Project Management

Office (PMO)
Technical Risk Workshop
Wendy Collidge
Risk Management

Risk Management
Risks are assigned to owners, not just placed against a project
Risk Workshops are held very early in the project lifecycle
Project Board sets the risk tolerance levels
Risks must be monitored by their assigned owner
Visibility of risks is maintained in highlight reports to the board
Lack of risk management contributes highly to project failure
Risk Management

Risk Management
Steps:
1. List our risks
2. Profile the risks
3. Set tolerance levels
4. Assign Ownership
5. Identify risk action
Risk Management
1. List Risks
2. Profile Risks
3. Set Tolerance Levels
4. Assign Ownership
5. Identify Actions
1. List Risks
ID Risk Probabilit Impact Owner Action
y 1=low
1=low 4=high
4=high
1
Risk Management
1. List Risks
2. Profile Risks
3. Set Tolerance Levels
4. Assign Ownership
5. Identify Actions Risk Profile / Tolerance
Risk tolerance line

High
Probability

4
Medium
3
Average
2 Enter Risk IDs
Low
1
Low Average Medium High
1 2 3 4
Impact
Risk Management
1. List Risks
2. Profile Risks
3. Set Tolerance Levels
4. Assign Ownership
5. Identify Actions 4. Assign Ownership

Must be assigned to an individual that can

affect their outcome

Risks above the tolerance line must be

assigned to a Project Board member

Project Board members may delegate

ownership but still remain accountable
 5. Identify Actions
There are 5 types of action:
1. Acceptance: no specific course of action can be taken, most
common

2. Contingency: a strategy can be put in place in case the risk

occurs

3. Prevention: a course of action can be taken to avoid risk

4. Reduction: a course of action can be taken to minimise risk
5. Transference: the risk is transferred to a third party i.e. insurance
policy for the building being knocked down.
 Definitions: Risks & Issues
Risk: Is any uncertainty of outcome that could potentially
occur on a project (whether positive opportunity or
negative threat). Risks are usually areas of the project
that we have no real control over and hence risk
management at the project level focuses on keeping
unwanted outcomes to an acceptable minimum

Issue: An issue is anything that has to be brought to the

attention of the project and requires an answer. Issues
differ from project risks in the sense that they are actually
occurring and need active management and resolution as
opposed to precautions to avoid them happening. Project
risks can become issues if the risk actually occurs and
needs active management to be resolved
 Problems - another term for
project issues.
Actual Problem:
Is any issue identified by a member of the project team in the
current reporting period that requires action to resolve
immediately.

Potential Problem:
Is an issue that may or may not occur, but which you can
control if it does. If it does occur, it will be managed and
resolved promptly as an issue e.g. a team members PC making
a strange noise which could lead to it breaking down. If it does
breakdown, it can simply be replaced without disruption to the
project. This is different to a risk which would have a significant
impact on a project if it were to occur