Introduction to Project Management Managing Project Risk Lecture a 1

Managing Project Risk Learning Objectives—Lecture a Assess project risks. Plan project responses. Prepare and maintain a risk register. Develop and execute a risk management plan. 2 Health IT Workforce Curriculum Version 3.0/Spring 2012 Introduction to Project Management Managing Project Risk Lecture a

What is Risk? Risk: the effect of uncertainty on objectives* –Positive risk: opportunity to enhance project’s success –Negative risk: threat to project’s success * International Organization of Standards 3 Health IT Workforce Curriculum Version 3.0/Spring 2012 Introduction to Project Management Managing Project Risk Lecture a

How does risk impact the PM process? 4 Health IT Workforce Curriculum Version 3.0/Spring 2012 Introduction to Project Management Managing Project Risk Lecture a

Managing Risk Proactively Recognize that you can’t control everything Plan for the things that you can exert some control over Continuously plan, monitor, control 5 Health IT Workforce Curriculum Version 3.0/Spring 2012 Introduction to Project Management Managing Project Risk Lecture a

How to Manage Project Risks Develop a risk management plan –Identify risks Certainty Uncertainty –Perform qualitative risk analysis –Perform quantitative risk analysis –Develop and implement risk response plans –Create and maintain a risk register 6 Health IT Workforce Curriculum Version 3.0/Spring 2012 Introduction to Project Management Managing Project Risk Lecture a

Outputs from Processes 7 Health IT Workforce Curriculum Version 3.0/Spring 2012 Introduction to Project Management Managing Project Risk Lecture a

Developing a Risk Management Plan Led by project manager Supported by project stakeholders Input from: –Project scope statement –Budget –Schedule –Communications management plans –Environmental factors –Organizational process assets 8 Health IT Workforce Curriculum Version 3.0/Spring 2012 Introduction to Project Management Managing Project Risk Lecture a

Risk Management Plan—Contents Definitions of risk for the organization Probability and impact matrix Revised stakeholders’ tolerances Reporting formats Tracking Roles and responsibilities Methodology Budgeting Timing Risk categories 9 Health IT Workforce Curriculum Version 3.0/Spring 2012 Introduction to Project Management Managing Project Risk Lecture a

“Identify Risks” Process Purpose Identify and document potential risks that can impact a project How to identify project risks Review project plans and documents, analyze assumptions, and review lessons learned from previous projects Engage key stakeholders in team meetings and use information- gathering techniques to obtain risk information from them Creating a risk register The risk register contains information such as identified risks, probability of occurrence, impact of occurrence on project objectives, risk owners, proposed response strategies, and current status 10 Health IT Workforce Curriculum Version 3.0/Spring 2012 Introduction to Project Management Managing Project Risk Lecture a

Typical Risk Categories Technical New technology? Interface complexity? Organizational Funding uncertainty Staff availability External Supplier bankruptcy Global economy Project Management Inadequate planning? Poor resource allocation? 11 Health IT Workforce Curriculum Version 3.0/Spring 2012 Introduction to Project Management Managing Project Risk Lecture a

Managing Project Risk Summary — Lecture a Risk management: identify, assess, and respond –Definitions and concepts –Processes –Materials 12 Health IT Workforce Curriculum Version 3.0/Spring 2012 Introduction to Project Management Managing Project Risk Lecture a

Managing Project Risk References — Lecture a References Health Information and Management System Society. (2010). Chicago, IL.. Available from: Houston S, Bove LA. (2010) Project Management for Healthcare Informatics. New York: Springer Science + Business Media, LLC. Kerzner H. (2009) Project Management: a Systems Approach to Planning, Scheduling, and Controlling. 10 th ed. Hoboken, NJ.:Wiley. Project Management Institute, A Guide to the Project Management Body of Knowledge. 4 th ed (2008).Newtown Square, PA: PMI. Scwalbe K. (2009) Information technology project management (with Microsoft Project 2007 CD-ROM). 6th ed.; Boston: Cenage Learning. Stackpole C. (2009). A Project Manager’s Book of Forms: A Companion to the PMBOK Guide. Hoboken, N.J.:Wiley; Wysocki, RK. (2009) Effective project management: traditional, agile, extreme. 5th Edition. New York: Wiley; Charts, Tables, and Figures Table 7.1 Outputs from Processes. Table courtesy Theron Feist, Johns Hopkins School of Nursing Staff. Images Slide 4: Knowledge Areas, Image courtesy Theron Feist, Johns Hopkins School of Nursing Staff 13 Health IT Workforce Curriculum Version 3.0/Spring 2012 Introduction to Project Management Managing Project Risk Lecture a