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Steps Involved in Risk Management for an Improved Project Execution

1. What is risk management and why is it important?Risk is an uncertain event which could possibly on its occurrence, affect the ongoing project life-cycle/ phase and in turn the project’s outcome. A risk may be a potential hazard to the planned outcome of the project in terms of Cost, Time and Quality. However, in a few cases, the risk may turn out to be a positive catalyst to the project.Uncertainties in a project may be anticipated mostly based on experience and historical data which can be mitigated or avoided while few cannot be anticipated turning out to be absolute disasters ruining the project outcome out-and-out.One can compare the risks/ uncertainties with occurrence in every individual’s life shackling its progress. Attending untimely or de-efforts to mitigate it may lead to tragedy. Hence, managing such risks is of utmost importance to safeguard the interests of the project or life. Nevertheless, life is also a project with many phases in it.The objectives of the risk management initiative are toensure compliance with applicable rules and regulations,assurance that the activities comply with PACED (will be discussed later in this article),support decision-making with appropriate risk-based information,thus assisting in enhancingthe efficiency of operations,the effectiveness of processes andefficaciousness of strategies.2. What are the five steps in the risk management process?For a successful risk management, there are five (5) steps to be executed in a proper manner.Plan Risk Management - defining methodology to be applied for managing the risk.Identify the Risk(s) - listing out the possible uncertain events those could affect the project outcome.Perform Risk Analysis - analysing the probability of occurrence of the risk and its possible impact (Qualitative) on the project outcome based on the numerical analysis (Quantitative).Plan Risk Response(s) - developing strategies for the possible and probable risks to either enhance the positive effect or reduce the negative consequence.Control Risk(s) - performing all the above steps/ identifying new risks/ evaluating risk process effectiveness throughout the project.3. What are the 4 process steps of risk management?The four (4) process steps involved in risk management are:Identify - distinguishing the possible risksAssess - analyzing the probable impact of the identified risksControl - managing or mitigating the risks depending on the risk natureReview - evaluating the process of risk management to the requirements4.What are the methods of risk management?Methods of risk management include:Risk strategyRisk management frameworkRisk management documentationRisk management responsibilitiesRisk-aware cultureRisk training and communicationRisk assessmentImportance of and approaches to risk assessmentShort, Medium and Long-term risksRisk likelihood and impactLoss controlRisk responseImportance of risk appetite - risk capacity and risk exposure4Ts of hazard response - Tolerate, treat, transfer and TerminateRisk control techniques - Preventive, Corrective, Directive and DetectiveRisk assurance and reportingEvaluation of control environmentActivities of an internal audit functionRisk assurance techniques - audit committeesReporting on risk management - risk documentationImportance of corporate reputation5. How do you project risk management?Risk Management in project has become of utmost priority because of experiencing global financial crisis and increase in a number of corporate failures, also, increasing stakeholder expectations.Whichever the field the project is, there is always a possibility of encountering risks which may or may not be averted depending on its nature. However, risk management is everyone’s responsibility.Here, I would like to mention the 10 myths of risk management by Dr. David Wilson which clearly states what risk management is all about and its role among the project teams.All risks are badRisk management is a waste of timeWhat you don’t know won’t hurt youThe risk manager manages riskAll risks can and should be avoidedOur projects aren’t riskyRisk management requires statisticsRisks are covered by routine processesContingency is for wimpsRisk management doesn’t work6. What are the types of risk?Risks can be divided into three (3) categories:Hazard Risk - associated with the management of pure risk - need to be mitigated.Control Risk* - associated with the management of uncertainty (unknown and unexpected) - need to be managed.Opportunity Risk - associated with the benefits of speculative opportunities - need to be enhanced.Note: * not to be confused with Control Risk - one of the five steps of the risk management process.There are certain events that can only result in negative outcomes. These risks are hazard risks or pure risks. In general, organizations will have a tolerance of hazard risks, and these to be managed within the levels of that tolerance. A common area where these kinds of risks are observed is Occupational health and safety.There are certain risks that give rise to uncertainty about the outcome of a situation. These can be described as control risks. Often these risks generate uncertainties on the project budget, time and quality which are to be taken care of or managed to be in the desired range. The main purpose of managing such risks is to reduce the variance between anticipated outcomes and actual results.At times, organizations consciously take risks in order to achieve a positive return, though not guaranteed. These can be described as opportunity risks. These relate to the relationship between risk and return.However, apart from the above, a project may face risks from four (4) different ways which can be broken down as below. These, again, maybe of hazard, control and opportunity kind of risks.7. What are the principles and techniques of risk management?Principles of risk management:The main principle of risk management is that it reduces the volatility or uncertainty of outcomes thus achieving the best possible result/ product.A successful approach to risk management initiative and framework within an organization is known as PACED.P - Proportionate to the level of riskA - Aligned with other business activitiesC - Comprehensive, systematic and structuredE - Embedded within business processesD - Dynamic, iterative and responsive to changeHowever, the key goal of risk management is to enhance the efficiency of operations, the effectiveness of processes and efficaciousness of strategies.As the result of a risk may have on the project, a negative impact (due to hazard or pure risk) or a positive impact (due to opportunity or business risk) so the strategies to deal with the risks.Techniques in risk management:a. Hazard or pure risk:Avoid - changing the project plan so that particular risk can’t occur during which inadvertently new risks arise called secondary risks.Mitigate - steps are to be taken to reduce the likelihood and/or impact of an identified risk.Transfer - outsourcing the risk or awarding the handling of risk to a third party.Accept - tolerating the risk as it is.         b. Opportunity or business risk:Exploit - reduce the time to completion or to provide lower cost than originally planned.Share - forming risk-sharing partnerships, teams or JVs.Enhance  - increase the probability and/or positive impact of an opportunity.Accept - no action.In whichever the given situation, both the risks must be assessed and managed.8. What are the four ways to deal with risks?Priority significant risks facing by an organization are those that have:High or very high impact in relation to the benchmark test for significanceHigh or very high likelihood of materializing at or above the benchmark levelHigh or very high scope for cost-effective improvement in controlTo handle such risks, Paul Hopkin - Author of Fundamentals of Risk Management, stated in his book, four (4) ways called 4Ts.Tolerate risk and its likely impact - a detective action is required to control the risk.Treat risk to reduce the likely impact - a corrective action is required to control the risk.Transfer risk to the third party - a more directive action is required to control the risk.Terminate activity generating the risk - a preventive action is required to control the risk.9. What is risk management in project management?Drawing a distinction between project risk management and the reason why the project was undertaken is of utmost importance because project risk management is concerned about the risks embedded within the delivery of the project. Project risk management should be an extension of project planning. The main requirements of any project are that it is delivered on time, within the budget (cost) and to specification or performance (quality).A risk is often defined in terms of uncertainty or deviation from required outcomes. Therefore, the focus of risk management is often on the reduction in the variability of outcomes and the management of control risks. Project risk management is a type of control management. Project risk management is one of the successful areas for the application of risk management tools and techniques.As per the Project Risk Analysis and Management (PRAM) Guide developed by The Association for Project Management (APM), there are five (5) points in a project where an accurate prediction of the impact of risk-based events can be done:Feasibility: at this stage the project is most flexible, enabling changes to be made that can reduce the risks at a relatively low cost.Sanction: the client can view the risk exposure associated with the project and check at all steps to reduce/ manage the risks have been taken.Tendering: the contractor can ensure that all risks have been identified by the risk contingency or risk exposure limits have been set.Post Tender: the client can ensure that all risks have been identified by the contractor and assess the likelihood of programmes being achieved.During implementation: the likelihood of completing the project to cost and timescale will increase if all risks are identified and correctly managed.Risk management should be embedded in project management so as to consider that it is just another project management technique. It must not be seen as an optional. It must be built-in into project management and not seen as a bolt-on. Built-in risk management has two (2) key characteristics:Project management decisions are made with an understanding of the risks involved.Risk management must be integrated with other project management processes.10. The Importance of Risk Management In An OrganisationImportance of Risk Management in an Organization can be understood by analyzing a series of steps:Level of risk:The explicit management of risks brings benefits. By taking a proactive approach to risk and its management, organizations will be able to achieve improvement in:OperationsProcessesStrategyStakeholders should expect that organizations will take full account of risks that may cause disruption within operations, late delivery of projects or failure to deliver the strategy.The exposure presented by an individual risk can be identified in terms of likelihood of the risk materializing and the impact of the risk when it does materialize. As risk exposure increases, then likely impact will also increase. The level of risk should be compared with the risk appetite (set of risk criteria) of the organization for risks of that type.Impact of hazard risks:Hazard risks undermine the objectives, and the level of impact of such risks is a measure of their significance. Hazard risk management is closely related to the management of insurable risks. Hazard (or pure) risk can only have a negative outcome.Hazard risk management is concerned with:HealthSafetyFire preventionAvoiding damage to propertyConsequences of defective productsHazard risks can cause disruption to normal operations resulting in increased costs. Theft and fraud can also be significant hazard risks to an organization. Techniques to avoid such risks include adequate security procedures, segregation of financial duties, and authorization and delegation procedures, etc.Risk and reward:Another feature of risk and risk management is that many risks are taken by organizations in order to achieve a reward. When an organization puts the value at risk, it should do so with the full knowledge of the risk exposure and it should be satisfied that the risk exposure is within the appetite of the organization. Even more important, it should ensure that it has sufficient resources to cover the risk exposure. Risk and uncertainty:Risk is sometimes defined as uncertainty of outcomes. It is particularly applicable to the management of control risks. Control risks are most difficult to identify and define but are often associated with projects. The overall intention of a project is to deliver the desired outcomes on time, within budget (cost) and to specification (quality).A certain level of deviation from the project plan can be tolerated, but it must not be too great.Attitudes to risk:Different organizations will have different attitudes to risk. Some organizations may be considered to be risk-averse while some others risk aggressive. To some extent, it depends on the nature and maturity of the marketplace within which it operates, as well as the attitude of the individual board membersRisks cannot be considered outside the context that gave rise to them. Improvement in the decision-making process is one of the key benefits of risk management.
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Steps Involved in Risk Management for an Improved Project Execution

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Steps Involved in Risk Management for an Improved Project Execution

1. What is risk management and why is it important?

Risk is an uncertain event which could possibly on its occurrence, affect the ongoing project life-cycle/ phase and in turn the project’s outcome. A risk may be a potential hazard to the planned outcome of the project in terms of Cost, Time and Quality. However, in a few cases, the risk may turn out to be a positive catalyst to the project.

Uncertainties in a project may be anticipated mostly based on experience and historical data which can be mitigated or avoided while few cannot be anticipated turning out to be absolute disasters ruining the project outcome out-and-out.

One can compare the risks/ uncertainties with occurrence in every individual’s life shackling its progress. Attending untimely or de-efforts to mitigate it may lead to tragedy. Hence, managing such risks is of utmost importance to safeguard the interests of the project or life. Nevertheless, life is also a project with many phases in it.

The objectives of the risk management initiative are to

  • ensure compliance with applicable rules and regulations,
  • assurance that the activities comply with PACED (will be discussed later in this article),
  • support decision-making with appropriate risk-based information,

thus assisting in enhancing

  • the efficiency of operations,
  • the effectiveness of processes and
  • efficaciousness of strategies.

2. What are the five steps in the risk management process?
Five steps in the risk management process

For a successful risk management, there are five (5) steps to be executed in a proper manner.

  • Plan Risk Management - defining methodology to be applied for managing the risk.
  • Identify the Risk(s) - listing out the possible uncertain events those could affect the project outcome.
  • Perform Risk Analysis - analysing the probability of occurrence of the risk and its possible impact (Qualitative) on the project outcome based on the numerical analysis (Quantitative).
  • Plan Risk Response(s) - developing strategies for the possible and probable risks to either enhance the positive effect or reduce the negative consequence.
  • Control Risk(s) - performing all the above steps/ identifying new risks/ evaluating risk process effectiveness throughout the project.

3. What are the 4 process steps of risk management?

The four (4) process steps involved in risk management are:
Process steps involved in risk management

  • Identify - distinguishing the possible risks
  • Assess - analyzing the probable impact of the identified risks
  • Control - managing or mitigating the risks depending on the risk nature
  • Review - evaluating the process of risk management to the requirements


4.What are the methods of risk management?

Methods of risk management include:

  • Risk strategy
    • Risk management framework
    • Risk management documentation
    • Risk management responsibilities
    • Risk-aware culture
    • Risk training and communication

  • Risk assessment
    • Importance of and approaches to risk assessment
    • Short, Medium and Long-term risks
    • Risk likelihood and impact
    • Loss control

  • Risk response
    • Importance of risk appetite - risk capacity and risk exposure
    • 4Ts of hazard response - Tolerate, treat, transfer and Terminate
    • Risk control techniques - Preventive, Corrective, Directive and Detective

  • Risk assurance and reporting
    • Evaluation of control environment

    • Activities of an internal audit function

    • Risk assurance techniques - audit committees

    • Reporting on risk management - risk documentation

    • Importance of corporate reputation

5. How do you project risk management?

Risk Management in project has become of utmost priority because of experiencing global financial crisis and increase in a number of corporate failures, also, increasing stakeholder expectations.

Whichever the field the project is, there is always a possibility of encountering risks which may or may not be averted depending on its nature. However, risk management is everyone’s responsibility.

Here, I would like to mention the 10 myths of risk management by Dr. David Wilson which clearly states what risk management is all about and its role among the project teams.

  • All risks are bad
  • Risk management is a waste of time
  • What you don’t know won’t hurt you
  • The risk manager manages risk
  • All risks can and should be avoided
  • Our projects aren’t risky
  • Risk management requires statistics
  • Risks are covered by routine processes
  • Contingency is for wimps
  • Risk management doesn’t work

6. What are the types of risk?

Risks can be divided into three (3) categories:

  • Hazard Risk - associated with the management of pure risk - need to be mitigated.
  • Control Risk* - associated with the management of uncertainty (unknown and unexpected) - need to be managed.
  • Opportunity Risk - associated with the benefits of speculative opportunities - need to be enhanced.

Note: * not to be confused with Control Risk - one of the five steps of the risk management process.

There are certain events that can only result in negative outcomes. These risks are hazard risks or pure risks. In general, organizations will have a tolerance of hazard risks, and these to be managed within the levels of that tolerance. A common area where these kinds of risks are observed is Occupational health and safety.

There are certain risks that give rise to uncertainty about the outcome of a situation. These can be described as control risks. Often these risks generate uncertainties on the project budget, time and quality which are to be taken care of or managed to be in the desired range. The main purpose of managing such risks is to reduce the variance between anticipated outcomes and actual results.

At times, organizations consciously take risks in order to achieve a positive return, though not guaranteed. These can be described as opportunity risks. These relate to the relationship between risk and return.

However, apart from the above, a project may face risks from four (4) different ways which can be broken down as below. These, again, maybe of hazard, control and opportunity kind of risks.
Risk breakdown structure

7. What are the principles and techniques of risk management?

  • Principles of risk management:

The main principle of risk management is that it reduces the volatility or uncertainty of outcomes thus achieving the best possible result/ product.

A successful approach to risk management initiative and framework within an organization is known as PACED.

  • P - Proportionate to the level of risk
  • A - Aligned with other business activities
  • C - Comprehensive, systematic and structured
  • E - Embedded within business processes
  • D - Dynamic, iterative and responsive to change

However, the key goal of risk management is to enhance the efficiency of operations, the effectiveness of processes and efficaciousness of strategies.

As the result of a risk may have on the project, a negative impact (due to hazard or pure risk) or a positive impact (due to opportunity or business risk) so the strategies to deal with the risks.

  • Techniques in risk management:

    a. Hazard or pure risk:

  • Avoid - changing the project plan so that particular risk can’t occur during which inadvertently new risks arise called secondary risks.
  • Mitigate - steps are to be taken to reduce the likelihood and/or impact of an identified risk.
  • Transfer - outsourcing the risk or awarding the handling of risk to a third party.
  • Accept - tolerating the risk as it is.

         b. Opportunity or business risk:

  • Exploit - reduce the time to completion or to provide lower cost than originally planned.
  • Share - forming risk-sharing partnerships, teams or JVs.
  • Enhance  - increase the probability and/or positive impact of an opportunity.
  • Accept - no action.

In whichever the given situation, both the risks must be assessed and managed.

8. What are the four ways to deal with risks?

Priority significant risks facing by an organization are those that have:

  • High or very high impact in relation to the benchmark test for significance
  • High or very high likelihood of materializing at or above the benchmark level
  • High or very high scope for cost-effective improvement in control

To handle such risks, Paul Hopkin - Author of Fundamentals of Risk Management, stated in his book, four (4) ways called 4Ts.

  • Tolerate risk and its likely impact - a detective action is required to control the risk.
  • Treat risk to reduce the likely impact - a corrective action is required to control the risk.
  • Transfer risk to the third party - a more directive action is required to control the risk.
  • Terminate activity generating the risk - a preventive action is required to control the risk.

9. What is risk management in project management?

Drawing a distinction between project risk management and the reason why the project was undertaken is of utmost importance because project risk management is concerned about the risks embedded within the delivery of the project. Project risk management should be an extension of project planning. The main requirements of any project are that it is delivered on time, within the budget (cost) and to specification or performance (quality).

A risk is often defined in terms of uncertainty or deviation from required outcomes. Therefore, the focus of risk management is often on the reduction in the variability of outcomes and the management of control risks. Project risk management is a type of control management. Project risk management is one of the successful areas for the application of risk management tools and techniques.

As per the Project Risk Analysis and Management (PRAM) Guide developed by The Association for Project Management (APM), there are five (5) points in a project where an accurate prediction of the impact of risk-based events can be done:

  • Feasibility: at this stage the project is most flexible, enabling changes to be made that can reduce the risks at a relatively low cost.
  • Sanction: the client can view the risk exposure associated with the project and check at all steps to reduce/ manage the risks have been taken.
  • Tendering: the contractor can ensure that all risks have been identified by the risk contingency or risk exposure limits have been set.
  • Post Tender: the client can ensure that all risks have been identified by the contractor and assess the likelihood of programmes being achieved.
  • During implementation: the likelihood of completing the project to cost and timescale will increase if all risks are identified and correctly managed.

Risk management should be embedded in project management so as to consider that it is just another project management technique. It must not be seen as an optional. It must be built-in into project management and not seen as a bolt-on. Built-in risk management has two (2) key characteristics:

  • Project management decisions are made with an understanding of the risks involved.
  • Risk management must be integrated with other project management processes.

10. The Importance of Risk Management In An Organisation

Importance of Risk Management in an Organization can be understood by analyzing a series of steps:

 Series of steps to analyse risk management

  • Level of risk:

The explicit management of risks brings benefits. By taking a proactive approach to risk and its management, organizations will be able to achieve improvement in:

  • Operations
  • Processes
  • Strategy

Stakeholders should expect that organizations will take full account of risks that may cause disruption within operations, late delivery of projects or failure to deliver the strategy.

The exposure presented by an individual risk can be identified in terms of likelihood of the risk materializing and the impact of the risk when it does materialize. As risk exposure increases, then likely impact will also increase. The level of risk should be compared with the risk appetite (set of risk criteria) of the organization for risks of that type.

  • Impact of hazard risks:

Hazard risks undermine the objectives, and the level of impact of such risks is a measure of their significance. Hazard risk management is closely related to the management of insurable risks. Hazard (or pure) risk can only have a negative outcome.

Hazard risk management is concerned with:

  • Health
  • Safety
  • Fire prevention
  • Avoiding damage to property
  • Consequences of defective products

Hazard risks can cause disruption to normal operations resulting in increased costs. Theft and fraud can also be significant hazard risks to an organization. Techniques to avoid such risks include adequate security procedures, segregation of financial duties, and authorization and delegation procedures, etc.

  • Risk and reward:

Another feature of risk and risk management is that many risks are taken by organizations in order to achieve a reward. When an organization puts the value at risk, it should do so with the full knowledge of the risk exposure and it should be satisfied that the risk exposure is within the appetite of the organization. Even more important, it should ensure that it has sufficient resources to cover the risk exposure. 

  • Risk and uncertainty:

Risk is sometimes defined as uncertainty of outcomes. It is particularly applicable to the management of control risks. Control risks are most difficult to identify and define but are often associated with projects. The overall intention of a project is to deliver the desired outcomes on time, within budget (cost) and to specification (quality).

A certain level of deviation from the project plan can be tolerated, but it must not be too great.

  • Attitudes to risk:

Different organizations will have different attitudes to risk. Some organizations may be considered to be risk-averse while some others risk aggressive. To some extent, it depends on the nature and maturity of the marketplace within which it operates, as well as the attitude of the individual board members

Risks cannot be considered outside the context that gave rise to them. Improvement in the decision-making process is one of the key benefits of risk management.

Lekharaju

Lekharaju Chaitanya

Blog Author

Lekharaju V N S S Chaitanya is a Project Management Professional (PMP) ® certified holder. With an experience of more than 5 years in Power Plant Industry, he is currently working as Project Coordinator for Scope, Risk and Cost Management.

Chaitanya is interested not only in professional genre but also a keen and profound concern on the modern day changes in the world affecting our teamwork to live. 


He has a graduate degree in Mechanical Engineering and a great admirer of the genre of Economics. He regularly conducts and leads conferences at the organizational level for proper implementation of project management practices

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Other than that, you require additional materials to prepare for your PMP® certification exam which costs you between $40 to $100.You can also buy practice tests for $60 to $100 which will give you a fair idea about the test format for PMP® certification.Renewal cost of PMP® certification:Once you get a PMP® certification, that’s not the end. Your credentials are valid for only three years and you need to renew it after that. You can renew your certification by paying $150 which can be brought down to $60 by getting a PMI membership.Maintain your PMP® certification with 60 PDUsGetting PMP® certified is not the end of your journey, as it is only valid for 3 years. You need to maintain your PMP® certification by earning 60 PDUs to fulfill the Continuing Certification Requirements (CCR).You can earn these PDUs by engaging yourself with various professional development activities which center around the areas of Education and Giving back to the Profession. You can also earn your 60 PDUs at one go by signing up for a 60 PDU bundle online training program offered by an established Registered Educational Provider.The way beyond PMP® CertificationGetting a PMP® certification opens your door towards a promising career. A PMP certified professional earns 20% more than a non-PMP certified professional. The following list consists of the country-wise industries along with the average salary earned by the Project Managers:CountryIndustryAverage PMP SalaryAustraliaAgriculture/Mining$166,000AustraliaFinancial services and Consulting industry$150,000United StatesPharmaceuticals$125,000United StatesAgriculture/Mining, Consulting$120,000CanadaAgriculture/Mining$115,000CanadaUtilities$110,000IndiaAgriculture/Mining, Healthcare$25,278IndiaTelecommunication, Engineering$23,874Salary of a Project Manager: Certified Vs Non-CertifiedGetting a PMP® certification apparently contributes towards increasing your annual earning. A non-certified Project Manager may earn up to $91,000 whereas, this figure can go up to $111,000 by adding a PMP® certification to your collar. However, even work experience contributes to an increase in salary for a PMP® certified professional but this growth is not uniform across the globe. Singapore tops the list where the difference between a three-year experienced and a twenty-year experienced PMP® certified professional is 177%.Your salary can also vary based on the type of job you are in. The salary of a PMP® certified professional is higher in IT. The following figures show the salary of  PMP® certified professionals by job in the United States:JobSalary RangeProject Manager  (Information Technology)$65,161 to $125,836ProjectManager (General)$57,877 to $122,485Program Manager$68,150 to $139,552Further, the size of the company also plays a key role in determining the salary of a PMP® certified professional. The following table will give you a clear idea of how the salary figures increase with the company size:Company SizeSalary Range1-9$94,72450-199$93,614600-1999$103,697>5000$111,620ConclusionIf you wish to grow in the field of Project Management, then getting a PMP® Certification is the best way to do that. Also, you can avail a lot of discounts and networking opportunities by becoming a PMI member. Further, it gives you access to the free PDF version of the latest PMBOK® Guide.  To conclude, this blog gives you a clear idea of how to begin your PMP® certification journey. Moreover, you also get a glimpse of the professional future which lies ahead of PMP® certification.
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9 Steps To Becoming a PMP® Certified Professional

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How Do I Maintain My PMP® Certification?

Did you get PMP® certified? Congratulations! It is not an easy feat to go through all the hard work in order to get your PMP® certification. But your credential is valid for only three years. You must participate in the Continuing Certification Requirements (CCR) program of PMI to keep your credentials active.As a PMP® credential holder, it is recommended by the Project Management Institute (PMI) to earn 60 PDUs (Professional Development Units) every three years. The CCR program encourages every PMP® certified professional to undergo educational and professional development activity. One PDU is equivalent to one hour of time that you spend in a Professional Development activity. There are multiple ways to earn these PDUs.Maintain your PMP® certification with CCR and PDUsEarning your PMP® certification is a big step but maintaining it should not be a big issue for you. The Continuing Certification Requirements (CCR) program offered by PMI is designed for you to grow and develop the skills that organisations are seeking in the present market scenario and at the same time you can maintain your certification status.CCR is an easy-to-use online tool through which you can report your PDUs. The Professional Development Units (PDUs) can be calculated in blocks of one hour of time that you spend by learning, teaching others, or volunteering. You can maintain your PMP® certification status with PMI by accumulating and tracking these PDUs over a three-year period.You need to earn 60 PDUs in order to maintain your PMP® certification exam. You can claim the required PDUs in two forms. They are:EducationGiving backPMP® Certification renewal feesOnce you meet the PDU requirements of CCR, you can complete the renewal process of your credential at any point of the cycle. You will receive an electronic notification to apply for PMP® certification renewal after PMI confirms that you have met the PDU requirements. You will be directed to submit the renewal fee payment on the online certification system as soon as you receive the notification. You should keep in mind that you must submit the payment in no later than 90 days after your cycle end date.The CCR renewal fee for members and non-members are as follows:PMI Membership StatusCCR Renewal FeePMI member$60Non-member$150Ways to earn PDUs through Educational activities - PMI Talent Triangle™`Research shows that the ideal skill set which the practitioners need to possess should comprise of technical, leadership, and strategic and business management competency. This is called the PMI Talent Triangle™. These competencies can be explained as:Technical project management: This competency comprises of the knowledge, skills, and behaviors related to specific domains of Project, Program, and Portfolio Management.Leadership: This competency comprises of the knowledge, skills, and behavior specific to leadership-oriented, cross-cutting activities that help an organisation to achieve its business goal.Strategic and business management: This competency includes the knowledge and expertise required in the industry or an organisation that enhances performance and delivers the business outcomes in a better way.The courses and activities included under the three components of the PMI Talent Triangle™ for the candidates to meet the 60 PDU bundle requirement prescribed by PMI are as follows:TechnicalLeadershipStrategic and Business ManagementLife Cycle ManagementCoaching & MentoringCustomer relationship & satisfactionTime, Scope, Risk ManagementProblem SolvingBenefits RealisationEstimationTeam BuildingLegal & Regulatory complianceAgile PracticesEmotional IntelligenceStrategic planning & analysisGovernanceConflict ManagementOperational FunctionsData gathering and modelingBrainstormingBusiness acumenEarned value managementInfluencingCompetitive analysisPerformance ManagementListeningMarket awarenessInterpersonal skillsBusiness models and structuresYou can choose from one of the following options under Education in order to earn the 35 PDUs under the CCR program offered by the Project Management Institute (PMI)®:1. Course or TrainingThe courses or training refers to the Instructor-led formal education courses or classes held in-person or online. Taking up the educational training courses is one of the effective and traditional ways to learn. You can choose the best-suited option from the plethora of options offered by PMI and third-party providers across the globe to earn 1 PDU of every hour of instruction:Training courses offered by a PMI Registered Education Provider (R.E.P)Face-to-face and instructor-led courses from PMI SeminarsWorld®Educational events held by PMI chapterAcademic education through programs accredited by the PMI Global Accreditation Center (GAC)Courses offered by other third-party providersE-learning On Demand courses.2. Organisation MeetingsThe activities, meetings, and local events are referred to as organisation meetings which provide you with an opportunity to learn and network with the other professionals. You can earn 1 to 2 PDUs by attending the events organised by PMI throughout the year.3. Online or Digital MediaThis comprises of the self-paced learning conducted online or through varied forms of digital media. You can customise your learning and educational opportunities according to your needs and suitability with the help of technology. There are numerous educational webinars, videos, and other types of digital content available online and on demand. You can earn 1 PDU by attending 1 hour of learning. The opportunities available through these resources are as follows:ProjectManagement.comPMI Online CoursesPMI Registered Education Providers (R.E.P.s).4. ReadDid you know that you can earn PDUs for your CCR by reading? Yes, you can do that through self-directed reading that is relevant to your PMP® certification. Reading is one of the valuable components of learning and there are numerous reading resources available that is related to the profession. You can choose from articles, books, whitepapers, or blogs to keep yourself updated in order to support your ongoing professional development.5. Informal LearningYou can also earn PDUs to maintain your PMP® certification by taking part in educational opportunities which focus on structured discussions. Sometimes, you get to learn from interaction with others. Also, 1 hour of learning under informal learning is equivalent to 1 PDU.Ways to earn PDUs by giving back to the professionYou can expand your knowledge and skills both personally and professionally while earning your PDUs to maintain your PMP® certification by giving back to the profession. This can prove to be a unique and great way to expand your horizons.Choose from the following ways to earn your PDUs by giving back to the profession:1. Work as a PractitionerYou can claim 8 PDUs per cycle by working as a practitioner and working in a domain area related to your certification. This enables you to apply your skills and knowledge in a practical setting. It also allows you to contribute to sustaining and growing the profession. These PDUs are only applicable to your current cycle and cannot be transferred.2. Create ContentDid you know that you can give back to the profession by creating content? Yes, you can earn PDUs to maintain your PMP® certification by creating new knowledge resources for practitioners as well as the public at large. You can share your insight and knowledge with others and contribute to their ongoing learning by developing knowledge resources. You can earn 1 PDU by spending 1 hour on creating content and can create new content in the following ways:Authoring booksWriting articles or blogsCreating webinars or presentations.3. Giving a PresentationThere are many occasions like PMI chapter event, professional conference, or within your organisation where you can give a formal presentation to others and share the knowledge which you have gained during your PMP® certification journey. You can earn 1 PDU by spending 1 hour in giving a presentation.4. Share KnowledgeYou can help others learn and grow by sharing your domain knowledge. You also contribute towards the growth of the profession and enhance the practices that are essential to your certified role by sharing your skills with others. Even if you are involving yourself in mentoring, teaching, or applying your subject matter knowledge towards an activity, but others will be benefited from your experience and perspective.5. VolunteerPMI has an active community of thousands of volunteers who offer their support to the Institute and the profession by working in a wide range of roles. You can earn PDUs to maintain your PMP® certification by offering your domain-related services as a volunteer to non-employer or non-client organisations. 1 hour of volunteer service is equivalent to 1 PDU.Volunteering options offered by PMIAre you trying to figure out a volunteering option to meet your CCR? There are numerous ways in which you can advance your career by contributing to PMI as a volunteer. These volunteering opportunities encompass a wide range of skills, interests, and goals.PMI helps you to search for volunteering opportunity easily around the world with the help of their Volunteer Relationship Management System (VRMS). So, pick the right opportunity for you from the following options:PMI Board of DirectorsBoard Support CommitteesPMI Educational Foundation (PMIEF)Member Advisory Groups (MAGs)Region MentorsStandards CommitteesExam Development VolunteersPMI Awards EvaluatorsPresenters at PMI EventsPMI Publication Reviewers (Knowledge Shelf, Bookstore reviewers, Project Management Journal® reviewers)Chapter Volunteers.PMI Local ChaptersBecome a member of your local PMI Chapter by paying a registration fee of $129 and a joining fee of $10 and take advantage of the knowledge and networking offered by it. The benefits of joining the local PMI Chapter are as follows:1. Get access to the inner circle of local Project ManagersGrow your network with the other professionals who are driving the field of project management forward. The group might vary from those who have just started to those at the top of their careers.2. Get easy access to exclusive events and seminarsAttend the chapter meetups and special guest talks to learn about the approach to facing new challenges from the professionals who have overcome similar obstacles in the past.3. Discover relevant job opportunitiesGet an opportunity to build your network with the local Project Management Professionals and get connections in companies located in your area to find new opportunities.To wrap it upEvery professional has got different goals and interests, in the same way, there are different types of requirements across various industries. As you have read above, PMI offers a plethora of opportunity to you in order to meet the CCR program, enabling you to explore new options and new avenues.You can choose the opportunities from education and giving back to the profession that suits you the best in order to fulfill the 60 PDU requirements to maintain your PMP® certification. You can read more about the Continuing Certification Requirements (CCR) by clicking here. Going further, getting a PMI membership exposes you to multiple opportunities which you can take in order to meet your CCR requirements.
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How Do I Maintain My PMP® Certification?

Did you get PMP® certified? Congratulations! It i... Read More

All You Need To Know About PDUs Under PMI Talent Triangle™

Earning a PMP® certification is a big step in your professional growth. But that’s not the end of your PMP® certification journey. You need to renew your credentials every three years in order to continue being PMP® certified by meeting the PDU requirements under PMI’s Continuing Certification Requirements (CCR).  The increasingly competitive and complex global market demands more than technical skills from you. Companies seek added skills in business intelligence and leadership to meet long-term strategic objectives. The PMI Talent Triangle™ involves the ideal skill set and is a combination of technical, leadership, and strategic and business management expertise. You must develop these employer-demanded skills to stay relevant and competitive in the current market scenario.This blog will discuss how you can maintain the required PDUs under the CCR program by acquiring all the competencies mentioned under the PMI Talent Triangle™.PMI Talent Triangle™ and PDUsPMI continuously tries to keep its project management certifications relevant to the industry and organisation needs. And in order to do so, it takes inputs from industry veterans to keep updating the content and pattern of exams. The Project Management Institute (PMI) developed and announced its Talent Triangle™ in the year 2015. PMI clearly declared the areas of competence that a current-day project manager needs to consider.The combination of skills valued by employers as highlighted by the PMI Talent Triangle™ are technical, leadership, and strategic and business management. This framework plays a pivotal role in your ongoing professional development.The competencies can be defined as follows:1. Technical: This competency comprises of knowledge, skills, and behaviours related to the specific domains of program, project, and portfolio management. It involves the technical aspects of performing your job or role.2. Leadership: This competency comprises of the knowledge, behaviours, and skills involved in the ability to motivate, guide, and direct others to achieve a goal.3. Strategic and Business Management: This competency comprises of the knowledge and expertise within the organisation which helps you to align your team in a way that enhances performance and ensures better delivery of business outcomes.You must renew your PMP® certification after a period of every 3 years. Project Management Institute (PMI) simplifies this process by awarding Professional Development Units (PDUs) which you need to claim by continuing education and giving back to the profession.The Professional Development Units (PDUs) are one-hour blocks of time which you need to claim by learning, teaching others or volunteering. You can maintain your certification status with PMI by accumulating these PDUs over a period of 3 years.You can claim the PDUs for renewing your credentials in two ways, namely, education and giving back to the profession. The PDUs under these categories are as follows:CategoryPDUsEducation35Giving back to the profession25The activities and courses included under the three components of the PMI Talent Triangle™ are as follows:TechnicalLeadershipBusiness & Strategic ManagementLife Cycle ManagementCoaching & MentoringCustomer relationship & satisfactionTime, Scope, Risk ManagementProblem SolvingBenefits RealisationEstimationTeam BuildingLegal & Regulatory complianceAgile PracticesEmotional IntelligenceStrategic planning & analysisGovernanceConflict ManagementOperational FunctionsData gathering and modelingBrainstormingBusiness acumenEarned value managementInfluencingCompetitive analysisPerformance ManagementListeningMarket awarenessInterpersonal skillsBusiness models and structuresThere are numerous options available under education and giving back to the profession which allows you to earn the required PDUs to meet the CCR program confirmed by PMI:CCR Claim CategoryActivity DetailsEducationAttend Course or Training (Physical Classroom/online)EducationOrganisation Meetings (Max 2 PDUs)EducationOnline or Digital MediaEducationOnline or Digital Media Self-Read - Reading Project ManagementEducationInformal learningGiving BackWork as a Practitioner - Working in your certified role (Max 8 PDUs)Giving BackCreate content - Creating new knowledge resourcesGiving BackGiving presentationsGiving BackShare Knowledge - Mentoring, Teaching, Allying KnowledgeGiving BackVolunteer - At PMI or other not for profit organisationThe educational activities are aligned with the areas under the PMI Talent Triangle™ by spending at least 8 hours of effort or claim 8 PDUs for each one of Technical, leadership, and strategic areas. Do you need more clarification on the PDUs distributed across all the three areas?The following chart will give you more clarity:Activities in Giving BackPDUs to maintain your PMP® certificationCreate Content - Creating new knowledge resources, giving presentation, and share knowledge25 (Maximum)Volunteer - At PMI or other not for profit organisation25 (Maximum)Work as a Practitioner - Working in your certified role8 (Maximum)Total PDUs for giving back25Ways to earn PDUs through EducationYou can earn PDUs under the CCR program by choosing from numerous opportunities and ways provided by PMI. They are:1. Course or training: You can earn PDUs by participating in educational training courses, which is a traditional and effective way to continue your learning. Earn 1 PDU by attending 1 hour of course or training and you need to report each course separately.2. Organisation meetings: PMI chapters and other third parties host professional meetings throughout the year on a local basis. These meetings include educational components and provide you with the opportunity to learn and network. PDUs which you can earn by participating in the organisational meetings are typically limited to 1 to 2.3. Online or digital media: There are numerous online educational webinars, videos, and other types of digital content which are available online and on demand. Technology allows you to customise your learning and educational opportunities according to your schedule and needs. Every hour of learning is equivalent to 1 PDU.4. Read: You can stay informed and support your ongoing professional development by reading books, articles, whitepapers, or blogs. Reading is a valuable component of learning and you can find countless reading materials related to PMP® certification. You earn 1 PDU with every hour of learning.5. Informal learning: Engage yourself in professional discussions with other PMP® professionals and earn PDUs while getting mentored or participating in a “lunch and learn” session with your organisation. 1 hour of learning is equivalent to 1 PDU.Ways to earn PDUs by giving back to the professionIn order to meet the required PDUs under the CCR program, you need to choose from one of the following ways or opportunities offered by PMI under the category of giving back to the profession:1. Work as a Practitioner: You can apply your knowledge and skills in a practical setting and use these competencies actively in order to contribute towards sustaining and growing the profession. You can earn a maximum of 8 PDUs which can be claimed per cycle.2. Create Content: You can create new content by authoring books, blogs or articles, or creating webinars or presentations to share your knowledge and insight with others and contribute to ongoing learning. You can earn 1 PDU by spending 1 hour creating the content.3. Give a Presentation: There are numerous occasions which would allow you to give a formal presentation to others, and share knowledge that relates to your PMP® certification. You can earn 1 PDU every hour which you spend giving presentation.4. Share Knowledge: Were you aware that you can gain 1 PDU with every hour which you spend sharing knowledge? You grow the profession and enhance the practices that are essential to your certified role by sharing your skills with others. You will benefit others with your experience and perspective by choosing to mentor, teaching, or applying your subject matter knowledge towards an activity. With every hour that you spend sharing knowledge, you can earn 1 PDU.5. Volunteer: You can serve as a volunteer on a PMI committee or team and support the institute and the profession in a wide range of roles. You can also volunteer your domain-related services to other non-profit organisations. With each hour of volunteer service, you can earn 1 PDU.Report your PDUs using CCRSThe most efficient way to record your PDUs is by using the Continuing Certification Requirement System (CCRS). It is your responsibility to record your PDU activities as they occur. In order to maintain your active certification status, you must record PDUs and complete the renewal process before your CCR cycle ends. Your certification will be suspended if you do not earn and record the required PDUs within your CCR cycle.CCR ProcessDo you want to know, how the CCR process works? There are a few key steps that encompass the process of participation in the CCR program. They are:Step 1Earn a PMI certificationYour CCR cycle begins on the day you pass your PMP® exam and lasts for 3 years.Step 2Participate in professional development activitiesYou need to take part in professional development activities in order to earn PDUs.Step 3Record and report PDUsYou need to submit your PDU claims for your certification through the CCR system (CCRS).Step 4Fulfill CCR requirementsYou need to earn enough PDUs in order to meet the CCR requirements for your certification.Step 5Complete CCR application and pay renewal feeYou’ll receive information from PMI for renewal and provide paymentStep 6CCR Renewal CompleteYou need to follow guidelines in order to continue maintaining your certification.To wrap it upAs a PMP® certified professional, you must understand that PMI wants to ensure that PMP® exam is an accurate reflection of the knowledge, tasks, and skills that project management professionals actually need to perform on a daily basis. Further, 20 to 25% of the 200 questions are driven from the new outline changes that come into the picture through the PMI Talent Triangle™. It focuses on aligning the exam questions with the latest project management practices in the market.The Continuing Certification Requirement (CCR) program allows you to maintain your PMP® certification by earning a specific number of PDUs fixed by PMI. You need to fulfill the requirements by undergoing activities and courses under the two categories, namely, education and giving back to the profession. Moreover, you need to align your 35 PDU requirements with the three skill areas under the PMI Talent Triangle™, namely, technical, leadership, and business and strategic management.     
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All You Need To Know About PDUs Under PMI Talent T...

Earning a PMP® certification is a big step in you... Read More