121R-21: Required Skills and Knowledge of Project Risk Management
AACE International, March 1, 2022

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This recommended practice (RP) is intended to serve as a guideline, not a standard. As a recommended practice of AACE International, the intent of the guideline is to define the required skills and knowledge to perform project risk management (PRM). It serves as the foundation of the skills and knowledge of an AACE certified Project Risk Management Professional (PRMP) and provides an outline for its study guide. PRM requires knowledge ranging from analytical (e.g., statistics and modeling) to socio/psychological (e.g., risk elicitation and communication) to management (e.g., risk response planning and management). PRM is practiced within the context of all the processes and practices of total cost management (TCM). All TCM practices have elements of uncertainty and the need to make some decisions, and interfaces with all the associated disciplines working in a TCM process.

This RP highlights the necessary skills and knowledge of a PRM practitioner from a high-level viewpoint. It identifies competencies for a risk management practitioner as it relates to their broad experience in performing technical analyses such as schedule risk analysis, cost risk analysis (or integrated cost-schedule risk analysis) to qualitative risk management that deal with the development of a risk management plan (RMP), risk identification through risk workshops or interviews, qualitative risk assessment, development of risk response planning, and risk monitoring and control during the life of the project. Detailed skills, knowledge, and methodology are excluded from this recommended practice. These skills and knowledge are applicable to the project risk management profession across any industry, portfolio, program, or project in which TCM applies. It is aligned with RP 11R-88, Required Skills and Knowledge of Cost Engineering and the Total Cost Management Framework.

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