Risk Management
 CMMI Ltd Risk Management Service

Risk Management is an integral and essential part of Project Management which recognises the possibility that unexpected events may affect the intended objectives of a project or programme. The systematic identification and management of risks addresses this and, through analysis, provides a picture of the likelihood of project success.

The Risk Management process helps to identify potential unacceptable cost increases, time delays or shortfalls in performance and, by recognising what action can be taken to influence the causes and/or consequences of the risks, seeks to maintain the balance between customer expectations (the Demand) and the preferred solution (the Supply).

Who is responsible for Risk Management?

Everyone contributes, the whole Project Team and all the Stakeholders connected with a Project (e.g. Customers, Suppliers). The Project Manager will usually be held responsible should the project fail to deliver due to risks not being identified or managed appropriately. For financially large projects or where additional risk management expertise is available to support the project manager it is cost effective to use an independent person to facilitate risk identification and management.

CMMI Ltd can facilitate Business risk reviews with senior management, support to projects as risk manager or simply facilitate a one of project risk review. The independent one of risk reviews takes one hour to conduct and can offer excellent in identification of risk and risk management training.

Checklist - CMMI Ltd use a specific checklist to ensure that all possible sources of risk have been considered providing a structured means of indentifying, and communicating business and Technology Risks).

Links

The Orange Book

Risk Management Process

Risk Log
   

What does Risk Management do?

It uncovers the key cost, schedule and performance drivers and allows actions to be focused where they will be most effective. Risk Management aims to put the Project Team in control of uncertain events that may impact on the achievement of Project Objectives. When implemented properly Risk Management includes:

  1. Acting as part of the Project Team with attendance at Design Reviews.

  2. Involvement at  salient points in the project's development, by checking calculations and comparing new design with company standards and similar proven designs. This may be undertaken on completion of design before manufacture and delivery.

  3. Providing periodic project audit.  This is to ensure that the required Procedures and Standards for work are adopted.

The Risk Management Process

Risk Management -The systematic application of management policies, procedures and practices to the tasks of establishing the context, identifying, analysing, planning and managing risks in a way that will enable organisations to minimise loss and maximise opportunity in a cost-effective way. The Iterative Risk Management Process includes the activities of:

  1. Identify -What are we trying to achieve and what are the Risks?

  2. Analyse -Who owns the Risks and how important are they?

  3. Plan -What should be done about the Risks?

  4. Manage -Is the Risk Management approach being effective?

Iterative Risk Management must be applied “Through-Life”, although its purpose and scope varies over the Project lifecycle.