Process implementation for project risk management
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.
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.
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.
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.
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
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.
Apply avoidance or
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
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
Team members should be motivated to
list the potential risk items .
List of the potential risk items should be
compile into single list with duplicates
Break the master list in small parts and
each part of list should be used to
identify the triggers (warning signs) for
Calculate the probability and the
impact of each item on the master
Identify possible preventive actions for
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
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.
For quick implementation and any
clarification please contact : -
Senior Manager/ Business Analyst
Codoca Mtvcola Marketing Advertising
And Outsourcing Pvt. Ltd.
Mail id : email@example.com