Tuesday, November 26, 2019

Top 20 Benefits: Practical RMP with Primavera Risk Analysis - 2

In the earlier part, we have seen the first top 10 benefits of Practical RMP course. In this part, we will see the next top 10 benefits. 

Practical RMP® with Oracle® Primavera Risk Analysis” is a unique course covering both the theory and practical aspects of risk management. Do note that there are a large number of benefits of using this course. I’ve only listed twenty.

For comparison, followings are taken:
  • Theory: Various Risk Management Standards from PMI (PMBOK Guide 6th edition, Practice Standard for Risk Management and Foundational Standard for Risk Management).
  • Hands-on Practical: Oracle Primavera Risk Analysis (PRA) software.

For complete course breakdown, duration, price, and other details, you can refer: 

Practical RMP Course

Now, let’s see the remaining top benefits. 

Benefit # 11: (Risk) Probabilistic Branching – Theory Vs Practical 
The concept of probabilistic branching is newly introduced in the PMBOK guide, 6th edition. With probabilistic branching risks are included in the project model as probabilistic branches, i.e., you model the risk of different outcomes occurring in a project. To know more on probabilistic branching, you can refer this article on Representations of Uncertainties.

With Practical RMP course, you will easily know how to create such branching and hence the impact on risk analysis. A probabilistic branching for an activity “PRD Approval” (A1030) is shown below. It has 3 branches with acitivities A1160, A1050, and A1040. All these are probabilistically linked to activity A1030. This is taken from a real project.

Benefit # 12: Monte Carlo Analysis – Theory Vs Practical
In the below figure, coming as result of Monte Carlo analysis, we have 45% chance to meet the planned end date, i.e., 21st of August (the planned finish date). To have a chance of 80% the finish date has to be pushed (25th August). And maximum the schedule can stretch up-to 1st September.

Benefit # 13: Risk Sensitivity Analysis – Theory Vs Practical 
Risk sensitivity technique is applied in the quantitative risk analysis. One example of it is Tornado Diagram. With the help of the software tool, various sensitivity analysis can be done. A tornado diagram, taken from the project from this course is shown below. 

This is for Cost Sensitivity Analysis. It tells activity A1020 has the highest impact on the cost, whereas activity A1140 has the lowest impact.

Benefit # 14: Risk Criticality Analysis – Theory Vs Practical 
Criticality analysis tells which elements of the Monte Carlo analysis model (basically the tasks) have the greatest effect on the project's critical path. It is also used in quantitative risk analysis. A criticality analysis done with a real project is shown below. It tells activity A1070 has 100% and A1130 has 0% as criticality indices.

Benefit # 15: Risk Adjusted S-curve Analysis – Theory Vs Practical 
Theoretically, S-curve analysis is mentioned in the risk management standards. Practically, below, the curve shown is via the distribution analyzer of the PRA tool. 

Based on your confidence needed for the project, e.g., with 50% or 80% confidence, you can determine the contingency reserve.  

Benefit # 16: Risk Response Planning – Theory Vs Practical 
There are various risk response strategies such as transfer, mitigate, exploit, accept – for both negative (threats) and negative (positive) risks. This has been compared with the risk mitigation strategies in the PRA tool. In Primavera Risk Analysis tool, there are certain differences in terms, but underlying concepts remain similar.  

The risk register taken from a real project with risk mitigation strategies is shown below.

Benefit # 17: Risk Response Actions – Theory Vs Practical 
After you choose the risk responses for the individual project risks, you can have risk response actions. Like every risk has risk owner, you can also have risk response owner for each action. This also can be done with the PRA tool.

As shown below, for Risk 005, we have two risk response actions with associated risk response owners, start date/finish date of actions, associated costs etc. This is shown in the bottom panel of the selected risk.

Benefit # 18: Integrated Risk Management and Project Management Plan – Theory Vs Practical 
After you develop the risk responses and risk response actions, you integrate them into the consolidated project management plan. Particularly, the unconditional response actions are integrated into the plan and tracked. As noted in the PMBOK guide 6th edition, it is done with the help of Project Management Information System (PMIS). In our case, the PMIS is the PRA.

An integrated plan is shown below with risk response actions integrated into the plan. As you can see the response actions  are integrated into the plans. Because these actions are ging to impact your project schedule and cost. And both threats and opportunities are highlighted with post mitigation probabilities. Risk 006 is at 0%, whereas Risk 001 is at 8%. 

Benefit # 19: Risk Exposure and Exposure Burnup/down – Theory Vs Practical 
The risk exposure shows the overall exposure of the project to the known risks, usually in terms of cost. With PRA you can create the risk exposure plans. It can be for both pre-and post-mitigated ones.

The below risk exposure plan is a pre-mitigated one and informs that the risk exposure has gone up, over time. 

Benefit # 20: Work Performance Reports – Theory Vs Practical 
As the standards of risk management, during risk monitoring, you generate various work performance reports. There are various reports which are available – risk matrix report, risk score report, butterfly matrix report, criticality distribution reports etc.

A post-mitigated risk matrix, from a live project is shown below. It’s created with the help of PRA Tool. 

As noted in the earlier post, at the end of the course, you would not only learn the theories from various risk management standards, but also the practical aspects of it with multiple hands-on practical sessions. You can download all the solution files to validate with your understanding. 

Details on "Practical RMP" course is available at: 

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