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project risk management, Ppm 8212 lecture four,

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Project risk management is vital part of achievement of project general goal or objectives, thus, in order to save the project environment and prevent any related risks this tool is good for project doing organizations.

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project risk management, Ppm 8212 lecture four,

  1. 1. PPM8212 : Project Risk Assessment and Management Lecture Four, Enterprise environmental factors AMOUD UNIVERSITY SCHOOL OF POSTGRADUATE STUDIES& RESEARCH
  2. 2. Enterprise environmental factors in correlation To Risk Management Enterprise Environmental Factors. • Environment is defined as something related to the natural world and the impact of human activity on its condition, or the culture that an individual lives in, and the people and institutions with whom they interact (Wikipedia). • EEF refers to internal and external environmental factors that can influence a project’s success (PMP). • They include :- i. Organizational culture ii. Organizational structure iii. Internal and external political climate iv. Existing human resources v. Available capital resources vi. Regulatory environment vii. Financial and market conditions
  3. 3. • The environment is a condition in which we have lived with and it influences our behavior in certain ways. • For example, in cold weather we need to wear woolen clothes to keep ourselves warm. Here, the cold weather is the “environment” which forces us to cover ourselves with woolen clothes.
  4. 4. • Likewise, the enterprise environmental factors influences the organization, the project and its outcome. Every organization has to live and work within the EEF. • Examples of external enterprise environmental factors are as follows: • Government regulation • Market conditions • Infrastructure • External political conditions
  5. 5. Examples of internal enterprise environmental factors: • Organizational culture • Type of organizational structure • Internal political conditions • Available resources
  6. 6. Enterprise risk management • In enterprise risk management, a risk is defined as a possible event or circumstance that can have negative influences on the enterprise in question. • Its impact can be seen in the , the resources (human and capital), the products and services, or the customers of the enterprise, as well as external impacts on society, markets, or the environment. • In a financial institution, enterprise risk management is normally thought of as the combination of credit risk, interest rate risk or asset liability management, market risk, and operational risk.
  7. 7. (OPA) Organizational Process Assets, Definitions of Assets:- • It is a useful or valuable thing or property owned by a person or company, having value and available to meet debts and commitment. • In simple terms, assets are things that you can own, keep and use. • For example, you can have a car which helps you move around, you can have a house to live in, a computer to work on, etc.
  8. 8. • Organizations also have assets which help them in achieving their objectives. • In our study assets are called organizational process assets (OPA). • These organizational process assets are kept in some central place so that they can be used whenever required by anyone. • Organizational process assets include the organization’s process assets that may be used to ensure project success.
  9. 9. Organization process assets can be divided into two categories, The first category is for processes and procedures for conducting work, which includes the following:-  Policies - The basic principles/ways by which an organization is guided,  Procedures-an established or official way of doing something  Standard template - format or software used for doing something  General guidelines – something that show the way to do things,
  10. 10. The second category The second category includes corporate knowledge base for storing and retrieving information. For example: • Risk register • Lessons learned • Stakeholder register • Past project files • Historical information.
  11. 11. • Organizational process assets influence the project success, • They keep growing as the organization gets larger, For example, you a identify risks process in the process of identifying the risks and you decide to start identifying risks by using the check list. • Are you going to create this check list from scratch or will you look in any similar past project records to find it out? • you will go for the second option and find the risk check list from the previous records and customize it as per your project requirements. This will save you a lot of time
  12. 12. • In project management, a saying “why re-invent the wheel”, which means if you have something available to you, you don’t have to remake it again or buy it again, • Organizational process assets are used extensively in project management. • It is the responsibility of the project management team to look for any relevant documents in historical records before starting to build something from the beginning.
  13. 13. The Difference between Organizational Process Assets and Enterprise Environmental Factors: • Organizational process assets help organizations to continuously improve their process, and help project management teams to learn and share the best practices by using a collective knowledge base. • enterprise environmental factors may or may not help your organizations. It implies to the conditions in which your organization has to work. They don’t fall under the control of the project management team. • E.g.if the government increases taxes, it will hurt your profit; however, if they decrease taxes, it will increase your profit.
  14. 14. • The second difference is that it is not easy to change the enterprise environmental factors; you have to live with them. While OPA can be customized according to the suitability, and they make the project management team’s life much easier, • The key point here is that organizational process assets always support the project team, while enterprise environmental factors can sometimes help the project and other times may hurt it as well.
  15. 15. Summary • Enterprise environmental factors are the internal and external influences on our project, such as the corporate culture or the financial environment. • Organizational process assets are the procedures, guidelines, templates that we can use on our project as well as the corporate knowledge base, such as past project reports and lessons learned.
  16. 16. The Project scope statement and the project management plan The Project Scope Statement, • Defining the Project Scope : - • Defining the project scope sets the stage for developing a project plan. • Project Scope is a definition of the end result or mission of your project- product or service for your client/customer. • The Primary purpose is to define as clearly as possible the deliverable(s ) for the end user and to focus project plans.
  17. 17. Project Scope Checklist , 1. Project Objective,- needs customers want achieved, 2. Deliverables - expected outputs over the life of a project, i. e a list of specifications 3. Milestones - shows major segments of work ,rough estimates of times ,cost, and resources for the project. 4. Technical requirements - project require it to ensure proper performance, 5. Limitations and Exclusions - should defined .Failure to do so can lead to false expectations, use of resources and time on wrong problem,
  18. 18. 6. Reviews with Client /Customer ,Completion of scope check list ends with a review with your client/customer. It is about meeting customer/client need/expectations. Is the customer or client getting what he or she desires in deliverables? Does the Project definition identify key accomplishments ,budgets, timing, and performance requirements.
  19. 19. The project management plan, • The Project Management Plan - • (PMP) is a formal, approved document used to manage project execution. • The PMP documents the actions necessary to define, prepare, integrate and coordinate the various planning activities. • The PMP defines how the project is executed, monitored and controlled, and closed.
  20. 20. Project plan A project plan, • The definition of a project plan ,according to the Project Management Body of Knowledge (PMBOK), is a formal approved document used to guide both project execution and project control. • The primary uses of the project plan are to document planning assumptions and decisions, facilitate communication among project stakeholders besides documenting approved scope, cost, and schedule baselines.

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