PROJECT RISK MANAGEMENT Presentation by: Jennifer Freeman & Carlee Rosenblatt

Slides:



Advertisements
Similar presentations
1)List and briefly describe the three project quality management processes. Quality Planning: Identify which quality standards are relevant to project.
Advertisements

Program Management Office (PMO) Design
PROJECT RISK MANAGEMENT
Note: See the text itself for full citations. Information Technology Project Management, Seventh Edition.
Getting a XBRL Project Up and Running. Mr John Morgan UBmatrix Australia th XBRL International Conference “Getting.
System Office Performance Management
Action Implementation and Monitoring A risk in PHN practice is that so much attention can be devoted to development of objectives and planning to address.
ENVIRONMENTAL MANAGEMENT PLAN
The Analyst as a Project Manager
Project Management The dynamic process that utilises the appropriate resources of the organisation in a controlled and structured manner To achieve some.
Project Management and MS Project. The project management triangle: Time Resources Scope.
System Office Performance Management
LSU 10/09/2007Risk Management1 Risk & Risk Management Project Management Unit #5.
Purpose of the Standards
8 Managing Risk Teaching Strategies
© 2008 Prentice Hall11-1 Introduction to Project Management Chapter 11 Managing Project Execution Information Systems Project Management: A Process and.
Project Execution.
Project management INTRODUCTION. Information Technology Project Management, Fourth Edition 2 IT projects have a terrible track record. A 1995 Standish.
Pre-Project Planning Lessons from the Construction Industry Institute Construction Industry Institute Michael Davis, P. Eng, PMP Ontario Power Generation.
Capability Maturity Model
Protection Against Occupational Exposure
Project Human Resource Management
Identification, Analysis and Management
S/W Project Management
Project Risk Management. The Importance of Project Risk Management Project risk management is the art and science of identifying, analyzing, and responding.
Chapter 11: Project Risk Management
N By: Md Rezaul Huda Reza n
HIT241 - RISK MANAGEMENT Introduction
Certificate IV in Project Management Introduction to Project Management Course Number Qualification Code BSB41507.
Risk Management Project Management Digital Media Department Unit Credit Value : 4 Essential Learning time : 120 hours.
Inspire Personal Skills Interpersonal & Organisational Awareness Developing People Deliver Creative Thinking & Problem Solving Decision Making, Prioritising,
Project Management By: Dr Madhu Fernando Project Risk Management
Lecture 11 Managing Project Execution. Project Execution The phase of a project in which work towards direct achievement of the project’s objectives and.
SacProNet An Overview of Project Management Techniques.
Management & Development of Complex Projects Course Code MS Project Management Perform Qualitative Risk Analysis Lecture # 25.
ISM 5316 Week 3 Learning Objectives You should be able to: u Define and list issues and steps in Project Integration u List and describe the components.
Chapter 11. Intro  What is Project Management?  Project Manager  Project Failures & Successes Managing Projects  PMBOK  SDLC Core Process 1 – Project.
1 Designing Effective Programs: –Introduction to Program Design Steps –Organizational Strategic Planning –Approaches and Models –Evaluation, scheduling,
Project Life Cycle.
Monitor & Control Risks 1 MEC-4. What is Monitoring & Controlling Risks? 2 » Monitoring & Controlling Risks is the process of: implementing Risk Response.
Welcome to Session 3 – Project Management Process Overview
Lecture 3 Title: Information Technology Project Methodology By: Mr Hashem Alaidaros MIS 434.
Ch 10 - Risk Management Learning Objectives You should be able to: List and describe risk management processes, inputs, outputs, and tools List and describe.
Question Four: Project Risk Management PMBOK definition of Project Risk Project risk management is the art and science of identifying, analyzing, and responding.
Environmental Management Plan (EMP) Required for: Full EIA based on Palestinian EIA Policy Category A projects based on World Bank Policy.
SOFTWARE PROJECT MANAGEMENT
IT Risks and Controls Revised on Content Internal Control  What is internal control?  Objectives of internal controls  Types of internal controls.
Queen’s Management & Leadership Framework
Project Risk Management Planning Stage
A Guide for Management. Overview Benefits of entity-level controls Nature of entity-level controls Types of entity-level controls, control objectives,
Module 5 Session 5.2 Visual 1 Module 5 Refining Objectives, Scope, and Other Project Parameters Session 5.2 Reviewing the PAR and refining key project.
Monitor & Control Risks 1 MEC-4. What is Monitoring & Controlling Risks? 2 » Monitoring & Controlling Risks is the process of: implementing Risk Response.
Quick Recap.
1 Project Management C13PM Session 2 Project Initiation & Definition Russell Taylor Business Department Staff Workroom
COMPGZ07 Project Management CMMI Project Planning Lecture 5b Graham Collins, UCL.
Info-Tech Research Group1 Manage the IT Portfolio World Class Operations - Impact Workshop.
1 An Overview of Process and Procedures for Health IT Collaboration GSA Office of Citizen Services and Communications Intergovernmental Solutions Division.
Company LOGO. Company LOGO PE, PMP, PgMP, PME, MCT, PRINCE2 Practitioner.
Implementing Program Management Standards at Duke Energy.
" The Importance of RM in strategic in sustainable service delivery How to avoid Service Delivery Protest ” Institute of Municipal Finance Officers & Related.
Chapter 7 Project Management and Event Implementation
Organizations of all types and sizes face a range of risks that can affect the achievement of their objectives. Organization's activities Strategic initiatives.
Systems Analysis and Design in a Changing World, 4th Edition
8 Managing Risk (Premium).
Recognization and management of RISK in educational projects
HUMAN RESOURCE GOVERNANCE, RISK MANAGEMENT AND COMPLIANCE
By Jeff Burklo, Director
Project Management Process Groups
(Insert Title of Project Here) Kickoff Meeting
Presentation transcript:

PROJECT RISK MANAGEMENT Presentation by: Jennifer Freeman & Carlee Rosenblatt

Topics We Will Cover... Controller’s Function Project Failures and Project Management Project Team’s Options Project Risk Management (PRM) PRM Benefits Project Risk Categories Project Management Risks PRM Approach

Controller’s Function The Controller... lends their expertise to the different projects provides financial analysis participates on project teams

Project Failures Management is frequently disappointed with project results because they fall far below original expectations. Reasons for failures vary, but there is one common denominator: Earlier in the life of the project, the reasons were risks to the project.

Project Management Track and manage issues that impact the project negatively. Implement an effective process for identifying and addressing project risks before these risks become issues.

Project Team’s Options Priorities or schedules may be changed Key decisions escalated to higher levels of management Activities added or enhanced Additional or different resources obtained

Project Risk Management (PRM) The systematic process of identifying, analyzing, and responding to risk by applying risk management principles and processes at the project level. It seeks to maximize the probability and consequences of positive events. It seeks to minimize the probability and consequences of adverse events. The goal is to prevent or reduce risk in a cost-effective manner without compromising quality or harming the mission.

PRM Benefits Ensures that project plans are realistic, with corresponding improvements in the overall business case and definition of project net benefits. Enhances the management’s understanding of the project’s implications during the early stages of the project.

PRM Benefits Continued Provides the opportunity to identify and consider a broader range of options than may be possible when the risk has become an issue, which can conserve resources. Allows for more time to be made available to address the risks in a careful and well- planned manner.

Project Risk Categories Issue – A current problem that is negatively impacting a project. Risk – A possible occurrence that would expose a project to potential failure in some or all respects. Sometimes a risk is an issue that will happen in the future, but not all project risks become issues.

Categorizing Project Risks Valuable in assisting a project team to identify and consider the potential risks the project may face. Four categories of common project risks:  Project management risks  Technical risks  Human risks  Business risks

Project Management Risks Potential for unmet requirements in areas such as project management capabilities, project planning, and resource requirements. Examples of project management risks:  Inadequate project management processes, procedures, or skills  Incomplete planning assumptions  Overly aggressive time, budget, or benefits estimates  Inadequate project resource commitments  Resource coordination difficulties  Failure to coordinate intraproject linkages and relationships

Technical Risks Potential for unmet requirements in terms of project designs, delivery schedules, information availability, and the like. Examples of technical risks:  Inadequate definition of future state requirements  Designs that do not address the full scope of objectives  Hardware or software incompatibility  Missed delivery schedules  Design incompatibility or scheduling problems between interdependent project components

Human Risks Potential for various human dynamics to impede project objectives or to reduce or negate benefits. Examples of human risks:  Sponsorship that is inadequate to legitimize and sustain the project  Inadequate support from middle or lower levels of management  Differing or unclear understanding about the project scope or impacts  Inadequate or ineffective communication  Project overload  Residual issues from previous project implementations

Business Risks Potential for occurrences external to the organization, or in other parts of the organization, that could negatively impact the project. Examples of business risks:  Strikes  Competitor actions  Legislative or regulatory changes  Significant problems or opportunities that redirect executive attention and/or funding.

Times to consider risk During initial stages of the project After achievement of key project milestones Before beginning new project phases When relevant information is received  Knowledge about changes in business conditions  Announcement of organizational changes  Announcement of or discussion about changes in a project sponsor or project member

PRM Approach – 6 Steps 1.Identify the risks relevant to the project 2.Evaluate risks to determine which needs most attention 3.Assign people to “own” key risks 4.Address key risks through containment or contingency plans 5.Revisit the project plan for adjustment or enhancement if the plan has been prepared 6.Manage and track risks throughout the life of the project

1. Identify the Relevant Risks Prerequisites  Objectives must be clear  Proposed targets for schedule, budget, and resource requirements understood Develop list of relevant risks Identify essence and develop risk statements for each category of risk

2. Evaluate the Risks atch?v=FRvsa-yNZk8

Probability of Risk The relationship of risks and their probability across the project life-cycle process

Impact The inverse relationship of probability and impact as the project progresses through the life-cycle processes

3. Assign Risk Owners Risk owners are accountable for......Preparing the containment or contingency plans...Monitoring changes in the probability and/or impact of the risk and notifying the project manager and team of any significant changes...Taking the lead in initiating and managing the containment or contingency plans

4. Address Key Risks Containment – Specific actions that will be taken Contingency – Plan that prepares for actions in the event that a nonactionable risk becomes an issue Tracking List – Mechanism to ensure risks are retained and tracked as project moves forward

5. Revisit the Project Plan Revisit the original project plan after the containment and contingency plans have been prepared. Evaluate plan carefully for additional actions and trade-offs that will make the plan more achievable.

6. Manage and Track the Risks The risks that have been identified need to be:  Managed carefully  Monitored closely  Tracked for changes in probability and/or impact Include steps to review and oversee PRM activities in the project plan.

Questions Answered by PRM Are we losing sight of goals & objectives as the project moves forward? Are we ensuring that the results of the project will improve the organization’s ability to complete its mission? (The result should be an improvement over the previous process.) Are we ensuring sufficient funds are available, including to address risks? Are we tracking implementation to ensure “quicker/better/cheaper” objectives are being met? Are we applying appropriate RM principles throughout the project? Are we taking corrective action to prevent or fix problems, rather than simply allocating more money and time into them? Have changes in the environment, such as new IT systems or leadership, created new risks that need to be managed?

KprX-HP94http:// KprX-HP94

References Bragg, Steven M. and Roehl-Anderson, Janice M. The Controller’s Function – The Work of the Managerial Accountant, 3rd Edition, www3.od.nih.gov/oma/ma/NewRisk/PRM.doc