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PMP lesson · Risk · Risk management · lesson 1 of 3 · about 8 minutes

Risk process and the risk register

All approaches (predictive, agile, hybrid)Free preview
Goal: After this lesson you can tell a risk from an issue, describe the risk process in order, and write a proper entry in a risk register.

1The situation

“Nothing went wrong… yet”

Kick-off of the robot cell. The team is optimistic. But you notice three things: the vision supplier has never inspected this part type, the guarding supplier is very busy, and nobody has measured the customer's compressed air.

None of these is a problem today. Each one might become a problem later. That is exactly what a risk is: an uncertain event that, if it happens, affects the project.

Good project managers do not wait for problems. They find risks early, decide which ones matter, and prepare a response while it is still cheap.

2Risk, issue or assumption?

Three words that the exam loves to mix up:

Risk
Might happen
An uncertain future event. Can be negative (threat) or positive (opportunity).
The guarding may arrive late.
Issue
Has happened
A current problem that needs action now. Goes in the issue log.
The guarding is late; it arrived today.
Assumption
Believed true
Something we treat as true without proof. If it is wrong, it can create a risk or an issue.
The customer's air supply is 6 bar.
A risk that occurs becomes an issue. If it was planned, implement the planned response. If it was not planned, create a workaround.

3See it in one picture: the risk process

1

Plan

Decide how risk will be managed: method, roles, risk appetite, thresholds.
2

Identify

Find risks: workshops, checklists, lessons learned, assumptions.
3

Qualitative

Rank risks by probability and impact. Fast, for every risk.
4

Quantitative

Put numbers on the biggest risks: EMV, Monte Carlo, decision trees.
5

Plan responses

Choose a strategy and an owner for each important risk.
6

Implement

The risk owner executes the planned response when needed.
7

Monitor

Track triggers, review risks, find new ones, audit the process.

↻ Step 7 feeds back into step 2: risk management continues for the whole project.

Risk management is a loop, not a one-time workshop. New risks appear throughout the project.

4How it looks on the exam

Exam-style question 1. During execution, a key component supplier informs the project manager that delivery will be three weeks late. This possibility was never identified in the risk register. What should the project manager do FIRST?
A. Add the late delivery to the risk register and assess its probability
B. Develop a workaround to minimise the impact and record the event in the issue log
C. Wait for the next risk review meeting
D. Implement the contingency plan for supplier delays
Show the answer and the decode
Answer: B.
In simple English
Something unplanned has already happened.
What is the question really asking?
The first step.
Key words / trigger
“will be three weeks late … never identified”
PMP logic
It has happened, so it is an issue, not a risk. No response was planned, so the PM creates a workaround and logs the issue.
Why the wrong answer looks attractive
Adding it to the risk register looks methodical, but you do not register a risk for something that has already occurred.

5Remember this

Your memory card

  • Risk = may happen · Issue = has happened · Assumption = believed true
  • Write risks as cause → event → effect
  • Every risk: owner, probability, impact, trigger, response
  • Risk management is a loop for the whole project; thresholds decide what to escalate
The full lesson in the PMCLEAR app also has:
  • the rest of the lesson (Write risks properly, Risk appetite and thresholds)
  • a worked example
  • the common traps (wrong vs right)
  • 2 exam-style questions with the decode
  • a 3-question quick check
Open the full lesson → Create a free account
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