Transcript March Ltd - SERTECSA

MARCH
Risk Management
Introduction
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Generic approach
 Type of project
 The length of the project
 Experience of the risk manager
 The attitude of senior management
Project versus Risk management
 See also The Complete Project Management Package in this series
Client versus contractor
Risk management culture
Limitations
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Risk Management
What is risk?
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Uncertainty
 Risk versus issue
 Tight objectives
 Plan
• All projects involve RISK
• RISK versus REWARD (benefits)
• Margins and contingency
 Will a project succeed?
• Is the end date feasible?
• Milestones deliverable
• Individual tasks correct
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6 basic questions requiring an answer
opportunities
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Risk Management
6 questions to define the project
•Who?
•Why?
•What?
•How?
•Resource?
•When?
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Risk Management
The key areas of concern.
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COST
SCHEDULE
REVENUE
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Risk Management
Why carry out Risk Assessment?
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Is the project too risky?
Threat intensity?
RISK
COST
COST
RISK
Improve decision making
Clarification of terms
 Targets
 Expected values
 Commitments
Documentation
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Risk Management
What should risk analysis provide?
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Time - must leave time for corrective action
Priorities - limited resource will dictate
Aggregation - allows overall summary of
individual risks
Decision making - better informed
Realistic attitude to the project - objective
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Risk Management
3 Ways to view risk management
RM
RM
Risk Management is
the reason for Project
Management
PM
PM
PM
Risk Management
permeates all of
Project Management.
RM
Risk management
supports Project
Management
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MARCH
Risk Management
General comments on risk assessment
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Broad range of risks - by impact and likelihood
Could be a simple matter of assigning resource
May require formal risk assessment:
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Classify as high, medium and low
Use of mathematical models
How much effort do we use?
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Minimum needed to give a meaningful result
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Risk Management
Accountability
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Accountability of risks cannot be shared
Who will be accountable?
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Risk Management
Stakeholders
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Identify those whose views matter
Consider both customer and supplier views
Think about the priorities of the users
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