Risk Management for Projects.pptxVIP

Risk Management for ProjectsOutlineIntroductionIT Project Risk Management ChallengeRisk Management ProcessConclusionProject Risk ManagementA risk is something that may happen and if it does, will have an adverse impact on the project.Probability“will have an adverse impact”Standards of Risk ManagementProject Management Body of Knowledge(PMBOK)Australia-New Zealand ANZ-4360ISO 31000 Risk ManagementIEEE 1540Standards of Risk ManagementFive basic componentsRisk management planningRisk identificationRisk analysisRisk mitigationRisk monitoringNowIntroductionIT Project Risk Management ChallengeRisk IdentifyRisk QuantifyDevelop An Effective Mitigating StrategyDocumentationRisk Management ProcessConclusionRisk IdentifyMost common one.Project teams spend countless hours mitigating various symptoms while the actual risk goes unscathed.Project risks should be identified in terms of schedule, budget, quality, or mission accomplishment.Risk QuantifyRisk logs list the impact as “major”, “significant”, “substantial”, etc.For example, three-week schedule delay, $50,000 budget overrun, 500 hours of rework, etc.Develop An Effective Mitigating StrategyMore often than not, a risk will require multiple actions to be effectively mitigated.Analysis often reveals that the same mitigating action is assigned to a variety of risks; another indication that the true risk has not yet been properly identified.DocumentationLack of documentation regarding the effectiveness of the mitigating strategy.This problem may not impact the current project it will certainly affect later projects.NowIntroductionIT Project Risk Management ChallengeRisk Management ProcessConclusionComponents of Risk Management Process6 process steps: establish the context, identify risks, quantify risk impact, prioritize risks, develop mitigating strategy, and monitor mitigating strategy.Components of Risk Management Process3 activities:Oversight to ensure complianceDevelop risk modelsFeedback loopEstablish ContextOrganizations