a conceptual framework of project risk management

8/6/2019 A Conceptual Framework of Project Risk Management

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A CONCEPTUAL FRAMEWORK

OF

PROJECT RISK MANAGEMENT


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SYNOPSIS:

INTRODUCTION TO PROJECT RISKMANAGEMENT.

OBJECTIVE OF PROJECT RISK MANAGEMENT.

NEED FOR RISK ANALYSIS.

10 GOLDEN RULES OF PROJECT RISKMANAGEMENT

ELEMENTS OF RISK MANAGEMENT.

RISK MANAGEMENT PLAN.

THE RISK MANAGEMENT PROCESS.

CLASSIC MISTAKES OCCUR IN SOFTWAREPROJECT DEVELOPMENT.

CONCLUSION.


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INTRODUCTION :

What is a Project?A project is a temporary endeavor undertaken to produce a

unique product or service

What is a Risk?

A risk is any anticipated unfavorable event that can occurwhile a project is ongoing.

What is a Project Risk Management?

It is an art and science of identifying ,analysing andresponding to risk throughout the project and in the bestinterest of meeting project objective

Temporary Characteristics ofProjects

Unique


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OBJECTIVE OF PROJECT RISK MANAGEMENT:

The broad objectives of the project risk managementprocess are :

Survival of the organization.

Efficiency in operations.

Uninterrupted operations.Continued growth .

Enhance the capability of the organization.

Extend the organizations overall risk management

processes to projects, and apply them in a consistent way.

Enhance the management of projects across the

organization and obtain better project outcomes, in all

respect.


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NEED FOR PROJECT RISK MANAGEMENT


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10 GOLDEN RULES OF PROJECT

RISK MANAGEMENT

1. Make Risk Management Part of Your Project

2. Identify Risks Early in Your Project

3. Communicate About Risks

4. Consider Both Threats and Opportunities5. Clarify Ownership Issues

6. Priorities Risks

7. Analyze Risks

8. Plan and Implement Risk Responses

9. Register Project Risks

10. Track Risks and Associated Tasks


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ELEMENTS OF RISK MANAGEMENT

The job of Project Risk management is to identify,

address and eliminate sources of risk before they

become threats to completion of a project.Different elements of risk management are:

Crisis management.

Fix on failure .

Risk mitigation.

Prevention.

Elimination of root causes.


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RISK MANAGEMENT PLAN:


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RISK IDENTIFICATION: Identify all the possible riskevents that could affect the project.

RISK ASSESSEMENT: Assess each risk in terms of probability,impact severity and controllability.

For risk assessment, each risk should first be rated in two ways:1.The likelihood of a risk coming true (r).2. Severity of damage caused due to the risk becoming true (s).Based on these two factors, the priority of each risk can be

computed as :p = r * s

3 MAIN CATEGORIES OF

RISK

PROJECTRISK

TECHNICALRISK

BUSINESSRISK


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RISK DEVELOPMENT: Develop a strategy and/or

contingency for responding to each risk.

RISK CONTAINMENT: This involve monitor and control

risks dynamically. Different risks require different

containment procedures.3 MAIN STRAYEGY USED FOR

RISK CONTAINMENT

Avoid the risk Transfer the risk Risk reduction


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PROCESSES

It help project teams make informed decisionsregarding alternative approaches to achievingtheir objectives and the relative risk involved ineach project.

Risk management encourages the project team totake appropriate measures to:Minimize adverse impacts to project scope, cost,

and schedule.Maximize opportunities to improve the projects

objectives with lower cost, shorter schedules, andhigher quality.


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PROCESSES

Fig.: The Project Risk Management Process


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CLASSIC MISTAKES OCCUR IN

SOFTWARE PROJECT DEVELOPMENT:

What is classic mistake?

Some ineffective practices chosen by many people who

produce predictable and unpredictable bad results, during

and at the end of the project are known are classicmistakes.

The main effect of these mistakes is, you wont get rapid

development.

Once if these mistakes are analyzed, it can be used with

project planning and risk management which will

definitely help the development speed of project.


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Classic mistakes have been divided along the development dimensions

of people, process, product and technology.

PEOPLE RELATED

MISTAKES

PROCESSED

ORIENTED

MISTAKES

PRODUCT

RELATED

MISTAKES

TECHNOLOGY

RELATED

MISTAKES

y Undermined

motivation

y Weak personnel

y Uncontrolled

problem employees

y Heroics

y Noisy, crowded

offices

y Friction between

developers and

customers

y Unrealistic

expectations

y Lack of user-input

y Wishful thinking.

y Overly optimistic

schedules

y Insufficient risk

management

y Contractor failure

y Insufficient

planning

y Wasted time

during the fuzzy

front end

y Shortchanged

upstream activities

y Inadequate design

y Requirement

gold-plating

y Feature creep

y Developer gold

platting

y Push-me, pull-

me negotiation

y Research

oriented

development

y Silver bullet

syndrome

y Overestimated

savings from new

tools or method

y Switching tools in

the middle of the

project

y Lack of automated

source-code control


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CONCLUSION:

As the problem and risk faced by each project are unique, soit is not possible to prescribe a standard format.

A good project risk management within an organization hasthe following characteristics:

(a) Project risk management activities commence at theinitiation of the project, risk management plans are developedand risk management continues throughout the project lifecycle.

(b) Project risk management is not a discrete stand-alone

process, but is integrated with other project managementfunctions.(c) The implementation of project risk management is the

responsibility of all project stakeholders and they participateactively in the process.


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THANK YOU

a conceptual framework of project risk management

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