About PRINCE2 Risk Management Framework, Certification and Training

PRINCE2 Risk Management Framework (formerly Management of Risk or M_o_R, aka MoR) is the latest edition of PRINCE2 Risk Management – a must-have certification for roles where managing risk is inherent, including portfolio, programme, project, business change and risk management professionals. Management of Risk 4 has a specific relevance for individuals working in product focussed environments / roles, offering a compelling integrated solution for the unique challenges faced by modern, digital-first organizations.

PRINCE2 Risk Management has been developed for candidates and practitioners who are interested in understanding how risk links to opportunity and the delivery of benefits, and in communicating or cascading this to stakeholders.

Risk and Risk Management

• PRINCE2 Risk Management defines a risk as:
  • Risk is an uncertain event or set of events that, should it occur, will have an effect on the achievement of objectives. Risk is a neutral concept; risks can either be threats (downside risks) or opportunities (upside risks).
• PRINCE2 Risk Management identifies risk management as:
  • Risk management is the coordinated direction and control of an organization, undertaken to protect and create value in the face of risk.

The Management of Risk 4 Handbook

• The Management of Risk Study Guide
  • Defines full content of PRINCE2 Risk Management
  • Is definitive source for all PRINCE2 Risk Management exams
  • Supports training and exams
  • Can be used in Practitioner exam (open book exam)
• Structure of the handbook:
  • 14 Chapters
  • 2 Appendices

8 PRINCE2 Risk Management PRINCIPLES for Effectiveness

1. Aligns with objectives
2. Fits the context
3. Engages stakeholders
4. Provides clear guidance
5. Informs decision-making
6. Facilitates continual improvement
7. Creates a supportive culture
8. Achieves measurable value

The first seven principles are enablers. The final principle is the result of implementing risk management well.

The PRINCE2 Risk Management Perspectives

In order to allow the effective escalation, delegation and/or aggregation of risks and to identify and manage common themes within any organization it is very important to ensure that there is an integrated risk management approach across PRINCE2 Risk Management perspectives.

Most organizations will not operate across all six perspectives, but all will have strategic and operational objectives, and most will have some objectives related to changing the organization or to the product development and management.

The People Considerations

Individuals (in groups) interpret data in situations and make judgements (educated guesses) under uncertainty.

Given that people make the judgements and take the actions, risk management can never be successful if people considerations are ignored.

People considerations in risk management are addressed by PRINCE2 Risk Management principles of engaging stakeholders and creating a supportive culture.

The PRINCE2 Risk Management Processes

A structured set of activities that define the sequence of actions and their inputs and outputs to achieve a specific objective.

1. Define the context and objectives
2. Identify threats and opportunities
3. Pruiritize Risks
4. Assess combined risk profile
5. Plan responses
6. Agree contingency
7. Monitor and report progress
8. Review and adapt

Why PRINCE2 Risk Management?

1. PRINCE2 Risk Management Addresses common programme challenges:
   1. PRINCE2 Risk Management directly supports the risk management and risk-based assurance elements of corporate governance by providing a principal-led risk management process that can be tailored for application at, across, and between multiple organizational perspective.
   2. This process specifically enables the aggregation and escalation of risks to the strategic level to gain the attention and support of the responsible officers of the organization.
   3. Risk-taking is important to create and protect value: the very essence of organizational survival and growth.
   4. And awareness of risk enables organizations to create a relative advantage, particularly in VUCA context, enabling resilience in the face of emerging change and disruption.
   5. Depending on the objectives at risk, effective risk management is likely to produce benefits that apply equally across private, public and charitable sectors.

PRINCE2 Risk Management Training and Certification

PRINCE2 Risk Management certification trainings are provided by PeopleCert's Accredited Training Organizations (ATOs) across the globe. Tecknologia is also a PeopleCert Accredited Training Organization (ATO) offering PRINCE2 Risk Management certification trainings across the globe and in various formats.

PRINCE2 Risk Management does not have a foundation level training and certification.

Click on the links for certification levels to explore the pre-requisites, exams and other details.

In comparison: PMI-RMP® (Risk Management Professional)

• PMI-RMP is more focused on project risk management (while PRINCE2 Risk Management is not strictly connected to project management, it addresses 6 perspectives).
• PMI-RMP was last updated in 2002
• There are strict prerequisites for candidates, including:
  • Secondary degree (high school diploma, associate’s degree or the global equivalent) OR 4 years degree.
  • 36 months OR 24 months of project risk management experience within last 5 years.
  • 40 hours OR 30 of project risk management education.

Frequently Asked Questions (FAQ) About PRINCE2 Risk Management 4