risk management: a key success factor
TRANSCRIPT
“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
[email protected] Management Institute – Risk Management Professional
Project Management Professional
~~~~
Bill Gibbs