"Chapter 3 described the risk management process as one of several management threads that started at the beginning of the project and continued to its very end - including post-launch support. The following table identifies some key objectives and questions that the risk management process addresses."
|Objectives/Questions||Why It's Important|
|How does the organization want to deal with risk going forward?||Determines the strategy for dealing with risks on the project. Establishes the acceptable tradeoffs for dealing with risks. Also identifies the level of risk that worries the project sponsors.|
|What needs to be done to avoid the risk from occurring?||Identifies how to avoid risks on the project (i.e. mitigation).|
|What happens when a risk occurs?||Identifies how to deal with risks that are realized (i.e. contingency).|
"The risk management thread consists of six phases that are intended to define a strategy, identify the risks to the project, and document how to proceed with each risk."
"A brief introduction to each phase in the risk management process is given here and then described in more detail in the pages that follow:
- Risk management strategy The risk management strategy identifies the criteria used to identify, evaluate, and mitigate risks. It also identifies the project sponsor's approach for dealing with risks.
- Risk discovery A process used to build a catalog of risks facing the project in the future. During a project rescue, this involves reviewing the original list and enhancing it.
- Risk evaluation and details A process that involves inspecting each risk and providing additional details including probability of occurrence and impact to the project.
- Risk mitigation Defines how to avoid each risk or at least reduce its impact. The strategy phase identifies the criteria used to select the risks for this analysis.
- Risk reporting Ongoing process to review the status of each risk in the assessment list and to produce a scorecard or dashboard for management reporting.
- Risk review Inspect the entire list of project risks to determine if specific items should be removed or new ones should be inserted into the risk assessment list. In the latter case, the other phases of the risk management process are re-invoked to provide relevant details."
"The risk management phases are split across the project rescue framework as shown in the table below. Notice that risk management is not completed in the planning phase of the project. It has to stay in front of the project team and the project manager throughout the project. Risk management does not end."
|Risk Management Strategy||Risk Discovery||Risk Evaluation and Details||Risk Mitigation||Risk Reporting||Risk Review|
|2.0 Intervention Planning||X||X||X||X||X|
|3.0 Intervention Execution||X||X||X||X||X|
|4.0 Post-Intervention Review||X||X|
The above is an excerpt from a book written by Sanjiv Purba and
Joseph Zucchero, published by McGraw-Hill/Osborne, 2100 Powell Street,
10th Floor, Emeryville, California 94608 U.S.A. Sanjiv has over 20
years of experience managing large projects and many years engaged in
rescuing ailing projects.