MARCH 1 Risk Management Introduction l Generic approach è Type of project è The length of the project è Experience of the risk manager è The attitude of senior management l Project versus Risk management è See also The Complete Project Management Package in this series l Client versus contractor l Risk management culture l Limitations

MARCH 2 Risk Management What is risk? l Uncertainty è Risk versus issue è Tight objectives è Plan All projects involve RISK RISK versus REWARD (benefits) Margins and contingency è Will a project succeed? Is the end date feasible? Milestones deliverable Individual tasks correct è 6 basic questions requiring an answer è opportunities

MARCH 3 Risk Management 6 questions to define the project Who? Why? What? How? Resource? When?

MARCH 4 Risk Management The key areas of concern. l COST l SCHEDULE l REVENUE

MARCH 5 Risk Management Why carry out Risk Assessment? l Is the project too risky? l Threat intensity? l Improve decision making l Clarification of terms è Targets è Expected values è Commitments l Documentation RISK COST

MARCH 6 Risk Management What should risk analysis provide? l Time - must leave time for corrective action l Priorities - limited resource will dictate l Aggregation - allows overall summary of individual risks l Decision making - better informed l Realistic attitude to the project - objective

MARCH 7 Risk Management 3 Ways to view risk management RM PM RM PM RM PM Risk management supports Project Management Risk Management is the reason for Project Management Risk Management permeates all of Project Management.

MARCH 8 Risk Management General comments on risk assessment l Broad range of risks - by impact and likelihood l Could be a simple matter of assigning resource l May require formal risk assessment: è Classify as high, medium and low è Use of mathematical models l How much effort do we use? è Minimum needed to give a meaningful result

MARCH 9 Risk Management Accountability l Accountability of risks cannot be shared l Who will be accountable?

MARCH 10 Risk Management Stakeholders l Identify those whose views matter l Consider both customer and supplier views l Think about the priorities of the users