risky business - take a chance!

8/14/2019 Risky Business - take a chance!

1/15

risky businessa risk management system

for project managers

By Peleg Forman pelegf.wordpress.com
http://pelegf.wordpress.com/http://pelegf.wordpress.com/


2/15


3/15

You have a good planObjectives Budget Time Resources Checkpoints Exit Criteria


4/15

RISK : Probability or threat of a damage,injury, liability, loss, or other negative

occurrence, caused by external or internalvulnerabilities, and which may beneutralized through pre-mediated action.

RISK = Probability Impact + Manageable

Identifying risks is part of every good plan


5/15

EVERY RISK HAS AN OWNER.

MORE THEN ONE OWNER, MEANS MORE THEN ONE RISK.


6/15

An event that cant beprevented or managed

it is a call

for changes in the plan


7/15

PROBABILITY

X

RISK PARAMETERS - FOCUSIt is up to the risk owner to determine the values of the parameters. He will determine the likelihood of the occurrence and the negative impact if the riskmaterialize.

SEVERITY


8/15

SEVERITY can be quantified.Decide your ownscale and matchit to your projectbudget


9/15

S EVERITY P ROBABILITY

2

3

1

6

9

3

4

6

21

3

2

321

Low

HighMed

FOCUS

Out of Focus


10/15

have a plan follow the plan manage the risks reach plans goals!

Identify and quantifyPrepare a mitigation plan

Prepare a contingency plan

MANAGE RISKS


11/15

Check the riskfrequently

according to your plan

Every risk is datesensitive

always be ahead of it


12/15

Every statuschange needs tobe recorded.

You will be ableto give an overallstatus of yourrisks only if theyare up-to-date.


13/15a database and a forum of managers


14/15

ATTRIBUTERisk Level Identifying the management level of the risk (team, unit, department, high management)Affected Unit The affected Business Unit/ AreaOwner The name of the person who is responsible for managing the risk.

Description The threatening element on the plan goals simple business words (not technical lingo)Negative Impact If the risk materialize what will be the negative impact on the plan goals

MitigationA plan of actions to reduce the threats Probability. This plan should be completed by thetime the risk affective date.

ContingencyA plan of actions needed to be executed in case the risk take effect to reduce the risk impact.The plan should be ready before the risk affective date

Effective date The time/day the risk will take affectProbability

The value that describe the occurrence probability

1 Low; 2 Medium; 3 High

SeverityThe value that describes the negative impact

1 Low; 2 Medium; 3 High

Focus

A dashboard view of the risk! (Calculated) Focus ={ Severity x Probability}Green - Low RiskYellow - Medium RiskRed - High Risk

Gray-No Risk (this risk will not materialize or has been Cancelled or Closed)

StatusCurrent status of the risk.

1-Open; 2-Under Mitigation; 3-In Effect; 4- Under Contingency; 5-Closed; 6-CancelledStatus Change date Additional description of the risk status

Action Description Additional description of the risk status. For any activity update: [Date, Name] + Description


15/15

All good plans has risks .

The key for successfully managing projects is having

a good plan and a good risk management system .

Risk management system should be a tool not atarget. It is affective only if it does not consume too

much of managers resources.

The trick is to increase awareness and FOCUS on the real risks.

Peleg Forman pelegf wordpress com
http://pelegf.wordpress.com/http://pelegf.wordpress.com/

risky business - take a chance!

Documents