Communications Management has three processes: Plan Communications Management, Manage Communications, and Monitor Communications. Communication channels grow according to the formula \[ n(n-1)/2 \] for n stakeholders, which is why complexity explodes as team size grows. Communication can be push (sender transmits to specific recipients, like email or memos), pull (recipients access information on demand, like an intranet or knowledge base), or interactive (two-way or multi-way exchanges like meetings and video calls, the richest form). Formal written communication includes contracts, plans, and reports; informal written communication includes emails and chat and is not typically part of formal records. Noise in the communication model — Sender, Encode, Message, Decode, Receiver — is anything that interferes with transmission or understanding, including language, distance, culture, and distractions. Manage Communications produces project communications, project management plan updates, and project documents updates including the lessons learned register and issue logs.
Stakeholder Management in PMBOK 6 contains four processes: Identify Stakeholders (Initiating), Plan Stakeholder Engagement (Planning), Manage Stakeholder Engagement (Executing), and Monitor Stakeholder Engagement (Monitoring & Controlling). Stakeholder engagement levels move from Unaware through Resistant, Neutral, Supportive, and Leading; the goal is to move each stakeholder toward the desired level through targeted communication. The stakeholder management plan is a subsidiary plan that describes engagement levels, communication requirements, and strategies, along with escalation paths that define when issues should be pushed upward to functional managers, PMO, or sponsor.
Risk Management has six processes: Plan Risk Management, Identify Risks, Perform Qualitative Risk Analysis, Perform Quantitative Risk Analysis, Plan Risk Responses, and Implement/Monitor/Control Risks. Individual project risks are uncertain events that affect objectives either positively or negatively, whereas overall project risk is the effect of uncertainty on the project as a whole. Risk appetite is the amount of uncertainty an organization is willing to accept, while a risk threshold is a specific metric around that appetite that triggers escalation. The Risk Breakdown Structure (RBS) hierarchically decomposes risks by category, helping to ensure thorough identification, and the risk register typically contains ID, description, probability, impact, score, owner, response, status, and trigger for each identified risk.
Qualitative risk analysis uses a Probability and Impact Matrix to score each risk and prioritize, typically using Low/Medium/High or numeric scales. Quantitative risk analysis numerically analyzes the effect of risks using tools such as Monte Carlo simulation (which runs the schedule or cost model many times sampling risk distributions to produce a probability distribution of outcomes), decision trees, and Expected Monetary Value (EMV), where \( EMV = \sum (\text{probability} \times \text{impact}) \). For negative risks the four responses are Avoid, Transfer, Mitigate, and Accept; for positive risks they are Exploit, Share, Enhance, and Accept. Residual risk is what remains after responses have been applied; secondary risk is a new risk that arises as a direct result of implementing a response and must also be identified and managed. Contingency reserves cover known risks and are part of the cost baseline, while management reserves cover unknown-unknowns and are not in the cost baseline. A risk audit examines the effectiveness of responses, and a workaround is an unplanned response to an emerging risk not previously identified.
Procurement Management has three processes: Plan Procurement Management, Conduct Procurements, and Control Procurements. A make-or-buy analysis decides whether work should be performed in-house or purchased, weighing cost, capability, control, and risk. Contract types distribute risk differently. Firm Fixed Price (FFP) shifts most risk to the seller because the price stays the same. Fixed Price with economic price adjustment allows for inflation or currency changes. Fixed Price Incentive Fee (FPIF) sets a price ceiling with a share-ratio for over- or under-runs. Time and Material (T&M) is a hybrid best used when scope is not well-defined; risk is shared, especially on materials. Cost-reimbursable contracts include CPFF (Cost Plus Fixed Fee), CPIF (Cost Plus Incentive Fee), and CPAF (Cost Plus Award Fee), under which the buyer reimburses costs and pays a fee — these shift more risk to the buyer. CPPO (Contractor Payment for Performance Outcomes) is used on outcome-based service contracts. A procurement statement of work describes the procurement item in detail. Single source means choosing a specific vendor even though competitors exist (preferred vendor); sole source means only one supplier can provide the item. Bidder conferences ensure all prospective sellers hear the same information and have an equal opportunity to ask questions, with documentation issued afterward. The most important output of Conduct Procurements is the signed agreement (contract) with the selected seller. Administrative closure in procurement confirms the work was completed satisfactorily, payments were processed, and records were archived.