Original subtitles

Hello everyone and welcome to the first session of project risk management.

In this session, we will build a broad understanding of what risk means in

projects, why managing risk is important, and we will take an initial

some of the tools and strategies we will be using throughout this course.

In this part of session one, we will focus on the basic concepts of risk

management. We'll explore what risk really means, how it relates to

and why every project naturally involves some level of risk.

This understanding will form the foundation for everything we will cover

course.

And before we dive into today's content, please take a moment to watch this

short video.

It is a fun and engaging way to introduce some of the key concepts we

discussing today about the risk management.

you can access this video by clicking on the link provided on this slide or

simply go to the related page on canvas and watch the video once you're done we

will move forward with exploring some of the main ideas together now that you

watch the video it's time to talk a little bit more about risk Risk is

officially defined as an uncertain event or condition that, if it occurs, can

provide a negative or even positive impact on one or more project

That's why every project inherently involves risk, because outcomes are

fully predictable.

Uncertainty is simply the lack of complete knowledge about issues, events,

paths, or solutions.

Have you ever wondered if the level of risk increases as projects become more

modern and complex?

Well, modern projects usually face higher levels of risk.

They tend to be more complex, subject to more frequent change, and operate in

fast evolving environments.

On top of that, they often have to perform with limited funding, staffing,

equipment, making risk management even more critical.

As a project moves forward through its lifecycle, the number of newly

risks decreases.

However, cost of addressing any risks that do emerge becomes higher.

That's why identifying risks early in the project is key to saving time,

and effort.

And now let's talk about risk and information.

Risk and information are inversely related.

At the start of a project, when we have limited information, the risk is higher.

As we gather more data and understanding over time, risks tend to decrease.

Risk management helps bridge that initial information gap.

Now let's look at some of those real -world examples and explore the risks

can threaten their objectives.

In a bridge construction project, typical risks include delays in

permits, Bad weather disrupting construction, increasing in material

safety hazards for workers, and design changes that are usually requested by

client during the execution or even after execution.

By contrast, in a mobile application development project, risk could include

changing customer requirements, unexpected technical problems,

team members being unfamiliar with new technologies.

Delays in delivering prototypes and user dissatisfaction with the final product.

So as you can see, the risk can be different from one project to another

based on the scope and activities that are in those projects.

And what about organizing an international conference?

Do you think that there are risks associated with those types of the

Well, of course, yes. The answer is always yes.

These projects also have some problems like key speaker cancellation at the

moment, visa or travel issues for international participants, technical

like Internet outage, the outbreak of diseases that could cancel the event.

What a low turnout of participants, Bill. That one is the worst one,

And how about launching a new production

in a factory?

So risks here might include delays in delivery of machinery, installation and

setup if used, the need of retained staff to use new technology, unexpected

increase in operational costs, and failure to meet the planned production

capacity.

Now that you have some general insights about different projects and risks that

associate with each of them, let's think about these questions together.

Do different projects or industries deal with the same kind of the risks?

Obviously not.

Is it possible to completely prevent the negative consequences of the risks?

And if not, what are strategies or methods can be used in order to manage

effectively and mitigate the outcomes?

Well, that's why we need to increase our knowledge about project risk

management.

When it comes to international projects, the risks are even greater and more

complicated. This table highlights the top risk factors that can impact

international projects. And as you can see, those risks are categorized into

groups.

Resources, regulations,

crisis, insurance, science and health, and digital.

Each category presents unique challenges.

such as supply chain disruptions, political transitions, financial crisis,

insurance market instability,

public health threats, and even cybersecurity risks.

As a project manager, being aware of these risks can help you better

challenges and prepare more effective risk management strategies.

Additionally, different industries face different types of risks.

For example, oil and gas, heavy equipment manufacturing,

telecommunications, construction, software, banking, and insurance, each

have their own unique challenges that could be different from other

challenges.

Alright, now let's focus on the elements of a risk.

Risk can be understood as a product of two factors, the probability of an

That will occur and then the consequence of it if it really happens.

Another way to look at it is a function of hazards and safeguards. There are

hazards of source of potential harm and safeguards are measures taken to prevent

or reduce the impact of those hazards.

Surprisingly, not all risks necessarily lead to negative outcomes.

In some cases, risks, when managed well, they can turn into opportunities that

can positively impact project objectives.

For example, completing a construction project ahead of schedule or using

innovative techniques to lower costs can provide significant benefits.

In the bridge construction project, opportunities might include finishing

construction earlier than planned,

And this allows for earlier traffic flow and revenue generation.

Or using new construction techniques could lower material and labor costs and

successfully completing the project could boost the company's public

And all of these are definitely opportunities.

Now, can you think of a few potential opportunities for the other project

examples that we discussed earlier?

For instance, what opportunities might arise during mobile application

development project or those for international conference organization

There are generally three types of opportunities in projects.

First, opportunities that are related to deliverable choices.

like selecting better technology.

And these types of opportunities usually happen due to our choices and decisions

in initiating phase.

Second, opportunities that emerge during planning and execution phases, like

optimizing workflows to save time or cost.

And then finally, the third one belongs to opportunities that come from

uncertainties in project activities, like completing tasks earlier than

expected.

Now let's focus on the risk management in PMBOK 6th edition and 7th editions.

While the 6th edition focuses more on defined processes, the 7th edition

border view of uncertainty and performance in dynamic environment.

We will explore concepts from both editions throughout the course wherever

necessary.

And the seventh edition of PMBOK introduces a broader perspective,

that projects operate in uncertain, complex, and rapidly changing

Managing uncertainty effectively is a key component of modern project risk

management.

Okay, let's focus on project risk management.

Project risk management involves a series of processes.

planning risk management, identifying risks, performing qualitative and

quantitative risk analysis, planning risk responses, implementing those

responses, and monitoring risks throughout the project.

Together, these steps help ensure risks are managed proactively rather than

reactively.

Effective risk management brings many benefits.

It helps lower overall project costs and reduces chaos.

It improves the chance of meeting project objectives, increases project

and management support.

It helps balance high -risk and low -risk projects in an organization.

It strengthens communication within the team and justifies the need for schedule

and budget reserves.

Risk management mainly focuses on schedule and cost -based risks.

However, today's projects, specifically those involving advanced technologies,

have shifted the focus toward technical risks.

Questions like, can we design and build this product?

Or will this technology become outdated soon? Are among those most frequently

questions that usually asked by the project manager.

Projective risk management is always preferred over crisis management, but

are the differences between these two?

Waiting until a problem becomes a crisis usually means using more resources,

taking longer to recover, and dealing with greater disruption.

That's why early and continuous risk management is so critical to project

success.

Now that we have got our brains warmed up with risk and uncertainty, it is time

to flash back to the definition of uncertainty that we discussed at the

beginning of today's lesson.

According to the PMBOK 7th edition, uncertainty can be broken down into

different aspects.

Risk refers to uncertain events that could impact the project, specifically

project outcomes.

Ambiguity is about unclear causes or multiple possible outcomes.

Complexity arises from dynamic system and human behavior.

And finally, volatility represents rapid and unpredictable change.

Understanding the difference between these aspects can help us manage

more effectively.

okay and i think that should be enough for part a of today's session part b and

c are really easy not that much detail but please make sure that you will take

some time to review the materials that are listed for you here

here are your tasks and activities for this session first make

sure to participate in discussion board one by posting your response Then

complete quiz one, which covers the syllabus content.

And finally, please watch case study one, which focuses on the Panama Canal

project. These activities will help reinforce the key concepts we've

today.

And this wraps up our first session's overview of project risk management.

If you have any questions, thoughts, or ideas you'd like to share about what

we've discussed today, feel free to reach out.

thank you very much for watching this video