- PRAM PROJECT RISK ASSESSMENT FOR [Project]
Risk ID Risk Variables Prob Consq Positive Impact Expectation Negative Impact Mitigation Steps (include
mitigation tasks in project plan)
H M L
High Medium Low
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8/13/2008
The first step in risk management using the Project Risk Assessment Method (PRAM) is to identify the risks that exist. A risk may be defined as an issue or an obstacle that may produce an undesired outcome. To assist the project manager in the identification of the risks associated with Information Systems projects, the following simplified Project Risk Template is provided below. Although this template is not all-inclusive, it is an excellent checklist for identifying and communicating project risks.
Risk Variables by PM Principle
1. Define the Job in Detail
New Technology Functional Complexity New vs. Replacement Leverage on Company Intensity of Business Need Interfaces to Existing Applications Number of User Departments Involved
4. Break the Job Down
Large/Small Project Size of Team Geographic Dispersion Reliability of Personnel Availability of Support Organization Availability of Project Champion Project Manager Availability
2. Involve the Right People
Staff Availability Commitment of Team Team Morale Applications Knowledge Customer IT Knowledge Technical Skills Availability Staff Conflicts Senior Management Commitment to Project Project Manager Experience
5. Set Up Change Procedure
Vulnerability to Change Stability of Business Area Organizational Impact Tight Timeframe Turnover of Key People Change Budget Accepted Change Process Accepted Charge Back System Accountability for Change
3. Estimate Time and Costs
Quality of Information Available Dependability on other projects Conversion Difficulty End-date Dictate Conflict Resolution Mechanism Continued Budget Availability Project Standards Used
6. Agree on Acceptance Criteria
Level of Customer Commitment Customer Attitude Toward BIS Readiness for Responsiblity Takeover Customer Design Participation Customer Participation in Beta Testing Customer Proximity to BIS Acceptance Process
PROBABILITY
High Medum Low 51% - 100% 16% - 50% 0% - 15%
CONSEQUENCE
High Medium Low 21% - 100% 12% - 20% 0% - 10%
Step One - Identify the Risks Objective: Explicitly identify issues and obstacles that may produce undesired outcomes. Key Ideas: Use the Risk Variables Sheet to assist in risk identification. Identify Additional Unique Project Risks Eliminate Assumptions With Specific, "Shared" Risks Step Two - Assess The Risk Objective: Assess Risk Impacts on the Project Key Ideas: "Probable" Risks should be assessed as risks that are reasonably likely to occur. Both positive and negative consequence for each risk should be articulated. The impact on project estimates, both positive and negative, should be stated. Step Three - Plan Risk Mitigation Objective: State the actions needed now to mitigate negative consequences or to maximize positive benefits. Key Ideas: Decide in advance how to manage each probably risk. Explore ways of eliminating risks by uncovering acceptable alternatives. Establish criteria for change. Step Four - Develop the Project Risk Profile Objective: Provide clear, graphic presentation so that parties understand and agree to risk impacts and needed actions. Key Ideas: Create a simple statement of risks, impacts and mitigation actions. Step Five - Update Project Plan Objective: Include risk mitigation tasks to the project plan to insure actions are taken when appropriate. Key Ideas: Mitigating actions are added to the project plan task list as reminders during project execution.
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