Project Risk Management Flashcards
What are the two ways risk can be attached to projects?
- Risks associated with whether the project is the best tactic to deliver the strategy
- Risks associated with delivering the project on time, to budget and to specification (project risk management)
What type of risk is PRM primarily concerned with?
Control risk - variance, uncertainty or deviation from expected outcomes
In what ways can PRM be used to identify opportunities?
Identifying ways to reduce the cost, deliver the project earlier or improve the quality of the project’s output.
What new things or process enhancements might a project deliver?
Construction projects Products IT systems Technology Markets to achieve a business advantage
The goal of a project is to deliver on time, in budget and with the required quality. What two elements contribute the ‘Quality’ deliverable?
Specification
Performance
Does PRM only deal with control risks?
No, it also incorporates management of hazard and opportunity risks
What are the 4As of PRM responses?
ACCEPT risk/uncertainty (low exposure, low uncertainty) ADAPT activities/procedures (high exposure, low uncertainty) ADOPT contingency plans (low exposure, high uncertainty) AVOID risk (high exposure, high uncertainty)
Describe how the bow-tie method would apply to project risk
Source = stages of project (IPEC)
Project risk = uncertainties
Impact = Quality, Cost, Time and Compliance
What are the IPEC stages of the project lifecycle?
Inception
Planning
Execution
Closure
What does the inception stage of a project involve?
Feasibility study
Outline cost plan
Appointments
What does the Planning stage of the project life cycle involve?
Detailed design
Scheduling
Procurement
What does the Execution stage of the project life cycle involve?
Construction
Cost reporting
Quality check
What does the Closure stage of the project life cycle involve?
Handover
Project review
What arrangement should be considered when managing project risks?
Differing uncertainties at each stage (a process for each may be required)
Arrangements for dealing with changes and deviations
Describe the correlation between, on one hand, the cost of changes, and on the other, stakeholder influence, risk and uncertainty, through the project life cycle
As the project progresses through it’s stages:
The cost of changes rises, and most steeply in the Execution and Closure stages
Meanwhile stakeholder influence, risk and uncertainty decline, and most steeply in the Execution and Closure stage.
Some organisations use the “Project Triangle” to manage project risks. What is the fourth element that is subject to risk assessment in this method?
Tactics that gave rise to the project.
What are the risk activities associated with projects?
Making RM part of the project Identifying risks early in the project Communicating risk info Consideration of both threats and opportunities Clarification of ownership Prioritisation of risks Analysis of risks Planning and implementing risk responses Logging project risks on a RR Tracking risks and associated actions
What opportunities are offered by successful project delivery?
Achievement of strategic objective
Reduction of risks to output, efficiency or quality
What are the opportunities within a project?
Change of specification to improve performance or reduce costs/time taken to deliver
Project Risk Analysis and Management (PRAM) is applied to which 5 phases of a project?
- Feasibility
- Sanction
- Tendering
- Post-tender
- During implementation
Describe six observations of the PRAM model for project risk assessment
- Greater likelihood of successful delivery
- Data associated with risk assessed statistically
- No two projects are the same
- Often things go wrong unique to a project, industry or working environment
- Usually a lack of historical data
- Systematic approach due to technical, engineering, innovation or strategic nature. Less dependence on intuition.
