Risk management approach should be to prevent negative risks and enhancing positive risks. This approach is recomended by PMI (Project Management Institute). Based on this approach, below are some key principles of risk management:
After a decision is made to enter the initiation process for a project, the collection of input information begins. This is where the project boundaries can be a little unclear, but it is generally accepted that activities starting with the collection of inputs for initiation are part of the project. Remember that the project has not yet been authorized, so all resources required for the initiation processes must be funded explicitly by the project initiator. In other words, someone has to pay for the time required to produce the project charter.
Generally, the delivery head / practice head determine and allocate the project cost for each project. The project costs are arrived at based on the initial estimate prepared. The project costs shall be used as reference for the project tracking done monthly. For maintenance projects based on the nature, the costing method needs to be modified accordingly
However, the project cost can be calculated as:
Risk management is an essential activity of project management. It is important to classify risks into appropriate categories. Risks can be classified into following 13 categories:
1. Operational Risk: Risks of loss due to improper process implementation, failed system or some external events risks. Examples can be Failure to address priority conflicts, Insufficient resources or No proper subject training etc.
Risk Management Planning is the process of developing an approach and executing risk management activities for a project. Inputs to Project Risk Management Planning: The inputs to Risk Management Planning include:
This is a sample checklist for the review of a Project Plan. The content of Project Plan review checklist depends on the format of Project Plan template defined the in quality system. However, this checklist can assist a reviewer to define an approach for reviewing a Project Plan.
Project Planning is most important in project management, because the work you are about to complete has likely never been done before. When we talk about project planning process, there are two different kinds of planning processes: core processes and supporting processes.