-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 High M Medium L Low $ASQRisk Template.xls 1 1/30/20081. Define the Job in Detail 4. Break the Job Down New Technology Large/Small Project Functional Complexity Size of Team New vs. Replacement Geographic Dispersion Leverage on Company Reliability of Personnel Intensity of Business Need Availability of Support Organization Interfaces to Existing Applications Availability of Project Champion Number of User Departments Involved Project Manager Availability 2. Involve the Right People 5. Set Up Change Procedure Staff Availability Vulnerability to Change Commitment of Team Stability of Business Area Team Morale Organizational Impact Applications Knowledge Tight Timeframe Customer IT Knowledge Turnover of Key People Technical Skills Availability Change Budget Accepted Staff Conflicts Change Process Accepted Senior Management Commitment to Project Charge Back System Project Manager Experience Accountability for Change 3. Estimate Time and Costs 6. Agree on Acceptance Criteria Quality of Information Available Level of Customer Commitment Dependability on other projects Customer Attitude Toward BIS Conversion Difficulty Readiness for Responsiblity Takeover End-date Dictate Customer Design Participation Conflict Resolution Mechanism Customer Participation in Beta Testing Continued Budget Availability Customer Proximity to BIS Project Standards Used Acceptance Process 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 PrinciplePROBABILITY High 51% -100% Medum 16% -50% Low 0% -15% CONSEQUENCE High 21% -100% Medium 12% -20% Low 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.maximize positive benefits. risk impacts and needed actions. when appropriate. project execution.