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11 - PROJECT RISK MANAGEMENT

11.6.2.3 Variance and trend Analysis

Many control processes employ variance analysis to compare the planned results to the actual results. For the
purposes of controlling risks, trends in the project’s execution should be reviewed using performance information.
Earned value analysis and other methods of project variance and trend analysis may be used for monitoring overall
project performance. Outcomes from these analyses may forecast potential deviation of the project at completion
from cost and schedule targets. Deviation from the baseline plan may indicate the potential impact of threats or
opportunities.

11.6.2.4 technical Performance Measurement

Technical performance measurement compares technical accomplishments during project execution to the
schedule of technical achievement. It requires the definition of objective, quantifiable measures of technical
performance, which can be used to compare actual results against targets. Such technical performance measures
may include weight, transaction times, number of delivered defects, storage capacity, etc. Deviation, such as
demonstrating more or less functionality than planned at a milestone, can help to forecast the degree of success
in achieving the project’s scope.

11.6.2.5 reserve Analysis

Throughout execution of the project, some risks may occur with positive or negative impacts on budget or
schedule contingency reserves. Reserve analysis compares the amount of the contingency reserves remaining to
the amount of risk remaining at any time in the project in order to determine if the remaining reserve is adequate.

11.6.2.6 Meetings

Project risk management should be an agenda item at periodic status meetings. The amount of time required
for that item will vary, depending upon the risks that have been identified, their priority, and difficulty of response.
The more often risk management is practiced, the easier it becomes. Frequent discussions about risk make it more
likely that people will identify risks and opportunities.

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