Project-risk management controls special-cause variation through monitoring, prevention, mitigation, or insurance. Key points emphasized in this chapter are:
• CCPM simplifies project risk management by eliminating the need to address common-cause variation. CCPM risk management only addresses special causes of variation.
• You must include a risk management process in your project work plan. You should scale the implementation of risk management to overall project risk.
• Project risks must identify the risk event, the probability of the event occurring, and the potential impact or consequence of the risk event to the project.
• CCPM project plans help to define the relative risk in terms of the project buffers.
• The project team must decide among options, including prevention, mitigation, insurance, monitoring, and ignoring risks.
Risk monitoring, prevention, and preparations for mitigation should be part of your project plan. You should assign specific responsibility to monitor risk throughout the performance of the project and update your risk plan as appropriate.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.