02-2011 how to manage risk

8/3/2019 02-2011 How to Manage Risk

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By

Ileanna Lpez, PMP

February, 24, 2011

How We Manage Risk?


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Definitions

Types of Risks Examples of Risk Management

Risks in others Methodologies andFrameworks

What this means for us? (Project Managers)


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Risk


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Types of Risk Management

Financial Risk Management

Operational Risk Management

Risk Management and Insurance

Credit Risk Management

Market Risk Management

Quantitative Risk Management Technology Risk Management

October 28 and 29, 2010 4


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Types of Risk Management


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Types of Risk

Integrated Risk Management

Nonprofit Risk Management

Bank Risk Management

Commodity Risk Management

Currency Risk Management

Software Risk Management Enterprise Risk Management

October 28 and 29, 2010 6


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Threat or a Issue?


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Issue

Project issue could conclude in either;General Issue; problem with the supplierRequest for Change; alteration of the program planOff-Specification; missing product or failure of productBusiness Process Improvement; suggest a improvement of the

current business process or suggest a new requirement.


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Project Management IssuesIssue Consequences

Insufficient and invalidinformation

Poor visibility

Poor planning

Poor milestone tracking

Disparate sources ofinformation Difficult to capture project-related metrics

Managing CustomerExpectations

Inadequate requirements

Poor milestone tracking

Poor level of quality

Poor Communication Poor change controlInefficient team collaboration

Funding

Iterative delivery of incremental value is usually foreign to thebusiness

The business wants to understand the costs upfront

Incremental funding requires business change


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Lessons Learned

When identifying lessons learned, our goal should beto identify what went well, what didn't go well, andwhy.

So Why We dont do it?

Two common problems preventing us learning

valuable lessons from past projects: We think the lessons don't apply to us.

We want to get things done

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http://lessons_learned_survey_template.doc/http://lessons_learned_document_template.doc/


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How we Manage Risks?

PMIPR 2010 Symposium 11


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Project Risk Template


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B f E l t


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Before Escalate

Analyze

How urgent is the decision needed?

How do any relevant contracts handlechanges?

What would have to change? (and what willthe ripple effect be of the change?)

What effort does the change require in terms ofpeople, cost, time and other resources?

Is there a separate change budget, does thischange meet the criteria?

What impact will the change have on thesupplier, customer and the business?

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Accidents


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Accidents/Incident

An accident is a undesirablehappening that occurs

unintentionally and usually result inharm, injury, harm, damage orloss.

Accidents are investigated toidentify how to avoid them in thefuture.


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Risk in othersmethodology

ECM P j t D li


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ECM Project DeliveryMethodology (EPDM)

Developed to meet the challenges of EnterpriseContent Management program design anddeployment

A repeatable, industry-leading approach tosolutions and services

Scalable to a range of projects

Anticipate and mitigate risk

High quality delivery and customer satisfaction

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Project Management Framework (EPDM Tier 1)

Executing

Scope (Change) Management Status Reporting Delivery Manager Review Country Manager/ Regional

Director Reviews

Stage Gate Review Cost & Revenue Management Issue/Risk Management Schedule Management Resource Management Stakeholder Management

Initiating

Custome

r

Project Signoff Acceptance criteria met Client Feedback / Lessons learned Project Archival Project Staff Appraisals Update appropriate skills matrix and Resum Harvest reusable materials Follow-on opportunity Customer reference

Controlling/Monitoring

Closing

Ensure Delivery Managementengaged

PM Engaged Knowledge Transfer Produce Charter, inc.

- Governance / escalation- Deliverables checklist

Stakeholder Analysis Team Assigned Internal Kickoff

Refine Work BreakdownStructure

Refine Project Life-cycle Project Planning

- inc. Resources and Schedule Communication Plan

Risk Plan Issue (Escalation) Plan Scope (Change) Plan Quality Planning All hands kick off

Execute Plan Utilize Reusable Assets Complete Work Packages Create Reusable Assets Use Project Type Specific Practice

Materials

Deliverables

DeliveryMana

gementandProgramManagement:GovernanceandQu

ality

Administrative Sales &Bus. Ops - closureprocesses complete.

Sales & Bus. Ops -

Contractual initiationprocesses complete.

Bus. Ops Billings &Invoicing Processes.

ProjectGates

Planning

Reference This figure is from Section 6.7 of the EPDM Quick Reference Guide 2007 EMC Corporation


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01 de Marzo de 2011Ileanna Lpez 21


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Enterprise Risk Management

Benefits;Ability to define the risk appetite of the organizationand make strategic decisions that are risk adjustedand aligned to the business.


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Risk IT Integrate the

management of IT riskinto the overall ERM ofthe organization

Make well-informeddecisions about theextent of the risk (therisk appetite and the risktolerance

Understand how torespond to the risk

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Risk Response

Definition

The purpose of defining a riskresponse is to bring risk inline with the defined risktolerance for the enterprise.

In other words, a responseneeds to be defined suchthat future residual risk is as

much as possible within risktolerance limits.

2009 ISACA/ITGI. All rights

reserved.


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01 de Marzo de 2011Ileanna Lpez, PMP 25

Agile Projects

2 weeks to 2months


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SCRUM

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Example of the Board

October 28 and 29, 2010PMIPR 2010 Symposium 27


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Risks in Scrum

01 de Marzo de 2011Nombre del presentador / Presenter's name. 28


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PMI-RMP

1. Risk Management Overview

2. Project Risk Documents1. Risk Management Plan

2. Risk Register

3. Gathering Project Risks4. Risk Identification Analysis

5. Creating a Risk Budget

6. Communicating Project Risk

7. Documenting Project Risk

8. Practice Exam Question

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PMI-RMP

Exam Overview:

Risk Communication 27%

Risk Analysis 30%

Risk Response Planning 26%Risk Governance 17%

Total 100%


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What this mean to us?

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References

http://www.emc.com/collateral/hardware/white-papers/h4615-proj-delivery-methodology-wp.pdf

http://www.itservices.manchester.ac.uk/isprogramme/documents%20to%20download/ISPROG%20Te

mplates%20v2/ISPROG_Project%20Issues%20Guidance_v1.pdf

http://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4

http://www.isaca.org/Knowledge-Center/Risk-IT-IT-Risk-Management/Pages/Risk-IT1.aspx

http://blog.mountaingoatsoftware.com/wp-content/uploads/risk-census.jpg

http://agilemanifesto.org/iso/es/principles.html 33
http://www.emc.com/collateral/hardware/white-papers/h4615-proj-delivery-methodology-wp.pdfhttp://www.emc.com/collateral/hardware/white-papers/h4615-proj-delivery-methodology-wp.pdfhttp://www.itservices.manchester.ac.uk/isprogramme/documents%20to%20download/ISPROG%20Templates%20v2/ISPROG_Project%20Issues%20Guidance_v1.pdfhttp://www.itservices.manchester.ac.uk/isprogramme/documents%20to%20download/ISPROG%20Templates%20v2/ISPROG_Project%20Issues%20Guidance_v1.pdfhttp://www.itservices.manchester.ac.uk/isprogramme/documents%20to%20download/ISPROG%20Templates%20v2/ISPROG_Project%20Issues%20Guidance_v1.pdfhttp://www.itservices.manchester.ac.uk/isprogramme/documents%20to%20download/ISPROG%20Templates%20v2/ISPROG_Project%20Issues%20Guidance_v1.pdfhttp://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://www.isaca.org/Knowledge-Center/Risk-IT-IT-Risk-Management/Pages/Risk-IT1.aspxhttp://www.isaca.org/Knowledge-Center/Risk-IT-IT-Risk-Management/Pages/Risk-IT1.aspxhttp://blog.mountaingoatsoftware.com/wp-content/uploads/risk-census.jpghttp://blog.mountaingoatsoftware.com/wp-content/uploads/risk-census.jpghttp://blog.mountaingoatsoftware.com/wp-content/uploads/risk-census.jpghttp://blog.mountaingoatsoftware.com/wp-content/uploads/risk-census.jpghttp://blog.mountaingoatsoftware.com/wp-content/uploads/risk-census.jpghttp://blog.mountaingoatsoftware.com/wp-content/uploads/risk-census.jpghttp://blog.mountaingoatsoftware.com/wp-content/uploads/risk-census.jpghttp://www.isaca.org/Knowledge-Center/Risk-IT-IT-Risk-Management/Pages/Risk-IT1.aspxhttp://www.isaca.org/Knowledge-Center/Risk-IT-IT-Risk-Management/Pages/Risk-IT1.aspxhttp://www.isaca.org/Knowledge-Center/Risk-IT-IT-Risk-Management/Pages/Risk-IT1.aspxhttp://www.isaca.org/Knowledge-Center/Risk-IT-IT-Risk-Management/Pages/Risk-IT1.aspxhttp://www.isaca.org/Knowledge-Center/Risk-IT-IT-Risk-Management/Pages/Risk-IT1.aspxhttp://www.isaca.org/Knowledge-Center/Risk-IT-IT-Risk-Management/Pages/Risk-IT1.aspxhttp://www.isaca.org/Knowledge-Center/Risk-IT-IT-Risk-Management/Pages/Risk-IT1.aspxhttp://www.isaca.org/Knowledge-Center/Risk-IT-IT-Risk-Management/Pages/Risk-IT1.aspxhttp://www.isaca.org/Knowledge-Center/Risk-IT-IT-Risk-Management/Pages/Risk-IT1.aspxhttp://www.isaca.org/Knowledge-Center/Risk-IT-IT-Risk-Management/Pages/Risk-IT1.aspxhttp://www.isaca.org/Knowledge-Center/Risk-IT-IT-Risk-Management/Pages/Risk-IT1.aspxhttp://www.isaca.org/Knowledge-Center/Risk-IT-IT-Risk-Management/Pages/Risk-IT1.aspxhttp://www.isaca.org/Knowledge-Center/Risk-IT-IT-Risk-Management/Pages/Risk-IT1.aspxhttp://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://agile101.net/2009/07/27/agile-risk-management-risk-review-step-4-of-4http://www.itservices.manchester.ac.uk/isprogramme/documents%20to%20download/ISPROG%20Templates%20v2/ISPROG_Project%20Issues%20Guidance_v1.pdfhttp://www.itservices.manchester.ac.uk/isprogramme/documents%20to%20download/ISPROG%20Templates%20v2/ISPROG_Project%20Issues%20Guidance_v1.pdfhttp://www.itservices.manchester.ac.uk/isprogramme/documents%20to%20download/ISPROG%20Templates%20v2/ISPROG_Project%20Issues%20Guidance_v1.pdfhttp://www.itservices.manchester.ac.uk/isprogramme/documents%20to%20download/ISPROG%20Templates%20v2/ISPROG_Project%20Issues%20Guidance_v1.pdfhttp://www.emc.com/collateral/hardware/white-papers/h4615-proj-delivery-methodology-wp.pdfhttp://www.emc.com/collateral/hardware/white-papers/h4615-proj-delivery-methodology-wp.pdfhttp://www.emc.com/collateral/hardware/white-papers/h4615-proj-delivery-methodology-wp.pdfhttp://www.emc.com/collateral/hardware/white-papers/h4615-proj-delivery-methodology-wp.pdfhttp://www.emc.com/collateral/hardware/white-papers/h4615-proj-delivery-methodology-wp.pdfhttp://www.emc.com/collateral/hardware/white-papers/h4615-proj-delivery-methodology-wp.pdfhttp://www.emc.com/collateral/hardware/white-papers/h4615-proj-delivery-methodology-wp.pdfhttp://www.emc.com/collateral/hardware/white-papers/h4615-proj-delivery-methodology-wp.pdfhttp://www.emc.com/collateral/hardware/white-papers/h4615-proj-delivery-methodology-wp.pdfhttp://www.emc.com/collateral/hardware/white-papers/h4615-proj-delivery-methodology-wp.pdfhttp://www.emc.com/collateral/hardware/white-papers/h4615-proj-delivery-methodology-wp.pdf


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Ileanna M. Lpez, PMP

How We Manage Risk.