THE STANDARD FOR RISK MANAGEMENT IN PORTFOLIOS, PROGRAMS, AND PROJECTS

THE STANDARD FOR RISK MANAGEMENT IN PORTFOLIOS, PROGRAMS, AND PROJECTS
	THE STANDARD FOR RISK MANAGEMENT IN PORTFOLIOS, PROGRAMS, AND PROJECTS
		Copyright
		TABLE OF CONTENTS
		LIST OF TABLES AND FIGURES
		1: INTRODUCTION
			1.1 PURPOSE OF THIS STANDARD
			1.2 APPROACH OF THIS STANDARD
			1.3 PRINCIPLES OF RISK MANAGEMENT
				1.3.1 STRIVE TO ACHIEVE EXCELLENCE IN THE PRACTICE OF RISK MANAGEMENT
				1.3.2 ALIGN RISK MANAGEMENT WITH ORGANIZATIONAL STRATEGY AND GOVERNANCE PRACTICES
				1.3.3 FOCUS ON THE MOST IMPACTFUL RISKS
				1.3.4 BALANCE REALIZATION OF VALUE AGAINST OVERALL RISKS
				1.3.5 FOSTER A CULTURE THAT EMBRACES RISK MANAGEMENT
				1.3.6 NAVIGATE COMPLEXITY USING RISK MANAGEMENT TO ENABLE SUCCESSFUL OUTCOMES
				1.3.7 CONTINUOUSLY IMPROVE RISK MANAGEMENT COMPETENCIES
			1.4 STRUCTURE OF THIS STANDARD
		2: CONTEXT AND KEY CONCEPTS OF RISK MANAGEMENT
			2.1 KEY CONCEPTS AND DEFINITIONS
				2.1.1 RISK
				2.1.2 OPPORTUNITIES
				2.1.3 THREATS
				2.1.4 RISK ATTITUDE
				2.1.5 RISK APPETITE
				2.1.6 RISK THRESHOLD
			2.2 RISK MANAGEMENT IN ORGANIZATIONS
			2.3 DOMAINS OF RISK MANAGEMENT
				2.3.1 ENTERPRISE
				2.3.2 PORTFOLIO
				2.3.3 PROGRAM
				2.3.4 PROJECT
			2.4 KEY SUCCESS FACTORS
		3: FRAMEWORK FOR RISK MANAGEMENT IN PORTFOLIO, PROGRAM, AND PROJECT MANAGEMENT
			3.1 BUSINESS CONTEXT OF RISK MANAGEMENT IN PORTFOLIO, PROGRAM, AND PROJECT MANAGEMENT
				3.1.1 ORGANIZATIONAL FRAMEWORK
				3.1.2 ORGANIZATIONAL CONTEXT
				3.1.3 STRATEGIC AND ORGANIZATIONAL PLANNING
				3.1.4 LINKING PLANNING WITH EXECUTION THROUGH PORTFOLIO, PROGRAM, ANDPROJECT MANAGEMENT
			3.2 SCOPE OF ACCOUNTABILITY, RESPONSIBILITY, AND AUTHORITY
				3.2.1 ACCOUNTABILITY AT THE ENTERPRISE LEVEL
				3.2.2 ACCOUNTABILITY AT THE PORTFOLIO LEVEL
				3.2.3 ACCOUNTABILITY AT THE PROGRAM LEVEL
				3.2.4 ACCOUNTABILITY AT THE PROJECT LEVEL
			3.3 GENERAL APPROACHES TO RISK MANAGEMENT
				3.3.1 FACTORS FOR EVALUATING RISK
		4: RISK MANAGEMENT LIFE CYCLE IN PORTFOLIO, PROGRAM, AND PROJECT MANAGEMENT
			4.1 INTRODUCTION TO THE RISK MANAGEMENT LIFE CYCLE
			4.2 PLAN RISK MANAGEMENT
				4.2.1 PURPOSE OF PLAN RISK MANAGEMENT
					4.2.1.1 RISK APPETITE IN PLAN RISK MANAGEMENT
					4.2.1.2 TAILORING AND SCALING THE RISK MANAGEMENT PLAN
				4.2.2 SUCCESS FACTORS FOR PLAN RISK MANAGEMENT
			4.3 IDENTIFY RISKS
				4.3.1 PURPOSE OF IDENTIFY RISKS
				4.3.2 KEY SUCCESS FACTORS FOR IDENTIFY RISKS
			4.4 PERFORM QUALITATIVE RISK ANALYSIS
				4.4.1 PURPOSE OF PERFORM QUALITATIVE RISK ANALYSIS
				4.4.2 KEY SUCCESS FACTORS FOR PERFORM QUALITATIVE RISK ANALYSIS
			4.5 PERFORM QUANTITATIVE RISK ANALYSIS
				4.5.1 PURPOSE OF QUANTITATIVE RISK ANALYSIS
				4.5.2 KEY SUCCESS FACTORS FOR PERFORM QUANTITATIVE RISK ANALYSIS
			4.6 PLAN RISK RESPONSES
				4.6.1 PURPOSE OF PLAN RISK RESPONSES
				4.6.2 KEY SUCCESS FACTORS FOR PLAN RISK RESPONSES
			4.7 IMPLEMENT RISK RESPONSES
				4.7.1 PURPOSE OF IMPLEMENT RISK RESPONSES
				4.7.2 KEY SUCCESS FACTORS FOR IMPLEMENT RISK RESPONSES
			4.8 MONITOR RISKS
				4.8.1 PURPOSE OF MONITOR RISKS
				4.8.2 KEY SUCCESS FACTORS FOR MONITOR RISKS
		5: RISK MANAGEMENT IN THE CONTEXT OF PORTFOLIO MANAGEMENT
			5.1 PORTFOLIO RISK MANAGEMENT LIFE CYCLE
				5.1.1 PORTFOLIO RISK IDENTIFICATION
				5.1.2 PORTFOLIO RISK QUALITATIVE AND QUANTITATIVE ANALYSES
				5.1.3 PORTFOLIO RISK RESPONSE STRATEGIES
				5.1.4 IMPLEMENTING PORTFOLIO RISK RESPONSES
				5.1.5 MONITORING PORTFOLIO RISKS
			5.2 INTEGRATION OF RISK MANAGEMENT INTO THE PORTFOLIO MANAGEMENT PERFORMANCE DOMAINS
				5.2.1 PORTFOLIO STRATEGIC MANAGEMENT
				5.2.2 PORTFOLIO GOVERNANCE
				5.2.3 PORTFOLIO CAPACITY AND CAPABILITY MANAGEMENT
				5.2.4 PORTFOLIO STAKEHOLDER ENGAGEMENT
				5.2.5 PORTFOLIO VALUE MANAGEMENT
				5.2.6 PORTFOLIO RISK MANAGEMENT
		6: RISK MANAGEMENT IN THE CONTEXT OF PROGRAM MANAGEMENT
			6.1 PROGRAM RISK MANAGEMENT LIFE CYCLE
				6.1.1 PROGRAM RISK IDENTIFICATION
				6.1.2 PROGRAM RISK QUALITATIVE AND QUANTITATIVE ANALYSES
				6.1.3 PROGRAM RISK RESPONSE STRATEGIES
				6.1.4 IMPLEMENTING PROGRAM RISK RESPONSES
				6.1.5 MONITORING PROGRAM RISKS
			6.2 INTEGRATION OF RISK MANAGEMENT INTO THE PROGRAM MANAGEMENT PERFORMANCE DOMAINS
				6.2.1 PROGRAM STRATEGY ALIGNMENT
				6.2.2 PROGRAM BENEFITS MANAGEMENT
				6.2.3 PROGRAM STAKEHOLDER ENGAGEMENT
				6.2.4 PROGRAM GOVERNANCE
				6.2.5 PROGRAM LIFE CYCLE MANAGEMENT
				6.2.6 SUPPORTING PROGRAM ACTIVITIES
		7: RISK MANAGEMENT IN THE CONTEXT OF PROJECT MANAGEMENT
			7.1 PROJECT RISK MANAGEMENT LIFE CYCLE
				7.1.1 PROJECT RISK IDENTIFICATION
				7.1.2 QUALITATIVE AND QUANTITATIVE PROJECT RISK ANALYSES
				7.1.3 PROJECT RISK RESPONSE STRATEGIES
				7.1.4 IMPLEMENTING PROJECT RISK RESPONSES
				7.1.5 MONITORING PROJECT RISK
			7.2 INTEGRATION OF RISK MANAGEMENT INTO PROJECT MANAGEMENT PROCESS GROUPS
				7.2.1 INITIATING PROCESSES
				7.2.2 PLANNING PROCESSES
				7.2.3 EXECUTING PROCESSES
				7.2.4 MONITORING AND CONTROLLING PROCESSES
				7.2.5 CLOSING PROCESSES
		APPENDIX X1: DEVELOPMENT OF THE STANDARD FOR RISK MANAGEMENT IN PORTFOLIOS, PROGRAMS, AND PROJECTS
		APPENDIX X2: CONTRIBUTORS AND REVIEWERS OF THE STANDARD FOR RISK MANAGEMENT IN PORTFOLIOS, PROGRAMS, AND PROJECTS
			X2.1 THE STANDARD FOR RISK MANAGEMENT IN PORTFOLIOS, PROGRAMS, AND PROJECTS CORE COMMITTEE
			X2.2 SIGNIFICANT CONTRIBUTORS
			X2.3 REVIEWERS
				X2.3.1 SME REVIEW
				X2.3.2 CONSENSUS BODY REVIEW
				X2.3.3 PUBLIC EXPOSURE DRAFT REVIEW
			X2.4 PMI STANDARDS PROGRAM MEMBER ADVISORY GROUP
			X2.5 HARMONIZATION TEAM
				X2.5.1 CORE TEAM
				X2.5.2 PMI STAFF
			X2.6 PRODUCTION STAFF
		APPENDIX X3: PORTFOLIO RISK MANAGEMENT CONTROLS
			X3.1 THE PURPOSE OF PORTFOLIO RISK MANAGEMENT CONTROLS
			X3.2 RISK MANAGEMENT CONTROLS FOR PORTFOLIO STRATEGIC MANAGEMENT
			X3.3 RISK MANAGEMENT CONTROLS FOR PORTFOLIO GOVERNANCE
			X3.4 RISK MANAGEMENT CONTROLS FOR PORTFOLIO CAPACITY AND CAPABILITY MANAGEMENT
			X3.5 RISK MANAGEMENT CONTROLS FOR PORTFOLIO STAKEHOLDER ENGAGEMENT
			X3.6 RISK MANAGEMENT CONTROLS FOR PORTFOLIO VALUE MANAGEMENT
			X3.7 RISK MANAGEMENT CONTROLS FOR PORTFOLIO RISK MANAGEMENT
		APPENDIX X4: PROGRAM RISK MANAGEMENT CONTROLS
			X4.1 THE PURPOSE OF PROGRAM RISK MANAGEMENT CONTROLS
			X4.2 RISK MANAGEMENT CONTROLS FOR PROGRAM STRATEGY ALIGNMENT
			X4.3 RISK MANAGEMENT CONTROLS FOR PROGRAM BENEFITS MANAGEMENT
			X4.4 RISK MANAGEMENT CONTROLS FOR PROGRAM STAKEHOLDER ENGAGEMENT
			X4.5 RISK MANAGEMENT CONTROLS FOR PROGRAM GOVERNANCE
			X4.6 RISK MANAGEMENT CONTROLS FOR PROGRAM LIFE CYCLE MANAGEMENT
			X4.7 RISK MANAGEMENT CONTROLS FOR SUPPORTING PROGRAM ACTIVITIES
		APPENDIX X5: PROJECT RISK MANAGEMENT CONTROLS
			X5.1 THE PURPOSE OF PROJECT RISK MANAGEMENT CONTROLS
			X5.2 RISK MANAGEMENT CONTROLS FOR PROJECT INTEGRATION MANAGEMENT
			X5.3 RISK MANAGEMENT CONTROLS FOR PROJECT SCOPE MANAGEMENT
			X5.4 RISK MANAGEMENT CONTROLS FOR PROJECT SCHEDULE MANAGEMENT
			X5.5 RISK MANAGEMENT CONTROLS FOR PROJECT COST MANAGEMENT
			X5.6 RISK MANAGEMENT CONTROLS FOR PROJECT QUALITY MANAGEMENT
			X5.7 RISK MANAGEMENT CONTROLS FOR PROJECT RESOURCE MANAGEMENT
			X5.8 RISK MANAGEMENT CONTROLS FOR PROJECTCOMMUNICATIONS MANAGEMENT
			X5.9 RISK MANAGEMENT CONTROLS FOR PROJECT RISK MANAGEMENT
			X5.10 RISK MANAGEMENT CONTROLS FOR PROJECT PROCUREMENT MANAGEMENT
			X5.11 RISK MANAGEMENT CONTROLS FOR PROJECT STAKEHOLDER MANAGEMENT
		APPENDIX X6: TECHNIQUES FOR THE RISK MANAGEMENT FRAMEWORK
			X6.1 RISK MANAGEMENT PLANNING
			X6.2 IDENTIFY RISKS
				X6.2.1 ASSUMPTIONS AND CONSTRAINTS ANALYSIS
				X6.2.2 BRAINSTORMING
				X6.2.3 CAUSE AND EFFECT (ISHIKAWA) DIAGRAMS
				X6.2.4 CHECKLISTS
				X6.2.5 DELPHI TECHNIQUE
				X6.2.6 DOCUMENT REVIEW
				X6.2.7 EXPERT JUDGMENT
				X6.2.8 FACILITATION
				X6.2.9 HISTORICAL INFORMATION
				X6.2.10 INTERVIEWS
				X6.2.11 PROMPT LISTS
				X6.2.12 QUESTIONNAIRE
				X6.2.13 ROOT-CAUSE ANALYSIS
				X6.2.14 SWOT ANALYSIS
			X6.3 QUALITATIVE RISK ANALYSIS
				X6.3.1 AFFINITY DIAGRAMS
				X6.3.2 ANALYTIC HIERARCHY PROCESS
				X6.3.3 INFLUENCE DIAGRAMS
				X6.3.4 NOMINAL GROUP TECHNIQUE
				X6.3.5 PROBABILITY AND IMPACT MATRIX
				X6.3.6 RISK DATA QUALITY ANALYSIS
				X6.3.7 ASSESSMENT OF OTHER RISK PARAMETERS
				X6.3.8 SYSTEM DYNAMICS
			X6.4 QUANTITATIVE RISK ANALYSIS
				X6.4.1 CONTINGENCY RESERVE ESTIMATION
				X6.4.2 DECISION TREE ANALYSIS
				X6.4.3 ESTIMATING TECHNIQUES APPLIED TO PROBABILITY AND IMPACT
				X6.4.4 EXPECTED MONETARY VALUE
				X6.4.5 FMEA/FAULT TREE ANALYSIS
				X6.4.6 MONTE CARLO SIMULATION
				X6.4.7 PERT (PROGRAM OR PROJECT EVALUATION AND REVIEW TECHNIQUE)
			X6.5 PLAN RISK RESPONSES
				X6.5.1 CONTINGENCY PLANNING
				X6.5.2 FORCE FIELD ANALYSIS
				X6.5.3 MULTICRITERIA SELECTION TECHNIQUE
				X6.5.4 SCENARIO ANALYSIS
				X6.5.5 SIMULATION
			X6.6 RESPONSE PLAN IMPLEMENTATION
			X6.7 MONITOR RISKS
				X6.7.1 DATA ANALYTICS
				X6.7.2 RESERVE ANALYSIS
				X6.7.3 RESIDUAL IMPACT ANALYSIS
				X6.7.4 RISK AUDIT
				X6.7.5 RISK BREAKDOWN STRUCTURE
				X6.7.6 RISK REASSESSMENT
				X6.7.7 SENSITIVITY ANALYSIS
				X6.7.8 STATUS MEETINGS
				X6.7.9 TREND ANALYSIS
				X6.7.10 VARIANCE ANALYSIS
			X6.8 RISK MANAGEMENT TECHNIQUES RECAP
		APPENDIX X7: ENTERPRISE RISK MANAGEMENT CONSIDERATIONS FOR PORTFOLIO, PROGRAM, AND PROJECT RISK MANAGEMENT
		APPENDIX X8: RISK CLASSIFICATION
		APPENDIX X8RISK CLASSIFICATION
		REFERENCES
		GLOSSARY
		INDEX
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