Concepts
This process involves performing a preliminary document analysis – a careful review of key project documentation that could help identify possible risks early.
Understanding and Leveraging Key Project Documents
For a PMI-RMP aspirant or a risk management professional, the starting point for performing a preliminary document analysis is to understand what existing project documentation is and how it might aid in identifying potential risks. Key project documents could include the project charter, the project management plan, stakeholder registrations, among others.
The Project Charter, as an example, typically contains the project’s business case, objectives, and key stakeholders. This document helps a risk manager understand what the project aims to accomplish, which could, in turn, boost the effectiveness of their risk identification efforts. Any factor that could potentially prevent the achievement of these goals could be viewed as a risk.
Similarly, the project management plan offers useful insights regarding the approach, timing, and resources that the project would deploy. Each of these elements could potentially be a source of risk. This plan could help risk managers identify these risks early and incorporate them into broader risk management strategies.
Stakeholder registers, another key document, outlines everyone involved in the project and their respective interests. Not only can the stakeholders present potential risks themselves, but their interests could also be a source of risks.
The Risk Register: Central to Document Analysis
Perhaps the most important document in risk management and consequently, in risk document analysis, is the Risk Register. This document provides a comprehensive list of all identified risks, their descriptions, severity, potential impact, triggers, and proposed response strategies.
As part of a preliminary document analysis, reviewing the risk register can be instrumental in understanding what risks have been identified and how the project plans to respond to them.
Furthermore, the risk register also helps in understanding the triggers for each risk. A trigger is an event that could lead to the manifestation of a risk. For example, in a software development project, a potential risk could be ‘delay in delivery.’ The trigger for this risk might be ‘failure of a key system.’
Persistently monitoring these triggers is instrumental to proactive risk management. If the failure of a key system is seen or even predicted, it offers a definitive indicator that the risk associated with it – delivery delay – might be about to materialize.
Vet and Validate Identified Risks
A significant part of the analysis involves verifying the validity of identified risks. This vetting process ensures that unfeasible or unlikely risks do not drain resources that could otherwise be used to manage real risks.
One approach for vetting risks is to subject them to a ‘reality test.’ This test usually involves asking questions like – based on the project’s environment, constraints, and objectives, is it feasible for the risk to occur?
Another approach is to apply probability and impact assessments. If a risk has a low chance of occurring or if its impact is minimal, it could be deprioritized or even disregarded.
Preliminary document analysis is an effective tool to study and comprehend identified risks & their triggers. Its diligent practice helps in proactive risk management by recognizing potential risk indicators early and by concentrating effort and resources on real, feasible risks.
The relevance of this analysis for PMI-RMP exam aspirants cannot be overstated – it combines key principles of risk identification, verification, prioritization, and response planning. Understanding, mastering, and applying this analysis furthers the risk management knowledge needed for the exam and more importantly, in actual professional practice.
Answer the Questions in Comment Section
True or False: It is enough to identify potential risks in the project, there is no need for further analysis.
- True
- False
Answer: False
Explanation: Merely identifying risks is insufficient. A proper risk analysis is needed to determine the validity of the potential threats, calculate their potential impact, and decide on the appropriate response.
As a Risk Management Professional, to validate the identified risks, you…
- A. Ignore triggers
- B. Ignore the risk owners
- C. Perform qualitative and quantitative analysis
- D. None of the above
Answer: C. Perform qualitative and quantitative analysis
Explanation: When validating the identified risks, it’s essential to perform qualitative and quantitative analyses. Ignoring triggers or the risk owners is not recommended as it can lead to misinterpretations and a lack of comprehensive insight.
The trigger in risk management refers to..
- A. An event that causes a risk to occur
- B. The outcome of a risk occurrence
- C. The identified risk
- D. The risk response plan
Answer: A. An event that causes a risk to occur
Explanation: A trigger is an event or situation that causes a risk to occur. It is a critical indicator that a risk scenario is in the process of evolving from potential to actual.
True or False: The more triggers related to a risk you identify, the higher the probability of that risk occurring.
- True
- False
Answer: True
Explanation: Triggers are events or conditions that lead to a risk. Therefore, if multiple triggers exist for a risk, it implies that the risk has more chances to occur.
Which one of the following represents the best method to validate identified risks?
- A. Put all the risks in a register and analyze later
- B. Validate risks based on assumptions
- C. Validate risks through quantitative and qualitative risk analysis
- D. None of the above
Answer: C. Validate risks through quantitative and qualitative risk analysis
Explanation: Risks should be validated through a comprehensive process of qualitative and quantitative risk analysis. This will help to prioritize the risks and decide suitable mitigation plans.
True or False: A trigger is always an adverse occurrence in a project.
- True
- False
Answer: False
Explanation: A trigger isn’t necessarily a negative event. It is just an indication that a risk event may occur in the near future, which could be positive or negative.
True or False: By validating a risk, the project manager guarantees that the risk will not occur.
- True
- False
Answer: False
Explanation: Validating a risk does not guarantee that it will not occur. It simply provides an understanding of the potential likelihood and impact of the risk, enabling the project team to prepare accordingly.
When performing a qualitative risk analysis, you should consider:
- A. The scale of the risk
- B. The likelihood of the risk
- C. The impacts of the risk
- D. All of the above
Answer: D. All of the above
Explanation: A qualitative risk analysis looks at three aspects: the scale, likelihood, and impact of the risk. This holistic approach ensures a comprehensive understanding of the risk.
True or False: High-value risks should always be analyzed first.
- True
- False
Answer: True
Explanation: High-value risks represent a greater threat or opportunity to project objectives and thus should be analyzed first. This is related to the concept of risk prioritization in risk management.
The outcome of risk validation process is
- A. Risk Register
- B. Project schedule
- C. Procurement plan
- D. Risk Response plan
Answer: A. Risk Register
Explanation: The outcome of the risk validation process is a complete and up-to-date risk register. This document provides a clear view of all identified risks, their analysis, and proposed responses.
True or False: Adequate risk validation will eliminate all risks from a project.
- True
- False
Answer: False
Explanation: Adequate risk validation won’t eliminate all risks. The focus is to understand them better, prepare accordingly and mitigate them where possible. There is always inherent risk in any project.
True or False: Triggers are not important for risk reassessment.
- True
- False
Answer: False
Explanation: Triggers are critical for risk reassessment. They serve as indicators which warn of a forthcoming potential risk, allowing risk reassessment to be undertaken.
Great post on analyzing the validity of identified risks and triggers! This topic is crucial for PMI-RMP exam preparation.
Helpful article! The methodology for evaluating risk triggers seems solid.
When considering risk triggers, how do you differentiate between low-impact and high-impact triggers?
This blog provided clarity on qualitative and quantitative risk analysis. Thanks!
Could you elaborate more on using Monte Carlo simulations to validate the identified risks?
The information here helped streamline my study approach for the PMI-RMP exam. Much appreciated!
Great discussion on risk response planning!
How often should risk triggers be reviewed and updated during the project lifecycle?
Risk triggers should be reviewed regularly during project meetings or at least at every major project milestone.
Agree with @User12. Frequent review ensures early detection and response to any risks that could derail the project.