Concepts
As an integral part of the PMI Risk Management Professional (PMI-RMP) exam, understanding and establishing documents relevant to the risk process is a key area of focus. These documents are important for the successful execution of a project and help in effective risk identification, analysis, and response planning.
Main Documents in Risk Management
Let’s dive into the main documents within risk management:
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Risk Management Plan
At the top of the list is the Risk Management Plan which sets the foundation for all actions to be taken in managing risks. It outlines how risk management activities will be structured and executed during the lifecycle of the project. This document includes processes for risk identification, analysis, risk response strategy, risk monitoring, and review process.
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Risk Register
This is essentially a log of identified risks, their characteristics, and actions to manage them. It provides possibilities for risk responses, triggers that signal the occurrence of a risk event, as well as potential risk owners or those responsible for managing the risk.
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Risk Breakdown Structure (RBS)
The RBS is a hierarchy of potential risks, organized by category. These could encompass technical risks, external risks, organizational risks, and project management risks.
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Risk Report
This is a document that presents the overall risk profile of the project. The report includes information about the individual risks and the level of overall project risk, making it an important communication tool for stakeholders.
For instance, consider a business planning to launch a new software product. The Risk Management Plan would set out the process to identify possible risks like software bugs or competitive product launches. The Risk Register then logs these risks and outlines potential responses, like having a dedicated bug fixing team or marketing strategies to address competition. The RBS breaks these down into categories such as technical risks and external market risks. The Risk Report provides an overview of these risks and their potential impacts on the project.
Probability and Impact Matrix (P-I Matrix)
Another key document is the Probability and Impact Matrix (P-I Matrix). This matrix plots out the probability of a risk occurrence against the potential impact on project objectives, which helps in prioritization of risks.
| High Impact | Medium Impact | Low Impact | |
| High Probability | Risk A | Risk D | Risk G |
| Medium Probability | Risk B | Risk E | Risk H |
| Low Probability | Risk C | Risk F | Risk I |
For example, Risk A with high probability and high impact will need immediate attention compared to Risk I which can be monitored periodically.
Conclusion
In conclusion, documents play an integral role in risk management, paving the way for structured risk identification, analysis, and response strategy. They also provide a channel of communication between the project team and stakeholders, creating transparency and building confidence in the project management process. Therefore, a clear understanding and efficient application of these documents is crucial for elaborative risk management and for candidates planning to take the PMI-RMP exam.
Answer the Questions in Comment Section
True or False: Risk Management Plan is not a document relevant to the risk process.
- True
- False
Answer: False.
Explanation: The Risk Management Plan is a very important document relevant to the risk process for laying out the framework of how risks will be identified, analyzed, monitored, and controlled.
Which of these documents are relevant to the risk process?
- a) Risk Register
- b) Stakeholder Register
- c) Change Log
- d) All of the above
Answer: d) All of the above.
Explanation: These are all documents that are relevant to the risk process, providing crucial information and records that contribute to effective risk management.
True or False: The Procurement Management plan is irrelevant to the risk process.
- True
- False
Answer: False.
Explanation: The Procurement Management plan includes aspects like risk-sharing and contractual liability, both of which play a critical role in the overall risk process.
True or False: Project Management Plan is a document not necessary for the risk process.
- True
- False
Answer: False.
Explanation: The Project Management Plan includes key documents relevant to the risk process, such as the Risk Management Plan, which outlines how the project will handle risks.
Which document contains lists of identified risks, potential responses, and outcomes of the risk responses?
Answer: Risk Register.
Explanation: This document is primarily used to identify, assign, and track potential risks throughout the project life cycle.
The ____________ register helps in identifying potential risks in the project.
- a) Risk
- b) Stakeholder
- c) Training
- d) None of the above
Answer: b) Stakeholder.
Explanation: The Stakeholder Register helps in identifying potential risks related to stakeholders, their interests, and objects in the project.
The scope baseline is a critical document to the risk process as it illustrates all of the following EXCEPT:
- a) Project constraints
- b) What is not included in the project
- c) Who is responsible for dinner
- d) Project assumptions
Answer: c) Who is responsible for dinner.
Explanation: The scope baseline includes the project constraints, what is not included in the project, and assumptions. Food responsibilities are not related to the project’s scope baseline.
True or False: Risk Breakdown Structure (RBS) is not a relevant document when it comes to risk process.
- True
- False
Answer: False.
Explanation: The Risk Breakdown Structure is a tool used to distinguish the risk categories on a level-by-level basis.
Organizational process assets include all the following, EXCEPT:
- a) Organizational structure
- b) Risk Management Templates
- c) Personnel policies
- d) Risk Analysis Tools
Answer: d) Risk Analysis Tools.
Explanation: Risk analysis tools are not an organizational process asset but rather tools used in the risk management process.
In the risk process, documents from which Knowledge Area may help to understand the satisfaction level of stakeholders?
- a) Risk Management
- b) Scope Management
- c) Stakeholder Management
- d) Cost Management
Answer: c) Stakeholder Management.
Explanation: Documents from the Stakeholder Management Knowledge Area, like the Stakeholder Register, may help understand the satisfaction level of stakeholders in terms of risk management and overall project progress.
True or False: Lessons learned register is not relevant in risk process.
- True
- False
Answer: False
Explanation: Lessons learned register is a document where the project team will describe all lessons learned during the project life cycle. This helps to identify any potential risks in the future.
The document related to the risk process that lists all potential changes to a project is known as?
- a) Change Log
- b) Risk Report
- c) Lessons Learned Register
- d) None of the above
Answer: a) Change Log.
Explanation: The change log is the document that keeps record of all changes requested, their current status, and their potential impact on the project.
Great post! Establishing documents relevant to the risk process is crucial for effective risk management.
Can anyone elaborate on which specific documents are essential for the PMI-RMP exam?
Thanks, this helps a lot!
How often should the Risk Register be updated?
Does the Risk Register need to be shared with all stakeholders?
The post mentions the Risk Report. What exactly is its purpose?
Appreciate the detailed information about the types of risk documents!
What tools can be used to manage these risk documents efficiently?