Crucial Competencies - Risk Management in under 30 minutes | Simon Harris | Skillshare

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Crucial Competencies - Risk Management in under 30 minutes

teacher avatar Simon Harris, Seeking common sense for an often irrational world

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Taught by industry leaders & working professionals
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Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

8 Lessons (54m)
    • 1. 1 of 6. Risk Crucial Competency 1 Hello, Welcome and Introduction

      6:52
    • 2. 2 of 6. Facilitating Risk Management Workshops Strategy Planning to Risk Identification

      4:00
    • 3. 3 of 6. Identification to Assessment, Prioritisation and Responses

      2:38
    • 4. 4 of 6. Assessment scales Responses, Affect on Business Case, Risk inclusive Baselines

      4:24
    • 5. 5 of 6. Handling contingency and Risk status reporting

      3:35
    • 6. 6 of 6. Handling contingency and Risk status reporting

      2:59
    • 7. Extra: Risk Exam PMI View

      13:25
    • 8. Extra: Risk Exam Prince2 View of Risk

      16:16
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About This Class

A What-To-Do (without the how - See the companion MasterClass for the How) for people wanting confirmation of their approach to risk management and facilitation in project, program and portfolio.

Be sure you have the right steps and the right results. Where your experience and background skills might benefit from extra insight dip into the matched master class - Both Courses use the same course materials and same Guidance Work-Book.

Follow the guided workshop steps to create a Risk Management Strategy (or plan), Risk aware teams and Risk inclusive Business Case, Backlog and baselines.

Slides in mobile-friendly animated and hyperlinked format (a hyperlinked pdf is in the Class Project attachements)

Meet Your Teacher

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Simon Harris

Seeking common sense for an often irrational world

Teacher

Hello :)

I'm Simon, I live in Edinburgh Scotland with my wife Lea. We have a daughter Becky close by and son Toby in UAE.

My topic is (almost) Project Management...

...which I believe needs to be rethought for most people's real needs most of the time. My passion is to add the common sense that the text books manage to filter out.

BUT you (I) can't turn the tide. The 'text-book' knowledge underpins most professional credentials and it is foundational. So I help folk with both "how to do it for real" and "how to prepare for professional exams".

Ciao

Simon

See full profile

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Transcripts

1. 1 of 6. Risk Crucial Competency 1 Hello, Welcome and Introduction: Hello and a very warm welcome. My name is Simon Harris on This is crucial competences in management or facilitation off risk across projects, programs and portfolios. And it's aimed at project managers, program managers on project sponsors and owners on PMO facilitators or leaders and analysts who want to get an appreciation of what it takes, what you have to do in order to be able to create a project program or portfolio, risk management strategy or plan risk aware teams on risk, inclusive baselines or bat Woakes. Now, I've recently recorded a master class in how to do all of this on that. Masterclass uses exactly the same course materials as this course. There's the set, of course, materials. If a scroll you can see the full amount on that masterclass contains 13 hours off guidance about how do we do all of the tools and techniques on structure and framework of risk management in detail. This crucial competences aims to cover the same territory in 15 minutes are No. 15 minutes isn't practical because I've done some practice on Guy also, so I know it's less than half an hour, but it's more than 15 minutes on What we're gonna cover here is what you need to do the structure and framework of what you need to do in order to create that risk management strategy on those risk aware teams and baselines. Now, if your needs are to really run risk in a project, then this will cover it for you and where what are going to hear requires that you bring that you have tools and techniques at your fingertips that you're not familiar with. Then you can go into the master class. But it may well be that your background knowledge and skills and common sense and everything is sufficient to take you through running, for example, a risk identification brainstorm session in a workshop with subject matter experts. So you probably don't need or you definitely won't need all of the content of that 13 hours , but you might want to cherry pick from some of it. There is a lot of good guidance out there. These are some of my favorites. So there's Nicholas Nassim Talibs, fooled by randomness. But perhaps better than all of those better than that is Peter Bernstein's Against the Gods . That's a really good book. If you want to read more on risk. But it may be that what you want to do is pass an exam on the exam might be the C, A P M or PNP exam. Or it might be things like the Project management institutes Risk Practitioner or the management of Risk exam from Axel Loss or the Prince to exam from X loss on In all those cases, the content that we have here on the background process model are entirely compatible. What the masterclass does is say the approach that is in the last three books I just showed you, which are the textbooks for the exam. Those are naive and shallow in comparison with what we really want in order to be able to run risk in organizations that are in a marketplace that's driven by global pressures on local needs and their stuff in there people. So the first a bunch of books I showed you is about reality. The second bunch of books I showed you our textbooks about an exam on the masterclass is very much mawr. The reality on this is very much also the reality with the detailed how to left to one side so you can focus here on what the journey looks like. Let me take you through that in the remaining 11 toe, 20 minutes that I have to fit into my time frame. The first thing that I want to say is that managing risk is about awareness, and it's about delegation on, and it's about authorization on then it's about a process model. On that process. Model is a set of steps that buildup across our day to day needs. So the awareness if I go back a page build competences amongst our people, appoint roles, define scales more on that shortly and a lot more on that in the master class. Define scales so that when I say something is serious, you know what I mean or when you say something is is very likely we can share proper understanding on. Then we go through the initial identification. Onda identification should define conditions, and for those conditions, what are their causes on what of their consequences. And then we need to be able to analyze all of that so that we have an assessment off probability, impact, seriousness, urgency, growth, priority. And then we need to take the things that are most concerning to us, either because they are wonderful opportunities or because they are nasty threats on recognize the responses that are possible, the responses that are cost beneficial, the responses that are practical. And then we're going to select those. And then we're gonna build those into our backlogs or our baselines. So all the way up to this point, we have been considering what we to do about our risks and recording that toe a risk register. But you don't manage projects or risks in projects from a risk register. What you do is you use the risk register as the body of information that builds up as you go on. When you've got actions that you really want to take, you put them in the back, local the baseline so that the team can then take action. And eventually you get to the point where you've either dealt with the with the threat, you've realized the opportunity or neither has happened or your duties finish. Andi threatened opportunity are still possible, so they need to be passed on to whoever comes next 2. 2 of 6. Facilitating Risk Management Workshops Strategy Planning to Risk Identification: What we're going to do in this course is we're gonna talk and work our way through the through the guidance book that is a Siris of exercises or or sessions and steps and workshops that you need to conduct with your people in order that you build their awareness , you build their understanding, and then you build your risk inclusive baseline. So the first thing that we will need to do is a risk planning workshop and in a risk planning workshop, we will build an understanding off what we mean by significance. So serious, high, medium and low. Maybe we can put numbers around things, but often you can't. And when you can't, we need some sort of qualitative scale. So Step number one is run a risk planning workshop on. I'll take You to the steps that are guided in the guidance notes on that shortly. When we understand what we mean by serious or or high probability or whatever else, then we can do some risk identification. Now risk identification is about asking subject matter experts. What can you imagine that would affect either the business case that we're producing that we're targeting that were China deliver or the baseline of backlog that we're using to create that capability. So step one. Risk planning. Understand the roles, responsibilities, procedures on meanings of words like serious step to identification. Used techniques in there like What's a well structured risk statement look like on a well structured risk statement? Is condition with its causes plural and its consequences for stakeholders on, then prioritization or assessment against the scales on then response, development response prioritization selection on then building those responses into our baseline. And throughout that, keeping records on all of those the workshops on all of those air guided in the guidance book on all of that. So those exercises or activities for you to take your team in reality through all those now it may be that you feel that doing this for Riel first time around might be a bit risky in its own right. So you want to do some practice and get fluent with the techniques on the steps, in which case the guidance notes also include a fictional story against which you can apply a low risk activities on techniques when you discover that performing the workshops requires more understanding of techniques than you've got. Then you can dip into the master class and get the the detail off the how to. But as I've already said, that's not included in in here. So Step number one run, ah planning workshop and in running a planning workshop. What were shut seeking to do is ensure that people have definitions and concepts on that. They understand what high and low risk looks like hand that they have awareness, and they know what the models look like. On awareness is, first step is to be able to determine whether people are risk averse or risk seeking. So some guidance on how to establish whether somebody is risk reversal risk seeking on what we do is we ask a succession of questions about, at what point would you say, No, take a risk? Or at what point would you go? I'm gonna pursue the opportunity so there's an exercise here. There's a workshop that you can run with folk on. There are some guidance notes in the background book 3. 3 of 6. Identification to Assessment, Prioritisation and Responses: The next thing that we need to do is to start running, risk a win, a start running risk identification workshops. And in order to do that, we need to invite people to a workshop where we say to them, Right, Please identify for me what the risks are and in doing that will need well formed risks on the well formed rescues. Generally, these causes could lead to this condition on this condition would have thes consequences for the stakeholders. So we have a plural off causes condition consequences on. We then need to ask the question. How would we respond to those risks on its in the responses that the rial work off managing risks is in our background on That's where we consider what responses a possible on what would those responses impacts bay across the totality of the baseline on the totality off the backlogs? Onda business case. It's all these, isn't it? Business case backlog and break down. Those are the three things that we need to be concerned off, and we look at every risk response in terms of its effect on every aspect. Off baseline backlog on a breakdown on that quickly becomes prohibitively difficult, so we have to chunky or divided or categorize it by, for example, seniority and skill sets. So if you're feeling yes or this all makes sense, and I would have confidence that I know how to describe those basic characteristics a sign people two roles and responsibilities on then identify the risks on record those risks into a risk register on do the record keeping. Then you are in good place. You have all of the skill sets that you need tools and techniques that you need to be able to perform these steps, if you're feeling actually are. I'd benefit from some extra guidance. Then you've just seen us progress through the 1st 8 modules off the master class, so you can dig into the master class where you need to. But the position that we've now reached is that we would be ready to run a risk identification workshop on record. Those results into the risk register 4. 4 of 6. Assessment scales Responses, Affect on Business Case, Risk inclusive Baselines: the next step or workshop that you need to run is to do the risk assessment of how serious all the impacts on the probabilities now that we do. By looking at the scales on you may have already by following the guidance book that I have included with both courses, you may have already done some of that thinking. If you haven't, then at this point we need to define and build our scales. Andi, I'll take you through the guidance in the guidance book there, and if you need further background information, tools and techniques, you'll go to the master class. So what we've done so far is we've done a risk planning workshop on. We've identified roles and responsibilities we've identified procedures on. We may have identified scales, but we may have left that to the later step. We've done a risk identification workshop where we've identified the fragments of risk like significant person resigns on. We've traced that through two consequences like therefore, we would be late in delivering on that would compromise the business cases, cash flow, full casting, and now we're ready to compare that with our scales that say, and if the impact on the cash flows or the delay in delivery was above this threshold, then that would have this degree of seriousness on would therefore justify this degree off expenditure on time, effort, budget, etcetera. Now, when we reached this point, we can now start thinking about what are the responses that we would take Could take. And how would those responses impact the business case and the baselines? So I've got £1000 threat or a $1,000,000 threat on DFO the expenditure over of 1000 or £100 or dollars I can eliminated, for example. So that sounds like a good expenditure until we recognize that maybe that threat was an outlier and I only had a one in 10,000 chance of occurring. In which case I'm now saying, Well, actually, I'm prepared to take that risk on do nothing proactive about it. It may have bean that that risk waas middling. That is to say it wasn't extremely unlikely, but it wasn't extremely likely and it wasn't significantly painful, but nor was it free off impact. In which case I have said I'd much rather think about the idea of how I could respond to it if it occurs rather than trying to be prevented. Therefore, if its opportunity to try and promote it now, when we address risks in that manner, what we're off, what we normally doing is saying I put some contingency in place. I'll put some capability in place that I'll only deploy if the risk, the threat or the opportunity actually happens on now. What I'm needing to do is understand how to build risk inclusive baselines on when I build risk inclusive baselines. What I need to consider is, is this risk off middling proportions, or is it an outlier in some fashion? And if it's an outlier in some fashion than I want to know, in what way was it an outlier? Was its probability that made it an outlier or its impact or both? And now I will address the individual characteristics of that risk that made it a concern to me, and I will address those probably proactively rather than reactively. But I have now got to the situation where I can assess the timeliness of the risk. It's time frames. I can consider its profile in terms of its seriousness. It's urgency and its growth. Andi, I can quantify or qualify it for its significance and, much more importantly, for the significance of the responses that I'm going to build into my baselines. 5. 5 of 6. Handling contingency and Risk status reporting: Now, at that point, we've really finished the facilitation of risk. And so, in the masterclass, we do a recap. At that point in the in this class, I'm just gonna note that there is a recap in the master class if you want it. But what I'm now going to say is steps wise in risk management facilitation. We're now into building things into baselines. I'm not in either the master class or in this summary or in this 15 minute crucial skills going to say, How do you build baselines? But what I am going to do is say that when we build a baseline and it doesn't matter whether we're predictive or agile, we need to include the how do you handle risk and included into the baselines on we build risk into our baselines by putting the proactive steps into the known knowns into the stuff we know we're going to take on. We put the contingent stuff beyond our best case delivery profile. Now, best case delivery profile may actually be. Are are 50 50 likelihood on the uncertainty that's inherent in our estimates. Again, that's in the master class. I won't go into that in so much detail here. But now we've bean through risk planning workshop that got my risk strategy. We've assigned roles to people. We've determined what significance looks like. We've done an identification workshop. The identification has led forwards into assessment and prioritization assessment, prioritization has said, pick the risks that are of most significant and determine the responses that are possible on them. For the responses we've considered, uh, what initial inherent risk profile worry exposed to and then, as a result, off planning to take a responses. What profile would we now be exposed to on where that's cost beneficial in either baseline terms or business case terms? We have selected responses, and now we've built them into our planned backlogs on scheduled activities in predictive environments. So we now are at the position where we just run our project day to day and in running our Project day today we have the monitoring activity and the reporting activities on when we do project reporting, we don't report risk is a separate, isolated thing. We report our project status against baseline on the reporting status Against Baseline, we were record things like contingent amounts that had to be drawn down into the baseline to deal with the fact that the risk had occurred or the retirement of the contingencies because the threat or opportunity didn't occur. And therefore we didn't take the actions to capitalize on the opportunity or to mop up and limit the damage that was done by the threat on. If we do all of this, then we are in the position where we have run our project, using a risk aware team following a risk inclusive, back, local baseline on. We've fulfilled the steps that we envisaged at the beginning in creating our risk management plan or are risk strategy. So that's the what you need to do in 22 minutes, but I am now going to recap it just slightly. 6. 6 of 6. Handling contingency and Risk status reporting: So you're the risk facilitator or your the PMO analyst Andi. You need to be able to direct support and help people by running a risk planning workshop and then running a risk identification workshops. And you're probably going to run those on change of phase or stage of projects. You're gonna run those with different teams because the sponsorship team have different concerns from, say, the mechanical engineers or the software engineers on each group needs to focus on its sphere of off influence and understanding. And having done those workshops, you're gonna record the results into the risk register, which you have used the guidance that was here and in the workbook to build a competent, inclusive risk register, which you've probably done in something like Excel or Google Docks. All you may have used some specialists tool on as a result of putting that stuff into the register, you have encouraged subject matter experts to identify the steps they can take to deal with outlier probabilities and outlier impacts on also to propose the things that they can do to build contingencies into the baseline and then you gone forward, or the project manager or scrum master on team have gone forward with those baselines, and they executed the project against those baselines on that generated results that have gone into standard project reporting. On that standard, project reporting has allowed us to safely progress our way all the way to the end of the project or program or initiative within a portfolio on. At that point, the project or the program is ceasing to exist that the risks may not be so. You've handed the risks that have not ceased threat or opportunity onto the operational staff. And now I am gonna wind up because this is just under 25 minutes, and that's a good way under half an hour. And I did say we'd be done within less than 30 minutes. So I hope that this has bean useful Micro learning guidance for you used the guidance notes the exercise book the step by step guidance to deliver those results on where you lack tool or technique. Then go and look at the masterclass on absorbed the tool and technique that's in there. Thank you for listening on if you have any other interests in project skills like estimating or quality or meetings or procurement or any of the other ways in which delivering and managing projects or overseeing them from a PMO perspective is a challenge. Then look towards summer are other crucial competences and master classes cheery up. 7. Extra: Risk Exam PMI View: it might be that you've bean studying the either the risk masterclass or the fowls track on . You have somewhere in your mind the idea that it would be good to do one of the exam credentials, such as either the axe, a loss or Project Management Institute exams on in this little video. I'm gonna take you through what we'd need toe ad to what we've covered in terms of how you do risk in the real world. In order to go and sit either the C, A, P M or the PMP exam from the Project Management Institute because they publish a book on in the book Chapter 11 they tell us what they think risk management is about. When you do the exam, you have to be able to repeat or recognize in excruciating detail the things they said in the book. So if we look at all of the processes that there are in the pin Bach, the pressure management body of knowledge or the guide to then we can see that we start with developed charter and identify stakeholders on then develop a project management plan on developing a project management plan, we develop a risk management plan, but then we identify risks. Then we perform qualitative on to some degree quantitative assessment. We plan risk responses, in which case we can finalize our quantitative assessment. So quantitative here is Monti, Carla on. Then we can implement our risk responses and we can repeat the whole lot again, which is monitor risk. Let's go. Never looking a bit more detail at each one of these. Notice that these materials are thoroughly hyperlinked so that you can go through them serially and topic by topic. Notice that we've arrived here slide 327. No, but I've been taking you through the logic of what risk looks like. So what we're gonna do here is we're gonna create the risk management plan if we're gonna do the PM PLC a PM exams. We need to know things like the inputs, outputs and tools and techniques off the different processes. And we need to know stuff that's on the next slide, such as what it is. The process off statement is. I'll show you that in just a second. So in this step plan risk management 11.1, we create the risk management plan on. We do that using the tools and techniques off expert judgment, data analysis and meetings being applied to the inputs off the project chart of the project management plan. Other components that stakeholders the enterprise Environmental factors particularly risk thresholds on organizational process assets, particularly things like risk policies, processes, procedures, practices on criteria. If you're gonna do the PMP exam, you've got a T least 100 hours of study to become very familiar with all of this stuff. Those were the inputs, the tools and techniques and the outputs on there is more that you need to know. I'm not going to go through this slide at the detail you need tonight to get anywhere near passing PMP exam. But every process has. Is the process off on the key? Benefits are at the beginning, so plan risk management is the process off. Defining how to conduct risk management activities for a project on the benefit of it is ensures the degree and type and visibility of risk management matches the needs of the project. It's the purpose of risk management is to effectively the concepts of risk management are that we do. The steps are planning identification. Merging are threatened opportunity statements analyzing qualitatively on quantitatively on doing response, planning, response, implementation on response monitoring. If you've done either the fast track or the master class, but particularly the masterclass, you'll see this is all entirely compatible. The PM I thinks that we should tailor our risk management to current trends and agile influences. So here's the tailoring advice. Here's the awareness off current trends and off agile influences on the PM I thinks we should use a bunch of tools and techniques. You'll find all of this stuff very familiar because we've talked most of it through if you've done the master class, so here's the process model. It's entirely compatible between prints on P and I Onda. I've used it as the context, all the backbone off the master class you need to be able to identify. Here's how we do identification these of the time scales. So all this stuff should be very familiar with to you from doing the master class. This is not stuff that specific to the pin Bach, but we will be back to that in a second. I'm just gonna continue to thumb through these bits of guidance here that I should tell you that both Prince and the pin Bob, but in this case, the pin Bach is quite compatible with what we've done in the master class. One thing that we didn't do in the master class or the fast track was focused so much on calculation of numbers. And, of course, if you're going to do an exam, then that's coming from a textbook approach in a textbook approach with exam attached is going to be very focused on. Can you do the calculations? It's a It's a shame that the exam insists that you can do the calculations when reality is such that you can't get the reliable numbers. So when your P MP qualified or on a small degree, Prince qualified, particularly PMP qualified, you'll know absolutely how to do the calculations on if you've done the master class. You know, absolutely. The getting the numbers to put into the calculations is mostly speculative in a way that isn't really a world. So here is a walk through off how you do the calculations in order that you can do exam questions on this is detailed and definitive on. Then reality says Yeah, I know have stood the calculations. I just can't get the numbers that I would need because reality isn't able to generate the numbers that I need moving on. So risk management planning has a bunch of imports. Here they are in 11.1 point 3.1 have. Sorry, a bunch of outputs here is 11.3 a bunch of imports because, um, here's the Here's the right number 11.1. So that's the process. Point why? And that's an important. Here is the list of important imports. 1234 We need to know what's in them. We need to know the tools and techniques so enterprise risk management on local practices etcetera are all elements off expert judgment. And then that would take us into identifying risks. Perhaps go a little bit faster here because it's the same pattern. The outputs of risk register. There's lots of imports. The tools and techniques are mostly expert judgment, but also data gathering data analysis, people skills prompt lists. You've seen prompt list in the master class. We talked through things like Hazard and has ops on FMI or failure mode effect analysis on then we've got the guidance coming in here about How do you do all this stuff? What's one of the key bits 11.3 were carrying on. Look how much detail there is in here, though we don't need defined scope. What we'll do then, instead of going to define scope, which was after qualitative assessment, will go to plan responses. The output is changed requests, but otherwise mostly updates to the risk register on the inputs were many and varied on the tools and techniques were expert judgement stretches for opportunities, escalate, exploit, share, enhance and accept. You need to be able to explain those on within the risk management section off the PMP exam preparation. YSL the guidance on that. So is the process off? The key benefits are it's used throughout. It has the following outputs Change Request Project management plan updates of which risk register is the key. One project document updates of which risk registers a key one has the following imports uses the following tools and techniques on then we don't need to go to sequence activities here. What we need to do is go to qualitative assessment, so output here is updates to the risk reports. Um, inputs are again all those baselines and plans, tools and techniques or expert judgment. It is the process off. Numerically analyzing has the key benefits that expresses our exposure. Used throughout the project updates are project documents off which the most important is the risk register on the risk reports. That's the overview, the inputs then. Ah, we've just seen the tools and techniques on the outputs. Andi. Then we don't need to go into budgetary determination, which would be the next process. If we were taking a logical view through the PM, my what we look at is implementing risk responses. So here's THEAN puts is the outputs, tools and techniques. Is the process off? Implementing agreed upon risk responses has the benefit that it implements or ensures implementation off appropriate responses, tools and techniques set out again By the time we get this far down, this particular training course we've covered pretty much everything, which is why this expert No explanations here, but there are links that allow us to go off if we need to see these things in specific detail taking us back. So this is slide 609. If we really wanted to know what the risk register looked like. If we went here, we'd see on page 3 71 off the materials that there's a detailed expression off all of the different components of the risk register, just going back to where we were on 609. We don't need to move on here because the next thing next slide would be managing project knowledge. Instead, what we need to do is come back to the top level on, say, what would be left to do in Pim Bach? Study terms would be monitoring risks, so the outputs here are actually quite a lot. Work performance Information Change Request Project Management Plan updates organizational process as it updates, the inputs are a lot, but you can't really see it because project management plan contains so many component parts. We've got the risk register and risk reports coming in here, and our tools and techniques are data analysis. So it is the process off monitoring and implementing responses, tracking the risks, identifying new risks. The benefit here is that we're always using current information used throughout the project . On the results of it are these updates to things that the inputs and the tools and techniques are these. And then from appear. My perspective I have covered with you now the processes that we would be looking at if we were going to do either the the certified associate and project management or the project management professional. So there is a lot of study that you would need to do in the PMP course, but it is entirely compatible with what we have done in the master risk masterclass. It's much, much deeper in detail than what we have done in the risk fast track course. So that's what you needed to look at. PM I. I've done a similar overview off what you need to look at. If your interest was the prince course for Prince exams. If you want to take the exams, then good luck Onda. Rest assured that our preparation materials will stand you in good stead. 8. Extra: Risk Exam Prince2 View of Risk: Here's a little bit of bonus material if your motivation in taking either the fast track or the masterclass in risk management. Waas Gun Sit the exams that come either from the Project Management Institute or AXA Loss. Both of those organizations publish books, manuals, bodies of knowledge that cover risk. And I've got courses on how to prepare for either of those exams on I'm just going to take You in this one through the Prince and in another video through the PM I supplements the we Need, because in both the master class on the fast track, we've been talking about how to do risk in projects. We've not been talking about how to pass an exam. And when we have to talk about passing an exam, we have to answer questions such as What are the steps in the risk management process on the steps that they dictate in the books are entirely compatible with what we've covered so far. But they do things like give them names or numbers or define that the an absolute correct number, and you need to be equal to that. So what you really need to do is go and look at the courses that I'm showing you the details off here. Here. I'm just attempting to give you an overview. So you have some context for study off those manuals. So here we're seeing the inlay preparation for the Prince exams. We would cover risk after we've covered the processes, such as starting up a project directing a project on initiating a project on would also have looked at other themes such as overview, business case, organization and quality. And I'm just now going to run briefly through what's in the risk themes chapter all the prince to course. And then I do the same for the Project Management Institute course. So there is a syllabus for the risk theme that says we need to be equal to saying things like, What does managing risk looks like? How do we put money into the budget for risk? How do we document in the risk register on the risk strategy or plan or approach? What does Prince say is the minimum set of activities that are required in order to do pretty prince based risk on? Then we have things like definition off risk as threatened opportunity. The different response types such as except or mitigate or avoid. The concept off who takes the actions and who is responsible for the risk on their vocabulary is not. The vocabulary I've been using so far off causes condition on consequence, although their meaning is exactly the same. They talk about cause, event and effect. Ah, never affect his consequence. On event is somewhat counter intuitively is the condition on the cause is the cause as we've been discussing it, this completely compatible with probability, impact and proximity. There's a set of steps in here, and I'll take you through those very briefly here. If you really want proper coverage off these topics, that is to say, slightly slower and more in depth than you need to go to either the Prince course or the CHP MP MP calls. We need to be at know how to apply risk, which is really meaning that we know how to go through the steps that are in their process . Model on we need. I've already said to document it, we need to understand roles and responsibilities. You'll recognize these, I hope, as headings that we have already covered in both the master class on with alluded to in the fast track, so the fast track will have bean fine if you've got these qualifications, if you're going for these qualifications, the fast track hasn't told you at the level of detail that you'll need on then. If you're doing the practitioner, you'll need to be able to answer an exam question on. I'll show you one of those before we're finished. So we define risk, threatened opportunity, uncertain event or events plural. That's that's good, that have probability and impact on baselines. So that's Mawr developer based or project team based than it is customer based on. That's to be expected, since both of the Prince and Pierre my manuals are coming from the developer side of things on aren't really thinking about what we need from a investor perspective. So if you're PMO oriented, you need to recognize that this is not about understanding portfolio ONDA organizational benefits. It's about delivering results in the project context, which is absolutely perfect for you. If you're a project support office in a temporary environment, not quite so good. If you're an enterprise Project management office aimed at supporting the organization, maximize its benefits. We have the concept off an owner. The person who looks after the risk in total and action ease action ease are the people who take the actions at the direction off the owner. We have purpose to the risk theme, which is to identify, assess and control uncertainty on. Then we have a process model that is five, it says. Seven. It documents a step. Number one is broken into two. Step number two's also broken into two. So we have identified the context now in the mask class on the fast track, we talked about awareness on that's the one for one mapping their identify the projects risk context is about having risk awareness on. Then identify it, risk estimate or size or assess each risk on, Then evaluate each risk for where is in the priorities on. Then the rest of the steps of plan implement And we have Ah, an overarching idea of communicating, which is given as a step here isn't really a step, is it? In reality, we talk about probability impact on proximity there entirely compatible with everything we've seen in the fast track. On the masterclass, we have risk budget, which is our contingencies on recognition that tools such as Monte Carlo are useful there for calculating contingent amounts, or you might contact Let York contingent amount using expected monetary value. Factoring if we're doing exams, then we need to know that when ah, book says things like you have a risk budget on that wrist budget is used for managing. Risk the exam, then ask you lots of questions like Could you use this risk budget in other things are not about risk on the examined, so there always is absolutely no you couldn't on the reality. Answer. There is absolutely a consult your own authority or the authority off the sponsor on. Did you use the funds in the way that is politically and pragmatically appropriate to delivering the project on that? Maybe that you follow a black and white rule off risk budget is only used for risk responses, but it might be that you have more latitude. We have risk management approach on in a minute. Will also serious graduate star. We have probability and impact grids on. You'll see that the training course for the exam is strange little bit into the real world , because I've used this model with you and I've used this diagram with you on. These are about building scales on scales. We recording artist management approach on. This is a good risk management strategy or plan template principles. A risk management approach. In the most recent version of the manual, it's entirely compatible with reality and everything we've talked about. We have a risk register that's also pretty much compatible, and we've already talked it through in the masterclass. The risk management approach just to give a little bit more detail, identify the context and create the risk management approach, which we would have called a strategy or plan in other contexts. And the content here is entirely compatible with everything we talked about in masterclass . Andi in fast track identify the risks again. It's entirely compatible except the vocabularies. Slightly different cause. Event effect, cause equals the trigger event equals the uncertainty that is, the condition that would be created. On effect is the impact or the consequence. We're going to categorize things using a risk breakdown structure on. But there's some examples. Didn't put those into the master class, but there are others in the master class. But we did talk about pestle as a categorizing structure. Assessment is then about estimating, and we've looked at the scales on. Having assessed. We can then deploy tools like decision trees Pareto analysis before we go into assessing to evaluate the risk on, we look at the inherent or roar pre response on the post response value, so assessment and runs into evaluate where we look at things like the amount of contingency that's needed toe form, our risk budget on. Then we go through well, and I calculate for you here in terms that are entirely compatible and are in the master class how we might do that, what the tolerance dimensions look like. How you might put that into software for Montecarlo analysis. And then we go through the steps off plan, where we have the exam specific vocabulary for the response types. So we've got, avoid, exploit, reduce and enhance if it's a threat and transfer share, except on contingency or fall back. If it's opportunity or threat, we then go into the step off implementing the responses, and you'll be familiar with this diagram because it was in the master class on. We have the overarching monitor and report, which is called communicate. So we've now being through all of the prince dimensions on. We've seen a number of different documents on those documents, such as the project management put the risk management approach and the risk register are created in initiation and then maintained throughout on front exam. We need to know in what processes on the activities of those processes. The various different actions are undertaken by the various different roles. So corporate and program management define risk, appetite and risk capacity. That's led by the project executive from the project manager. In the first process off starting up a project which is to appoint those two roles on the thing they do there is defined. I'm not gonna go into this here in the detail that we do in the rip in the Prince course, but then capture previous lessons. Design our risk management approach. Prepare a business case because that's intimately linked to risk on. Then select the project approach assembled a project brief on plan. The initiation stage is all about being able to then go and ask the project board for permission to move forwards on in the risk contact. Specifically, we have our threaten opportunity on the standing that is the adviser, not the decider, but the adviser to whether or not we would go into the initiation stage where we prepare the risk documentation such as the risk management approach in detail. So, Prince says, produce some understanding of how we're going to handle risk, appetite and capacity. And put that in the project brief on If that is sufficient to passed through the approval stage to go into the initiation stage. That is when we would then create the risk management approach with all of the detail that included here on all of the roles that wouldn't be involved in the process, such as Project Manager on Executive from Project Team, on a project to shore in etcetera. And then we go through rippling that risk management approach into all off the other documents that are necessary to build a well controlled project on. Then we go and ask authorisation on. I've skipped the bits that are in the middle because they're coming next, but we because I didn't have enough room on this graphic and eventually we get to project close out where we do handing on the risks, all the way through execution. We use our risk management approach on it informs all the steps and all the roles. So what we could be saying here is the prince gives us a lot more guidance about who uses what document on flows, what information from place to place. Then I gave you in either the master class or the fast track on. Prince tells us the roles that should be involved on those last two diagrams have shown us when they take the actions. And if we were going to do an exam, we might get something like this. Exam question. A risk is being recorded as the singer is new. There's a risk that the music album sales will not exceed the production costs, leading to benefits no longer being achievable. In response to this risk and alternate graphics design company will be support sort. To reduce the cost, the project manager have been instructed to search for a graphics company that can produce the artwork. Where would we record this in princes? View of the documents Is it probability, Proximity, risk, strategy, risk status, risk owner or risk action? A. You might want to just pause the video here and consider whether you can see the answer on in a second. I will tell you the answer is this. Welcome back. Well, amongst all of that information, that is to say all these questions stem information that's up here, it says quite explicitly. The project manager has been instructed to taken action, so they are the risk action e. On. Hopefully now I've said that it was obvious, even if it wasn't obvious how to decode the question. Aunt, translate that into a exam mark scoring response. So if you do have aspirations to do professional project management exams on Prince is on your radar, then here's some thoughts about how we take the masterclass on DWI. Apply reading the Prince manual in order to get guidance. I'm also going to do the pinball or the PM, my view of how we do things