1. Risk( 风险 ) Management Presented by Basker George

2. Risk Management Any project can fail Reasons for failure Lack of proper engineering Lack of proper Management Occurrence ( 出现 ) of some unforeseen ( 无法预料的 ) events Any other problem

3. Risk Management The basic goal of all activities in a project is to ensure( 保证得到 ) that project succeeds. The engineering activities ensure that project does not fail on engineering front( performance( 性能 ), functionality ( 功能性, 泛函性 ) & Quality). The Project Management activities focus on making sure that project does not fail due to poor management. Risk Management tries to minimize the chance of failure caused by unforeseen events( 事件 ).

4. Risk Management In project, a RISK is any condition or event ( 事件 ) whose occurrence ( 发生 ) is not certain( 确定的 ). That is a event that can affect in a unfavorable ( 不宜的 ) manner. The two element of risk are: Occurrence of risk is probabilistic( 或然说的 ) If it occurs, it can cause damage to project.

5. Risk Management The purpose of Risk Management is to identify potential ( 可能的,) risk & then take actions such that their effect on project is. Minimized( 最小化 ). Proper process for RISK MANAGEMENT are a requirement for Integrated Software Management KPA at CMM Level 3.

6. Risk Management In this cheaper we shall study General concept of RISK & Risk Management Risk Assessment( 估价 ) Risk Control

7. Background Risk is the possibility of loss, injury( 伤害 ), disadvantage or destruction ( 破坏 ). Risk are events or condition that may or may not occur, “ wish they will never occur ”. When it occurs, It has negative impact ( 效果 ) on the project

8. Risk management Risk management is to identify the possible risk Assess the consequence( 结果 ) Plan to overcome ( 战胜 ) risk

9. Risk management activities Risk assessment Risk identification ( 辨认 ) Risk analysis( 分析 ) Risk prioritization( 优先 ) Risk control Risk management planning Risk resolution( 决心 ) Risk monitoring( 控制 )

10. Risk management & project execution Risk Assessment Monitoring Managing Risk Project process information control Other factors

11. Risk Management at Infosys Risk Assessment At Infosys risk assessment consists of two components: Risk Identification Risk Prioritization

12. Risk Identification This activity focuses on enumerating ( 列举 ) possible risk to projects Checklist of possible risk Interview, Meeting, & brainstorming( 智力爆 发 ) Review of plan, process & work products Surveys Risk management of similar project in PDB

13. Risk Prioritization The identified risk give a possible event Therefore the risk has to be prioritize to focus & manage the highest risk It has to be analyzed for the possible effect & loss to the project.

14. Risk Prioritization Since risk is a probabilistic in nature, it can be categorized as: Risk Category ( 种类 ) Impact Category.

15. Risk Category ProbabilityRange Low0.0 to 0.3 Medium0.3 to 0.7 High0.7 to 1.0

16. Impact Category Level of consequencesRange Low0 - 3 Medium3 - 7 High7-9 Very High9-10

17. Cont … The steps in risk prioritization are: For each risk, rate the probability for the risk as Low, Medium, or High (0 – 1). For each risk, assess its effect on the project as Low, Medium, High, V High(1-10) Rate the risk based on the probability & effect on the project. Select the top risk items for mitigation & tracking

18. Risk Control Once the risk has been identified & prioritized plan & manage them so that their consequence is minimal. That is … Planning of risk mitigation( 减轻 ) Execution of a plan Monitoring the risk The process database can also be used to identify risk & mitigation steps.

19. Top Ten Risk & their risk mitigation steps Sq. No Risk CategoryRisk Mitigation Steps 1Shortage of technically trained manpower Make estimates with little allowance for initial learning time Maintain buffers of extra resource Define project specific training program Conduct cross-training session

20. Top Ten Risk & their risk mitigation steps Sq. No Risk CategoryRisk Mitigation Steps 2Too many requirement changes Obtain sign off for initial requirement specification from client Convince the client that changes in requirement will affect the schedule Define a procedure to handle requirement changes Negotiate payment on actual effort

21. Top Ten Risk & their risk mitigation steps Sq. No Risk CategoryRisk Mitigation Steps 3Unclear requirement Use experience & logic to make some assumptions & keep the client informed; obtain sign- off Develop prototype /get the requirement reviewed by the client

22. Top Ten Risk & their risk mitigation steps Sq. No Risk Category Risk Mitigation Steps 4 Manpower attrition Ensure multiple resource are assigned on key project areas Have team building Rotate jobs among team members Keep extra resources in the project as backup Maintain proper documentation of individual work Follow the configuration management process & guidelines strictly

23. Top Ten Risk & their risk mitigation steps Sq. No Risk CategoryRisk Mitigation Steps 5Externally driven decisions forced on project Outline disadvantages with supporting facts/data & negotiate with the personnel responsible for forcing the decisions. If inevitable, identify the actual risk & follow its mitigation plan

24. Top Ten Risk & their risk mitigation steps Sq. No Risk Category Risk Mitigation Steps 6 Not meeting performance requirements Define the performance criteria clearly & get them reviewed by the client Define standards to be followed to meet the performance criteria Prepare the design to meet performance criteria & review it Simulate prototype performance of critical transaction Test with a representative volume of data where possible Conduct stress test where possible.

25. Top Ten Risk & their risk mitigation steps Sq. No Risk Category Risk Mitigation Steps 7 Unrealistic Schedule Negotiate for a better schedule Identify parallel task Have resource early Identify area that can be automated If the critical path is not within schedule, negotiate with the client Negotiate payment on actual effort

26. Top Ten Risk & their risk mitigation steps Sq. No Risk Category Risk Mitigation Steps 8 Working on new technology (Hardware & Software) Consider a phased delivery Begin with the delivery of critical modules Include time in the schedule for learning curve Provide training in the new technology Develop proof-of-concept application

27. Top Ten Risk & their risk mitigation steps Sq. No Risk Category Risk Mitigation Steps 9 Insufficient business knowledge Increase interaction with the client & ensure adequate knowledge transfer. 10 Link failure / slow performance Set proper expectation with the client Plan ahead for the link load Plan the optimal link usage