Seamless Risk Management from Project to CEO

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Seamless Risk Management from Project to CEO

• Danny Faught
• IEEE Dallas Section Consultants Network
• February 12, 2001

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Definitions

• Risk a potential problem
• Risk Management - the process associated with
  identifying, analyzing, planning, tracking, and
  controlling risks

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What is Risk Management, Really?

• It depends on your point of view in the
  organization.
• Are you a risk manager looking at
  corporate-level risks?
• Or are you looking at project-level risks?

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The Corporate View

• Who?
• Corporate Risk Officers
• Risk Managers, often reporting to the CFO or
  Director of Human Resources
• Insurance brokers, underwriters, consultants, etc.

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The Corporate View

• Where do they hang out?
• Risk and Insurance Management Society (RIMS)
• American Risk and Insurance Association (ARIA)
• and many, many others, almost all with
  insurance in the name.

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The Corporate View

• What do they do?
• Analyze risk in areas like market risk, credit
  risk, legal risk, human resources
• Buy insurance
• Write policies
• Practice loss control (maybe)

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The Project View

• Who?
• Project managers
• Program managers
• Lead engineers
• Consultants (like Tim Lister, Linda Westfall)

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The Project View

• Where do they hang out?
• Project Management Institute Risk Management
  SIG
• Software Engineering Institute
• International Council On Systems Engineering
  Risk Management Working Group

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The Project View

• What do they do?
• Project-level risk management, focusing purely on
  the success of the project.
• Strive to meet the schedule (!) and cost targets
  for the project.

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No Links Between the Two?

• The risk insurance folks rarely mention product
  developmentdifferent silos within this field
  dont even communicate
• Project people rarely take a broad look at
  business risks

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A Possible Link?

• A new corporate-level movement Enterprise Risk
  Management
• Product development seems to fall under
  Operational Risk within ERM
• But product development still isnt often
  mentioned as a part of Operational Risk

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Cigitals Methodology