The Critical Value of Project Risk Management - Why do we have to manage Projects and Risks differently ?
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The Critical Value of Project Risk Management - Why do we have to manage Projects and Risks differently ? ...

The Critical Value of Project Risk Management - Why do we have to manage Projects and Risks differently ?
The presentations tries to highlight the reasons why we have to manage projects and risks differently than years ago. There major reasons have been identified
1) The world becomes flat according to Thomas Friedman
2) There is the inconvenient truth and global warming
3) And the world is changing rapidly

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The Critical Value of Project Risk Management - Why do we have to manage Projects and Risks differently ? The Critical Value of Project Risk Management - Why do we have to manage Projects and Risks differently ? Presentation Transcript

  • IQPC Project Risk Management 2008 Brisbane, Australia The Critical Value of Project Risk Management - Why do we have to manage Projects and Risks differently ? - Torsten J. Koerting www.TORSTENKOERTING.com
  • THANK YOU
  • www.torstenkoerting.com
  • www.paragliding 365.com
  • Defining the Critical Value of Project Risk Management Torsten J. Koerting www.torstenkoerting.com
  • Risk (definition) “Probability or threat of a damage, injury, liability, loss, or other negative occurrence, caused by external or internal vulnerabilities, and which may be neutralized through premeditated action.”
  • Risk (definition) “The quantifiable likelihood of loss or less-than-expected returns.”
  • Risk (definition) “Risk is a concept that denotes a potential negative impact to some characteristic of value that may arise from a future event.”
  • RISK = (probability of risk occurring) x (impact of risk occurring)
  • “Take calculated risks. That is quite different from being rash.” - George S. Patton (1885 – 1945)
  • “The policy of being too cautious is the greatest risk of all.” - Jawaharlal Nehru (1889 - 1964)
  • Why does Risk Management becomes MORE and more important ?
  • What has changed the way we HAVE to manage projects and their risks ?
  • The World Inconvenient The World is flat Truth is changing
  • The Fall of the Berlin Wall …
  • … ended the cold war …
  • … and granted access to new markets for products, labor and material.
  • The Internet … … created easy global competition and increased the ability to share information
  • The Microsoft Office Suite …
  • … and the HTML and HTTP protocols …
  • Open – Sourcing …
  • … enables writing software so that it can be easily shared, improved and given access to.
  • Outsourcing …
  • … is moving lower value functions to other firms, in other countries for a lower cost.
  • Off shoring …
  • … is moving the production of goods into other countries.
  • Supply Chaining …
  • … by partnering with other companies to receive goods when needed.
  • In sourcing …
  • … by sourcing whole processes to other companies
  • Informing …
  • … by getting answers to almost any question within seconds
  • Information Steroids …
  • … by having all this information available at your fingertips
  • The World 1. The Fall of the Berlin Wall is flat 2. The Internet 3. Work-Flow Software 4. Open-Sourcing 5. Outsourcing 6. Off-Shoring 7. Supply-Chaining 8. In-Sourcing 9. In-Forming 10.Information Steroids
  • With Increased Complexity …
  • … there are more things to think about …
  • … there are more time zones to overcome …
  • … there are more people to deal with …
  • … and with more people there are more cultures do deal with …
  • … more things can ( will ) fail …
  • … and will take longer.
  • With Increased Competition …
  • … continuous learning is required ...
  • … and well developed personal skills.
  • The World The Impact : is flat 1. Increased Complexity More things can fail More things to think about More time zones Different cultures More people More points of failures 2. Increased Competition Continuous learning Improve personal skills
  • The World Inconvenient The World is flat Truth is changing
  • Global Warming …
  • … increased temperature ...
  • Svalbard Global Seed Vault
  • … rising see levels ...
  • … water shortage ...
  • … bigger storms than ever ...
  • … and one after the other ...
  • … disappearing lakes ...
  • Before After 1972 2001
  • … and more wildfires ever.
  • What can YOU do about it ?
  • OK … there is something positive about it.
  • Shortage in resources …
  • • Demand higher than supply • Supply controlled by OPEC and former USSR • Demand will increase
  • … water is disappearing …
  • … and food is used as ethanol.
  • • Oil • Water • Food
  • Inconvenient 1. Global Warming Truth Sea Levels rising Water shortage More storms than ever Lakes disappear More wildfires 2. Shortage in Resources Resource shortage War for resources
  • … sharpen our senses …
  • … deal with new requirements …
  • … more change as you go …
  • Inconvenient The Impact : Truth 1. Sharpen the senses 2. Deal with new Requirements 3. More Change while you run 4. Higher Risk profile needs higher contingency
  • The World Inconvenient The World is flat Truth is changing
  • … the risk nobody had on its register …
  • quot;Today, the store of human knowledge doubles every five years.quot; - Bill Clinton, 2005
  • … 9 billions shortly …
  • … on a flat and …
  • … and warmer world.
  • The World 1. Terrorism is changing 2. Increase of Knowledge 3. Growth in Population 4. Flatter 5. Warmer
  • … try to know what you don’t know …
  • … identify the right contingency …
  • … and manage the risk and not just the project.
  • The The Impact : Impact 1. Look at risks we don’t know yet 2. Identify Contingency 3. Manage Risks instead of projects
  • The World Inconvenient The World is flat Truth is changing
  • The World 1. The Fall of the Berlin Wall is flat 2. The Internet 3. Work-Flow Software 4. Open-Sourcing 5. Outsourcing 6. Off-Shoring 7. Supply-Chaining 8. In-Sourcing 9. In-Forming 10.Information Steroids
  • Inconvenient 1. Global Warming Truth Sea Levels rising Water shortage More storms than ever Lakes disappear More wildfires 2. Shortage in Resources Running out of resources The resource war Political Requirements
  • The World 1. Terrorism is changing 2. Increase of Knowledge 3. Growth in Population 4. Flatter 5. Warmer
  • Therefore
  • … L E A R N ...
  • … F I N D O U T…
  • …MANAGE RISK…
  • … and S T A R T T O D A Y !
  • THANK YOU
  • Question … and I do not have an answer …
  • The ‘Answer’ is always …
  • THANK YOU
  • Picture Credits ( 1 / 3 ) inconvenient truth - http://www.flickr.com/photos/galerieopweg/ inconvenient truth v002 - http://www.flickr.com/photos/yoshigi/ The world is flat - http://www.flickr.com/photos/obriendigital/ The world is changing - number of books - http://www.flickr.com/photos/babblingdweeb/ The world is changing - number of books - v002 - http://www.flickr.com/photos/flyzipper/ 1430 enciclopedia - http://www.flickr.com/photos/evaekeblad/ balancing lady - http://www.flickr.com/photos/orangebrompton/ important - http://www.flickr.com/photos/valeriebb/ billboard - http://www.flickr.com/photos/mjlaflaca/ Obama change - http://www.flickr.com/photos/tsevis/ Fall of Berlin Wall - http://www.flickr.com/photos/gavinandrewstewart/ Microsoft Office Candy - http://www.flickr.com/photos/sunfox/ HTML - http://www.flickr.com/photos/kk/ Latop Beach - http://www.flickr.com/photos/zzathras777/ Open Sourcing - http://www.flickr.com/photos/martinbekkelund/ Big Crowd - http://www.flickr.com/photos/richevenhouse/ cold war one - http://www.flickr.com/photos/pingnews/ New Markets - http://www.flickr.com/photos/pnp/ Outsourcing 1 - http://www.flickr.com/photos/danzden/ Outsourcing 3 - http://www.flickr.com/photos/kafkan/ Offshoring 1 - http://www.flickr.com/photos/photohome_uk/ Offshoring 2 - http://www.flickr.com/photos/trotzenberg/ Offshoring 1b - http://www.flickr.com/photos/taylar/ Supply Chaining 1 - http://www.flickr.com/photos/nimrodbar/ Supply Chaining 2 - http://www.flickr.com/photos/drewesque/ Insourcing 1 - http://www.flickr.com/photos/zyphbear/ Insourcing 2 - http://www.flickr.com/photos/liveu4/
  • Picture Credits ( 1 / 3 ) Informing 1 - http://www.flickr.com/photos/ask-for-peace/ Informing 2 - http://www.flickr.com/photos/julianbleecker/ Infroming 3 - http://www.flickr.com/photos/gedankenstuecke/ Info Steroids 1 - http://www.flickr.com/photos/listelys/ Info Steroids 2 - http://www.flickr.com/photos/chanc/ Project Manager - http://www.flickr.com/photos/floongle/ conference 1 - http://www.flickr.com/photos/mrtopf/ California Bush fires - http://earthobservatory.nasa.gov/NaturalHazards/Archive/Oct2003/California.TMOA2003299_lrg.jpg storm 1 - http://www.flickr.com/photos/gisuser/ storm 2 - http://www.flickr.com/photos/lakerae/ lake 1 - http://www.flickr.com/photos/mashroms/ lake chad 1 - nasa.gov lake chad 2 - nasa.gov seed vault 1 - http://www.flickr.com/photos/bzzzt/ rising see levels - http://www.globalwarmingart.com/wiki/Image:Recent_Sea_Level_Rise_png - Robert A. Rohde sea levels 2 - http://www.flickr.com/photos/2kool/ water shortage - http://www.flickr.com/photos/mckaysavage/ time zone - http://www.flickr.com/photos/mickyates/ more people 1 - http://www.flickr.com/photos/inyucho/ more people 3 - http://www.flickr.com/photos/msjacoby/ cultures - http://www.flickr.com/photos/untitlism/ longer - http://www.flickr.com/photos/swamibu/ break 1 - http://www.flickr.com/photos/jnsabino/ more things 1 - http://www.flickr.com/photos/brixton/ global warming 1 - http://www.flickr.com/photos/hodac/ global warming 2 - http://www.flickr.com/photos/focalplane/ global warming 3 - http://www.flickr.com/photos/a_siegel/
  • Picture Credits ( 1 / 3 ) oil supply 1 - http://www.flickr.com/photos/falsecognate/ oil supply 2 - http://seekingalpha.com/wp-content/seekingalpha/images/ oil supply 3 - http://www.wisergroup.net/img/oil-graph.jpg water shortage 1 - http://www.flickr.com/photos/sunrise7/ water shortage 2 - http://www.flickr.com/photos/pierre_pouliquin/ regulations 1 - http://www.flickr.com/photos/two-wrongs/ terrorism 1 - http://www.flickr.com/photos/sis/ knowledge 1 - http://www.flickr.com/photos/worldeconomicforum/ flat world 1 - http://www.flickr.com/photos/aidg/ warmer world 1 - http://www.flickr.com/photos/adrianol/ 42 - http://www.flickr.com/photos/howzey/ dont panic - http://www.flickr.com/photos/fboosman/ question - http://www.flickr.com/photos/eleaf/ learning - http://www.flickr.com/photos/yewenyi/ competencies 1 - http://www.flickr.com/photos/38234414@N00/ lifeguard 1 - http://www.flickr.com/photos/john/ requirements 1 - http://www.flickr.com/photos/davidquick/ change requests 1 - http://www.flickr.com/photos/yyq123/ contingency 1 - http://www.flickr.com/photos/grantmac/ open door 1 - http://www.flickr.com/photos/eyeballstew/ umbrellas 2 - http://www.flickr.com/photos/greentea/ wet woman 1 - http://www.flickr.com/photos/maxedaperture/ ethanol 1 - http://www.flickr.com/photos/jonathanvlarocca/ ethanol 2 - http://www.flickr.com/photos/swanksalot/ ethanol 3 - http://www.flickr.com/photos/whatknot/