Managing Risks on Your Projects Mark J. Jasionowski 10 November 2009
What is a Risk? <ul><li>All projects have risk.  </li></ul><ul><li>For example; If a project starts later than normal.  If...
This is an  ISSUE !!
This is a  RISK !!
How do I get started on Managing Risk <ul><li>There are  six  stages to risk management planning (PMI.org). They are: ·  <...
Think about this for a second… “ Poor risk management implementation equals a high probability of project failure” - Rubin...
Plan Risk Management <ul><li>Plan risk management describes the process by which you really provide the team, time to budg...
Risk Identification <ul><li>Risk identification is the process by which you and the extended project team discuss and plan...
Risk Qualification <ul><li>Risk qualification management is a process of prioritizing risk and providing resources to anal...
Risk Quantification <ul><li>Plan risk management is a process by which the team is numerically analyzing the risks identif...
Risk Response <ul><li>Risk response, as the name indicates, is the process of options and actions development to reduce pr...
Risk Monitoring and Control <ul><li>Risk Monitoring and Control is the final piece in the risk puzzle for a project.  You ...
Q&A and Thank You! <ul><li>Please check out the Innovation Renewal website (OTC My Portal) for this presentation and other...
Back Up Information
RBS Courtesy:  PMI, PMBOK – Fourth Edition
C&E / Fishbone Courtesy:  Rubin Jen - PMP
Risk Register Courtesy:  Nebraska Office of the CIO
Probability and Impact Matrix (two examples) Courtesy:  PMI, PMBOK – Fourth Edition Courtesy:  Mindtools.com
Decision Tree Courtesy:  PMI, PMBOK – Fourth Edition
Risk Audit Courtesy:  smashingpasswords.com
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Managing Risk Session

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Basic example of how to manage project risks (non confidential). PMP-based

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Managing Risk Session

  1. 1. Managing Risks on Your Projects Mark J. Jasionowski 10 November 2009
  2. 2. What is a Risk? <ul><li>All projects have risk. </li></ul><ul><li>For example; If a project starts later than normal. If we are examining a new formula or never-used-before medical device. </li></ul><ul><li>A risk is something that may happen . If it does, it may have a positive or negative impact on the project. One point; </li></ul><ul><li>A risk must have a probability of above 0%. It must be a chance to happen or it is not a risk. </li></ul><ul><li>NOTE: If a task/activity has a risk probability of 100% - in other words it will happen - it is an issue. An issue is managed differently than a risk. </li></ul>
  3. 3. This is an ISSUE !!
  4. 4. This is a RISK !!
  5. 5. How do I get started on Managing Risk <ul><li>There are six stages to risk management planning (PMI.org). They are: · </li></ul><ul><li>Plan Risk Management </li></ul><ul><li>Risk Identification </li></ul><ul><li>Risk Qualification </li></ul><ul><li>Risk Quantification </li></ul><ul><li>Risk Response </li></ul><ul><li>Risk Monitoring and Control </li></ul><ul><li>But your very first step is completing your project charter: </li></ul><ul><li>What is the scope of the project? </li></ul><ul><ul><li>Product, Package, Actives, etc. </li></ul></ul><ul><li>What is our launch date ? </li></ul><ul><li>Who is confirmed on the team? </li></ul><ul><li>What is the budget or presumed costs ? </li></ul><ul><li>First discussion on project risks and hurdles? </li></ul>
  6. 6. Think about this for a second… “ Poor risk management implementation equals a high probability of project failure” - Rubin Jen, Visual Ishikawa Risk Technique (VIRT)—An Approach to Risk Management 
  7. 7. Plan Risk Management <ul><li>Plan risk management describes the process by which you really provide the team, time to budget (tools) for reviewing/documenting risk(s) </li></ul><ul><li>Discuss with core, functional team, the degree, type and visibility of risk technique you may want to utilize (COI 4 risk v. COI 1 risk) </li></ul><ul><li>This stage should start as soon as a project is approved and be finalized before any real dollars are invested </li></ul><ul><li>Tool used in this section; Risk Breakdown Structure (RBS) </li></ul>
  8. 8. Risk Identification <ul><li>Risk identification is the process by which you and the extended project team discuss and plan for all risk (known at this time, of course) </li></ul><ul><li>Having access to initial cost, time and scope estimates are key to this stage. In addition, keep in mind customer factors and environmental risks </li></ul><ul><li>Utilizing past lesson’s learned, best practices and benchmarking data is also most useful in this stage </li></ul><ul><li>Tools like simple brainstorming, interviews, SWOT and cause-and-effect (fishbone) matrices are effective </li></ul>
  9. 9. Risk Qualification <ul><li>Risk qualification management is a process of prioritizing risk and providing resources to analyze/actions ( X occurrence and impact) </li></ul><ul><li>Having identified a majority of the risks and their impact to the project is key. This will allow for an honest “reality check” with the team </li></ul><ul><li>To reduce bias or personal influence, utilize a basic probability and impact matrix. In every case, expert judgment is still key </li></ul><ul><li>Be sure to update your risk register and distribute to the team for comments </li></ul>
  10. 10. Risk Quantification <ul><li>Plan risk management is a process by which the team is numerically analyzing the risks identified (high priority) and their impact </li></ul><ul><li>This step is sometimes bypassed due to effective data and strategies already being captured in the past phase </li></ul><ul><li>Sensitivity analysis and completion of a decision tree diagram helps to assist in this section of risk </li></ul>
  11. 11. Risk Response <ul><li>Risk response, as the name indicates, is the process of options and actions development to reduce project/activity risk </li></ul><ul><li>This phase also assigns one person (risk response owner) to the plan/options identified in the earlier risk phases </li></ul><ul><li>If you are leveraging MS Project, you may also chose to include the detail identified in the risk register (with response owner) in the plan </li></ul><ul><li>The team also employs unique strategies to address the risk as well. For example; discussing avoiding, transferring or mitigating the risk </li></ul>
  12. 12. Risk Monitoring and Control <ul><li>Risk Monitoring and Control is the final piece in the risk puzzle for a project. You and the team are implementing the plan, tracking and monitoring the prioritized risks </li></ul><ul><li>If the plan has been added to the MSP, these activities should be covered in team meeting. In some cases, they would also be in iRIS </li></ul><ul><li>Risk audits are usually leveraged at this phase </li></ul><ul><li>Remember that your risk register is a live document and should be updated/refined as required </li></ul>
  13. 13. Q&A and Thank You! <ul><li>Please check out the Innovation Renewal website (OTC My Portal) for this presentation and others in the future </li></ul><ul><li>Also check out the public websites; </li></ul><ul><ul><li>PMI.org </li></ul></ul><ul><ul><li>Gantthead.com </li></ul></ul>
  14. 14. Back Up Information
  15. 15. RBS Courtesy: PMI, PMBOK – Fourth Edition
  16. 16. C&E / Fishbone Courtesy: Rubin Jen - PMP
  17. 17. Risk Register Courtesy: Nebraska Office of the CIO
  18. 18. Probability and Impact Matrix (two examples) Courtesy: PMI, PMBOK – Fourth Edition Courtesy: Mindtools.com
  19. 19. Decision Tree Courtesy: PMI, PMBOK – Fourth Edition
  20. 20. Risk Audit Courtesy: smashingpasswords.com

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