risk management: a key success factor

“Risk Management: A Key Success Factor”with Dr. Tracey Richardson

Thank you for joining the Embry-Riddle Aeronautical University Webinar!

The session will begin at 12:15 p.m. Eastern Time (GMT-4)

11:15 p.m. Central Time/9:15 a.m. Pacific Time

A few session pointers

• We will use the text chat for questions• You can interact with icons• You control the size of your screen• Emails will be provided at the end• A link to the recording will be emailed to you

• Introductions

• Presentation by Dr. Tracey Richardson

• Questions and Answers

• Embry-Riddle Technical Management and Project Management Degree Programs

Today’s Agenda

Dr. Tracey M. Richardson

• Assistant ProfessorCollege of BusinessERAU - Worldwide

• Organizational Leadership Doctorate - Argosy University

• M.S. in Management & B.S. in Resource Management - Troy University

• Retired USAF Aircraft Maintenance Officer (20+ years) and owns a real estate business

Risk Management: A Key Success Factor

Dr. Tracey M. RichardsonProject Management Institute – Risk Management Professional

Project Management Professional

• Risk Management. Where do we start?

– We have to first know what it means, know what it looks like, know the tools, and have accountability in our processes.

• Risk Management. Where do we start?

– We have to first know what it means, know what it looks like, know the tools, and have accountability in our processes.

Goal of this webinar?

• Risk Management. Where do we start?

– We have to first know what it means, know what it looks like, know the tools, and have accountability in our processes.

Goal of this webinar?

• Risk

– An uncertain event that, if it occurs, has a positive or negative effect on project objectives

Risk Management Process

Myth: Risk in only negative

• Risk– An uncertain event that, if it occurs, has a positive or

negative effect on project objectives

• Risk Management– A proactive attempt to recognize and manage internal

events and external threats that affect the likelihood of a project’s success

• What can go wrong (risk event)

• How to minimize the risk event’s impact (consequences)

• What can be done before an event occurs (anticipation)

• What to do when an event occurs (contingency plans)

Risk Management Process

The Risk Event Graph

FIGURE 7.1

From IAQG retrieved from as9100.com

Risk Management Cycle

Risk Management Process

Adopted from ‘Risk Management’ retrieved from esi-intl.com

Risk # Risk Category Risk Description

Risk Probability

(High/

Medium/

Low)

Risk Impact

(High/

Medium/

Low)

Mitigation Plan

(See Risk Breakdown

Structure for Description)

Risk

OwnerStatus

A3481 Budget

The Engineering group is 200K over

budget on the project. Medium High

Project will receive special funding grant of

300K to mitigate this overage. The grant was

approved by VP J. Smith already Fred Active

J4372 Schedule Phase 2 late by more than two weeks. High High 05.02.02.01 George Future

E0062 Economy Interest rates become greater than 6% Low High

Transfer Risk to the Finance department who

will absorb additional costs Sam Past

Example of Risk Register

Example Impact Scale

Risk Assessment Form

FIGURE 7.4

5

4

3

2

1

5

4

3

2

1

1 23

4 5

154

5

4

3

2

1

User Backlash

Interface Problems

System Freezing

Hardwaremalfunction

5

4

3

2

1

1 2

34 5

Like

liho

od

Consequence/Impact

Risk Severity Matrix

• Risk Management. Where do we start?

We have to first know what it means, know what it looks like, know the tools, and have accountabilityin our processes.

Questions?

Dr. Tracey M. Richardson

Tracey.richardson@erau.eduProject Management Institute – Risk Management Professional

Project Management Professional

~~~~

Bill Gibbs

bill.gibbs@erau.edu