PMI Risk Management Professional (PMI-RMP)

Assess and document risk triggers, causes and timing

Concepts

Risk management is central to the roles and responsibilities of a Project Management Professional (PMP). One of the critical areas in risk management is the ability to assess and document risk triggers, causes, and timing. This post will expound more on these fundamentals which are invaluable for a PMI Risk Management Professional (PMI-RMP).

Understanding Risk Triggers

A risk trigger, also known as a risk indicator, is a symptom or warning sign that a risk event is about to occur or is currently happening. Risk triggers are evidential concrete pointers that can help project managers take immediate actions to mitigate potential risks. Documentation of risk triggers is crucial to keep track, report, and manage risks effectively.

For example, in a project involving software development, the frequent malfunctioning of a certain application could be an indication of potential risk. The malfunctioning elements become both the trigger and cause of the risk. Understanding and documenting such triggers is an essential phase of risk management.

Causes and Effects Relationship

In terms of risk management, causes refer to the conditions that may lead to the occurrence of risk, while effects are the potential impacts that the risk can have on the project objectives. Documenting causes and effects supports thorough risk analysis and paves the way for effective risk responses.

For instance, while developing a new deadline-driven product, the sudden resignation of a key team member could lead to a delay in the project (cause). This delay may then jeopardize the product launch date (effect).

Timing of Risk Events

The timing of a risk event is vital in assessing the probability and impact of the risk. Some risks are predictable, while others may occur unexpectedly. Timely detection and effective understanding of the schedule of risk can decrease the potential harm to the project.

For instance, in a construction project, the risk of heavy rains disrupting work is seasonal and can be anticipated, whilst a sudden health and safety incident is unpredictable and can occur at any time.

Table 1: Sample Risk Management Matrix

Risk Event	Risk Trigger	Timing	Potential Cause	Potential Effect
Project delay	Resignation of a key team member	Immediate	Insufficient resource allocation	Missed deadlines
Disruption of construction work	Heavy rains	Seasonal	Natural disaster	Delay in project completion
Health and safety incident	Unsafe working conditions	Anytime	Non-compliant safety practices	Injury to worker and potential work stoppage

Effectively monitoring and managing these risk parameters can enable a PMI RMP to deliver successful projects despite the uncertainties. The PMI RMP exam tests the knowledge of these fundamentals to ensure that the certified professionals are well-equipped to handle the challenges associated with project risk management.

Conclusion

Overall, the assessment and documentation of risk triggers, causes, and timing is not only a methodical approach towards identifying potential project risks but also towards devising actionable strategies to reduce their impact. It is at the heart of risk management, and a sound comprehension of this is pivotal for a PMI-RMP practitioner.

Whether it is pointing out the warning signs of a potential risk, determining its cause and effect, or understanding the timing of its occurrence, understanding these parameters helps to aptly manage and mitigate risks, ensuring a smoother pathway to project execution and completion. These essentials of risk management contribute significantly to enhancing the competencies of a PMI-RMP individual.

Answer the Questions in Comment Section

True or False: Risk triggers are indicators or symptoms that a risk event is about to occur.

True

Answer: True

Explanation: Risk triggers, also known as risk symptoms or warning signs, are the indications that a risk event is imminent.

A risk cause is a set of factors that provides the origin of a risk event.

True

Answer: True

Explanation: Risk cause is the initiating factor or source of a particular risk, essentially where the risk originates from.

What is the primary tool for timing risk in risk management?

a) Risk Register
b) Risk Breakdown Structure
c) Risk Urgency Assessment

Answer: a) Risk Register

Explanation: A Risk Register is typically used to document the time of risks, including when they might occur and how long their impact may last.

True or false: The timing of a risk includes when it might occur and how long its impact may last.

True

Answer: True

Explanation: Indeed, the timing of a risk event refers not only to when it may happen but also how long it can affect the project.

Multiple Choice: Which of the following would not be a risk trigger?

a) A key team member resigns
b) Delivery of critical equipment is delayed
c) The project is completed on time
d) The price of essential raw materials increases

Answer: c) The project is completed on time

Explanation: Risk triggers are indicators of potential risks and should be negative. Completing a project on time is a positive outcome.

Multiple Choice: Which of the following correctly lists the three types of risk triggers?

a) Weather, Financial, Political
b) External, Internal, Source-based
c) Quality, Time, Cost
d) Event, Condition, Source

Answer: d) Event, Condition, Source

Explanation: Risk triggers are typically categorized as Events (something happening), Conditions (a state of affairs), or Source-based (origin of risk).

True or False: A risk cause cannot be controlled or influenced.

False

Answer: False

Explanation: A risk cause can often be controlled or influenced, such as by mitigating the risk or by implementing protective measures.

Timing of risk events is not essential for risk management.

False

Answer: False

Explanation: The timing of risk events is critical for risk management because it helps in the planning and application of risk responses effectively.

Multiple Choice: Who is responsible for documenting and assessing risk triggers, causes, and timing?

a) Risk Manager
b) Project Manager
c) Both Risk Manager and Project Manager
d) None of the above

Answer: c) Both Risk Manager and Project Manager

Explanation: Both the risk manager and the project manager hold the responsibility to document and assess risk triggers, causes, and timing as it affects overall project outcomes and risks.

True or false: Identification of risk triggers is a step in the risk identification process.

True

Answer: True

Explanation: Identifying risk triggers is indeed an integral part of risk identification, as it aids in knowing when a risk has occurred or is about to occur.

In risk management, is the failure of a critical piece of equipment an example of a risk trigger?

True

Answer: True

Explanation: The failure of a critical piece of equipment can be a risk trigger as it can potentially disrupt the progress of the project.

True or False: Risk triggers and risk causes are the same thing in risk management.

False

Answer: False

Explanation: Risk triggers and risk causes are not the same. A risk cause is the source or origin of the risk, while a risk trigger is an indicator or a sign that a risk is about to occur.