All language subtitles for KU PMGT 823 Session 2 (Part D)-Part D Stakeholders, Risk Tolerance and Risk Management Plan

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.