A special lecture for IRAQs Kirkuk Global Leaders

Presented by: Masilamani Ramasamy

 is

important for success especially in projects need to have a process/s five steps project manager/s can use

Risk management processes are cyclic start from identification of a risk, and may result in identification of another new risk each individual has different opinions & ways to deal with risks, SO

risk should be consistent to meet project objectives documented in a risk management plan

The Process

 Identify

project positively or negatively, and document their characteristics Do this as thoroughly as you can

risks that affect the

Identify Risks Mind Map

 Assess

the risk impact Analyze the probability of risk occurrence, and prioritize the risks

numerically analyze the effect of identified risks on project objectives usually on cost, schedule and scope targets

RISK IDENTIFICATION - Definitions of Probability and Impacts

SCALE PROBABILITY
VHI > 90%

+/- IMPACT ON PROJECT OBJECTIVES

TIME 20 DAYS 11 2 0DAYS COST >200K QUALITY Very significant impact on overall functionality Significant impact on overall functionality

HI

71 90%

101 200K

MED
LO VLO

51 70%
31 50% 11 30%

4 10 DAYS
13 DAYS < 1 DAY

51 100K
10 50K <10K

Some impact in key functional areas

Minor impact on overall functionality Minor impact on secondary functions

NIL

< 10%

NO CHANGE

NO CHANGE

No change in functionality

Perform Qualitative Risk Analysis Mind Map

Perform Quantitative Risk Analysis Mind Map

 Explore all the possible ways to reduce the impact of threats , and/or exploit opportunities Plan actions to eliminate the risks and/or enhance the opportunities Action plans should be appropriate,
cost effective, and realistic

: PLAN ACTIONS-Standard Risk Breakdown Structure (RBS)

RBS RBS LEVEL 1 RBS LEVEL LEVEL 0 0
1. TECHNICAL RISK

RBS LEVEL 2
RBS LEVEL 1 RBS LEVEL 2

RBS LEVEL 2
1.7 Design 1.8 Performance 1.9 Reliability & maintainability 1.10 Safety 1.11 Security 1.12 Test & acceptance

1.1 1.2 1.3 1.4 1.5 1.6 2.1 2.2 2.3 2.4 2.5 2.6 2.7 3.1 3.2 3.3 3.4 4.1 4.2 4.3 4.4 4.5 4.6

Scope definition Requirements definition Estimates, assumptions & constraints Technical processes Technology Technical interfaces Project management Programme/portfolio management Operations management Organisation Resourcing Communication Information Contractual terms & conditions Internal procurement Suppliers & vendors Subcontracts Legislation Exchange rates Site/facilities Environmental/weather Competition Regulatory

0. PROJECT RISK

2. MANAGEMENT RISK

2.8 HS&E 2.9 QuaLITY 2.10 Reputation

3. COMMERCIAL RISK

3.5 Client/customer stability 3.6 Partnerships & joint ventures

4. EXTERNAL RISK

4.7 Political 4.8 Country 4.9 Social/demographic 4.10 Pressure groups 4. EXTERNAL RISK 4.11 Force majeure

Plan Risk Management Mind Map

Track the risks throughout the project If risks occur then,

implement the risk strategy based on action plan

Risk strategies may include

Mitigation Acceptance Avoidance, and Exploitation

This is no problem You can perform a risk assessment on the project and begin to apply project risk management at any time The risk assessment should find some of the major things which are about to go wrong, and identify potential failures as the project continues

Avoid
The best thing that you can do with a risk is avoid itif you can prevent it from happening, it Definitely wont hurt your project.

The easiest way to avoid this risk is to walk away from the cliff but that may not be an option on this project.

Transfer

One effective way to deal with a risk is to pay someone else to accept it for you. The most common way to do this is to buy insurance.

Mitigate

If you cant avoid the risk, you can mitigate it. This means taking some Risk Response Strategies

Accept

When you cant avoid, mitigate, or transfer a risk, then you have to accept it. But even when you accept a risk, at least youve looked at the alternatives and you know what will happen if it occurs.
If you cant avoid the risk, and theres nothing you can do to reduce its impact, then accepting it is your only choice

Plan Risk Responses Mind Map

 Measure

the effectiveness of the planned action and controlling the risk impact
by understanding risk triggers & timely implementation of planned actions

Probabi Impa Risk Risk Risk Risk Name lity (1- ct Score Category Number 3) (1-3) (1-5)

Mitigation

Contingency Action By

Action When

Guests

The guests find the party boring Drunken brawl Rain

1.1.

Invite crazy Bring out the 4 friends, provide Ahmad karaoke sufficient liquor Dont invite crazy friends, 3 Call 911 don't provide too much liquor 4 Have the party indoors

within 2hrs

Guests

1.2.

Samy

Now

Nature

2.1.

Move the Milind party indoors

10mins

Nature

Earthquake or fire

2.2.

Implement Start the party the with instructions appropriate 3 on what to do in natural the event of fire disaster or earthquake response plan 2 Have a buffet 3 Order pizza

Everyone

As per plan

Food Food

Not enough food Food is spoiled

3.1. 3.2.

1 1

2 3

Zainal Susi

30mins 30mins

Store the food in Order pizza deep freezer

Monitor & Control Risks Mind Map

Good Bye