risk management
DESCRIPTION
SharonTRANSCRIPT
Risk Management. BSBPMG508A
Diploma Project Management Captain Cook College
Sharon Boyle
Activity 1 & 2 Discuss results for Activity 1 & 2 Written & Oral sections Discussed outstanding assessments Discussed & began Communications
Assessment Item due 19 October
Complete outstanding assessments ?
Last week’s progress in Comms
All seems Ok – keep up good work Just read the question carefully
Feedback from LMS answers
1. Determine project risks 2. Monitor and control project risks 3. Assess risk management outcomes
Risk Management
Identify, document and analyse risks, in consultation with stakeholders and higher project authority
Use established risk management techniques & tools, within delegated authority, to ◦ analyse risks, ◦ assess options◦ recommend preferred risk approaches
Develop risk management plans, secure agreement of stakeholders and communicate plans
Establish designated risk management processes and procedures
1. Determine project risks
personal experience subject matter experts conducting or supervising qualitative and/or
quantitative risk analysis,
◦ schedule simulation – using multiple Gantt charts ◦ decision analysis ◦ contingency planning – what if? ◦ alternative strategy development – what if?◦ using specialist risk analysis tools
Techniques & tools
What are they?◦ – think what might happen
For each risk - How likely is it to happen?◦ Hit by meteor ◦ Vs ◦ getting sleepy tonight
What are the consequences of this thing happening?◦ Hit by meteor – possibly end of world as we know it◦ Vs◦ Getting a good night’s sleep
Assessing Risk – two silly examples
Hit by Meteor◦ Likelihood – extremely low◦ Consequence – Catastrophic – end of world
Getting sleepy tonight ◦ Likelihood – extremely high◦ Consequence – Insignificant
Risk assessment is a way of sorting and prioritizing risks or events or hazards
To describe these two events or risks
Risk Assessment
1. Determining the Level of Risk This worksheet can be used to identify the level of risk and help to prioritize any interventions or control measures.
Consider the consequences and likelihood for each of the identified risks and use the matrix* below to establish a risk level.
NB: This workbook will record the quality of your planning process - it will not ensure it.
Consequence Criteria
The "area of consideration" example used below is injury to people.
You should copy this template and adjust these criteria for each "thing you value".
1 – Insignific
ant
2 – Minor
3 – Moderate
4 – Major 5 – Catastrophic
Dealt with by in-house first
aid, etc
Medical help
needed. Treatment by medical professional/hospital outpatient,
etc
Significant non-
permanent injury.Overni
ght hospitalisation (inpatient)
Extensive permanent injury
(eg loss of finger/s) Extended
hospitalisation
Death. Permanent disabling injury (eg blindness, loss of
hand/s, quadriplegia)
Almost certain to occur in
most circumstances
Medium (M)
High (H) High (H) Very High (VH) Very High (VH)
Likely to occur
frequently
Medium (M)
Medium (M)
High (H) High (H) Very High (VH)
Possible and likely to occur at some
time
Low (L)Medium
(M)High (H) High (H) High (H)
Unlikely to occur but could happen
Low (L) Low (L)Medium
(M)Medium (M) High (H)
May occur but
only in rare and exceptio
nal circumstances
Low (L) Low (L)Medium
(M)Medium (M) High (H)
Risk Assessment
1. Determining the Level of Risk This worksheet can be used to identify the level of risk and help to prioritize any interventions or control measures.
Consider the consequences and likelihood for each of the identified risks and use the matrix* below to establish a risk level.
NB: This workbook will record the quality of your planning process - it will not ensure it.
Consequence Criteria
The "area of consideration" example used below is injury to people.
You should copy this template and adjust these criteria for each "thing you value".
1 – Insignific
ant
2 – Minor
3 – Moderate
4 – Major 5 – Catastrophic
Dealt with by in-house first
aid, etc
Medical help
needed. Treatment by medical professional/hospital outpatient,
etc
Significant non-
permanent injury.Overni
ght hospitalisation (inpatient)
Extensive permanent injury
(eg loss of finger/s) Extended
hospitalisation
Death. Permanent disabling injury (eg blindness, loss of
hand/s, quadriplegia)
Almost certain to occur in
most circumstances
Medium (M)
High (H) High (H) Very High (VH) Very High (VH)
Likely to occur
frequently
Medium (M)
Medium (M)
High (H) High (H) Very High (VH)
Possible and likely to occur at some
time
Low (L)Medium
(M)High (H) High (H) High (H)
Unlikely to occur but could happen
Low (L) Low (L)Medium
(M)Medium (M) High (H)
May occur but
only in rare and exceptio
nal circumstances
Low (L) Low (L)Medium
(M)Medium (M) High (H)
Getting sleepy
Meteor
1. Project Risk Register
Reference - Issue No. : and/or Issue Date: Future Review date:
Identified Risks Analysis & Evaluation
Existing controls described & evaluated Further Actions
Risk Statement (e.g. description of each specific risk scenario with regard to people, information, physical assets, finances, reputation, and any other "things you value")
Consequence (1, 2, 3, 4, or 5 - see Sheet 1)
Likelihood (A, B, C, D or E - see
Sheet 1)
Risk level (L,
M, H or
VH - see
Sheet 1)
What we are doing
now to manage this
risk.
Effectiveness of our strategies (
Accept Risk (Yes
or No)
Further Action Needed
& Opportunities
for improvement -
Include milestone(s) & target date(s)
Assigned To
Revised Risk level (L, M, H or VH - see Sheet 1)
No
Opportunities for
improvement
Record by rows and cells as necessary.
VH No VH
VH No VH
Signed:
Signed:
Date: Date:Project Manager
Name:
Project Manager
Name:
Note re effectivenessN = Not generally applied or only applied in isolated situations for example in less than 20% of cases; P = Partially applied, not usually documented or applied in less than 50% of cases; L = Largely applied, formally documented and largely repeatable or applied in up to 85% of cases; F = Fully applied, formally documented and fully repeatable or applied in more than 85% of cases.)
Doggy day out Draft up a risk management plan
◦ the what ◦ the how◦ Who we report to◦ How we track
Scope some risks Assess the risks Think up some strategies for the high risk
See hand out & LMS
A group discussion:practice for Fred’s risk management plan
Morning Tea
Please fill in and submit Talk it over and let’s discuss
Great Tastes of Manly
Lunch
communication with stakeholders, dispute resolution & modification procedures
implementation of risk control trigger mechanisms measurement of actual progress against planned
milestones – ◦ remember our baselines (or starting point)?
recording and reporting of major variance◦ how far are we from the baseline?
setting key milestones◦ If we have reached this milestone how are our risks?
Processes & procedures
Remember you have one in front of you…
What goes into Risk Management Plan
Manage using established project & risk management plans to ensure achievement of objectives
Monitor progress against project plans to ◦ identify variances ◦ recommend responses
Implement agreed ◦ risk responses◦ modify plans to reflect changing
2. Monitor and control project risks
Review project outcomes to determine effectiveness of risk management processes and procedures
Identify & document ◦ risk issues and ◦ recommend improvements◦ pass on to higher project authority for application
in future projects
3. Assess risk management outcomes
Powerpoint pres.◦ Last week’s progress & Some feedback re LMS quizzes◦ Introduction to Risk Management & PM
Determine project risks Monitor and control project risks
Morning TeaDiscussion 1. – Great Taste of Manly
◦ Structuring a Risk management plan◦ Scoping risks◦ Risk assessment – due 12 October
Lunch◦ Fred’s Shed RMP – due 2 November◦ Start LMS Activities 1, 2 & 3 only◦ Complete assessment items – do what you haven’t yet finished
Lesson plan 11 October
Risk & other components of PMP Quality, Scope, Cost, Schedule Morning Tea Risk Management Plan for Fred’s shed Lunch Continue Risk Management Plan Or Activities 1,2 & 3.
Lesson Plan 12 October
Brainstorming – you are the experts on Fred’s Shed
Let’s to identify risks in Fred’s shed