Original subtitles

Welcome to Part B of Session 2 in our Project Risk Management course.

In this section, we will explore stakeholder involvement and how risk

shapes project decisions.

These topics are key to building realistic plans and managing

the start.

In every project, different stakeholders have different levels of comfort to

treat. Some are open to bold moves and high potential rewards, while others are

more cautious and focused on avoiding loss.

This range is called risk tolerance, and it plays a major role in how people

support project decisions.

As a project manager, you need to know where each key stakeholder stands.

Are they risk -seeking, risk -neutral, or risk -averse?

This shapes how you talk about risk, how you explain your decisions, and even

how you choose your responses.

The more clearly you understand their risk tolerance, the more effective and

aligned your risk strategy will be.

Stakeholders can come from both inside and outside the organization, and each

one may view risk in a different way.

Internally, you might work with management, project team members, or

departments like marketing and procurement.

Externally, stakeholders could include customers, suppliers, or even the

But it is not just about who they are. It is also about how much power and

influence they have. That is where power influence grid comes in.

Stakeholders with high power and high influence need to be managed closely,

while others may only need regular updates or occasional engagements.

Their attitude toward risk also varies.

Some actively seek risk in hopes of achieving innovation or growth.

Some are comfortable with uncertainty, while others prefer to avoid risk and

stick with it. safer option.

Every stakeholder has a different comfort level when it comes to risk and

is what we call risk tolerance.

It reflects how much uncertainty a person is willing or unwilling to accept

it can vary across areas like cost, scope, quality, time and customer

satisfaction.

As a project manager, it is important to access the risk tolerance of your key

stakeholders, especially the project sponsor.

You cannot manage risk well if you don't know what your stakeholders can handle.

One way to understand this is by asking questions.

For example, how much are you willing to invest if things go wrong?

What is the minimum outcome that would still be acceptable to you? What worries

you most about this project?

These kinds of questions help you adjust your approach and show that you respect

their expectations.

A stakeholder management plan helps identify and track stakeholders, assess

their influence and support, and define engagement strategies such as monitor,

inform, satisfy, or manage closely.

The plan assigns responsibilities and tracks communication to keep

appropriately engaged, minimizing resistance, and boosting project

Plan risk management is about deciding how you will approach risk throughout

project. It is not something extra on the side. It is actually a key part of

overall planning process.

The main point is that your time and effort for risk management should match

size and importance of the project.

Why does this matter?

Without a clear plan, you might miss major risks. Your team may not set aside

enough resources, and everyone could end up handling risks in different ways.

But when you plan ahead, you bring focus, consistency, and the right level

effort to deal with uncertainty more effectively.

Effective risk planning is more than just writing down a list of risks. It is

smart and proactive way to improve your project's chance of success.

First, it helps you spot impossible projects early so you can stop or

them before wasting time or resources.

It also gives you a strong reason to push back on unrealistic goals when the

project is over -constrained.

Most importantly, it helps prevent good projects from failing due to poor

execution.

Good planning brings many practical benefits.

Projects start more smoothly and there is less confusion.

Teams make fewer mistakes and don't spend extra time fixing problems.

Resources are used more wisely.

You catch problems earlier and respond to them better. And overall, your

decisions are stronger because you have a clearer picture on the risks ahead.

One important thing to consider is that not every project needs a full risk

management plan, but when it does, timing really matters.

You will want to create a risk plan, especially when the project introduces

something new, like a process, product, or service, because anything new usually

brings uncertainty.

Also, if the project could impact safety, quality, or customer service,

planning for risks becomes crucial.

These areas are sensitive and even small issues can have serious consequences.

And finally, when a project is large, complex or costly, there is simply more

stake. More things can go wrong and that's why early planning helps you stay

control and reduce surprises.

Once you have decided that risk planning is necessary, the next question is what

should actually go into that plan?

A strong risk plan usually begins with a clear overview of your overall approach

to managing risk.

Then it gets into the details.

You will need to outline what methods or tools you will use, who is responsible

for each part, and what standards or definitions you will follow for risk

categories and reporting.

It should also include how often risks will be reviewed and how the team will

track and report them.

Now, if your project is large or complex, you will need a bit more

Define your key risk activities clearly, like identification, analysis, or

control. Make sure there is a dedicated budget and a staff for each risk effort.

And don't forget to include some extra funds so you will be prepared if things

don't go according to the plan.

When you finish planning for risk management, there are several important

outputs that guide you how your team will move forward.

First, you define the overall risk strategy, which explains how you plan to

with risk throughout the project.

Then you outline the methodology, including the tools and techniques your

will use. You also assign rules and responsibilities so everyone knows who

doing what when it comes to identifying and managing risks.

Funding is another key output, making sure that the project has enough

set aside for risk responses.

Timing tells you when each risk -related task will happen and how it fits into

the overall schedule.

You will also group risk using a risk breakdown structure, making them easier

organize and analyze.

Finally, it is important to define stakeholder risk appetite and create

definitions for probability and impact so the whole team evaluates risk the

way.

This table is a super handy tool to help you track project risks one by one,

figure out how serious they are, and come up with a response plan.

You write down who spotted the risk and when, estimate how likely it is and how

big the impact could be, then multiply those two numbers to get a score.

Based on that score, the risk gets a color, red, yellow, or green, so you

how urgent it is.

Then you assign someone to take care of it, pick a response type, like reduce it

or transfer it, and write out the plan with a due date.

Basically, this table helps keep everything clear and organized and

all risks receive the appropriate level of care.

And here is a quick look at the plan risk management process broken down into

three simple parts.

First, we have got the inputs.

These are the key documents and resources like the project charter and

stakeholder info that help us understand the bigger picture.

Next are the tools and techniques like expert judgment and stakeholder

which help us figure out how to handle risk in a smart way.

And finally, the output is our risk management plan, the document that pulls

all together and guides how we will manage risk throughout the project.

The risk management process is like a smart cycle that helps the team stay one

step ahead.

It starts when a potential risk pops up. Whenever that happens, we lock it into

the risk register so it doesn't get lost.

Then we look at how likely it is and how much impact it could have.

That helps us figure out which risks need serious attention.

Next, we plan what to do about it. Accept it, avoid it, reduce it, or hand

off to someone else.

Once the plan is in motion, we keep monitoring to risk to make sure our

is working or change it if new things happen.

And the best part, this process isn't one and done. It keeps looping every

a new risk shows up, keeping the team sharp and ready to out the project.

To wrap up this session, please review the materials listed in this table.

And here is what you need to do for this week. Start by replying to at least two

of your classmates on discussion board one. Then complete quiz two.

And finally, continue making progress on project milestone one. It is a great

opportunity to put your learning into action.

And that brings us to the end of today's session on planning risk management.

Stay on track and if you have any questions, feel free to send an email or

it on the discussion board. Thank you very much again for watching this video.