PROJECT RISK MANAGEMENT

RISK MANAGEMENTIMPORTANT ISSUES

PROJECT LIFE CYCLE RISK MANAGEMENT RESPONSIBILITY DEFINE OBJECTIVES RISK IDENTIFICATION WHY PROJECTS FAIL RISK QUANTIFICATION RISK RESPONSE

RISK MANAGEMENTIMPORTANT ISSUES

CONTRACTING RISK CONTROL DISASTER RECOVERY PLANNIMG

PROJECT LIFE CYCLE

LEVEL OF RISK CHANGES AS THE PROJECT PROGRESSES THROUGH THE PROJECT PHASES RISK AND OPPORTUNITY ARE HIGH AT THE OUTSET OF THE PROJECT DURING THE CONCEPT AND DESIGN PHASE WHEN THERE IS THE GREATEST DEGREE OF UNCERTAINITY ABOUT THE FUTURE

PROJECT LIFE CYCLE

AS THE PROJECT PROGRESSES RISK IS LESS AND ZERO WHEN THE PROJECT IS SUCCESSFULLY COMPLETED THE AMOUNT AT STAKE (INVESTMENT) STARTS LOW AND RISES STEADILY AS CAPITAL AND RESOURCES ARE INVESTED TO COMPLETE THE PROJECT

PROJECT LIFE CYCLE

THE INITIAL PHASE OFFER THE GREATEST POTENTIAL TO ADD VALUE WITH THE LEAST COST BUT AS THE PROJECT PROGRESSES THE ABILITY TO MAKE CHANGES REDUCES AS THE COST OF CHANGES BECOMES INCREASINGLY EXPENSIVE DURING IMPLEMENTATION AND COMMISSIONING PROBLEMS MAY OCCUR

RISK MANAGEMENT RESPONSIBILITY

WHO IS RESPONSIBLE FOR MANAGING RISK THE MANAGING DIRECTOR IS ULTIMATELY RESPONSIBLE TO THE BOARD OF DIRECTORS AND THE SHAREHOLDERS THE RESPONSIBILITY IS DELEGATED THROUGH THE CORPORATE HIERARCHY WITH PROJECT MANAGERS RESPONSIBLE FOR PROJECT RISK AND FUNCTIONAL MANAGERS RESPONSIBLE FOR DEPARTMENT RISK

RISK MANAGEMENT RESPONSIBILITY

THE RESPECTIVE MANAGERS WOULD THEN BE RESPONSIBLE FOR DEVELOPING A RISK MANAGEMENT PLAN TO IDENTIFY,QUANTIFY, RESPOND AND CONTROL RISKS THAT AFFECT THEIR SCOPE OF WORK

DEFINE OBJECTIVES
RISK MAY BE DEFINED AS ANY EVENT OR CONSTRAINT THAT PREVENTS YOU ACHIEVING THE PROJECTS GOALS AND OBJECTIVES DEFINE THE GOALS AND OBJECTIIVES IN DETAIL CONSIDER THE PROJECT BRIEF,PROJECT CHARTER,PROJECT PROPOSAL TOGETHER WITH THE BREAKDOWN STRUCTURE

DEFINE OBJECTIVES
THESE STRUCTURES WILL PROVIDE A LOGICAL FRAME WORK FOR IDENTIFYING ,QUANTIFYING,AND RESPONDING TO RISK ENSURE SIGNIFICANT RISKS AND OPPORTUNITIES ARE NOT OVERLOOKED DEVELOP RISK ASSESSMENT CRITERIA AGAINST WHICH RISKS CAN BE ASSESSED AND DECISIONS MADE

RISK IDENTIFICATION
IF YOU DONT IDENTIFY RISK,YOU WILL NOT RESPOND TO IT RISK IDENTIFICATION SHOULD BE A CONTINOUS PROCESS TECHNIQUES FOR IDENTIFYING RISKS INCLUDE ANALYSING HISTORICAL RECORDS AND CLOSE OUT REPORTS

RISK IDENTIFICATION
STRUCTURAL QUESTIONNAIRES STRUCTURAL INTERVIEWS BRAIN STORMING STRUCTURED CHECK LISTS FLOW CHARTS JUDGEMENT BASED ON KNOWLEDGE AND EXPERIENCE SYSTEM ANALYSIS SCENARIO ANALYSIS-WHAT IF

WHY PROJECTS FAIL

LACK OF INNOVATION DEVELOPING YOUR PRODUCT BEFORE YOUR CLIENTS REQUIREMENTS ARE FULLY DEFINED FAILING TO RECOGNISE STAKE HOLDERS INTERESTS COMMUNICATION MISINTERPRETING THE SCOPE OF WORK

WHY PROJECTS FAIL

NOT WORKING CLOSELY WITH THE CLIENT POOR ESTIMATING INADEQUATE PLANNING INSUFFICIENT REVIEWS AND CONTROL LACK OF COMMITMENT INCOMPLETE INFORMATION

WHY PROJECTS FAIL

POOR PLANNING LACK OF UNDERSTANDING OF PROJECT MANAGEMENT TECHNIQUES LACK OF SUPPORT FROM TEAM MEMBERS

RISK QUANTIFICATION
QUANTIFY THE PROBABILITY OF RISK OCCURING IMPACT ON THE PROJECT AMOUNT AT STAKE DETERMINE WHAT AREAS OF WORK WARRANT A RESPONSE WHERE RESOURCES ARE LIMITED RISK PRIORITY WILL DETERMINE THE AREA OF RISK THAT SHOULD BE ADRESSED FIRST

RISK RESPONSE
ELIMINATE RISK-BY REMOVING CAUSE OR TAKING ALTERNATIVE COURSE OF ACTION MITIGATE RISK-REDUCE THE RISKS PROBABILTY AND IMPACT DEFLECT RISK- TRANSFER THE RISK IN WHOLE OR PART TO ANOTHER PARTYCONTRACTING,RETENTION,BOND AND INSURANCE ACCEPT RISK

CONTRACTING
FIXED PRICE CONTRACT COST PLUS CONTRACT UNIT RATES TURNKEY CONTRACT BOOT-BUILD,OWN,OPERATE,TRANSFER BOT-BUILD,OPERATE AND TRANSFER ROT-REFURBISH OPERATE AND TRANSFER PPP-PUBLIC PRIVATE PARTNERSHIP

RISK CONTROL
RISK CONTROL FUNCTION IMPLEMENTS THE RISK MANAGEMENT PLAN TO MAKE IT HAPPEN CHANGES IN THE SCOPE OF WORK CHANGES IN THE BUILD METHOD CHANGES IN THE TEAM MEMBERS CHANGES IN THE SUPPLIES ITEM IN WEEKLY PROGRESS MEETING

RISK CONTROL
IDENTIFY NEW AREAS OF WORK DEVELOP APPROPRIATE RESPONSE

DISASTER RECOVERY PLANNING

DISASTER IS A SUDDEN UNPLANNED CATASROPHE THAT PREVENTS YOUR COMPANY PROVIDING ITS CRITICAL BUSINESS FUNCTION FOR A PERIOD OF TIME AND COULD RESULT IN SIGNIFICANT DAMAGE OR LOSS OBJECTIVE OF DISASTER RECOVERY MANAGEMENT IS TO REDUCE THE CONSEQUENCE OF A DISASTER TO AN ACCEPTABLE LEVEL

DISASTER RECOVERY PLANNING

MANAGE IT AS A PROJECT DEVELOP THE DISASTER RECOVERY PLAN CONTROL THE DISASTER RECOVERY PLAN WHEN THE TIME COMES IMPLEMENT THE DISASTER RECOVERY PLAN QUICKLY AND EFFECTIVELY