Practical Risk Management with Primavera Risk Analysis – Working with An Oil and Gas Industry Project

The Practical RMP with Primavera Risk Analysis course is used by risk management practitioners around the world, including PhD candidates pursuing their doctorates. Professionals from construction, software, EPC (engineering, procurement and construction), space and other industries use this course.

Currently, I received questions on its usage on in the oil and gas (O&G) industry. The question is on practical applicability in that industry. The Practical RMP course is industry transparent and uses its own project and builds-up step-by-step from risk planning, identification to risk monitoring and tracking. Along with the theory, you will learn to do risk management in a practical, hands-on manner. The later part, hands-on, is crucial. Above all, you can apply your learning in any industry.

Coming to the Oil and Gas industry, the Practical RMP course can be used and the risk management concepts can definitely be applied. For this article, I’m going to take a sample risk management plan. This is a .plan file as called in Primavera Risk Analysis (PRA) software tool. 

The .PLAN file

This plan is taken from the provided sample plans available in PRA tool. When imported to the software, it pops-up a message about cost uncertainty in this oil and gas project. 

Uncertainties can come in various ways:

• Duration uncertainty
• Cost uncertainty
• Network uncertainty, among others.

You can learn more on these uncertainties in this article. All these uncertainties can be modelled. 

Analyzing the .PLAN file 

Now that we have imported this file, we need to have a quick look on the plan, which is shown below. 

As shown:

• We have a number of activities under the heading “A” such as Civils, Buildings, Structural Steel & Painting, Mechanical Equipment Supply etc.
• Each of these activities have the cost shown – minimum fixed cost, maximum fixed cost and most likely fixed cost.
• For example, the ‘Structural Steel & Painting’ activity has minimum fixed cost of $900,000, maximum fixed cost of $1,100,000 and most likely fixed cost of $1,300,000.

The resources are fixed cost for these activities and the cost uncertainty has been shown for each. The default probability distribution has been used for them. 

The overall project statistics is shown below. This is can be seen by going to Plan menu > Plan Information … > Statistics tab.  

As you can see, the total planned cost is $19.123 M (million) and the planned finish is 31 October, 2025. I’ve changed the date of the plan. Also, you would have noticed that there are 7 resources, in total, for this cost plan.

Risks as Part of the .PLAN file

This plan is somewhat different compared to the other sample plans available. This is because the risks are added as part of this cost plan. 

The risks have probabilities associated, along with modelling numbers. This is because only risk can have uncertainties as they are in the future and they are uncertain. Activities are planned and will be executed. But they do have uncertainties and hence the modelling.

The risks associated with this cost plan along with the probabilities are shown in the below figure. 

As shown above three risks are directly plan of the plan, not the risk register! There are:

• Material supply problems with 10% chance.
• Key personal availability with 25% chance.
• Design complexity underestimated with 20% chance.

In addition, each of these risks has minimum, most likely and maximum fixed cost. 

Running the Cost Analysis

Next, with this available plan (I’ve made some changes), we will run the risk analysis with respect to cost. This can be done by going to Risk menu > Run Risk Analysis … option. We will use the default parameters while going through analysis and will use the Monte Carlo simulation.

Post analysis, the Latin-Hypercube simulation (a modified version of Monte Carlo), we have the following representation.  

Analyzing the above report, one can say the following:

• The chance of meeting the estimated planned budget of $19.123 is hardly 11%.
• To have a 50% chance the budget has to go up and it has to be $19,679 M. In order to have 100% chance, the budget has to be $22, 249 M.
• Do note that the risks are included in the analysis and they are also impacting the final cost.

Conclusion

As we just learned, any kind of O&G project can be used for risk analysis using the Primavera Risk Analysis software tool. This is a special and advanced project with only the cost aspects. For duration too, the PRA software can be used.

You need not have any apprehension about it. If you are keen to learn detailed and end-to-end risk management with a software tool, then Practical RMP course is the right fit for you.

References

[1] Online Course: Practical RMP with Primavera Risk Analysis, by Satya Narayan Dash. 

[2] eBook: I Want To Be A RMP, 2nd Edition (Updated), by Satya Narayan Dash.

A Practical Risk Breakdown Structure with MS Project and Primavera Risk Analysis (PRA)

In the earlier article, I wrote about various Breakdown Structures and specifically, the Risk Breakdown Structure (RBS). As noted in the previous article, breakdown structures are progressively decomposed into greater levels of detail.

But then the following questions come-up?

• How does that happen practically?
• How does the RBS level (Level n) be associated with the identified risks?
• What is its usage as you proceed with risk management?

To know these, one needs to know how an RBS is prepared in a practical manner with a hands-on software tool. In this article, I'm going to use the Primavera Risk Analysis (PRA) software. 

The content of this article has been taken from this course: Practical RMP with Primavera Risk Analysis. 

Now, let’s see the various steps and its role in risk management in a hands-on manner. 

Step – 1: Create the Plan

I’ve a simple plan created with MS Project (MSP), which is shown below. It has a couple of work packages and associated activities.  

Next, I’ll take this plan and import it into the Primavera Risk Analysis (PRA) software. After the import, it’ll look like the following one. 

As you can see, this plan in the PRA is an exact reflection of the previous plan in MSP.

Step – 2: Build the First-Cut of RBS

Now for the above plan, we are going to create the first-cut risk breakdown structure (RBS). 

To get to the Risk Breakdown Structure in the PRA software, first you have to open the Risk Register by going to PRA Menu and using Risk > Register… command. This will open the default risk register without any entry. 

From there, execute the Edit > Risk Breakdown Structure … command.  

As shown above, at this stage, the risk register doesn’t have any entry at all. Stay with me! We are going to add risk (s) and associate them,

Now, with the above command the RBS first view will come-up. 

As shown, the current RBS:

• Four entries – Organizational, Commercial, Environmental and Technical.
• Each of this entry is at Level – 1. One can add as many entries as one wants. We will see that shortly. 
• There are commands on the right such as Insert (for insertion of new levels), Edit (to edit the names), and Delete (to delete any level).
• Below the delete command there are left, right, top and bottom arrow marks, which are used to change the levels and indentation.  

Step – 3: Add Risks into the Risk Register

Our next step will be to add a risk into the risk register. Click the OK button in the previous screen to close the above RBS window and go back to the risk register. 

To add a risk, simply type the risk in the “Title” part/column of the risk register. The risk will be populated with ID, T/O (threat or opportunity), Probability scale and Impact scales such as schedule, cost, performance, score etc.  

As shown above:

• We have Risk ID – 001 and it’s a threat or negative risk.
• The default probability value is Very High (VH). 
• The default impact scales are VH, VH and VH for schedule, cost and performance, respectively.
• The scope has been calculated to be 72 internally with the help of PRA Risk Matrix. 

The most important one to note for this article and at this stage is this:

• RBS is shown in the bottom right half of the above view.
• There is no level for the RBS. In other words, the risk is not associated with any RBS level.

Step – 4: Build A Refined RBS

Next, we will go back to the RBS and add a few more levels, e.g., Scope. I’m taking scope, because in the previous step we just added a scope related risk.

Do note that:

• RBS Level – 0 is the project level.
• RBS Level – 1 is Scope, Political, Environmental etc.
• RBS Level – 2 will be another one. For our case, we will take two: Scope definition and Scope Change.

You can go to any level you want. However, do ensure that it’s reasonable and not too fine-grained. Many risk management practitioners get into very low levels, which can pose problems later.

After adding the levels, the refined RBS will look as shown below. This is again drawn with the PRA software.

I’ve used the Insert, Edit, Delete and arrow commands to create this structure. For example, to move the Technical (L1 of RBS), I’ve used the up-arrow mark. To add a new level of Scope (L2), I’ve used the Insert command. To add another level of Scope definition (L3), I’ve used the Insert command and right arrow mark. 

You can click on the “OK” command to close the RBS and go back to the risk register.

Step – 5: Associate the Risk with the RBS

Next, we are going to associate the risk with Scope change (L3) of the RBS because the risk “Scope related risk” is due to the rapid scope change.

To associate with a risk, use the “…” command next to the RBS text box. This is shown below.

As you select the “…” command, the Select Risk Breakdown dialog box will be opened-up. Choose the Scope change (L2) and click on the “OK” command.  

Next, the risk in the register will be associated with this level of RBS. 

As shown in the above figure:

• Risk ID – 001 of scope related risk is now associated with an RBS element.
• The element is “Technical.Scope.Scope change”.
• Technical is at L1, Scope is at L2 and Scope change is at L3.

That’s it! If you could follow these simple steps, a practical RBS can be created. And you can associate all the risks of the register with various levels of RBS.

Conclusion 

As I just demonstrated, the risk breakdown structure can be a key artifact used in Risk Management used in conjunction with the risk register. Like WBS is important to know the required deliverables, the RBS can be crucial, if you're really doing risk management.  

As WBS can be used as a communication tool, the RBS can also be used as a communication tool. The risk register with various levels of information can be exported to an excel sheet. This can be communicated with the stakeholders.

References:

[1] Course – Practical RMP with Primavera Risk Analysis, by Satya Narayan Dash.

[2] Course – RMP Live Lessons, Guaranteed Pass or Your Money Back, Satya Narayan Dash.

[3] Course – RMP 30/40 Contact Hours Online, Satya Narayan Dash.

Practical RMP: How to Create Risk Exposure Plans and Exposure Burnup, Burndown Charts

In risk management, you have many steps to follow from risk identification to risk monitoring. However, if you ask anyone who has done risk management in the real world, one of the key areas to manage will be the management of overall project risk exposure. The questions that one generally faces will be these:

• Is the overall project risk exposure within acceptable limit?
• If not, have you re-planned and developed further/other responses to reduce the risk exposure?
• Have you implemented the risk responses in order to actually bring down the exposure?
• Are you continuously monitoring the overall project risk exposure?

In this post, I’ll will outline four steps needed to build Risk Exposure Plans – both pre-and post-mitigated. In addition, we will see Exposure Burnup and Burndown charts. Charts being visual, give you quick information and also, is effective for stakeholder communication. 

These steps are taken from “Practical RMP with Primavera Risk Analysis” course. It’s taken from one of the practical of this course using a real-world project. I’ve also mentioned it to be one of the benefits of this course. 

Before proceeding with the steps, I assume that you have:

1. Completed risk management planning, because risk thresholds will be set here. These risk thresholds, in turn, will determine the acceptable level of overall project risk exposure.
2. Identified the risks, and have documented in them in Risk Register.
3. Prioritized the individual project risks. 

Now, let’s will proceed with the steps to create the Risk Exposure Plan. 

Step – 1: Ensure Proper Settings 
First, we will start with the proper settings for the integrated Risk Management Plan created with the help of Oracle Primavera Risk Analysis (PRA) software tool. Note that going forward, all the steps will be conducted with the help of PRA tool.

To create the risk exposure plan, first set the dates on which you want to measure the exposure. It can be either Start Date (of the plan) or Data Date (status date). This can be done by going to:

Plan – Plan Information 

This will open the Plan Information dialog box as shown below. Enter the Data Date. 

Step – 2: Determine the Pre-mitigated Risk Exposure 
In this step, we will determine the risk exposure based on the current scores of the individual risks. To do so, in the PRA tool, go to:

Risk – Risk Register –Tools –Build Exposure Plan...

You can decide the form of exposure from Data Date or Risk Start Date with pre-mitigated or post mitigated probabilities. I’ve chosen the former. This is shown below. 

As shown above:

• For Exposure Date, it will be “Apply Exposure from Data Date”.
• For probabilities, it will be “Pre-mitigated probabilities”.

This is in line with our Step – 2, where we are determining the pre-mitigated risk exposure. Finally, click on OK button. 

This will create the Pre-mitigated Risk Exposure Plan, which is shown below. It’s a view with two panels:

• Upper panel – Pre-mitigated Risk Exposure Plan
• Bottom panel – Burnup Chart

Let’s interpret the data in the above plan. First, let’s take the Pre-mitigated Risk Exposure Plan in the top panel.

We have 4 prioritized risks – Risk 001, Risk 004, Risk 005, and Risk 006. (Click on the above image for enlarged view)

• For each risk the exposure % is noted in the bar chart, e.g., Risk 001 has 23% exposure. Risk 005 and Risk 006 have 60% exposure and so on. 
• For each risk, the exposure cost is noted along with the risk start and finish dates. For example, for Risk 001 the cost is $20,000, for Risk 002 the cost is $15,000 and so on. 

Now, let’s interpret the Exposure Burnup Chart in the bottom panel.

• The overall exposure as on Data Date is $72,000. This is the sum of all risk exposure, i.e., combing the exposure of all prioritized risks – Risk 001 to Risk 006.
• Obviously, the exposure has gone up over time. For example, on July 10, 2020, it’s around $35,000 whereas on July 31, 2020 it’s over $70,000. The timeline on X-axis, whereas the exposure value is on the Y-axis.
• This results in a Burnup chart, which is shown above.

Step – 3: Plan and Implement Risk Responses and Risk Response Action 
Let’s say that the overall exposure is high (we have determined earlier during risk management planning) and we need to bring it down. Hence, we plan for Risk Responses and associate the Risk Response Actions. These will be updated in the Risk Register (and in turn also in the Risk Report, if you go by the PMBOK 6th edition). The data for the below risk register is again taken from one of the practical of this course.

Step – 4: Determine the Post-mitigated Risk Exposure 
After you have taken the risk response actions, the exposure will come down for the risks. Next, again in the PRA tool, go to:

Risk – Risk Register –Tools –Build Exposure Plan...

And build the plan for post mitigated probabilities. This is shown below. 

This will create the Post-mitigated Risk Exposure Plan, which is shown below. Again, it’s a view with two panels:

• Upper panel – Post-mitigated Risk Exposure Plan
• Bottom panel – Burndown Chart

Let’s interpret the data in the above plan. First, let’s take the Post-mitigated Risk Exposure Plan. (Click on the above image for enlarged view)

• We again have the same 4 prioritized risks – Risk 001, Risk 004, Risk 005, and Risk 006.
• For each risk the exposure % is noted in the bar chart. But now they are reduced, e.g., Risk 001 has now reduced to 8% (earlier 23%) exposure, whereas Risk 006 has 0% (earlier 60%) exposure, and so on. 
• For each risk, the reduced exposure cost is noted along with the risk start and finish dates. For example, for Risk 001, it’s $5,000.

Now, let’s interpret the Exposure Burndown Chart in the bottom panel.

• The overall exposure as on Data Date (11th July, 2020 which is set earlier) is $12,000. This is the sum of all individual project risk exposures. 
• The overall project risk exposure has to go down over time. For example, on July 10, 2020, it’s around $12,000 whereas on July 31, 2020 it’s just $1,000. Again, the timeline on X-axis, whereas the exposure value is on the Y-axis.
• This results in a Burndown chart. 

Step – 5: Monitor the Risk Exposures 
This is the final step and you continue to monitor the risks. If the probability and/or impact values of the risks change, then it will change the exposure values as well.

I hope with this you learn how to create the risk exposure plans and the related burnup and burndown charts. Of course, based on it you can create the needed reports and communicate with your stakeholders.

You may also like:

• Course Details - Practical RMP with Primvera Risk Analysis
• Practical RMP: How to Create a Butterfly PI Matrix in Risk Management
• Step by Step Guide - How to Install, Setup and Test Oracle Primavera Risk Analysis R8.7.5 on Windows 10
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Book Available for PMI-RMP Exam:

• New Book for RMP Exam Prep: "I Want To Be A RMP", 2nd Edition

Practical RMP: How To Create A Butterfly PI Matrix Report in Risk Management

The butterfly probability and impact (PI) matrix report is a highly effective report in risk management. The reasons are:

• You can see both threats and opportunities together in one matrix. It will be for both pre- and post-mitigated risks. 
• It’s quickly communicated as it doesn’t have too much content, rather just the content one needs to know on what is happening to the risks in a project. 
• It’s visual and appealing. Hence, it is quickly understood by stakeholders, who don't want an in-depth risk reporting. 

In this post, I’ll outline 5 steps to generate the butterfly matrix report. 

These steps are taken from “Practical RMP with Primavera Risk Analysis” course. This course comes with full money back guarantee.

Note: If you are preparing for the Risk Management Professional (RMP®) exam, you may get questions on interpreting a butterfly matrix. Some successful RMPs have informed that they have received such questions. 

I’ve seen butterfly matrix for a long time and the PMBOK® guide has this report from its 3rd edition onward. The below figure is taken from PMBOK, 6th edition. The PMBOK Guide calls it a probability and impact matrix (or PI matrix).

Image Credit - PMI-PMBOK Guide, 6th edition

As shown above, both threats (or negative risks) and opportunities (or positive risks) are shown in the matrix. You can plot the risks of your project on this matrix in order to show the current status of risks in your project. The probability scale is on the Y-axis, whereas the impact – positive or negative – are shown on the X-axis.

Why Called Butterfly PI Matrix? 
The PI matrix is named as butterfly matrix because of its shape. It has one wing on either side – threats (or negative risks) on one side and opportunities (or positive risks) on another. This, in turn, takes the shape of a butterfly and hence, the name.

Image Credit: clipart-library.com

Next, let’s see how to create this report.

Step – 1: Define your Probability and Impact Scales
You must define your probability and impact scales before you can create this report. This is done in the “Plan Risk Management” process of Risk Management. After their creation, they will be documented in the Risk Management Plan.

Taking a real example for Practical RMP course, it will come as shown below. This I’ve listed as one of the benefits in using Practical RMP course.

As shown above, the probability scales used are from “Very Low (<=15%)” to “Very High (>70%)” and Impact scales and types used are for Schedule, Cost, Quality etc. This in turn creates the Probability and Impacting Scoring matrix with color coded information on the overall score of the risk. This is depicted in the below figure.

As shown above, if the risk score (multiplied value of P and I) falls between 1 to 5, it’s in green color, whereas if it falls between 24 to 72, it’s in red color. Similarly, it’s for the yellow color coding.

Step – 2: Populate the Risk Register
The next step involves creating and populating the risk registers with actual risks identified in your project. An actual risk register taken from a real project is shown below.

Analyzing the risk register, we have:

• Total 8 risks from Risk 001 to Risk 008.
• There are 7 negative risks and 1 positive risk.
• Risk 006 is an opportunity whereas rest are threats.

This happens in the “Identify Risks” process of Risk Management and the above image is taken again from the Practical RMP course.

Step – 3: Qualify the Risks 
As you qualify the risks, the actual risk scores will now be entered into the risk register. This are basically the pre-mitigated risk scores for the individual project risks. The above figure (in Step - 2) has a risk score for every risk. 

Qualification of risk is done in the “Perform Qualitative Risk Analysis” process of Risk Management.

Step – 4: Develop and Implement Risk Responses 
In this step, you are developing the risk responses for both positive and negative risks. You can apply various mitigation strategies such a reduce (mitigate), accept, transfer (for threats) or exploit, enhance, accept (for opportunities). With that, you will have the post-mitigated risk scores for the individual project risks. 

This happens in the “Plan Risk Responses” process of Risk Management. The response actions developed are subsequently implemented in “Implement Risk Responses” process.

As shown above, now you have both pre- and post-mitigation details for the individual project risks. However, in a risk register containing many risks, you can’t quickly decipher what is the current risk status and whether you should act upon or just monitor the risks. 

This is where the Butterfly PI Matrix report comes in. 

Step – 5: Generate Butterfly PI Matrix Report
You can generate this report in under one minute with Primavera Risk Analysis (PRA) software tool.

To do so, go to Risk Register:
Reports – Report Manager…, which launches the below window.

To generate the report, select the “ButterflyMatrix.xrb” file and then just click on the “Publish” button. If the report is not generated, ensure that you have “ButterflyMatrix.xls” loaded for this report. This will be the stylesheet for this report.

When the report is generated, it will have the following summary information.

It clearly lists out the total risks (proposed and open) and the number of high, medium, and low risks, along with the number of threats and opportunities.

Just below the report summary, you will have the pre-mitigation details of the risks in the Butterfly PI Matrix for both opportunities and threats. This is shown below.

As shown above, Risk 006 is an opportunity and it’s a high risk. On the other hand, Risk 003 is a low risk, Risk 007 is a medium risk and these are threats. Similarly, you have Risk 005 and Risk 008 noted as high risks. All these risks are highlighted in blue elliptical circles in the matrix.

Below the pre-mitigation details of the individual risks, you will have the post-mitigation details of the risks in the Butterfly PI Matrix report. This again will be for both opportunities and threats. This is shown below.

As shown above, post mitigation, Risk 005 has been brought down to a very low zone, so also Risk 008 (it's a proposed one, but I've used it to show the functionality). Similarly, many other high or very high risks have been brought down to low or very low zones. All these risks are highlighted in blue. Risk 006 is no longer shown in the post-mitigated matrix because the risk score didn't cross the risk threshold. You can customize the report further to see the details on the profiles of the risks, or you can take that information from the generated summary risk report.

As you can see, with this report you can quickly find out what's happening to the risks in a project, the current status of individual project risks in a visual way. It's also effective and elegant.


You may also like:

• Course Details - Practical RMP with Primvera Risk Analysis
• Practical RMP: How to Create Risk Exposure Plans and Exposure Burnup, Burndown Charts
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• Top 20 Benefits: Practical RMP with Primavera Risk Analysis - 2

Book Available for PMI-RMP Exam:

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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: 

Practical RMP with Oracle Primavera Risk Analysis

You may also like:

• Step by Step Guide - How to Install, Setup and Test Oracle Primavera Risk Analysis R8.7.5 on Windows 10
• Step by Step Guide - How to Install, Setup and Configure Oracle Primavera P6 Professional R18.x/19.x on Windows 10

Book Available for PMI-RMP Exam:

• New Book for RMP Exam Prep: "I Want To Be A RMP", 2nd Edition