Presentation on Risk Management Tools, like Risk Register, Risk Profile Presentation Options, How to facilitate a Risk Assessment and effective Processes for day to day application of Risk Management in your Project

1. Risk Management Presenter Torsten J. Koerting www.torstenkoerting.com Session #

2. T H A N K Y O U

11. www.torstenkoerting.com

15. Get more ideas

16. Interact and share

18. Introduction Why Project Register Risk Assessment Effective Process Risk Profile presentation Project Health Check Agenda

20. Introduction Why Project Register Risk Assessment Effective Process Risk Profile presentation Project Health Check Agenda

21. Why does Risk Management becomes more important ? Why does Risk Management becomesMORE and more important ?

22. The World is changing The World is flat Inconvenient Truth

23. The Fall of the Berlin Wall The Internet Work-Flow Software Open-Sourcing Outsourcing Off-Shoring Supply-Chaining In-Sourcing In-Forming Information Steroids The World is flat

24. Global Warming Sea Levels rising Water shortage More storms than ever Lakes disappear More wildfires Shortage in Resources Resource shortage War for resources Inconvenient Truth

25. Financial Crisis Terrorism Increase of Knowledge Growth in Population Flatter Warmer The World is changing

26. ? What does all this mean for us as the Project Managers ?

27. The Impact : Increased Complexity Increased Competition Dynamics of Change ? ? ?

28. Introduction Why Project Register Risk Assessment Effective Process Risk Profile presentation Project Health Check Agenda

29. RiskMgmt Standard (AS/NZS 4360)

31. What is it and how is it structured

32. Critical success factors

33. Audience

35. their grading in terms of likelihood of occurring and seriousness of impact on the project

36. initial plans for mitigating each high level risk

38. an assessment of the likelihood it will occur and the possible seriousness/impact if it does occur (low, medium, high)

39. a grading of each risk according to company standards

40. who is responsible for managing the risk

41. an outline of proposed mitigation actions (preventative and contingency)

43. document risk mitigation strategies being pursued in response to the identified risks and their grading in terms of likelihood and seriousness

44. provide the Project Sponsor, Steering Committee/senior management with a documented framework from which risk status can be reported

45. ensure the communication of risk management issues to key stakeholders

46. provide a mechanism for seeking and acting on feedback to encourage the involvement of the key stakeholders

48. Needs to be up to date Process

49. Needs to be complete special Risks

51. Qualitative AnalysisType, Probability, Impact

52. Quantitative AnalysisProbability (%), Effect ($ or days)

53. Response StrategyStrategy, Response Action, Affected Phase

55. Easy to use

56. Information in one spot

57. Covers all relevant areas

58. Not overburdened

59. Con’s

60. No View (Risk and Cost) after Likelihood

61. Doesn’t identify Options

63. Comprehensive Calculation(good for presentation later one)

64. All in one place

65. Con’s

66. Might overburden immature organizations or staff

67. Hard to explain

69. Straight forward

70. Simple

71. Con’s

72. Hard to present risk profile based on it

73. Format

79. Very comprehensive

80. Great for analysis

81. Clear Structure and guidance

82. Con’s

83. Needs two tabs for Risk and Mitigation

85. What fieldshave you seen ?

86. Challenges ?… A U D I E N C E …

88. Always need to be adapted to companies standards and maturity

90. Introduction Why Project Register Risk Assessment Effective Process Risk Profile presentation Project Health Check Agenda

91. RiskMgmt Standard (AS/NZS 4360)

94. Identify risks without knowingwhat a risk is

95. Keep the audience in the room and engaged

97. Go based on questionnaire !

98. Domains of Change(Location, Data, Technology, Processes, People, etc.)

100. Establish the Context

101. Identify Risks

102. Analyse and Evaluate

106. 4 Dimensions

107. Technology

108. Novelty

109. Pace

111. The Diamond Model Technology Super-high-tech High-tech Medium-tech Low-tech Assembly System Array Novelty Complexity Derivative Platform Breakthrough Regular Fast/competitive Time-critical Blitz Pace

113. Impact on Design, Testing, required communication and number of design cycles needed

115. Medium-tech projects are based on existing technology but incorporate new technology

116. High-tech projects are projects where most of the technology is new but do exist at project initiation

119. Impacton how to manage the project and which approach is best

121. Platformproducts are new generations of existing product lines

125. Fast / competitive projects are driven by profit focused organizations, to create a strategic position or form a new business line

126. Time – critical projects have a specific end date that they need to be completed by, driven by a window of opportunity. Missing the deadline is a project failure.

129. Impacton project organization and the formality of project management

131. Systemprojects involve a complex collection of elements, that jointly perform multiple functions.

134. 7 buildings on 16 acres and >12mio feet2 office space

135. Biggest shopping mall, 7 level garage and public transp.

136. Build into bedrock going through the table of Hudson River

137. 50.000 people had to be transported to their office every day (100 elevators opening both sides)

138. Newly developed highly strength steel was used

140. Example – World Trade Center Technology Super-high-tech High-tech Medium-tech Low-tech Assembly System Array Novelty Complexity Derivative Platform Breakthrough Regular Fast/competitive Time-critical Blitz Pace

142. Establish the Context

143. Identify Risks

144. Analyse and Evaluate

147. Not enough money tobuy supplies

148. Program delaysOUTCOMES • Unable to supply some • of our services • Damage to our reputation if we can’t supply some services Secondary Outcomes • Financial • Social • Legal • Political CONTROLS IN PLACE • Budget done • Bank Overdraft • Competent Leaders • Financial Reports

151. RTO reputation damaged

152. Qualifications notrecognised

153. Trainees not employableSecondary Outcomes • Financial • Social • Legal • Political CONTROLS IN PLACE • Quality system toensure relevance • Library of relatedmaterials foradaptation • Policy for versioncontrols • Qualified,competent staff

155. How do youaddress the challenges ?… A U D I E N C E …

156. Questions …

159. Introduction Why Project Register Risk Assessment Effective Process Risk Profile presentation Project Health Check Agenda

160. RiskMgmt Standard (AS/NZS 4360)

161. Risk Process – What is it ? Risk Management Process is the systematic application of management policies, procedures and practices to the tasks of identifying, analysing, evaluating, treating and monitoring risk. AS/NZS 4360 - Risk Management Standard

162. Risk Process – StandardPMBOK

165. Needs to be understood

168. Decisions how to treat risks are made by Project Management under consultation with roles involved.

169. The PMO is managing the Risks overall.

171. Risk Process – option 1 (Banking) until Monday COB Programm Management Update Project Plan Projekt Planning Projekt Mgmt Update Project Plan Projekt Planning Stream Lead Risk Management Update Issue Log 1 PMO Issue Management Issue Log Projekt Plan Tools/ Documents

172. Risk Process – option 1 (Banking) Risk Register – Maintainedby PMO

174. The risk register is managed centralized by the PMO

175. Every stream lead is held accountable to identify, qualify and mitigate the risks on his level

176. The review and discussion of all risks is managed by project management as part of the weekly jour fix

177. The ongoing risk process is ensured by the PMO

178. What happens if risk becomes an issue?

179. Mail to PMO

180. Information to Project Mgmt by PMO

181. Update Issue Log by stream lead

183. Embedded in Project Setup

184. Process as mature as the organization

185. Clear roles and responsibility

186. Con’s

188. Challenges ?… A U D I E N C E …

189. Questions …

190. Introduction Why Project Register Risk Assessment Effective Process Risk Profile presentation Project Health Check Agenda

191. RiskMgmt Standard (AS/NZS 4360)

192. Risk Profile PresentationKey Challenge How to present the risk profileof your projectto various stakeholders (eg. Team Members, Stream Leads, Programme Management, Steering Group, Project Sponsor, Senior Management, Clients, Vendors etc.)

193. Risk Profile Presentation ( option 1 )Risk Register

195. Project Team, Stream Leads, Project and Program Management, Abstract for Steering Group

196. Pro’s

197. High Level of Detail

198. Good for Monitoring and Control

199. Con’s

202. Almost everybody around the project including Steering Group Members and Sponsors

203. Pro’s

204. Key Data out of the register aggregated

205. Maintains itself

206. Based on Standard almost known to everybody

207. Con’s

210. Project Members incl. Steering Group

211. Pro’s

212. Abstract out of Register

213. Same as Likelihood vs. Consequence

214. Con’s

217. Everybody in the project plus senior Management

218. Pro’s

219. Adds timeline to visibility

220. All selected risks visible on one slide

221. Con’s

224. Project and Senior Management

225. Pro’s

226. Clearly shows and identifies areas of risk rather than just a risk itself

227. Clearly shows and identifies projects with high risk profile

228. Inherent and residual risk on one page

229. Con’s

232. Project and Senior Management

233. Pro’s

234. Summarizes Opportunities vs. Threats

235. Con’s

238. Project and Senior Management

239. Pro’s

240. Before / After view basedon likelihood / consequence

241. Con’s

243. Questions …

244. Introduction05 min Why 15 min Project Register30 min Risk Assessment30 min Effective Process30 min Risk Profile presentation30 min Project Health Check30 min Agenda

245. Project Health Checks How to proactively mitigatethe risk of project failure

246. RiskMgmt Standard (AS/NZS 4360)

247. 129 Project Health CheckAgenda Project Health Check as part of an effective Project Governance Why check Project Health and the Benefits Different Methods of Project Health Checks The Quick Assessment Overview The comprehensive Health Check Overview and Elements The Questionnaire The Assessment The Results and the Comparison Practice Experience

248. 130 Effective Governance Structure Facilitator PLANNING INITIATION DELIVERY CLOSURE BENEFITS REALIZED DEMAND Status & General Reporting Portfolio Mgmt Project Management Steering Group Individual Cycle after Prio Gate, but not less then every 6 weeks Departmental Control Groups 2 to 4 week cycle / routine depending on category of projectStarts with Planning and Ends with Project Final Delivery Gate /Checklist Ready for Project Delivery Ready for Project Planning Ready for Initiation Ready for Project Closure ProjectClosed Special Functions Quality Gates MilestoneGate 1 Ready forPilot Ready forProduction Health Check & Post Imp Review HC / mini HCcalled byexception HC / mini HC6 weeks afterPlanning Gate HC / mini HCcalled byexception HC / mini HCcalled byexception Post ImpReview Post PostImp Review

249. 131 Why check on Project Health Comprehensive analysis of a project Instant summary of the current situation Identification of weaknesses and a generation of package of measures Identification of Best Practices used Equal comparison of projects Project Manager Competence development based on several assessments Management oversight project governance

250. 132 Different Methods and Tools to conduct a Project Health Check Quick Assessment (self conducted) Based on 15 key questions around risk, team, commercials, management and scope Could be done in 10 to 15 minutes Mini Health Check based on Knowledge Areas or Stages For low risk profile and small projects Approximately 40 questions 1 hour Moderation is optional Full Health Check based on Knowledge Areas or Stages (moderated) For high risk profile and large projects Approximately 150 questions 3 – 4 hours Moderation is mandatory

251. 133 Quick AssessmentOverview 14 Questions in different areas, examples: The Delivery Team output will match the requirements The Business Case is still valid and understood The Delivery Team understand what needs to be delivered and when Project progress is monitored Project monitoring is accurate …. …. Answers between 0 and 10 0 – no confidence for that area 10 – maximum confidence for that area Benefit Simple to use Quick overview of project Below 70, immediate action Result View

252. 134 Project Health CheckQuestionnaire and Assessment QuestionnaireIdentical questionnaire in all areas, adjusted to the relevant knowledge area and project management method used and the assessed stage(Invest, Initiation, Planning, Delivery, Closure) Assessment5 step rating : 0 to 4 or “not relevant” 0 if not available or not accomplished / implemented 4 only if relevant result and deliverable is complete traceable documented according to the requirements Maximum can be reached rated 4 in all areas would be a best practice project with adoptable best practice approaches that contribute to the Project Method and can be reused in other projects

253. 135 Project Health CheckAreas to be checked Initiation, Investment, Business Case Project Hand Over Project Planning Project Organisation Work Packages Staff Management Communication Management Project Start Change Management Quality Management Project Management Project Controlling Project Closure Business Satisfaction Documents Roles Initiation Planning Delivery Closure General

254. 136 Project Health Check Questionnaire Input Mask

256. Steering Group Presentations

257. Former Health Check Assessments and results

258. Former Action Logs, Tasks and Measures

259. Action Log from last Assessment

260. Assessment

261. Result Sign Off

262. Assessment Result

263. Action Log

265. Time – to be defined

266. Duration – 4 hours

268. Project Manager

270. Health Check Tool

272. 139 Project Health CheckComparison Comparison of a certain project to best practice To other projects To a former assessment of the same project Result

273. 140 Project Health Check Practice Experience Identifies risks before they become issues Structured view on project situation in sense of processes and methodologies used as well as roles and documents facilitated Catalyst to facilitate communication and clarification of open points within the project management team Fixation of measures and tasks that implicit have been scheduled but got never executed because of the daily business Might cause some awkward but important strategic measures(e.g.: involvement of top management) Biggest advantage achieved by repeating assessments(first assessment after signing the Project Request)

274. Questions …

275. Introduction Why Project Register Risk Assessment Effective Process Risk Profile presentation Project Health Check Agenda

277. C – I will call you

279. Contact Information Name: Torsten J. Koertingwww.torstenkoerting.com Email: torsten.koerting@gmail.com Phone: Australia +61 (0) 4 8848 0801 Germany +49 (0) 173 3082185 Session Number #

280. Picture Credits ( 1 / 1 ) agenda 1 - http://www.flickr.com/photos/24293932@N00/ WTC - http://www.flickr.com/photos/kidneynotes/ question - http://www.flickr.com/photos/eleaf/ Aaron Shenhar - http://howe.stevens.edu/fileadmin/Files/people/photos/Aaron-Shenhar-new.jpg Dov Dvir - http://web.bgu.ac.il/NR/rdonlyres/C4956661-14AD-438E-95B7-EC1C18E30A87/0/DvirDov.JPG break - http://www.flickr.com/photos/dullhunk/ Audience - http://www.flickr.com/photos/oreilly/