BSBPMG407A Apply Risk Management Techniques

Apply RiskManagement Techniques

Unit Guide

Certificate IV in Project Management 17871Qualification Code BSB41507

Unit Code BSBPMG407A

BSBPMG407A Apply Risk Management Techniques

BSBPMG401A Apply Project Scope Management Techniques

BSBPMG402A Apply Time Management Techniques

BSBPMG403A Apply Cost Management Techniques

BSBPMG404A Apply Quality Management Techniques

BSBPMG405A Apply Human Resources Management Techniques

BSBPMG406A Apply Communication Management Techniques

BSBPMG407A Apply Risk Management Techniques

BSBPMG408A Apply Contract and Procurement Procedures

Units of Study – Certificate

Units in the Certificate IV of Project Management

BSBPMG407A Apply Risk Management Techniques

Apply Risk Management Techniques

On completion of this unit you will –

– have the skills and knowledge required to assist with aspects of risk management within a project

– be able to assist in risk identification and planning

– be able to contribute to risk control and review activities

• This unit is Ungraded which means that you will be found Competent or Not Yet Competent based on the completion of the assessment activities and the evidence of competency provided.

BSBPMG407A Apply Risk Management Techniques

Elements of Competency

• Each unit of study is composed of elements of competency

• Apply Risk Management Techniques comprises 3 elements of competency –

1. Assist with risk analysis and planning

2. Conduct risk control activities

3. Contribute to assessing risk management outcomes

• Elements of competency are further broken down into performance criteria, these can be found on the next slides

BSBPMG407A Apply Risk Management Techniques

1. Assist with risk analysis and planning

1. Contribute to identifying and prioritising potential risks throughout the project life cycle

2. Provide input, within delegated authority, to develop risk management strategies and risk management plans within established guidelines

3. Establish risk analysis methods, techniques and tools to assist in the analysis of risks

4. Ensure reporting mechanisms for risks are planned for and agreed to

BSBPMG407A Apply Risk Management Techniques

2. Conduct risk control activities

1. Undertake control activities in accordance with agreed project and risk management plans to achieve project objectives

2. Measure progress and act on perceived, potential or actual risks within authority or report to others for response

3. Contribute to the implementation of agreed risk approaches and the amendment of plans to reflect the changing environment

4. Identify and report opportunities for action in the same way as risks

BSBPMG407A Apply Risk Management Techniques

3. Contribute to assessing risk management outcomes

1. Contribute to the ongoing review of project outcomes to determine the effectiveness of risk management activities by accessing project records and other available information

2. Report risk management issues and responses to others for lessons learned or application in future projects

BSBPMG407A Apply Risk Management Techniques

Associated Readings

• Mandatory –

• PMBOK Chapter 11 – 11.1, 11.2, 11.3, 11.4, 11.5, 11.6

• Risk Management Standard – AS/NZS 31000:2009

• Risk Management Companion- HB 327:2010

• Recommended – Learning Guide 1 – Define Project, pages 7 to 9

Learning Guide 2 – Develop Project Plans, pages 10 and 11

Learning Guide 3 – Administer & Monitor Project, pages 8 to 12

Learning Guide 5 – Review project, pages 2 to 5

BSBPMG407A Apply Risk Management Techniques

Learning and Assessment Activities

Forums - during weeks 9 and 10

Risk CategorisationRisk Ratings

Quiz – due week 10

Project Risk

BSBPMG407A Apply Risk Management Techniques

Team Assignment Criteria

Team AssignmentComponents

Marks Basic Competency Higher Competency

Risk Rating Matrix 5 Basic scales for likelihood and consequences (3 possible ratings)

Combined impacts of likelihood and consequences

Detailed scales for likelihood and consequences (5 possible ratings)

Quantification of impacts for each rating

Risk Register 5 Risk register covering major categories of project risk

Risk ratings and priorities Summarised mitigation strategies

Concept of residual risk rating applied

More comprehensive coverage of risk categories

Risk Action Plans 5 Detailed risk action plans provided for 3 highest priority risks, including assignment of responsibility for plan execution

More comprehensive risk action planes including scope, cost and time impacts of the plan

Risk identificationRisk management tools &

techniques

5 Basic understanding of tools and techniques

At least two methods used

Advanced understanding of tools and techniques

More than two methods used and experts consulted

Total 20 13 to 16 17 to 20

BSBPMG407A Apply Risk Management Techniques

Individual Assignment Criteria

Individual AssignmentComponents

Marks Basic Competency Higher Competency

Risk Rating Matrix 5 Basic scales for likelihood and consequences (3 possible ratings)

Combined impacts of likelihood and consequences

Detailed scales for likelihood and consequences (5 possible ratings)

Quantification of impacts for each rating

Risk Register 10 Risk register covering major categories of project risk

Risk ratings and priorities Summarised mitigation strategies Initial log provided

Concept of residual risk rating applied More comprehensive coverage of risk

categories Log during project execution provided

Risk Action Plans 10 Detailed risk action plans provided for 5 highest priority risks, including assignment of responsibility for plan execution

More comprehensive risk action planes including scope, cost and time impacts of the plan

Risk identificationRisk management tools &

techniques

10 Basic understanding of tools and techniques

At least two methods used

Advanced understanding of tools and techniques

More than two methods used and experts consulted

Risk monitoring and reporting procedures

5 Risk monitoring and reporting procedures defined including escalation and approval mechanisms

Risk response 15 Evidence of implementation of a risk action plan in response to the risk actually occurring, including approval, impacts to time and cost, and other project outcomes

Multiple risk response events and associated evidence

Project Performance Reports 5 Multiple project status reports tracking changes in status of major project risks

Multiple project status reports showing changes to time and cost due to risk response activities

Total 60 40 to 50 51 to 60

BSBPMG407A Apply Risk Management Techniques

Best wishes for your studies

Crows Nest TAFE and the

Business and Commerce Business Line of the

Northern Sydney Institute

wish you success in your studies!