Projects should be completed on time, to budget and to specifi cation/performance. Inevitably, there will be a considerable amount of uncertainty associated with all projects. The contribution of risk management is to minimize these uncertainties.
Major Projects and Programmes of work are inherently risky due to many factors, some of them are:
- Uniqueness – Every project involves at least some elements that have not been done before
- Assumptions and constraints – Project scoping involves making a range of guesses about the future
- People – All projects are performed by people, including project team members and management, clients and customers, suppliers and subcontractors
- Stakeholders – These are a particular group of people who impose requirements, expectations and objectives on the project
- Change – Every project is a change agent, moving from the known present into an unknown future.
eKnols has helped major programmes with:
1) Risk Management Planning
Risk Management Planning is the systematic process of deciding how to approach, plan, and execute risk management activities throughout the life of a project. It is intended to maximize the beneficial outcome of the opportunities and minimize or eliminate the consequences of adverse risk events.
2) Identify Risk Events
Risk identification involves determining which risks might affect the project and documenting their characteristics. It may be a simple risk assessment organized by the project team gathering risk events using risk interview or fully prepared workshop process of key staff.
3) Qualitative Risk Analysis
Qualitative risk analysis assesses the impact and likelihood of the identified risks and develops prioritized lists of these risks for further analysis direct mitigation. The team assesses each identified risk for its probability of occurrence and its impact on project objectives. Project teams may elicit assistance from subject matter experts or functional units to assess the risks in their respective fields.
4) Quantitative Risk Analysis
Quantitative risk analysis is a way of numerically estimating the probability that a project will meet its cost and time objectives. Quantitative analysis is based on a simultaneous evaluation of the impacts of all identified and quantified risks.
5) Risk Response Planning
Risk response strategy is the process of developing options and determining actions to enhance opportunities and reduce threats to the project’s objectives. It identifies and assigns parties to take responsibility for each risk response. This process ensures that each risk requiring a response has an “owner” . The Project Manager and the project team identify which strategy is best for each risk, and then selects specific actions to implement that strategy.
6) Risk Monitoring & Control
Risk Monitoring and Control tracks identified risks, monitors residual risks, and identifies new risks—ensuring the execution of risk plans, and evaluating their effectiveness in reducing risk. Risk Monitoring and Control is an ongoing process for the life of the project.