Week 10 (PROJECT RISK MANAGEMENT) Flashcards
Risk and uncertainty continuum
- High Risk – Low Risk
- Project Work – Production Line
- High Change – Little Change
- Control High – Control Low
Define Objectives
The project’s objectives are defined by the project charter, the project plan and the individual plans
Risk Identification (Why Projects Fail)
Risk identification identifies areas of risk, uncertainty and constraints, which might impact on the project and limit or prevent the project from achieving its stated objectives.
Risk Quantification (Impact/Frequency)
Quantifying risks evaluates the risks, prioritizes the level of risk and uncertainty, quantifies the frequency of the risks occurring and the level of impact on the stated objectives.
Risk Response
Response development defines how the project will respond to the identified risks, which could be a combination of elimination, mitigation, deflection or acceptance.
Risk Control
The risk control function implements the risk management plan. This might involve in-house training and communication to the other stakeholders.
Business Case
Outlines a course of action to address corporate requirements.
Project Charter
Translates the business plan into requirements at the project level.
Project Plan
Integrates all the individual plans to produce an optimum baseline plan.
Project Management System
Some objective do not relate directly to a deliverable but how the project is managed through the PM system.
Project Sponsor
There is no project sponsor linking the project to the company’s strategic need therefore, the company runs the risk of making a project that is not able to realize benefits for the company.
Project Organization
There is no project organisation structure therefore, the company runs the risk of functional manager prioritizing the allocation of resources for the depts.
Project Manager
There is no project manager with the single point of responsibility, therefore, the company runs the risk of no one coordinating the work as the project moves from one dept to another.
Project Team
There is no project manager or team leader managing and leading the project team.
Project Office
There is no project office or central point to being all the project participants together
Too Much Innovation
In practice, a project with too many untried and tested components runs the risk of teething problems.
Too Little Innovation
Market opportunities not considered resulting in too little design
therefore, there’s a risk of producing a project that is obsolete.
Operators
The users are not involved in the design process therefore, the
company runs a risk of the company building a facility that is
difficult to operate.
Stakeholders
Are not identified resulting in their needs and expectations not
being considered
Configuration
The configuration between the components (deliverables) and
existing facilities are not considered
Prototypes
The project is built before a functioning prototype or model is fully tested therefore, it runs a risk of expensive reworks and retrofitting.
Build-Method
Not fully developed before the execution phase, therefore, it runs the risk of working becoming boxed-in resulting in expensive rework and delays.
Scope Definition
If the scope is not defined the company runs a risk of the PM being unsure and confused as to what needs to be included or excluded.
Scope Change
If there is no scope change control system, the company runs the risk of uncontrolled scope creep.
