PMI Project Risk Management CoP webinar 12/19 - Integrating Earned Value with Risk Management

There will be a PMI Project Risk Management CoP webinar titled “Integrating Earn Value with Risk Management" on  12/19at 12h00 Eastern.  This subject is very interesting and was the subject of a post by Glen Alleman.

I won’t be able to attend due to other commitments but will review the recording when it becomes available.

Comments

[Glen B. Alleman]

Pat,

Gregg provided usefull information. But there are few clarifications needed.

In one of your answers you mentioned that NOT using the risk management budget could create a variance in the PMB. You suggested that you manage the risk budget separately and that is not compliant with 748B.

Risk handling activities can be placed in separate Work Packages. If that Work Package is not started, then a Budget Change Request (BCR) can move that un–started work back to MR. So the unused risk handling (the preferred term) will not positively impact the performance when not used. One principle of EV is that "value" is earned (for discrete activities) when something is produced. If the Risk WP is nit used nothing was produced, so that value should not be earned and that budget can be moved with a Budget Change Request (BCR).

It was also mentioned that in government projects, they don’t like to see MR.

This is not the case. The CBB includes MR and is reported in DID 81466 Format 1, Field 1.f.

In most contracts the level of MR is defined during the Integrated Baseline Review (IBR) as part of the Integrated Risk Assessment process, using Monte Carlo or Method of Moments as you suggested in the webinar. But the customer is critically interested in MR, it’s management, and its burn down.