Pm 7 risk-man
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This document discusses risk management. It defines risk as any uncertain event that could impact a project, noting that not all risks are negative. It outlines strategies for dealing with risks such as avoiding, mitigating, transferring, or accepting risks. The document emphasizes that risk management is necessary to protect from losses and keep opportunities open. It also covers risk identification, analysis, assessment, planning, monitoring, and mitigation. Various types of risks are defined including technical, people, organizational, requirement, and estimation risks. Expected monetary value is introduced as a way to calculate risk exposure.
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Pm 7 risk-man
- 1. Risk Management Planning for the unknown
- 2. What is Risk ? • Risk is any uncertain event or condition that might affect your project. • Not all risks are negative – there are some opportunities http://www.radiantminds.co.in
- 3. How to deal with the risks • Avoid • Mitigate • Transfer (Insurance / Off shoring) • Accept http://www.radiantminds.co.in
- 4. Reactive Strategy • Don’t worry, I’ll see what to do when it comes • I’m always lucky and nothing will happen • Fire Fighting • Chaos http://www.radiantminds.co.in
- 5. Why RM is necessary ? • It protects from losses and keeps opportunities open • It is always better to strike a balance between risks & rewards / opportunities • Different organizations have different tolerances for risks http://www.radiantminds.co.in
- 6. Why RM is necessary ? • Avoiding risk means getting out of business • Intelligent thinking makes some people more confident to take risks http://www.radiantminds.co.in
- 7. Risk Types • Static Risks (Fire, Storm, Accident..) • Dynamic Risks (Stock Market, Gambling) where the occurrence is either a loss or a Profit • Production Risks • Marketing & Distribution Risks • Financial Risks • Personal Risks • Environmental Risks http://www.radiantminds.co.in
- 8. Risk Break-down Structure Technical External Organizational • Quality • Weather • Attrition • Compatibility • Customer • Priority Change • Regulations • Funding Cuts http://www.radiantminds.co.in
- 9. Risk Management • Risk is handled by different people in different ways based on their preference and attitude towards risk • Each one has different risk tolerance • Some people are “Reactive – when risk occurs” and some “Proactive” http://www.radiantminds.co.in
- 10. Risk Management • Risk Identification • Risk Analysis – Occurrence, Impact, Frequency, Timing • Risk Assessment – Loss on occurrence, Risk Exposure • Risk Planning and Resolution – Approach, Diff. steps • Risk Monitoring – Impact and implications • Risk Mitigation – How to meet the challenges http://www.radiantminds.co.in
- 11. Nature of Risks • Technology Risks – H/w, S/w, Network, Network Communication • People Risks – Availability, Capability, Skills, Maturity, • Organizational Risks – Customer relations • Requirement Risks – Clarity, Completeness, Confirmation • Estimation Risks – Scope, Reusability http://www.radiantminds.co.in
- 12. General Observations Risk Class Risk % Technology 5 - 10 People 20 Organization 20 Requirements 60 Estimation 30
- 13. S/w Risk Management Identify Analyze Plan Monitor Resolve http://www.radiantminds.co.in
- 14. Risk Identification • Area where risk can occur • Type of risk • Probability • Severity • Frequency • Mitigation http://www.radiantminds.co.in
- 15. Risk Analysis • Requirements • Design – Stability – Functionality – Completeness – Difficulty – Clarity – Interfaces – Validity – Performance – Feasibility – Testability – Scope – H/w constraints – Non Std. S/w
- 16. Risk Analysis • Engg. Spec. • Dev. System – Maintainability – Capacity – Reliability – Suitability – Safety – Usability – Security – Familiarity – Feasibility – Deliverability – Scope • Resources – Sustainability – Schedule – Process Control – Staff – Budget – Facilities
- 17. Risk Resolution • Act on the trigger • Execute the risk action plan • Monitor the action plan • Access the new risk scenario • Control the risk exposure Risk Exposure = Probability X Impact http://www.radiantminds.co.in
- 18. Expected Monitory Value - EMV • What is Expected Monitory Value of your risk – High Winds 35% $48 for Replacement Mudslide 5% $750 damage cost Usable Winds 15% $800 saved as battery cost Truck Rental 10% $350 as last minute Unavailable rental http://www.radiantminds.co.in
- 19. EMV • 35 % X - 48 = - 16.80 • 5% X -750 = - 37.50 • 15% X 800 = + 120.00 • 10% X -350 = - 35.00 • Total EMV - - 30.70 • IF you add 30.70 into the budget then it should be enough to account for these risks http://www.radiantminds.co.in