The document outlines 10 rules for effective risk management in projects. The rules include making risk management a part of the project, identifying risks early, communicating about risks, considering both threats and opportunities, clarifying ownership of risks, prioritizing risks, analyzing risks, planning and implementing risk responses, registering risks in a log, and tracking risks and associated tasks over time. Following these 10 rules can help project managers implement risk management successfully and deliver projects on time, on budget, and with the expected quality.
We will first find your project problem, and modify it for funding. hen we will cover some misconceptions before explaining main proposal parts. This explanation is general but is tailored for IREX HEP small grant program -per the guidelines of 2017.
Guideline for the Preparation of a Concept NoteEEP Mekong
Presentation for the Concept Note Preparation Workshop by EEP Mekong Programme. The workshop was held on the following dates and cities:
19 August 2015 - Yangon
26 August 2015 - Vientiane
8 September 2015 - Hanoi
10 September 2015 - Bangkok
11 September 2015 - Phnom Penh
More information about EEP Mekong and Call for Proposals, please visit www.eepmekong.org
Introduction to project evaluations for SLOGA / TrialogInka Pibilova
This is a presentation form the workshop Introduction to project evaluations for SLOGA / Trialog held on 10 February 2014. It aimed at project managers who are involved in development education, awareness raising or develoment cooperation, to think how evaluations can work for them and what are the necessary steps to start...internal or external evaluations. Be ready for a follow-up! :)
We will first find your project problem, and modify it for funding. hen we will cover some misconceptions before explaining main proposal parts. This explanation is general but is tailored for IREX HEP small grant program -per the guidelines of 2017.
Guideline for the Preparation of a Concept NoteEEP Mekong
Presentation for the Concept Note Preparation Workshop by EEP Mekong Programme. The workshop was held on the following dates and cities:
19 August 2015 - Yangon
26 August 2015 - Vientiane
8 September 2015 - Hanoi
10 September 2015 - Bangkok
11 September 2015 - Phnom Penh
More information about EEP Mekong and Call for Proposals, please visit www.eepmekong.org
Introduction to project evaluations for SLOGA / TrialogInka Pibilova
This is a presentation form the workshop Introduction to project evaluations for SLOGA / Trialog held on 10 February 2014. It aimed at project managers who are involved in development education, awareness raising or develoment cooperation, to think how evaluations can work for them and what are the necessary steps to start...internal or external evaluations. Be ready for a follow-up! :)
Invited presentation for the Engineering Projects In Community Service - in - IEEE (EPICS-in-IEEE) Virtual Learning Environment (VLE) conference on 27 Oct. 2012.
Writing and Presenting a Project Proposal by Andile Andries NdlovuAndile Andries Ndlovu
A research proposal is your PLAN
It describes in detail your study
Decisions about your study are based on the quality of the proposal
Approvals to proceed by the Institutional Review Board
A series of modules on project cycle, planning and the logical framework, aimed at team leaders of international NGOs in developing countries.
New improved version of Writing Project Proposals in February 2014.
The purpose of this course is to train participants in the art of writing a persuasive project proposal that will win funding to enable the implementation of projects and the overall continue viability of their respective organizations and institutions.
The course is designed to be taught through Power Point presentation and slides with interactive visual of photos, clip arts and icons depicting meaningful connotation for each topic.
Invited presentation for the Engineering Projects In Community Service - in - IEEE (EPICS-in-IEEE) Virtual Learning Environment (VLE) conference on 27 Oct. 2012.
Writing and Presenting a Project Proposal by Andile Andries NdlovuAndile Andries Ndlovu
A research proposal is your PLAN
It describes in detail your study
Decisions about your study are based on the quality of the proposal
Approvals to proceed by the Institutional Review Board
A series of modules on project cycle, planning and the logical framework, aimed at team leaders of international NGOs in developing countries.
New improved version of Writing Project Proposals in February 2014.
The purpose of this course is to train participants in the art of writing a persuasive project proposal that will win funding to enable the implementation of projects and the overall continue viability of their respective organizations and institutions.
The course is designed to be taught through Power Point presentation and slides with interactive visual of photos, clip arts and icons depicting meaningful connotation for each topic.
In this presentation, we will discuss about risk, project risk and four broad strategies to handle risk. We will also talk about the role of buffers and contingency plan in risk management, project tracking meetings.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
Embedding risk management as an integral part of the project framework is an essential and fundamental part of any project, programme or portfolio as a way of keeping costs down, benefits high, and increasing the probability of successful delivery.
Ateet Kapadia | Simple Tips for Project Risk Management TechniquesAteetKapadia
Make sure to incorporate explicit prompts and reminders into your risk management process to take into account positive risks. Although a deliverable arriving substantially ahead of schedule might be beneficial, it can also have unanticipated effects on other elements of the project or cause it to operate inefficiently. On the other hand, a risk of this nature can serve to counteract the effects of dangers in other areas.
https://www.slideshare.net/AteetKapadia/ateet-kapadia-how-do-you-assess-your-companys-future
Understanding the risks in enterprise project managementOrangescrum
Risks are a given for any initiative or enterprise across industries. No wonder, PMI has dedicated a detailed process around risk management as part of their PMP certification. Risk Management requires experience, thorough knowledge of your business, the projects you are dealing with and a lot of foresight. Read the full article: https://www.orangescrum.org/articles/
5 Project Risk Identification Tools I Use & How You Can Use Them TooSHAZEBALIKHAN1
Risk is an inherent property of a project. Risk identification is the first step in risk management. The article details the 5 risk identification tools that have helped me in my projects. The explanation shall enable you to use the risk identification techniques for your projects.
Project risk management: Techniques and strategiesDebashishDas49
Risk identification techniques and mitigation techniques in the present dynamic scenario of the industry is described here. Also, the recent research area and probable topics that one could choose as a Ph.D. topic are described briefly.
Few things are as risky as construction projects. There is heavy equipment, crews working in precarious situations and complicated logistics, safety hazards and risk factors to manage. How do you meet your deadline while managing all that risk?
The answer is construction risk management. It can be mind- bogglingly complex, which is why you should make a detailed construction risk management plan. Let’s take a look at the basics, what a construction project manager is responsible for, types of risk in construction projects and how to deliver a successful project.
The risk management for projects attempts to recognize and manage potential and unforeseen trouble spots which may occur when the project is implemented. It identifies as many risk events as possible. Further classification of risk factors help in resolving it either by mitigation, avoiding, transferring or retaining .Methods of handling risk.
Introductory paper related to project risk management and written by Professor Marco Sampietro and Professor Maurizio Poli . The paper explains the main project risk management phases (process planning, identification, analysis, response, monitoring&control) and presents both the qualitative and the quantitative approach.
Table of Contents
Introduction 3
Project Outline 3
Project risk identification 4
Project risk assessment 6
Project Risks, Responses Strategy 7
Project Risks Monitoring & Control Plan 10
Project Risks WBS & Budget Updates 11
Project Risks, Communications Plan 11
References 12
Introduction
The project that is planned by the company is to divest and move into a global perspective. Let’s ay for instance a possible expansion in the expansion of an oil refinery plant, such as a sulphur plant, my project will be to research Savage Gulf Sulphur Services. The project is supposed to ensure that the company will generate more revenue, and then it shall move into a global perspective. With the project, the company shall also increase its production due to large demand generated by the new market in the globe. Every project is faced with a certain degree of risk in the activities that it takes in an organization. It is important for organizations should carry out risk assessment procedures that are inclined in ensuring that an effective strategy shall be formulated to eliminate risk. This paper will discuss the risk management strategy and the processes that are taken in the management of risk in an organizational structure.
Project Outline
The project is it intended to increase the organized capacity and move into the global market structure. This will involve the purchase of new factors of production such as land, investors and business owners invest large amounts of capital to such investments. The project will also
Risk management justification
Risk management is identified and can be described as an assesment that has all these prioritization of risks, the management of risk could involve precise coordination and ecomonical application strategies with ereasons to minimize, control and monitor the probability and impact of unfortunate events. Risk management also helps in maximization and the act of realization of opportunities. In an organizational structure, risk management has a variety of functions which makes it an important department in an organization, based on the many roles that the risk management. This is the implementation of a strong and effective risk management and controls within securities firm, a helps in promoting stability throughout the entire firm. Risk management controls are divided into two categories. The internal and external control categories help in providing useful and effective control systems. The internal controls help in protecting the firms against market, credit, operational and legal risks. Secondly, it helps in protecting the financial industry from all the systemic risks in the organization structure (Merna, 2008)
Risk management is useful in protecting the firm's customers from enormous and large non-market related losses such as misappropriation of resources, fraud and firm failure. Such failures can result in enormous risk in the organization. Risk management also helps in the act or protecting the fi ...
20
PART I
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EBSCO : eBook Collection (EBSCOhost) - printed on 9/25/2019 2:02 AM via STRAYER UNIVERSITY
AN: 1672297 ; Hillson, David, Simon, Peter.; Practical Project Risk Management : The ATOM Methodology
Account: strayer.main.ehost
21
F
CHAPTER 1
The Challenge of Managing Risk
ew would disagree that life is risky. Indeed, for many people it is precisely the element of risk that
makes life interesting. However, unmanaged risk is dangerous because it can lead to unforeseen
outcomes. This fact has led to the recognition that risk management is essential, whether in
business, projects, or everyday life. But somehow risks just keep happening. Risk management
apparently does not work, at least not in the way it should. This book addresses this problem by
providing a simple method for effective risk management. The target is management of risks on
projects, although many of the techniques outlined here are equally applicable to managing other forms
of risk, including business risk, strategic risk, and even personal risk.
The book is divided into three parts, starting with defining the problem in an effort to understand the
underlying reasons for the apparent failure of project risk management to deliver the promised or
expected benefits. The main body of the book describes a generic risk management process applicable to
most projects, focusing on simple guidelines to make risk management work in practice. Finally, the
book considers implementation issues, applying the risk management process to different types of
projects, and addressing the steps necessary to use risk management effectively.
But before considering the details of the risk management process, there are some essential ideas that
must be understood and clarified. For example, what exactly is meant by the word risk?
Risk—The Definition Debate
Some may be surprised that there is any question to be answered here. After all, the word can berisk
found in any English dictionary, and surely everyone knows what it means. But in recent years risk
practitioners and professionals have been engaged in an active and controversial debate about the
precise scope of the word.
Everyone agrees that risk arises from uncertainty, and that risk is about the impact that uncertain events
or circumstances could have on the achievement of goals. This agreement has led to definitions
combining two elements of uncertainty and objectives, such as, “A risk is any uncertainty that, if it
occurs, would have an effect on achievement of one or more objectives.” Traditionally risk has been
perceived as bad; the emphasis has been on the potential effects of risk as harmful, adverse, negat ...
Risk management Phase 1-5 Individual Project
Table of Contents
Introduction 3
Project Outline 3
Project risk identification 4
Project risk assessment 6
Project Risks, Responses Strategy 7
Project Risks Monitoring & Control Plan 10
Project Risks WBS & Budget Updates 11
Project Risks, Communications Plan 11
References 12
Introduction
The project that is planned by the company is to divest and move into a global perspective. Let’s ay for instance a possible expansion in the expansion of an oil refinery plant, such as a sulphur plant, my project will be to research Savage Gulf Sulphur Services. The project is supposed to ensure that the company will generate more revenue, and then it shall move into a global perspective. With the project, the company shall also increase its production due to large demand generated by the new market in the globe. Every project is faced with a certain degree of risk in the activities that it takes in an organization. It is important for organizations should carry out risk assessment procedures that are inclined in ensuring that an effective strategy shall be formulated to eliminate risk. This paper will discuss the risk management strategy and the processes that are taken in the management of risk in an organizational structure.
Project Outline
The project is it intended to increase the organized capacity and move into the global market structure. This will involve the purchase of new factors of production such as land, investors and business owners invest large amounts of capital to such investments. The project will also
Risk management justification
Risk management is identified and can be described as an assesment that has all these prioritization of risks, the management of risk could involve precise coordination and ecomonical application strategies with ereasons to minimize, control and monitor the probability and impact of unfortunate events. Risk management also helps in maximization and the act of realization of opportunities. In an organizational structure, risk management has a variety of functions which makes it an important department in an organization, based on the many roles that the risk management. This is the implementation of a strong and effective risk management and controls within securities firm, a helps in promoting stability throughout the entire firm. Risk management controls are divided into two categories. The internal and external control categories help in providing useful and effective control systems. The internal controls help in protecting the firms against market, credit, operational and legal risks. Secondly, it helps in protecting the financial industry from all the systemic risks in the organization structure (Merna, 2008)
Risk management is useful in protecting the firm's customers from enormous and large non-market related losses such as misappropriation of resources, fraud and firm failure. Such failures can result in enormous risk in the organization. R ...
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Ten rules of project risk management
1. Ten Rules of Risk Management
Risk management in projects is very valuable. You can avoid losing money or outcomes
if you are ready for changes or problems that may happen. You can then deliver your
project on time, on budget and with the quality impacts your funder expects. Your team
members will be much happier if they do not have to fix failures that could have been
prevented.
This article gives you the 10 golden rules to apply risk management successfully in your
project.
Rule 1: Make Risk Management Part of Your Project
If you don't build risk management into your project, you can not reap the full benefits of
this approach.
Some projects don’t have any risk management. They are either foolish, or expect that
everything will go to plan, from suppliers delivering on time to there being no bad
weather.
Rule 2: Identify Risks Early in Your Project
The first step in project risk management is to identify the risks that are present in your
project. This requires an open mind set that focuses on future scenarios that may occur.
Two main sources exist to identify risks, people and paper. People are your team
members that each bring along their personal experiences and expertise. Other people
to talk to are experts outside your project that have a track record with the type of
project or work you are facing. They can reveal some booby traps you will encounter or
some golden opportunities that may not have crossed your mind. Interviews and team
sessions (risk brainstorming) are the common methods to discover the risks people
know. Paper is a different story. Projects tend to generate a significant number of
(electronic) documents that contain project risks. They may not always have that name,
but someone who reads carefully (between the lines) will find them. The project plan,
business case and resource planning are good starters. Another categories are old
project plans,
2. your company Intranet and specialised websites.
Are you able to identify all project risks before they occur? Probably not. However if you
combine a number of different identification methods, you are likely to find the large
majority. If you deal with them properly, you have enough time left for the unexpected
risks that take place.
Rule 3: Communicate About Risks
Failed projects show that project managers in such projects were frequently unaware of
the big hammer that was about to hit them. The frightening finding was that frequently
someone of the project organisation actually did see that hammer, but didn't inform the
project manager of its existence. If you don't want this to happen in your project, you
better pay attention to risk communication.
A good approach is to consistently include risk communication in the tasks you carry
out. If you have a team meeting, make project risks part of the default agenda (and not
the final item on the list!). This shows risks are important to the project manager and
gives team members a "natural moment" to discuss them and report new ones.
Another important line of communication is that of the project manager and project
sponsor or principal. Focus your communication efforts on the big risks here and make
sure you don't surprise the boss or the customer! Also take care that the sponsor makes
decisions on the top risks, because usually some of them exceed the mandate of the
project manager.
Rule 4: Consider Both Threats and Opportunities
Project risks have a negative connotation: they are the "bad guys" that can harm your
project. However modern risk approaches also focus on positive risks, the project
opportunities. These are the uncertain events that beneficial to your project and
organisation. These "good guys" make your project faster, better and more profitable.
Unfortunately, lots of project teams struggle to cross the finish line, being overloaded
with work that needs to be done quickly. This creates project dynamics where only
negative risks matter (if the team considers any risks at all). Make sure you create some
time to deal with the opportunities in your project, even if it is only half an hour. Chances
are that you see a couple of opportunities with a high pay-off that don't require a big
investment in time or resources.
Rule 5: Clarify Ownership Issues
Some project managers think they are done once they have created a list with risks.
However this is only a starting point. The next step is to make clear who is responsible
3. for what risk! Someone has to feel the heat if a risk is not taken care of properly. The
trick is simple: assign a risk owner for each risk that you have found. The risk owner is
the person in your team that has the responsibility to optimise this risk for the project.
The effects are really positive. At first people usually feel uncomfortable that they are
actually responsible for certain risks, but as time passes they will act and carry out tasks
to decrease threats and enhance opportunities.
Ownership also exists on another level. If a project threat occurs, someone has to pay
the bill. This sounds logical, but it is an issue you have to address before a risk occurs.
Especially if different business units, departments and suppliers are involved in your
project, it becomes important who bears the consequences and has to empty his wallet.
An important side effect of clarifying the ownership of risk effects, is that line managers
start to pay attention to a project, especially when a lot of money is at stake. The
ownership issue is equally important with project opportunities. Fights over
(unexpected) revenues can become a long-term pastime of management.
Rule 6: Prioritise Risks
A project manager once told me "I treat all risks equally." This makes project life really
simple. However, it doesn't deliver the best results possible. Some risks have a higher
impact than others. Therefore, you better spend your time on the risks that can cause
the biggest losses and gains. Check if you have any showstoppers in your project that
could derail your project. If so, these are your number 1 priority. The other risks can be
prioritised on gut feeling or, more objectively, on a set of criteria. The criteria most
project teams use is to consider the effects of a risk and the likelihood that it will occur.
Whatever prioritisation measure you use, use it consistently and focus on the big risks.
Rule 7: Analyse Risks
Understanding the nature of a risk is a precondition for a good response. Therefore take
some time to have a closer look at individual risks and don't jump to conclusions without
knowing what a risk is about.
Risk analysis occurs at different levels. If you want to understand a risk at an individual
level it is most fruitful to think about the effects that it has and the causes that can make
it happen. Looking at the effects, you can describe what effects take place immediately
after a risk occurs and what effects happen as a result of the primary effects or because
time elapses. A more detailed analysis may show the order of magnitude effect in a
certain effect category like costs, lead time or product quality. Another angle to look at
risks, is to focus on the events that precede a risk occurrence, the risk causes. List the
different causes and the circumstances that decrease or increase the likelihood.
Another level of risk analysis is investigate the entire project. Each project manager
4. needs to answer the usual questions about the total budget needed or the date the
project will finish. If you take risks into account, you can do a simulation to show your
project sponsor how likely it is that you finish on a given date or within a certain time
frame. A similar exercise can be done for project costs.
The information you gather in a risk analysis will provide valuable insights in your
project and the necessary input to find effective responses to optimise the risks.
Rule 8: Plan and Implement Risk Responses
Implementing a risk response is the activity that actually adds value to your project. You
prevent a threat occurring or minimise negative effects. Execution is key here. The other
rules have helped you to map, prioritise and understand risks. This will help you to
make a sound risk response plan that focuses on the big wins.
If you deal with threats you basically have three options, risk avoidance, risk
minimisation and risk acceptance. Avoiding risks means you organise your project in
such a way that you don't encounter a risk anymore. This could mean changing supplier
or adopting a different technology or, if you deal with a fatal risk, terminating a project.
Spending more money on a doomed project is a bad investment.
The biggest category of responses are the ones to minimise risks. You can try to
prevent a risk occurring by influencing the causes or decreasing the negative effects
that could result. If you have carried out rule 7 properly (risk analysis) you will have
plenty of opportunities to influence it. A final response is to accept a risk. This is a good
choice if the effects on the project are minimal or the possibilities to influence it prove to
be very difficult, time consuming or relatively expensive. Just make sure that it is a
conscious choice to accept a certain risk.
Responses for risk opportunities are the reverse of the ones for threats. They will focus
on seeking risks, maximising them or ignoring them (if opportunities prove to be too
small).
Rule 9: Register Project Risks
This rule is about bookkeeping (however don't stop reading). Maintaining a risk log
enables you to view progress and make sure that you won't forget a risk or two. It is also
a perfect communication tool that informs your team members and stakeholders what is
going on (rule 3).
A good risk log contains risks descriptions, clarifies ownership issues (rule 5) and
enables you to carry our some basic analyses with regard to causes and effects (rule 7).
Most project managers aren't really fond of administrative tasks, but doing your
bookkeeping with regards to risks pays off, especially if the number of risks is large.
5. Some project managers don't want to record risks, because they feel this makes it
easier to blame them in case things go wrong. However the reverse is true. If you
record project risks and the effective responses you have implemented, you create a
track record that no one can deny. Even if a risk happens that derails the project. Doing
projects is taking risks.
Rule 10: Track Risks and Associated Tasks
The risk register you have created as a result of rule 9, will help you to track risks and
their associated tasks. Tracking tasks is a day-to-day job for each project manager.
Integrating risk tasks into that daily routine is the easiest solution. Risk tasks may be
carried out to identify or analyse risks or to generate, select and implement responses.
Tracking risks differs from tracking tasks. It focuses on the current situation of risks.
Which risks are more likely to happen? Has the relative importance of risks changed?
Answering this questions will help to pay attention to the risks that matter most for your
project value.
The 10 golden risk rules above give you guidelines on how to implement risk
management successfully in your project. However, keep in mind that you can always
improve. Therefore rule number 11 would be to use the Japanese Kaizen approach:
measure the effects of your risk management efforts and continuously implement
improvements to make it even better.