within the module and will be shown in our status report. The software cannot help you analysing your data or judging the quality of data that the risk is judged on, but you can log, register and report your assumptions and the results. Simple, standardized and therefore an efficient tool for project
  3. Plan risk responses: You can enter an unlimited number of measures for each of your risks including a description and required resources to respond to the risk accordingly. The standardized documentation is once again benefitting the decision making and presentation.
  4. The Matrix and the measures are editable. You can track the progress of yourr risk management and also see it in your updated status reports. CAMPR therefore offers a simple tool to monitor your project risks.

How to use the module

Finally, let’s see how the module actually looks like: The risks are displayed in a matrix, and positioned based on the impact they have on the project and the probability that the event will actually occur.

The matrixes will give you a good overview and allows you to keep track of identified risks – the positive ones (Opportunities) and negative ones (Risks). Both are color coded based on their priority – the higher probability and impact are, the higher the priority to act upon the risks is to improve the equity of your project.

You can add a new Opportunity or Risk clicking on the button next to the title of the matrixes. Name and describe your risk and set the probability and impact using the sliders.

Add additional information such as cost/potential savings and time delay/savings and choose a strategy to deal with the risk. You can also add one or more measure to each Risk including a description and the costs the measure would cost.

CONCLUSION

The module mainly helps you to document the status of your project overall and prepare decisions. The standardization of communication and documentation is a key objective for CAMPR and in our experience also a key factor for the success of a project. Especially high impact risks that require expensive measures and needing approval of the project sponsor or the organization’s management have to be dealt with. Standardization will come in handy here and have a positive impact on the process and therefore on your risk management in general.

Outlook

So far we have covered:

..and now also the Risk Management module. Next up we will present another module to improve your documentation and communication even further – the meeting module. Stay tuned!

BETA

Share CAMPR with your associates, coworkers, friends, family or pets, so they can try our beta!

Create your own project and invite your coworkers or friends to join or simply check out one of our preset projects representing three different project sizes:

  • the company anniversary, a small scale project only lasting about two weeks
  • the machine relocation, the medium sized project involving more project members and a wider variety of functions
  • the “welcome to CAMPR”-project, illustrating the use of a PMI structure in your project.

If you find anything you would like to add, improve, simply doesn’t work the way it is supposed to be or have a general feedback for us, you can simply share it in our feedback section. We are also open to your suggestions on new features or even new modules that would fit into your project management realm!

Find out more on https://www.campr.biz and check out our other channels

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