PMBOK

Let's go through the study recommendations and relate them to the processes recommended in the pmp certification in rawalpindi islamabad lahore pakistan. To refresh your memories, those processes are:

• Plan Risk Management
• Identify Risks
• Perform Qualitative Risk Analysis
• Perform Quantitative Risk Analysis
• Plan Risk Response
• Monitor and Control Risks

ERM begins by segregating goals and objectives into 4 groups: strategic, operations, reporting, and compliance. For the purposes of managing projects, we need not concern ourselves with operational risksthrough enrolling in pmp certification in islamabad. Our projects might support implementation of reports and our projects may be constrained by the need to comply with organizational or governmental guidelines, standards, or policies. Projects in the construction industry will be constrained by the need to comply with the relevant safety laws enforced in their location. Projects in the financial, oil & gas, defense, and pharmaceutical industries will also be required to comply with government laws and standards. Even software development projects may be required to comply with standards adopted by the organization, for example quality standards. Projects are a key means of implementing strategic goals so goals in this group are usually applicable to our projects.

The study recommends 7 components:

• Internal environment The key component of the internal environment is the "Risk Appetite" statement from the Board. The environment also encompasses the attitudes of the organization, its ethical values, and the environment in which they operate.
  PMBOK® Alignment The description in the study is actually very close to the description of Enterprise Environmental Factors. Enterprise Environmental Factors are an input to the Plan Risk Management process. The PMBOK also refers to the organization's risk appetite in their description of Enterprise Environmental Factors, as well as attitudes towards risk.
• Objective Setting Management is responsible for setting objectives that support the organization's mission, goals, and objectives. Objective setting at this level must also be consistent with the organization's risk appetite. The objective setting here may refer to objective setting for the project, as well as any of the other 4 groups.
  PMBOK® Alignment Goals and objectives should include those that pertain to risk management. The project's Cost and Schedule Management plans are input to the Plan Risk Management process. These documents should contain descriptions of the goals and objectives in these individual areas. These goals and objectives may determine how risks are categorized (Identify Risks), prioritized (Perform Qualitative Risk Analysis), and responded to (Plan Risk Response).
• Event Identification Events that pose a threat to the organization's goals and objectives are identified, as well as events that present the organization with an opportunity of achieving its goals and activities (or unidentified goals and objectives). Opportunities are channeled back to the organization's strategy or objective setting processes.
  PMBOK® Alignment This component aligns exactly with the Identify Risks process from the PMBOK. The only significant difference here is the recommendation that opportunities be channeled back to the organization's strategy of objective setting processes. The PMBOK offers no guidance here but this component can be supported by simply referring any opportunity not identified with an existing project goal or objective back, to the project sponsor.
• Risk Assessment Risks are scored using a probability and impact scoring system. Risks are assessed on an "inherent and residual" basis. This simply means that once a risk mitigation strategy has been defined, its effectiveness is measured by determining a probability impact score with the risk mitigation strategy in place. This score is referred to as residual risk.
  PMBOK® Alignment This component aligns closely with the Perform Qualitative Risk Analysis process. This process provides for the probability and impact scoring for the identified risks. The Monitor and Control Risks process also supports this component. This is the process that measures the effectiveness of the mitigation strategies. This is the process that will determine the residual risks.
• Control Activities Policies and Procedures are established to ensure that risk responses are effectively carried out.
  PMBOK® Alignment This component is supported by the Plan Risk Management process. The output of this process is the Risk Management Plan which describes the risk management procedures the project will follow. Keep in mind that Control Activities is wider in scope than Plan Risk Management, the Plan will only cover those procedures that pertain to the project. The Monitor and Control Risks process also supports this component. This process ensures that the procedures defined in the plan are carried out and are effective.
• Information and Communication This component describes how information pertaining to risks and risk management is identified, captured, and communicated throughout the organization.
  PMBOK® Alignment This component is actually supported by the processes in the Communications Management knowledge area. The processes in this area manage all project communications. The Risk Management Plan will identify the information, how it is captured, and how it is maintained. The Communications Plan will describe to whom, when, and how the information is to be communicated.
• Monitoring Specifies that ERM is monitored and changed when necessary. Monitoring and change are performed in 2 ways: ongoing management activities and audits.
  PMBOK® Alignment Monitor and Control Risks supports this component. This process uses Risk Reassessment, Variance and Trend Analysis, Reserve Analysis, and Status Meetings to monitor risk management activities and ensure that the activities are meeting the project's goals and objectives. This process also describes audits as a technique for determining whether planned activities are being carried out and are effective. One of the outputs of this process is updates to the Risk Management Plan in the case where activities are not effective in controlling risks. Preventive and Corrective actions are also recommended to address cases where activities are not being carried out, or are incorrectly performed.

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