wendy romeu, president proprietary information of the alluvionic inc. and may not be disclosed...
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Wendy Romeu, President
Proprietary information of the Alluvionic Inc. and may not be disclosed without written permission. 1
Proprietary information of Alluvionic Inc. and may not be disclosed without written permission.
Agenda Risk and Opportunity Management
What is a Risk (How about opportunity)Overview of Risk Management ProcessReportingAvailable Software ToolsOther Items To Consider
First, let’s start with a question.
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Proprietary information of Alluvionic Inc. and may not be disclosed without written permission.
What is a Risk (How about opportunity)Risk
Opportunity
Risk Management
3
Proprietary information of Alluvionic Inc. and may not be disclosed without written permission.
Overview of Risk Management Process1. Planning
2. Identification
3. Analyze & Prioritize
4. Response Planning
5. Execution, Evaluation and Updating
6. Lessons Learned (Feed the Process)
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Proprietary information of Alluvionic Inc. and may not be disclosed without written permission.
Risk Management PlanningEstablish Context
How & When are you going to identify risks & prioritize
How & When are you going to communicate
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IdentificationDuring planning
Brainstorming
Email requests
Taxonomy (Triggers List)
Tools
People
One tool does not fit all
6
Proprietary information of Alluvionic Inc. and may not be disclosed without written permission.
Taxonomy (Triggers Lists)Project Trigger•Uncertain requirements•Unprecedented efforts•Infeasible design•Unavailable technology•Unrealistic schedule estimates•Inadequate Staffing •Inadequate skills
Business Unit •Human•Operational•Reputation•Procedural•Project•Financial•Technical•Natural•Political•Structural
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Contracts•Subcontractors Inadequacy•New Industry•Changing Environment•International Considerations•Political•Authority Issues•Audits/Compliance•Technical Data Rights•Conflicts of Interest•Flow Downs
Proprietary information of Alluvionic Inc. and may not be disclosed without written permission.
Risk Register Example 1
Actions and Status
ID # Sta
tus
Pri
ori
ty
Risk/Opportunity Description
Risk Rating/
Category/Likelihood
How soon is the risk
Estimated Risk Impact effect on
Schedule
Estimated Risk Impact
Effect on Cost
Opportunity Rating/
Estimated Savings
Actual Impact Mitigation Plan/Status
Affected WBS/SWO
and Responsibility Project Phase
Characterization, Assessment and Analysis Tracking DataIdentification
PROGRAM RISK/OPPORTUNITIES MANAGEMENT PLAN
• Description• Impact • Likelihood• Priority
• Risk Owner• Current status of the risks• Mitigation or actions to be taken
Key Items within a Risk Register
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Analyze & Prioritize1 2 3 4 5
Near Certainty L M H H H
Likely L M M H H
Nominal L M M M H
Unlikely L L L M M
Remote L L L L M
Impact Level Matrix
Tech Performance Schedule Cost Staffing Skills
1No Loss in Technical
Performance against SpecMinimal or None Minimal or None Minimal or None Minimal or None
2Acceptable - Minimum
Reduction in Margin
Added Resources Required to
Meet Dates
<5% Impact on Total Program
Cost
Shortfall Can Be Handled
through Overtime
New Tech Area - Related
Direct Experience
3Acceptable - Significant
Reduction in Margin
Minor Slip in Interim Dates -
Delivery Dates Unimpacted
5%-10% Impact on Total
Program Cost
<10% Added Resources Hired
or Contracted
New Tech Area - Training
Available to Address
4Acceptable - No Remaining
Spec Margin
Major Slip with Delivery
Dates at Risk - No Slack
10%-20% Impact on Total
Program Cost
10%-20% Added Resources
Hired or Contracted
Limited Skills in New Tech
Area - No Training
5Unacceptable - Does Not
Meet Spec Requirements
Major Slip with Delivery
Dates Impacted
>20% Impact on Total
Program Cost
>20% Added Resources Hired
or Contracted
No Skills or Training in New
Tech Area
Risk Impact
Consistency within the Projects and OrganizationHave Guidelines to Analyze Risks
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Analyze & PrioritizeRisk Value = Probability of Event x Cost of Event
0.80 (Probability of Event) x $500,000 (Cost of Event) = $400,000 (Risk Value)
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Example Risk ChartL
ow
Me
diu
mH
igh
Low Medium High
Ris
k L
ike
l iho
od
Risk Consequence
Low HighMediumRisk Level:
2
1
3
# Risk Description
The MS Windows upgrade might slow down productivity
Single source item may cause project to be delayed if the vendor is late in delivering.
Risk Mitigation Plan
Supply Chain is locating a second source for XXX item
1
Cost of XYZ component is rising and the increase may make project over budget
Purchasing is securing raw material at a lower price to reduce this risk
2
3 Perform the upgrade and overview training during off peak hours.
X XRisk Migration: Current Reporting Period Previous Reporting Period
1
2
3
Chart Date: 3/12/14
Proprietary information of Alluvionic Inc. and may not be disclosed without written permission.
Risk Register Example 2
Taxonomy/Trigger List
Business Unit/Department:Date:
Y/N ID # Impact Level
Probability Potential Cost
Impact
Potential Schedule
Impact (Days)
Risk Type
Event Name
Risk Timing
Risk Rating
Mitigation Status
Responsibility Stakeholders
HumanAre key individuals likely to leave?Are key individuals not performing to expected levels?
OperationalIs there a risk to the disruption to suppliesIs there a risk to the flow of operationsIs there a risk to the essential assets not being availableIs there a risk to distribution channels
ReputationIs there an event that could cause a loss in customer confidence
Is there an event that could cause a loss in employee confidenceIs there a risk to our market reputation
ProceduralDo we have an accountability issueAre there concerns within our internal systemsDo we have possible breakdowns in our controls
Projects within our Business UnitDo we have projects that might go over budgetDo we have projects that might be over scheduleDo we have any product or service quality issues
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Proprietary information of Alluvionic Inc. and may not be disclosed without written permission.
Risk Register Example 2Business Unit/Department:Date:
Y/N ID # Impact Level
Probability Potential Cost
Impact
Potential Schedule
Impact (Days)
Risk Type
Event Name
Risk Timing
Risk Rating
Mitigation Status
Responsibility Stakeholders
HumanAre key individuals likely to leave? YAre key individuals not performing to expected levels? N
Operational NIs there a risk to the disruption to supplies NIs there a risk to the flow of operations NIs there a risk to the essential assets not being available NIs there a risk to distribution channels N
ReputationIs there an event that could cause a loss in customer confidence NIs there an event that could cause a loss in employee confidence YIs there a risk to our market reputation N
ProceduralDo we have an accountability issue NAre there concerns within our internal systems NDo we have possible breakdowns in our controls Y
Projects within our Business UnitDo we have projects that might go over budget YDo we have projects that might be over schedule NDo we have any product or service quality issues N
Answer Yes or No to the possible risks on the Taxonomy/Trigger List
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Proprietary information of Alluvionic Inc. and may not be disclosed without written permission.
Risk Register Example 2Y/N ID # Impact
LevelProbability Potential
Cost Impact
Potential Schedule
Impact (Days)
Risk Type Event Name Risk Timing Risk Rating Mitigation Status
Responsibility Stakeholders
HumanAre key individuals likely to leave? The VP of Operations is looking for other positions in a different region and Business Unit. Y _001 5 Likely HAre key individuals not performing to expected levels? N
Operational NIs there a risk to the disruption to supplies NIs there a risk to the flow of operations NIs there a risk to the essential assets not being available NIs there a risk to distribution channels N
ReputationIs there an event that could cause a loss in customer confidence NIs there an event that could cause a loss in employee confidence Y _002 3 Unlikely LIs there a risk to our market reputation N
ProceduralDo we have an accountability issue NAre there concerns within our internal systems NDo we have possible breakdowns in our controls Y _003 5 Unlikely M
Projects within our Business UnitDo we have projects that might go over budget Y _004 2 Likely MDo we have projects that might be over schedule NDo we have any product or service quality issues N
Continue to Analyze “Yes” ItemsRed & Yellow are Priorities
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Proprietary information of Alluvionic Inc. and may not be disclosed without written permission.
Risk Register Example 2Y/N ID # Impact
LevelProbability Potential
Cost Impact
Potential Schedule
Impact (Days)
Risk Type Event Name Risk Timing Risk Rating Mitigation Status
Responsibility Stakeholders
HumanAre key individuals likely to leave? The VP of Operations is looking for other positions in a different region and Business Unit which may cause a disruption in our business operations.
Y _001 5 Likely 20,000.00 Event DrivenVP of Ops
Leaving30 to 90
days H
Active: Start identifying possible replacement. Create plan for gap just in case the new person is not found right away. HR Director
Employees, Executive Mgmnt,
CustomersAre key individuals not performing to expected levels? N
Operational NIs there a risk to the disruption to supplies NIs there a risk to the flow of operations NIs there a risk to the essential assets not being available NIs there a risk to distribution channels N
ReputationIs there an event that could cause a loss in customer confidence NIs there an event that could cause a loss in employee confidence Y _002 3 Unlikely LIs there a risk to our market reputation N
ProceduralDo we have an accountability issue NAre there concerns within our internal systems NDo we have possible breakdowns in our controls Y _003 5 Unlikely M
Projects within our Business UnitDo we have projects that might go over budget Y _004 2 Likely MDo we have projects that might be over schedule NDo we have any product or service quality issues N
Customizable to your Business or Project
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Response PlanningMitigateTransfer/InsureAccept /ContingentExploit/EnhanceShare
This is where & how it happens:“Shaping Risk into Reward in Dynamic Times”
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Response PlanningWARNING - - New Risks
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Execution, Evaluation and UpdatingMay create separate projects
Keep up to date
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Lessons LearnedFeedback Incorporate into standard processes and
templates Update the risk register template and
corresponding taxonomy/triggers templateDon’t skip this step/ It is often ignored
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Some Available Software ToolsRisk Registrar
Active Risk Manager
Compliance 360
@Risk
Intelex
MS Project (when used properly)
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Other ConsiderationsRisk Appetite
Risk introduction when implementing mitigation plans
Risk Communication
Visual Representation
New Risks
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Proprietary information of Alluvionic Inc. and may not be disclosed without written permission.
Summary 1. Planning
2. Identification
3. Analyze & Prioritize
4. Response Planning
5. Execution, Evaluation and Updating
6. Lessons Learned (Feed the Process)
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Questions
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Contact Information
Wendy Romeuwromeu@alluvionic.com
321-508-1770Alluvionic.com
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Business ImprovementUtilized CMMI®, Six Sigma and PMI best practices to perform gap analyses and identify specific organizational weaknesses and opportunities. Created and executed measurable business & process improvement plans with cross-functional teams.
Risk & Opportunity Management Subject matter expert in Risk and Opportunity Management. Provided Risk Management training to international audiences. Created customized risk management tools tailored for immediate ROI. Leveraged identified opportunities to improve cost and schedule performance by 30% on numerous high profile programs.
ComplianceGuided organizations through internal compliance activities in preparation for external audits. Performed reviews and reporting in support of several compliance agency audits such as; DCMA, GSA, ISO & CMMI®. Led discovery and reconciliation efforts based on agency audit findings achieving a successful outcome of each audit.
Project & Program ManagementExtensive Project and Program Management experience in DoD and commercial industries. Complete program life-cycle responsibility; guiding teams through successful execution while providing quality deliverables. Established PP&C (Program Planning and Control) philosophy and tools which led to scalable ANSI compliant EVMS (Earned Value Management) systems.
ERP and TechnologyBroad ERP and technology implementation experience. Implemented ERP systems for small and large multi-national LMHV DoD and HMLV commercial manufacturing organizations. Performed comprehensive gap analyses and trade studies identifying best in class, size appropriate software and tool solutions for multi-disciplinary divisions. Consolidated numerous processes and incompatible tools into a single streamlined system with increased efficiency and communication.
Background:
Wendy has over twenty years of systems analysis technical experience and Project Management experience in the defense and commercial industries. She has provided extensive Program Management, Risk Management, CMMI®, Six Sigma, cost accounting, Process Improvement, ERP and proposal writing services. Wendy led multi-site DOD organizations to successful CMMI® maturity level 3 certification. This included successful implementation of Program Management, Engineering, and Finance organizations to complete a level zero to level 3 CMMI® rating.
Additionally, Wendy has led cross-functional ERP selection teams during comprehensive business gap analyses ultimately, resulting in ERP recommendations including Oracle and Deltek. Wendy has also instituted various technology innovations for business & process improvement.
Wendy holds a Masters in Management Information Systems (MIS) from Florida State University. She is a longtime member of Project Management Institute (PMI) and The Association of Operations Management (APICS) and has her PMP, CPIM and Six Sigma Black Belt certifications.
Wendy RomeuPhone: +1 321 508 1770Email: wromeu@alluvionic.comWeb: www.alluvionic.com
Proprietary information of the Alluvionic Inc. and may not be disclosed without written permission.25
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