Program Semester Subject Code Subject Name Unit number

: MBA : IV : PM0016 : Project Risk Management :3

Unit Title
Lecture Number Lecture Title

: Organising for Risk Management

:3 : Organising for Risk Management

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Unit-3 Organising for Risk Management

Organising for Risk Management

Objectives :
The objectives of this lecture are to:

Discuss process maturity model

Analyse project constraints Discuss scope options and opportunity management Discuss risk impacts Explain PERIL Database

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Lecture Outline
Introduction Process Maturity Model Analyse Project Constraints Scope Options and Opportunity Management Risk Impacts PERIL Database Summary Check Your Learning Activity

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Unit-3 Organising for Risk Management

Introduction
Risk management forms an important part of the project management process. In this session you will learn about the various levels of process maturity models.

The scope options and opportunity management provide ways to mitigate risk
and improve process performance. The PERIL Database helps to measure and evaluate level of risk.

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Unit-3 Organising for Risk Management

Process Maturity Model

Process maturity illustrates the progress of a process. The Process Maturity Model is a collection of processes that bring maturity/development in an organisation. This Maturity Model consist of five levels. Each level has specific risks. The organisation must overcome the risks to reach next level.

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Process Maturity Model contd..

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Analyse Project Constraints

Risk in the project can take a form of project constraint. The project constraints is based on factors such as: Time Resource Performance Criteria

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Scope Options and Opportunity Management

The Scope options in a project include: Resource options Schedule options

Opportunity management helps to improve project objective. It include: Scope opportunity Process opportunity

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Risk Impact
The risk impacts can be reduced by prioritising the risks.

The probability chart helps to prioritise the risks.

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PERIL Database

The Project Experience Risk Information Library (PERIL) is a database that analyse the level of risk in the project. The PERIL database contains long term as well as short term projects. This duration ranges from six month to one year. The database collects different types of risks, which include: Scope Risk Schedule Risk

Resource Risk

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Summary
The Process Maturity Model brings improvement in an organisation. The project constraint is based on the time, resources and performance criteria. The impacts of the risk can be mitigated using probability chart, which basically prioritise the risks. The Project Experience Risk Information Library (PERIL) is a database that consists of information on scope risk, schedule risk and resource risk.

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Check Your Learning

1. What is Process Maturity Model? Ans. The Process Maturity Model is a collection of processes that bring maturity/development in an organisation. 2. State whether true or false: i) Process maturity shows you the progress of a process. Ans. True ii) The risk impacts can be reduced by equalising the risks. Ans. False: The risk impacts can be reduced by prioritising the risks.

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Activity

Assume that you are a project manager of a networking team and the team consists of eight members. You have to work on a project that involves providing network support for eight branches of an organisation across the world. Identify the project constraints and find out a solution to reduce these constraints.

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