Manage Risk through Simple Project Management

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Manage Risk through Simple Project Management

• Peter Williamson
• Barker College

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Sources

• AS/NZS 43602004 Risk Management HB4362004
  Risk Management Guidelines (PDF copy is 106.52)
  www.standards.org.au
• HB2312004 Information Security Risk Management
  Guidelines
• IS T Project Management Methodology Toolkit
  http//web.mit.edu/ist/pmm/toolkit.xls
• Barker PMM

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Project success ?

• To specification
• On time
• Within budget
• Satisfying the user

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Why projects fail

• Poor planning
• Running Late
• Over budget
• Scope change
• Loss of sponsor

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Tools to use

• Prince
• PMBOK
• Microsoft Project
• Home grown
• the bare essentials.

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Microsoft Project

• What actions are needed?
• What order must they be done in?
• How long will they take?
• Who must do them?
• Deal with the problems that arise.

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Project Forms

• Project Status Snapshot
• Budget
• Risk Assessment
• Scope Change
• Close out

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Risk

• Definition - Something that might occur that
  will have an impact upon objectives.
• Size Consequences x Likelihood.
• Can be good or bad.

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Risk Management

• Identify
• Quantify (impact x probability)
• Negate
• Mitigate
• For good risks encourage accentuate

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Identifying Risks

• Self compiled list
• Previous projects
• PESTEL
• Outside source (AS/NZ Standards)

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Quantify
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Negate or Mitigate

• Find some way of reducing the likelihood or the
  consequence (or both) of the bad risks.
• If you cant eliminate the risk put a plan in
  place to recover if and when it occurs.

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Negate

• audit and compliance programs
• contract conditions
• formal reviews of requirements, specifications,
  design, engineering and operations
• inspection and process controls
• investment and portfolio management
• project management
• preventative maintenance
• quality assurance, management and standards
• research and development, technological
  development
• structured training and other programs
• supervision
• testing
• organizational arrangements and technical
  controls

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Mitigate

• contingency planning
• contractual arrangements
• contract conditions
• design features
• disaster recovery plans
• engineering and structural barriers
• fraud control planning
• minimizing exposure to sources of risk
• portfolio planning
• pricing policy and controls
• separation or relocation of an activity and
  resources
• public relations and
• ex gratia payments.

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Thank you