Risk Management Process Flow Diagram by tcu11291

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									                Risk Management
              Process Flow Diagram
Assumption         Work Plan             Strategic Cost
 Analysis           Analysis                Analysis
                                                                              •Size
                                                                              •Probability
                                                                              •Proximity
                                                                              •Time
                                                          Y
 Identify      Make         Grade             Recommend          Risk           Grade
  Issue      Assumption   Assumption             Risk         Statement         Risk

                          •Stability           N
                          •Sensitivity

Repository                                      Action                    N      Risk
  Item                                           Item                            Plan

                                                                                        Y
                                                                              Prepare &
                                                                               Monitor
                                                                              Risk Plans
    Risk vs. Amount at Stake
                              Total Project Life Cycle

                     Plan                                     Accomplish

       Phase 1                 Phase 2             Phase 3                  Phase 4
I     CONCEPT               DEVELOPMENT      IMPLEMENTATION           TERMINATION
N      Conceive                Develop             Execute                   Finish
C
R
E
    Opportunity and Risk
A
S                                                                                     $
I
                  Period when                                                         V
N                 Highest Risks
G                 are Incurred                                                        A
                                                                                      L
R                                                                                     U
                                                               Period of
I                                                                                     E
                                                                Highest
S                                                             Risk Impact
     Amount at Stake
K



                    TIME
                                                                                          21
         Assessment for Programme
           Complexity Criticality
    Positioning Projects Relative to Each Other
                 Complexity                           Criticality and Size

B                                       B
U    D                                  U
S                 S1                    S   D                                S1
I                                       I
N                                       N
E                                       E
S                        New            S
    C
S                        Project        S   C
C                                       C
O                                       R
M                                       I       New
P   B                                   T   B   Project
L                                       I
E                                       C
X                                       A
I   A                     S2            L
T                                       I   A              S2
Y                                       T
                                        Y
         A        B        C        D            A         B       C         D
             TECHNICAL COMPLEXITY                           PROJECT SIZE
                PRIORITIZING ISSUES
               Proximity/Time/Size
Proximity




            The Project              Time
          Assumption Analysis
                       D
                           Falling Stability


                       C
                                                   Increasing Risk
Assumption
(In)-Stability -
likelihood to change   B



                       A          Increasing Sensitivity

                             A        B        C        D
                                 Our Sensitivity -
                                 to the extent of change
                                  Bubble Diagram
                      A



                      B
to Heart of Project



                                                      -Interface
                                                       Complexity
                            Customer
                            Decision
                                                  8
                      C
                            Making-
                                              3        6    -Change
                                                             Readiness           1
                                                                                       -Scope/
                                                                                        Changes
                                              9
Proximity -




                             Role Clarity-
                                                  5        -Resources
                           SME-
                                          2
                      D                           4                 7    -System Interfaces
                          Connectivity-               10
                                                           \EMU




                                              D                 C                B                A
                              Time to act -
                              Remaining until impact
  Analyze Known Risks

          Size of impact

  Proximity - to heart of project

 Probability of impact occurrence

Time remaining until action needed
                    PMC: Risk Management at a Glance                                                   A B C D
Minimum Risk Management                                              Risk Roles & Responsibilities
1. Maintain a written census of major risks.                         Senior Management        Allocates Budget
2. Analyze and prioritize each one.                                                           Ensures Effective Risk Procedures
3. Identify its earliest trigger.                                                             Appoints External Risk Managers
4. Develop realistic mitigation plans for the greatest risks.        Project Manager          Agrees on Risk List
5. Monitor continuously.                                                                      Appoints Risk Owners & Managers
6. Appoint someone to be responsible for each risk.                                           Approves Plans
                                                                     Risk Manager             Best person to attack the risk
                                                                                              Draws up plans
                                                                                              Runs the plan
      Problem            Know         Take Action!                   Risk Owner               Best person to understand the risk
                                                                                              Identifies the risk
                                                                                              Agrees on Plan
                                                                                              Monitors Plan
                                                                     Risk Administrator       Maintains Risk List
                                                                                              Maintains Status/Age of Risk Data

                  Don’t Know          Issues            Prefer          Get Answer           Affect       Take Action!
                                                                        or Decision
     ABCD Prioritization Parameters
Issue      Question      Time                                                                                   Risk Process
                         Size              Can’t                                                                1. ID
                         Proximity         wait any longer                                                      2. Analysis
Assumption Single        Stability                                      Assumptions                             3. Prioritization
           Simple +/- Sensitivity                                                                               4. Planning
           Statement                                                                                            5. Controlling
Risk       If - Then     Timing                                                                                 6. Monitoring
                         Proximity
                         Impact           Still Need Help?
                         Probability      Call Project Management Consulting
                                             (703) 742-1179 [8-432]
                                                                                      Low Quality        Risks
          Nov Attack Plan
          Risk 05
Probability             Prevent
Impact                  Mitigate

								
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