Monitor Risks
Mr. Praveen Ranaweera
BSc in Business Management (Special)
NSBM Green University
Presentation Outline
▪ What is Monitor Risks?
▪ Key Benefit of Monitoring Risks
▪ Monitor Risks – Inputs
▪ Monitor Risks – Tools and Techniques
▪ Monitor Risks – Outputs
What is Monitor Risks?
▪ Monitor Risks is the process of monitoring the implementation of agreed-
upon risk response plans, tracking identified risks, identifying and
analyzing new risks, and evaluating risk process effectiveness throughout
the project.
▪ Monitoring risks is a project management activity that is essentially about
managing expected and unexpected changes in the project
Key Benefit of Monitoring Risks
▪ It enables project decisions to be based on current information about
overall project risk exposure and individual project risks.
▪ Risk monitoring is important because it helps to highlight whether
strategies are effective or not.
▪ Risk monitoring can impact upon the management of organizational risk
because it can lead to the identification of new risks.
Monitor Risk Cont.……
▪ In order to ensure that the project team and key stakeholders are aware of the current
level of risk exposure, project work should be continuously monitored for new, changing,
and outdated individual project risks and for changes in the level of overall project risk
by applying the Monitor Risks process.
▪ The Monitoring process using to identify,
▪ Implemented risk responses are effective,
▪ Level of overall project risk has changed,
▪ Status of identified individual project risks has changed,
▪ New individual project risks have arisen,
▪ Risk management approach is still appropriate,
▪ Project assumptions are still valid,
▪ Risk management policies and procedures are being followed,
▪ Contingency reserves for cost or schedule require modification, and
▪ Project strategy is still valid.
Monitor Risks – Inputs
▪ Project Management Plan
▪ Project management plan components include but are not limited to the risk
management plan. The risk management plan provides guidance on how and when
risks should be reviewed, which policies and procedures should be followed, the roles
and responsibilities in the monitoring process, and reporting formats.
▪ Project Documents
▪ Issue Log - The issue log is used to see if any of the open issues have been updated
and necessitate an update to the risk register.
▪ Lessons Learned Register - Risk-related lessons from earlier in the project can be
applied to later phases in the project.
Monitor Risks – Inputs
▪ Risk Register - The risk register has key inputs that include identified individual project risks,
risk owners, agreed-upon risk responses, and specific implementation actions. It may also
provide other details including control actions for assessing the effectiveness of response
plans, symptoms and warning signs of risk, residual and secondary risks, and a watch list of
low-priority risks.
▪ Risk Report - The risk report includes an assessment of the current overall project risk
exposure as well as the agreed-upon risk response strategy. It also describes the major
individual risks with planned responses and risk owners.
▪ Work Performance Data
▪ Work performance data contains data on project status such as risk responses that have
been implemented, risks that have occurred, risks that are active and those that have been
closed out.
Monitor Risks – Inputs
▪ Work Performance Report
▪ Work performance reports provide information from performance measurements that can
be analyzed to provide project work performance information including variance analysis,
earned value data, and forecasting data. This information could be relevant when
monitoring performance-related risks.
Contents of Work Performance Reports
▪ Completed percentage of work
▪ Project performance analysis
▪ The remaining quantity of work to be completed
▪ Forecasted funds to complete the schedule
▪ Forecasted time to complete the schedule
▪ Status of the major change requests & approved changes
▪ Current status of the major project milestones
▪ Major identified risks
▪ Current status of the major project risks that identified
Monitor Risks – Tools and Techniques
▪ Data Analysis
▪ Technical performance analysis - Technical performance analysis compares
technical accomplishments during project execution to the schedule of
technical achievement.
▪ It requires the definition of objective, quantifiable measures of technical
performance, which can be used to compare actual results against targets.
▪ Such technical performance measures may include weight, transaction times,
number of delivered defects, storage capacity, etc.
▪ Deviation can indicate the potential impact of threats or opportunities.
Monitor Risks – Tools and Techniques
▪ Reserve Analysis - Throughout execution of the project, some individual project risks
may occur with positive or negative impacts on budget or schedule contingency
reserves.
▪ Reserve analysis compares the amount of the contingency reserves remaining to the
amount of risk remaining at any time in the project in order to determine if the
remaining reserve is adequate. This may be communicated using various graphical
representations.
▪ Audits
▪ Risk audits are a type of audit that may be used to consider the effectiveness of the
risk management process.
▪ The project manager is responsible for ensuring that risk audits are performed at an
appropriate frequency, as defined in the project's risk management plan.
▪ Risk audits may be included during routine project review meetings or may form part
of a risk review meeting, or the team may choose to hold separate risk audit
meetings.
Monitor Risks – Tools and Techniques
▪ Meetings
▪ Meetings that can be used during this process include but are not limited
to risk reviews.
▪ Risk reviews are scheduled regularly and should examine and document
the effectiveness of risk responses in dealing with overall project risk and
with identified individual project risks.
▪ Risk reviews may also result in identification of new individual project
risks, (including secondary risks that arise from agreed-upon risk
responses), reassessment of current risks, the closing of risks that are
outdated, issues that have arisen as the result of risks that have occurred,
and identification of lessons to be learned for implementation in ongoing
phases in the current project or in similar projects in the future.
Monitor Risks – Outputs
▪ Work Performance Information
▪ Work performance information includes information on how project risk
management is performing by comparing the individual risks that have
occurred with the expectation of how they would occur.
▪ This information indicates the effectiveness of the response planning and
response implementation processes.
▪ Project Management plan Updates
▪ Any change to the project management plan goes through the
organization's change control process via a change request. This may
affect any component of the project management plan.
Monitor Risks – Outputs
▪ Project Document Updates
▪ Assumption Log - During the Monitor Risks process, new assumptions may
be made, new constraints may be identified, and existing assumptions or
constraints may be revisited and changed. The assumption log is updated
with this new information.
▪ Issue Log - Where issues are identified as part of the Monitor Risks
process, these are recorded in the issue log.
▪ Lessons Learned Register - The lessons learned register is updated with
any risk-related lessons learned during risk reviews so these can be used
on later phases of the project or in future projects.
Monitor Risks – Outputs
▪ Risk register - The risk register is updated with information on individual
project risks generated during the Monitor Risks process. This may include
adding new risks, updating outdated risks or risks that were realized,
updating risk responses.
▪ Risk report - As new information becomes available through the Monitor
Risks process, the risk report is updated to reflect the current status of
major individual project risks and the current level of overall project risk.
▪ The risk report may also include details of the top individual project risks,
agreed-upon responses and owners, and conclusions and
recommendations.
▪ Updating the Risk Breakdown Structure
Activity
• What are the risks that are arising
because of lack of trained
resources?
• Explain the impact towards the
project processors.
• What kind of remedies that you can
take to mitigate the effect?
THANK YOU