Project Risk Management I would like to welcome you to the Second Training workshop for the UN HABITAT Urban Youth Fund Beneficiaries. Who do you represent: Among yourselves you will find a wealth of experience and expertise, and we look forward to learning from you, exchanging our experiences, challenges and lessons learned. During this session, we would like to discuss the following Facilitated by : Jean-Claude Adzalla UN HABITAT Urban Youth Fund Training of Beneficiaries 8-12 November 2010 - Kathmandu, Nepal
Objectives Gain a common understanding of a project risk and its influence on results Familiarize ourselves with risk identification methods Risk prioritization
Project Risks Takeaway: Risks in a project are inevitable. However, carefully collecting, evaluating, prioritizing, and controlling risks can increase the chances of success for your next project.
Project Managers and Risks Whether it's small or large, complex or simple, every project has risk. It's our job as managers to do our best to not only minimize the risk in our projects but to minimize it as soon as we can.
Risk Assessment Step 1: Risk Identification In this stage, we identify and name the risks. The best approach is a workshop. Use a combination of brainstorming and reviewing of standard risk lists. One identification tool: SWOT Analysis
Risk Assessment Step 2 Risk Quantification Risk need to be quantified in two dimensions. The impact of the risk needs to be assessed. The probability of the risk occurring needs to be assessed. For simplicity, rate each on a 1 to 4 scale. The larger the number, the larger the impact or probability.
Risk Matrix
Risk Response A risk response plan should include the strategy and action items to address the strategy. The actions should include what needs to be done, who is doing it, and when it should be completed.
Responses There are four things you can do about a risk. The strategies are: Avoid the risk Transfer the risk Mitigate the risk Accept the risk
Avoidance Avoid the risk. Do something to remove it. Use another supplier for example. In the worst case stop the project
Transfer Transfer the risk. Make someone else responsible. Perhaps a Vendor can be made responsible for a particularly risky part of the project.
Acceptance Accept the risk. The risk might be so small the effort to do anything is not worth while.
Risk Control Process of continual monitor of risks to identify any change in the status, or if they turn into an issue.
Control It is best to hold regular risk reviews to identify actions outstanding, risk probability and impact, remove risks that have passed, and identify new risks.
What is a project Temporary, tasks, beginning, end, unique goal and objectives
PM Book definition A project A temporary endeavor having a defined beginning and end, undertaken to meet unique goals and objectives Accessing data (older data sets)
Why do we manage projects?
Project Pyramid Time Cost Scope
Reasons for PM Pyramids Temples Technology Project paradigm Project management Reasons for PM Pyramids Temples Technology Project paradigm Video projection Project problem Constrains and results Task succession
RESOURCES + EXPECTED OUTPUTS
What tools are available? Resources UN HABITAT Urban Youth Fund Website Urban Youth fund Project Manual Project Management Tools
What is to come? Expected Outputs Common understanding of project management concept, methods and tools Training of Trainers
Housekeeping Key contact – Paul Wambua Facilitation – Jean-Claude Adzalla Clinics – Jean-Claude & Paul Time management - Participant designate
Good luck!