 Hello friends, today we are discussing on the project risk of project management. I am Satish Parani working as an assistant professor in Department of Mechanical Engineering Vulture Institute of Technology. Learning outcome. At the end of this session, students will be able to understand the process of identifying, analyzing and responding to the project risk. First, we will understand what are project risk, a small definition and what is proactive risk and reactive risk. And process of project risk plan means what are the steps involved in it. Let us understand first the basics. Project risk management begins early in life cycle. As we are all aware of the process, there is initiation, planning, execution, control and finally the closure of the projects. So project risk management begins in the early life cycle. In the starting from that initiation part, a clear understanding of the risk that face the project must be established. Typical examples include the loss of key team member, whether emergencies, technical failures and poor supplies. We will have a typical example here. Somebody suddenly in a team, we have lost it. Lost in the sense because of he has some certain kind of issue in his family. So he want to ship and leave the company. Sometimes his health problems are there, sometimes he might expire. Emergencies, as in the COVID cases we have observed, these kind of emergencies are there. Technical failures, we have seen in previous, in many more cases, there are certain technical failures and poor supplies. Poor supplies, if it all from what is the poor supplies, poor supplies, it is from nearby supplier. We can have little bit of, we can say have a control, but its supplier is located far, far beyond means it is overseas. How can it be controlled? We have to be making certain plan over that. These are the risk involved. Sometimes suppliers plunge, sometimes other also, sometimes the vehicle coming towards your factory has certain issue and suddenly it gets fail in the middle. How to manage? So we need to think all these aspects. We have to note it, we need to jot it down. This section introduce general concept of risk and briefly discuss what should be done early in the process. What are the buffers? Where are the buffers to be keep? Why they have to be kept? Let us understand it, definition. Project risk management is the process of conducting risk management planning, identification, analysis, response planning and monitoring and control on the project. Project risk management, this is a simple definition of project risk management. The process of conducting risk management planning, identification analysis, response planning and monitoring and control on the project. Now we will understand there are two types of project risk, proactive risk and reactive risk. Let us go into that. Many project managers wait too long to assess risk factors and delay the risk plan because they assume they don't know enough yet and there are too many unknowns. This is common trap that you should try to avoid. We don't know anything. So we cannot have, we have to learn, we have to search from the previous projects. We have to understand the previous projects, what are the risk involved, similar projects. We have to have a common brainstorming session among our employees within the team, outside the team. We can have certain kinds of meetings available. A brainstorming session should be done, which will help us to jot it down. What are the risks involved in that? Many times it happens, everything is going right, suddenly some, some we have not planned for that. We have not in, because many times because certain ego issues or because of some negligency we do not involve outside persons or person from other team. During the initiation phase of the project lifecycle and initial high level assessment ought to be conducted. You, your team members should take a strategic approach, what can go wrong? A big brainstorming session has to be there and big laying the foundation of detail plan to be followed, depth wise each detail plan need to be seen. Other team members, cross functional team should be involved in that. Project often experience a negative impact of risk that become reality, risk that might have been prevented or mitigated to contingency planning. If you have not planned that risk, a simple risk, it becomes reality. Once it becomes reality, the project get delays and delays are always associated with cost impact and future loss of business in many cases we will see. So we do not have to work on the reactive basis, we have to work on the proactive basis and this happens only when we try to communicate properly, when we involve other stakeholders, when we involve within team, outside team members, we have to learn from old projects. This is reactive behavior and you must live in the proactive world to successful project manager always be in the proactive world. He will see, he forecast the problems, potential opportunities are sometimes referred to the positive risk where the project manager strives to optimize the project impact on the project objectives. Many times during communication with the overseas or brainstorming session with the team, certain risk can be avoided or different approach, different theme can come out, which is different theme which will save your money, save your time, certain new click will be there, there will be certain kind of innovations will be there, ideas can be generated and this can lead to positive risk and project manager should have the ability to utilize this positive risk. Now in the future, these are generally six steps followed for the risk plan. The six step process is common and practical approach to establishing the project risk plan. This process should not be created in vacuum and typically involves a great deal of research, collaboration within the project team. Within the project team, I understand the project team also meant not only our team members who are watching towards projects, the stakeholders are there. Stakeholders, the outside world, the vendors are there who are working over there. What is the project, these are six steps, what are these six steps? This first step is to make the list, make the list of all possible risk involved in that, what are the risks and what state it is going to be, it is going to be better and then risk has to be determined, the probability of risk of occurrence and negative impact. I have combined the step two and three because they are interrelated, they are dependent on each other. After making the list, we have to define the probability whether the risk is high, whether the risk is low, whether the risk is medium and what is impact, risk impact is whether positive or negative impact and if it is negative impact, how much? In coming lectures, we will see in depth. Then the next step is to prevent or mitigate the risk, whether we are able to, as a proactive project manager, whether we are able to prevent or mitigate the risk, whether that has to be there, risk will occur, yes, if we are planning means we can prevent or at least mitigate the risk. Then next, we will have to consider the, for that risk, what are the contingencies? After considering the contingencies, next is trigger point, where we need to really act it? It is where the buffer has to be kept, let us say, when it has to be triggered, what point we need maximum attention? What points we need maximum support from our team members, our top management bosses or other stakeholders? There we have to be very clear that soon we should not, if that is miss means we have to, we are late. Let us say in that trigger point, it is going to be late, material is going to be late, we have understand contingency plan, yes, we are understand, it is coming next flight. That flight, we need to be tracked very clearly there, when it is going land, where exact, when it is going to, material is going to be loaded, when it is going to offload it, whether it is coming out, once the many times it happens, the material also reaches the airport by the North Gimpro factory, because of certain process issue, we can say or negligency, we can say. So these are steps involved, six steps basically followed for project risk planning. We will deal in depth in coming lectures. Now, think, determining the probability of risk occurrence and negative impact is a step ahead of making the risk plan, probability of risk occurrence and negative impact is the step which is ahead or previous to the making the risk plan, true or false? Yes, you are true, means it is false because without making a risk plan, how can we make impact analysis? References used are from again from NPTEL, web material and the project management and control book by Narendra Singh Ihmab, from Himalaya Publication. Thank you.