1. VP, Institutional Services
The Benefits and Risks of Technology Projects FIRMA Risk Management Training Conference
Sandra Sherman
VP, Institutional Services
Project Management
April 21, 2011

2. Agenda Project Management & Technology Benefits of Technology
Risks of Technology
Project Stages/Gates
Key Risks to Manage
Project Stages/Gates
Faster, cheaper, better
Risks of Technology
Budget Constraints
Time to Market
In this ever changing market place with pressures from all areas, how do we ensure that we provide quality products to employees and clients?

3. Project Management & Technology
Why Project Management?
Create full circle governance
Develop requirements
Manage expectations of all stakeholders
Assess risks at all stages
Why Project Management?
Structure & Risk Management
Create full circle governance
Not just Schedule meetings, Manage tasks, ensure goals are met
Manage expectations of all stakeholders
Various business lines, technology groups, clients
Used to be that the “Team” to implement a technology project was comprised of the Sponsor and the developers, it can no longer be that way. The Team has expanded to include system security, audit, compliance, and legal. At each stage of project is it critical to review the goals of the project with all these stakeholders, to ensure that nothing in the market place has changed since the last gate.

4. Benefits of Technology
Automated solutions replace manual processes
Reduce risk of manual input errors
Reduce time to process activity
Less prone to error than manual processes
Automated solutions replace manual processes

5. Benefits of Technology
Enforce company rules and policies
Encourage consistency
Develop collaboration and information sharing
Create efficiencies both in dollars and time spent
Client access to information from multiple locations
Reduce phone calls to relationship teams
A technology can enforce company rules and policies by encouraging a specific way of doing things.
Use of a technology across an organization can be self-sustaining, requiring little enforcement for the use of the tool.
Widespread use of a technology encourages consistency.
Use of a technology can encourage collaboration and information sharing that would be otherwise difficult or impossible.
Use of the technology can reduce the cost and effort of performing the activity as compared to what it replaced.
A technology or tool can reduce the time it takes to make decisions and may support better decisions by providing better quality and more timely information.
Reduce phone calls to relationship teams, RM’s no longer have close knowledge of the needs of client

6. Risks of Technology
Automated processes introduce risks that must be addressed through sound technology governance and infrastructure risk management programs
Automated solutions replace manual processes
No longer reviewed by a person, things can be missed
Could Limit types of activities

7. Project Stages/Gates Idea Planning Design/Development Testing Delivery
Post Implementation Review
Idea
Definition of Initiative
Planning
Development
Testing
Implementation

8. Idea Automation Requests New Vendor “Automate the process”
“Eliminate fax requests”
“Make it easier”
New Vendor
“XYZ vendor will make my process better”
“Implement new software”
How many ideas have never been implemented because they took too long to determine “what’s next?”

9. Planning – What’s Next? “Automate the process” Goals Assess Risks
Specific across all constraints
Technical/Scope
Schedule/Time
Cost
Assess Risks
“Automate the process”
What does that really mean?
Goals
Projects that do not meet expectations are still failures in the minds of the sponsor/requestor
Must be well defined in all three constraints of the projects
Must get specific, vague requirements result in failure
Assess Risks
Process changes
Time Constraints
Cost Constraints
Acceptance by users
Technology limitations
Security concerns

10. Need to identify Critical vs non Critical to achieving the goal of the project
Do we have enough $ to fund the project
Do we have the organizational resource commitment to complete the project
Is the scope well defined
Project Risk Drivers
Identification & initiation of a project has been misrepresented, wrongly assessed or overlooked
Scope definition, requirements and other key deliverables that encompass the business objectives are ambiguous or poor quality
Insufficient resources assigned to the project are either lacking in proper training, experience or availability
Inaccurate measurement of project performance and status, resulting in a misleading report of scope, cost and schedule
Misrepresentation of changes in scope, schedule and cost of the project without understanding impact to the business
Lack of identification and resolution of project risks and issues

11. Design/Development
Re - Assess Risk

12. Testing Front to Back testing of all requirements Re - Assess Risks
Access Security risks

13. Delivery Re - Assess Risks
Right when you think you are hitting your grove and the project is on it’s way to success, the wind shifts (compliance regulation change) and you have to reassess your way to the next mark (gate)
Re - Assess Risks

14. Key Risks Technology Projects
Achievable Goals
Risk/Activity Type
Resources
Organizational Setting
Project Participants
Technology Maturity
Risk/Activity Type
Project mgmt Risk
Technology Risk
Product Risk
Resources
Staff, $, computers, Space etc
Organizational Setting
How many different parts of the Bank need to be involved
Project Participants
Experience Levels
Bevis or Einstein
Technology Maturity
New state of the art, little experience within the Bank
Established known technology

15. Post Implementation
Can’t plan for all risks, but need to try to anticipate as much as possible or you will get flipped

16. Questions?