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Process implementation for project risk management


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Published in: Economy & Finance, Business
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Process implementation for project risk management

  1. 1.  During the construction of the spectacular Oresund bridge and tunnel, which connects Sweden to Denmark, risk analysis showed that the project was unlikely to meet its planned opening date upon which its financial viability was calculated. Mitigating actions and alternative scenarios were considered leading to significant changes in approach. After the mitigating actions were applied, the risk analysis showed high confidence that Oresund could be opened three months early - which it was. Early opening easily paid for the specialist risk management work.
  2. 2.  A European retail and wholesale bank replaced its core operational systems following their "Rapid Implementation Plan" (RIP). Their previous systems were obsolete and inadequate. As they needed the space for the new hardware when it was ready, they physically removed and scrapped the old hardware to switch over immediately to the new system.
  3. 3.  Very soon, major problems were found with the new system. It did not correctly calculate interest and consequently was misstating customers' balances. Very large amounts of money were vanishing in the accounts. There was no possibility of reverting to the previous system.
  4. 4.  Our review identified the problems and external teams were brought in to fix the system and to correct the accounts. The one thing we could not fix was their reputation. The bank was no longer a viable profit-making entity, but, thanks to our work, it was able to cease retail trading in an orderly fashion.
  5. 5.  A global telecoms service provider had built new customer and billing systems. To save time and cost, no one had bothered to document the system. Some time later they realized that this was causing operational difficulties in running the system.
  6. 6.  Our work was to retro-document the systems. As no one knew any of the detail we did this by examining the code and deciphering what it did. One element of the billing algorithm was particularly strange. When we explained it to the Finance Director he said "no it can't work like that - if it did we'd be bankrupt". It did, they were.
  7. 7. Identify Risk Analyze Probability and Impact Apply avoidance or Reduction Define Contingency Plans Monitor and Manage
  8. 8. Realistic risks should be identified. Capture the information electronically in a risk register. Following things should be noted:  Description of the risk.  Probability of the risk occurrence.  Description of the potential impact of the risk  Likely cost to the project or organization if that risk occurs  What actions should be taken now and by Whom  What contingency plans should be formulated now so that the organization is ready to act if the risk occurs.
  9. 9. Team members should be motivated to list the potential risk items .
  10. 10. List of the potential risk items should be compile into single list with duplicates removed .
  11. 11. Break the master list in small parts and each part of list should be used to identify the triggers (warning signs) for project risks.
  12. 12. Calculate the probability and the impact of each item on the master list.
  13. 13. Identify possible preventive actions for the threats.
  14. 14. Create a contingency plan for all project risks a plan that includes the actions one would take if a trigger or a risk were to occur.
  15. 15. Determine the owner of each risk on the list.
  16. 16.  The owner is the person who is responsible for watching out for triggers and then for responding appropriately if the triggers do in fact occur by implementing the pre-approved and now established contingency plan.
  17. 17. For quick implementation and any clarification please contact : - Vishvas Yadav Senior Manager/ Business Analyst Codoca Mtvcola Marketing Advertising And Outsourcing Pvt. Ltd. Mail id : Mobile: 08884782639