This is a deep dive into the PRINCE2® risk theme which is one of the seven themes of the PRINCE2® project management method. You will learn all about the risk management procedure that will help you take control of risks that threaten your project.
Tommy van Schaik spent most of his academic and professional career as a linking pin between business and IT. His focus areas are: project management, IT governance, business processes, IT architecture, requirement engineering, and business rules.
Course Overview Hi everyone, and welcome to this course, PRINCE2 - The Risk Theme, where you will be presented with a deep dive into the PRINCE2's approach to risk. My name is Tommy van Schaik, and I currently work as a project manager for the Dutch Government. PRINCE2 is a project management method based on gathering years of best practice on project management from commercial and government organizations around the world. This course is the sixth course in the PRINCE2 Practitioner Learning Path. It is your journey to get your knowledge up to PRINCE2 practitioner level, getting you ready to pass your Foundation and Practitioner exams. Risks are a deciding factor in the success of a project, and the PRINCE2 risk management procedure can help you to take control of the risks that might influence you project. We will focus on identifying the risks, assessing the severity of those risks, and planning and implementing responses. By the end of this course, you will have detailed knowledge on the PRINCE2 risk theme and the risk management procedure, and you will be able to implement the concepts learned in this course into your own projects. So let's go ahead and get started on the PRINCE2 risk management procedure in this course, PRINCE2 - The Risk Theme, here at Pluralsight.
Identifying Risk Hi everyone, and welcome to the module where we dive into the first step of the risk management procedure, which is identifying the risk, where we will look at the context of the risks in the project, and figure out a way to determine the actual threats and opportunity that our project faces. Alright, so first we'll dive into the part where we identify the risk context. This is where you determine the risk appetite for the project, which is the way the environment of the project and the stakeholder attitude towards risk is described. Now once we've got a clear picture of the risk appetite, we go ahead and create the risk management approach, where we describe the general project approach towards risk and what tools, techniques, and risk procedures will be used. And after we have identified the context, we're going to look at the way you can identify the risks. So first, we'll look at some common ways to identify all the threats and opportunities for the project. Then we look at the early warning indications, which are internal and external triggers that let you determine the health of your project. Then we look at the stakeholder view towards risks, where you learn that different stakeholders in the project might have different viewpoints with it comes to risks. When you determine the views of the stakeholders, you can then later identify their commitment towards exploiting or countering the risks. Alright then, that's the plan for this module on the first step in the risk management procedure, which is identifying the risk.
Assessing Risk Hi everyone, and welcome to this module where we will go through the second step in the risk management procedure, assessing the risk. In this module, we will determine the impact that the threat or opportunity will have on the project, and what the probability is that each individual risk might actually materialize. We are going to examine these concepts by first explaining the estimate and evaluation part of assessing risk. Estimation in the PRINCE2 risk context means that you estimate the probability and impact of the risks. Evaluation is where you create a risk profile for the entire project. Then we will proceed to the probability tree technique, which is a useful technique that can be used to determine the probability of outcomes for a specific risk event. Then we will look at the expected risk value, where you could put a measurable value on each of the individual risks. And finally, we will present the probability impact grid, which is a great technique to visually display the probability and impact of risks. Now I should note that PRINCE2 is usually not in the habit of presenting you with specific techniques to use in projects; however, these three techniques prove useful when explaining the different concepts of assessing risks in the PRINCE2 project. Alright then, so let's get started.
Planning for Risk Hi everyone. Welcome to this module where we will discuss how you can plan for risk. Risk to the project is usually something you cannot avoid, but you can plan for proactive and reactive responses that will influence the probability or impact of the risk. This module will be all about figuring out the appropriate response to the risk we identified and assessed in the previous steps of the risk management procedure. So we are going to think of actions that we can initiate to increase the probability and impact for opportunities, and decrease the probability and impact for threats to the project. This so we can maximize the benefits and minimize the exposure to threats in our project. Alright, so let's look at the overview for this module. First, we're going to look at how you can plan for risk and what actions you need to take to initiate your risk planning. Then we look at responses that are appropriate for threats to the project. Then we look for responses that you can use to maximize the opportunities for the project. And finally, we will talk about proportionate responses where you make sure that the response you prepare for a specific threat or opportunity is worth the effort compared to the impact that the risk might have on the project. Thinking about responses to risks creates a situation where you take control of the risks. Risk inherently is something that can't be fully controlled; however, when creating the appropriate responses, we can make sure that we react in a way that will maximize the opportunities and minimize the threats to the project, which should have a significant effect on the success rates of our projects. Alright then, so let's get started on planning for risk.
Implement and Communicate Alright, welcome to this last module in the PRINCE2 - Risk Theme. This last module will be about the two last steps in the risk management procedure where we implement the responses that we thought were appropriate for the risks we identified, and where we will focus on communicating the risk-related information within the project, as well as the stakeholders outside the project. These last steps close the loop on the iterative risk management procedure and are actually pretty important, as this is where you set up the responsibility for the risk responses so that you create accountability within your project for each of the risks. Alright, so first we're going to talk about the risk owner and the risk actionee, which are the people responsible for the risk and responsible for the responses to the risk. Then we will look at the communication side of risk. We will look at the risk register, which is an important central register where all risk-related information is stored, and is therefore an important part of the risk-related communication in a project. And finally, we will cover the aspect of the risk budget, which is a budget that is reserved specifically for risk, and what steps you need to take to effectively use this risk budget within your own project. Alright, so those are the topics for this module. Let's go ahead and get started on the risk owner and risk actionee in the last step of the risk management procedure, implementing the responses.