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Approach to Risk Management Planning
 

Approach to Risk Management Planning

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The reasons Risk are a big threat to projects is that they can become Issues. When they become an Issue the project manager and team then need to divert their attention to managing the Issue as ...

The reasons Risk are a big threat to projects is that they can become Issues. When they become an Issue the project manager and team then need to divert their attention to managing the Issue as opposed to focusing on the project deliverables. This can result in severe delays.

A Risk Management Plan can help to ensure that the project is prepared to deal with Risks becoming Issues. This can result in a minimal impact to the project, saving time and money.

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    Approach to Risk Management Planning Approach to Risk Management Planning Presentation Transcript

    • PMO Risk Management Plan Author: Simon Wilkinson, PMP Date: 19th August 2013 Copyright  2013.    All  rights  reserved.  www.prac9calpmo.com  
    • Contents 1.0 Purpose of this presentation 2.0 Purpose of Risk Management Planning 3.0 Why you need a Risk Management Plan 4.0 How a Risk Management Plan helps 5.0 Steps to create a Risk Management Plan 5.0 Summary 6.0 PMO resources and downloads 7.0 Contact details Copyright  2013.    All  rights  reserved.  www.prac9calpmo.com  
    • 1.0 Purpose of this presentation The purpose of this presentation is to provide an understanding of Risk Management Planning and how it can help save time and keep a project on track when a risk becomes an issue. Approach This presentation provides guidance by: • Purpose of Risk Management Planning • Why you need a plan • How it helps • Steps to create a plan • Summary • Additional resources At the end of the presentation I provide details of further resources including my free guide, 7 steps to set-up a PMO. Copyright  2013.    All  rights  reserved.  www.prac9calpmo.com  
    • 2.0 Purpose Risk Management Planning Purpose Unlike Risk Mitigation, Risk Management Planning is focused on what actions will be taken when a Risk becomes an Issue, essentially the project’s “play book” on how to deal with a specific Risk when it becomes an issue. It is important to understand the difference between Risk Mitigation and Risk Management Planning: Risk Mitigation - action you take to mitigate the impact of a risk. For example, you may decide to engage a 3rd party to build an interface for a system if there is a high probability the in-house interface will not be delivered in time. Risk Management Plan - action you take when the risk becomes an issue. Taking the implementation of the interface. The decision has been taken to build in-house, it has been decided not to mitigate by getting a 3rd party to build a solution in parallel. So if the risk that the interface will not be delivered on time becomes true, the issue that needs to be handled is that the interface will be late. Therefore, as there will probably no time to engage a 3rd party to build, the Risk Management Plan should contain the tasks that will be performed to address the issue. Copyright  2013.    All  rights  reserved.  www.prac9calpmo.com  
    • 3.0 Why you need a Risk Management Plan A  Risk  can  become  an  Issue  at  any9me  and  is  in  the  majority  of  cases  outside  the   control  of  the  project.    This  means:   1.  Risk  can  become  Issue  at  any  9me   2.  Risk    may  become  Issue  when  project  team  is  busy  on  other  cri9cal   deliverables   3.  AEen9on  has  to  be  diverted  from  deliverables  to  deal  with  Issue   4.  Time  needs  to  be  spent  reviewing  Issue  and  deciding  best  course  of  ac9on   5.  Project  team  may  select  the  wrong  op9on  meaning  more  wasted  9me  and   further  9me  spent  finding  solu9on   •  The  outcome  is  that  the  project  team  goes  into  crisis  management  mode,  9me  is   diverted  away  from  deliverables,    team  is  under  pressure  so  may  not  find  best   solu9on  leading  to  rework  and  more  wasted  9me  –  the  project  suffers  delays.   Copyright  2013.    All  rights  reserved.  www.prac9calpmo.com  
    • 4.0 How a Risk Management Plan helps Now  consider  the  outcome  if  the  project  tem  had  spent  9me  crea9ng  a  Risk   Management  Plan.   1.  Risk  can  become  Issue  at  any  9me   2.  Risk    may  become  Issue  when  project  team  is  busy  on  other  cri9cal   deliverables   3.  Project  team  reviews  the  Risk  Management  Plan  to  iden9fy  Risk  and  resul9ng   Issue   4.  Project  team  executes  the  ac9ons  in  the  plan   5.  Minimum  9me  is  lost  so  more  chance  deliverable  will  not  be  adversely   impacted   •  The  outcome  is  that  the  project  team  does  not  go  into  crisis  mode  as  they  have   already  spent  9me  preparing  a  planned  response  for  the  incident.    The  plan  is   executed  resul9ng  in  a  9mely  resolu9on  and  minimal  9me  lost  on  the  cri9cal   deliverable.   Copyright  2013.    All  rights  reserved.  www.prac9calpmo.com  
    • 5.0 Steps to create a Risk Management Plan To create a Risk Management Plan: Approach • High impact and high probability Risks identified during the risk identification process • Review the list to identify which risks need management plans • Set up sessions with appropriate resources to consider the impact of each risk • Define the course of action for each risk – this must include a step by step plan with owners Template The Risk Management Plan should be a simple template using a spreadsheet or word processor and include the following fields: • Risk – clear definition and description • Impact – what will happen if the risk becomes an issue • Action Plan – step by step actions with owners that will be executed if risk becomes issue Copyright  2013.    All  rights  reserved.  www.prac9calpmo.com  
    • 6.0 Summary Risk Management Plan saves time and money by reducing the impact of an issue on a project. • High impact, high probability risks are clearly identified • Clear action plans are identified for each risk • Plans are prepared when team is not under pressure with time to think • Risk Management Plan can be followed as soon as risk becomes issue saving time and money • Minimises impact on project deliverables Investing time to develop a solid Risk Management Plan, while taking time, will greatly reduce the impact of a risk becoming an issue as the project team will have a pre-defined action time to follow. For more information on Risk Management Plans, please visit: http://www.practicalpmo.com/pmo-risk-management-plan/ Copyright  2013.    All  rights  reserved.  www.prac9calpmo.com  
    • 7.0 PMO resources Get more helpful information by claiming your own free copy of my guide, 7 steps to set- up a PMO, all you need to do is visit the PMO Set-up page on my website and send your name and e-mail, you will then have instant access to the guide. Visit  hEp://www.prac9calpmo.com/6-­‐how-­‐to-­‐set-­‐up-­‐a-­‐pmo/   How  to  design  a  PMO  that  works   This  220  page  book  by  prac9calpmo.com  is  a  powerful,  simple   to  use  resource  for  anyone  who  needs  to  set-­‐up  a  PMO.    Each   chapter  breaks  down  the  important  aspects  of  the  PMO  and   includes  an  easy  to  follow  ac9on  list.   Visit  hEp://www.prac9calpmo.com/pmo-­‐book/   Copyright  2013.    All  rights  reserved.  www.prac9calpmo.com  
    • 7.0 Contact details If you have found this presentation useful, please take a moment to provide encouragement through a Facebook Like, Tweet, Google+, LinkedIn, etc. Please also share with your colleagues who will find the resource helpful. Website: http://www.practicalpmo.com Facebook: https://www.facebook.com/practicalpmo Twitter: @practical_pmo Google+: Simon Wilkinson LinkedIn: http://www.linkedin.com/company/practical-pmo Ques5ons   Please  send  an  e-­‐mail  to  simon@prac9calpmo.com   Copyright  2013.    All  rights  reserved.  www.prac9calpmo.com