For Ch -6 == Risk Monitoring & Controlling.pptx

Risk Monitoring & Control

1. Mid-West University Graduate School Of Engineering Central Department of Civil Engineering Birendranagar-10, Surkhet A Presentation on RISK MONITORING AND CONTROLLING Subject : Project Management Presented By: Dilip Kumar Mahato Roll No: 13 Semester: 6 th Semester Date : Sep 9 th , 2023

2. Table of Content Introduction Risk Triangle Risk Assesment Level Risk Level Characteristics Risk Identification Technique Example of Risk in a Project Risk Response Strategies Response Mechanism (Dual Nature of Risk) Process of Risk Monitor and Control Risk Management Process Method of Risk Control (PDCA Cycle) Conclusion

3. Introduction Risk is the probability of occurrence of negative events during the progress of work in a project. Risk monitoring and control  refers to the process of continuously identifying the   risks  and establishing the best methods of dealing with those  risks or minimizing the effects of risk during the project’s duration. It includes the execution of following tasks during the project: risk response  plans tracking the identified risks monitoring residual risks and evaluating risk process effectiveness

4. Risk Triangle Risk Triangle represents impacts of project risk and issues on project’s schedule. SCHEDULE Fig: Risk Triangle RISK ISSUE

5. Risk Assessment Level T here are three levels of project risk assessments: Level 1: Identification of risks Level 2: Qualitative or deterministic risk assessment Level 3: Quantitative or probablistic risk assessment Fig: Risk Level Assessment

6. Risk Level Characteristics This methodology is based on best practices from internationally recognised risk management procedures and consists of five Risk Levels: Low, Moderate, Medium, High and Extreme . In general, each Risk Level has the following characteristics: Fig: Risk Level Characteristics

7. Risk Level Examples Fig : Examples of Risk Level in Business 1. Retail Industries has less risk on their stability on market while large industries has high risk for their market stability and growth of business. 2. While Petroleum business/Fuel industry depends on the human needs and price variation, hence falls under medium level.

8. Risk Identification Technique ( Important Topic for Exam) SWOT analysis is a framework for identifying and analyzing an organization's strengths, weaknesses, opportunities and threats. These words make up the SWOT acronym. P rimary goal of SWOT analysis is to increase awareness of the factors that goes for making a business decision or establishing a business strategy.

9. Example of Risk in a Project

10. Risk Response Strategies (Important) Positive Risk Negative Risk

11. Fig: Balancing of Risk (Response Mechanism)

12. Fig: Process of Risk Monitor and Control Identify risks  – What could go wrong during the project? Measure the response and their impacts  – How likely will that risk become a problem, and what will be its impact over the project? Make a decision  – Given the risks, do we accept them and continue with the project? Come up with potential solutions  – Knowing and accepting the risks, how can we mitigate them in our project? Keep an eye on the risk’s growth  – Which risks are increasing, and is our plan ready to tackle that risk updates? Process of Risk Monitoring and Control ( Important)

13. Method of Risk Control ( P-D-C-A cycle = VVI for Exam) The overall method to ensure a good risk control includes the following: Plan ahead for risk assessment, control and mitigation methods Do and apply the mitigation measures chosen Check and monitor the risks throughout the project Act if the mitigation process shows a necessity 1 2 4 3

14. Conclusion Each of the project/organization will have a level of tolerance to risk, as it is not possible to operate/run without any risk whatsoever. This level of tolerance may be defined by head/Director and/or shareholders and other parties, but it is necessary to observe the effects of risk from starting point for assessing the level of risk. Hence, Monitoring and Control is key task for analyzing the risks in every project/organization and is done by the responsible personnel of the project.

15. Thank You!