Tuesday, April 10, 2012

Six risk practices

Pantelis Filippidis wrote this in reply to a question in my Risk Management class
Regarding risk management I have found the following techniques effective;
(1) For planning RM: Review lessons learnt & records from previous projects, and get advices from more expert team members
(2) For risk identification: Risk Breakdown Structure (RBS), Risk Assessment Questionnaire, Brainstorming, Delphi, setting up subject-matter expert team, and lessons learnt & records from previous projects
(3) For Qualitative Risk Analysis: Probability & Impact matrix using only 3 level “high” / “medium” / “low”
(4) For Quantitative Risk Analysis: Failure Mode, Effects and Criticality Analysis (FMECA - an extension of failure mode and effects analysis (FMEA)), past records, and expert judgment.
(5) Risk response planning: lessons learnt & records from previous projects, subject-matter expert team.
(6) Risk Monitor & Control: watch-list of high/medium risks, subject-matter expert team meetings
The main success factor was the early identification of major risks and correct risk cost & time impact estimation

Elsewhere, we learn that the risk questionaire is along these lines:
The use of a Risk Assessment Questionnaire - The questionnaire encompasses 6 key areas: Clarity of Expections, Cost, Schedule, Client relationship and Impact, Resources, and solution complexity. The outcome of this questionnaire is to initiate action towards increase communication in the problem areas and mitigation strategies

Of course, right of the blocks, practice (1) that invokes lessons learned and project records presumes a certain maturity, discipline, and commitment to the forward use of such materials on the part of the project office. We could all wish it were true more often than it is.

The questionaire, if made a routine part of the project plan, goes a long way toward setting the table for risk management. I salute that idea!