APM Project Risk Management Level 2

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The Level 2 Certificate is designed to determine an individual’s knowledge and understanding as well as capability in project risk management, sufficient to allow an individual to undertake formal project risk management. It assumes the knowledge stated in the level 1 syllabus (or APM-PMQ).

Description

The Level 2 Certificate is designed to determine an individual’s knowledge and understanding as well as capability in project risk management, sufficient to allow an individual to undertake formal project risk management. It assumes the knowledge stated in the level 1 syllabus (or APM-PMQ).
The syllabus defines the topics that a candidate taking the Project Risk Management Single Subject Certificate
Examinations. The syllabus is largely derived from the APM Body of Knowledge 5th edition and APM’s own Project Risk Analysis and Management (PRAM) Guide 2nd edition.

Topics Covered

1 General
• Definitions
• Background to project risk management
2 Benefits
• Hard benefits of project risk management
• Soft benefits of project risk management
• Threats to effective risk management
3 Principles
• Risk as threat and opportunity
4 Process
• Identification of project objectives, scope, stakeholders and success criteria
• Identification of risks – see 8.1
• Assess risks qualitatively and quantitatively
• Selection of appropriate risk response strategies dependent on importance of the risk event and cost benefit of the response
5 Organisation and control
• The risk management plan
• Responsibilities of different roles in the risk management process:
• Control of the process - risk management plan, risk register, risk analysis, risk status reports, risk reviews, lessons learnt
• Project contingency or management reserve
6 Behaviour
• Risk attitude of individuals
• The risk attitude spectrum
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• Biasing influences on individual risk attitude – the triple strand
• Biasing influences on group risk attitude
7 Application
• Introducing risk management into an organisation
• Getting buy-in to risk management
8.1 Risk identification techniques
• Uses of different risk identification techniques
8.2 Qualitative risk assessment
• Uses of different qualitative risk assessment techniques
• Prioritisation of risks based on probability, impact and proximity
8.3 Quantitative risk assessment
• Uses of different quantitative risk assessment techniques:
8.4 Risk response
• Uses of different techniques for responding to risks, such as for threats and opportunities
3 Principles
• Risk as threat and opportunity
• Project risk and risk events
4 Process
• Different phases of the PRAM process
• Scale the application of project risk management to the size, complexity and stage of the project
4.1 Initiate
• Identification of project objectives, scope, stakeholders and success criteria
4.2 Identify
• Identification of risks a) Identify risks from a case study, in the form cause - risk event - effect
4.3 Assess
• Assess risks qualitatively and quantitatively
• Use of appropriate probability distributions
• Prioritisation of project risks
4.4 Plan Responses
• Selection of appropriate risk response strategies dependent on importance of the risk event and
• cost benefit effectiveness of the response. For clarity, cost benefit analysis means the total cost of
• applying a response (including direct cost and the expected value of any secondary risk) against the benefit of the expected reduction in the expected value of the risk
• Selection of risk owners
5 Organisation and control
• The risk management plan
• Responsibilities of different roles in the risk management process
• Control of the process – risk management plan, risk register, risk analysis, risk status reports, risk reviews, lessons learnt
• Project contingency or management reserve
• The importance of continued risk ownership and regular risk reviews
6 Behaviour
• Human factors in risk management
• Potential biasing effect of the triple strand of influences on risk attitude (and therefore judgement in risky situations)
0118 321 5030
40 Caversham Road
Reading, Berks
RG1 7EB
7 Application of PRAM
• Introducing risk management into an organisation
• Getting and maintaining buy-in to risk management
8.1 Risk identification techniques
• Uses and benefits of different risk identification techniques
8.2 Qualitative risk assessment
• Uses and benefits of different qualitative risk assessment techniques
• Risk breakdown structures
8.3 Quantitative risk assessment
• Uses and benefits of different quantitative risk assessment techniques
• Use of probability distributions specific to Monte Carlo:
• Correlation, criticality index, cruciality and statistical terms
• Net present value and internal rate of return assessment
8.4 Risk Response