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In the last post, I went through the 5 processes in the Communications knowledge area (chapter 10 of the PMBOK® Guide).

In this post, I go through the 6 processes in the Risk Management knowledge area (chapter 11 of the PMBOK® Guide).

Here’s where we are so far: the boxes in green are what has already been covered, and the boxes in yellow are being covered in this post. (Boxes in grey are to be covered in future posts.)

		Initiating	Planning	Executing	Monitoring & Controlling	Closing
Integration	6	1	1	1	2	1
Scope	5		3		2
Time	6		5		1
Cost	3		2		1
Quality	3		1	1	1
Human Resources	4		1	3
Communications	5	1	1	2	1
Risk	6		5		1
Procurements	4		1	1	1	1
		2	20	8	10	2

Here’s the portion of the process matrix that lists the processes in the Risk Management knowledge area, which is chapter 11 of the PMBOK® Guide.

Knowledge area	#	Initiating	Planning	Executing	Monitoring & Controlling	Closing
Risk Management	6		5		1

Here’s a description of the six processes that are included in the Risk Management Knowledge Area, 5 of which are in the Planning Process Group, and the remaining 1 of which is in the Monitoring & Controlling Process Group.

Process Group	Process Number	Process Name	Process Description
Planning	11.1	Plan Risk Management	Defining how to conduct risk management activities for a project.
	11.2	Identify Risks	Determining which risks may affect the project objectives and documenting their characteristics.
	11.3	Perform Qualitative Risk Analysis	Prioritizing risks for further analysis by assessing likelihood & impact.
	11.4	Perform Quantitative Risk Analysis	Numerically analyzing the effect of risks on project objectives.
	11.5	Plan Risk Responses	Developing options and actions to enhance opportunities and reduce risk.
Monitoring & Controlling	11.6	Monitor & Control Risks	Tracking identified risks, implementing risk response plans if risks occur, and evaluating risk process effectiveness.

11.1 Plan Risk Management

This process answers the question “how will we manage risk?” Risk categories are identified in preparation for when risks are identified in process 11.2, definitions of risk probability and impact are laid down in preparation for processes 11.3-11.5, and finally the way risks are tracked and reported on are hammered out in preparation for process 11.6.

11.2. Identify Risks

Risks are identified by the various groups of stakeholders using various information-gathering techniques and are organized and put in a risk register.

11.3 Perform Qualitative Risk Analysis

The risks are rated according to two variables, their probability and their impact. This gives a general idea of their severity.

11.4 Perform Quantitative Risk Analysis

This process focuses on quantifying the impact of a particular risk on a project. The aggregate of all risks is evaluated.

11.5 Plan Risk Responses

The risks identified in 11.2, qualified in 11.3 and quantified in 11.4 are now planned for both in terms of resources and/or activities needed to reduce their impact on the project objectives.

All of the above are done during the planning process. The following process is done during the Monitoring & Controlling Process, which should be obvious given the title of the process.

11.6 Monitor & Control Risks

This is where risks that were identified are tracked during the course of the project, and corrective action taken according to 11.5 Plan Risk Responses if they do occur. The project management plan is updated to reflect any changes that occur to the project schedule, costs, etc., as a result of risks that do occur.

The next post will cover the final chapter of the PMBOK® Guide, chapter 12 covering Project Procurement Management.

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