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Risk Management Strategy

"A risk management strategy should have been adopted at the start of the project, but the fact that a project rescue intervention is needed suggests that one or more risks were not effectively mitigated. The 1.0 Assessment phase of the project rescue intervention program provides an opportunity to review the original strategy, potentially determine the deficiencies, and to introduce revisions that could be more effective."

"The table below shows some of the questions that need to be answered and why these are relevant for revising the risk management strategy. This strategy ensures that the team is ready to react positively when risks do begin to emerge."

Question
Point of Relevance
What trouble did the project run into?
This is easier to answer than why the project got into trouble. The answer is factual. Make sure the new risk management strategy compensates for these facts.
How much flexibility will the executive sponsors support?
Be clear on what can be moved or revised so that the proper tradeoff can be argued for every identified risk.
Is there any movement in the delivery date
Supports tradeoffs in mitigating risk (for example, more time for testing or review).
What is the organization's tolerance towards risk?
If the organization wants all the risks to be minimized, is it prepared to invest appropriately? If not, what flexibility will it show in the results? You cannot guarantee both.
What is the acceptable budget error tolerance?
If going over budget is a risk factor for the project, what is the acceptable range?

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.