What can project risks lead to?
Project termination
Unnecessary expenses
Dissatisfied customers
Not achieving entrepreneurial objectives
The company losing reputation
Demotivated employees
Complex legal disputes
What is project risk management?
Project risk management
is the interface between project and internal as well as external project environment.
helps project management to recognize and evaluate uncertainties and risks in project development in order to avoid, reduce, or eliminate them.
enables proactive management instead of reactive management.
What are tasks of strategic project risk management?
Continuous identification, evaluation, prioritization, handling and reporting of significant project risks in relation to the overall project portfolio
Reduce project risk handling costs
Enabling decisions based on early risk recognition (early warning system)
Risk identification at predefined milestones
Improving company-wide awareness of project risks through communication and role-model behavior at management level
Creation of a clear organization for project risk management
Continuous improvement of project risk management
What types of project risks can be differentiated?
Management-related project risks
Technological, quality- or performance-related project risks
External project risks
What are management-related project risks?
Risks associated within the organization, in which the respective projects run
What are technological, quality- or performance-related project risks?
Risks associated with the application of specific technologies, methods or processes within projects or the setting of unrealistic performance targets
What are external project risks?
Risks beyond the direct control of the project executing organization
What are aspects of risk management for a single project?
Decentralized, autonomous risk management
Responsible: project manager and team
What are aspects of risk management in the project portfolio?
Consolidation of project risks
Identification of portfolio risks
Coordination of risk management activities
Illustrate a control loop of tasks and processes of generic risks!
What does identification of project risks entail?
Prerequisite for the timely adoption of appropriate measures
Iterative process:
Identifying new risks
Detecting changes in identified risks
What does communication of project risks entail?
Not only identify project risks, but also communicate them
The affected stakeholders must be identified for each project risk
How can risks by prioritized?
Risks can be prioritized by determining their probability of occurrence and their degree of impact on the project objectives
Illustrate how risks can be prioritized by determining their probability of occurrence and their degree of impact on the project objectives!
What are different counter-measures for dealing with risks?
Risk avoidance
Risk transfer
Risk reduction
Risk acceptance
Fallback planning (Disaster-Recovery-Plan)
How can risk measures be categorized?
Ex-Ante <-> Ex-Post
Aetiological <-> Palliative
What are characteristics of ex-ante aetiological risk measures?
Management of risks before they occur
Analysis of the causes
What are characteristics of ex-ante palliative risk measures?
Minimization of effects
What are characteristics of ex-post aetiological risk measures?
Management of risks after they have occurred
What are characteristics of ex-post palliative risk measures?
What are examplary techniques for controlling project risks?
1. Risk trend analysis
2. Earned value analysis (cost and deadline risk)
3. Milestone trend analysis (deadline risk)
4. Periodic risk review5. Risk measure audits
6. Technical performance measurement
What does the risk trend analysis do?
Depicts the development of risk valuesover the course of the project.
Why is there a need for cross-project risk management?
Risks considered unimportant at the single project level can increase if they occur simultaneously in several projects and thus jeopardize the overall success of the company.
-> There is the danger that projects with high strategic/ economic importance for the company are not initiated (or cancelled prematurely) because the project risks are wrongly classified on the single project level.
-> Consideration of the risks arising from the totality of all projects necessary.
What are tasks of cross-project risk management?
The project risks that are continuously recorded at the single project level in each project phase are increasingly condensed towards the top of the company and regularly evaluated there, e.g., as part of the annual planning.
What are characteristics of the risk portfolio?
Describes the management perspective of all projects
Provides information about the project structure of the company
Facilitates the decision whether new projects should be included in the project portfolio or not
What are the tasks of the steering committee at SBB CFF FFS?
Quarterly: Discussion, plausibility check, measures at project and program level (incl. change from previous quarter)
What is the risk management program at SBB CFF FFS?
Monthly: Program Risk Meeting → Risks/Measures/Dependencies
Half-yearly: Update Risk Heat Map Program
Annual: Corporate Risk Report
How are project risks dealt with at SBB CFF FFS?
Monthly: Project Risk Meeting → Risks/Measures (Navigator)
If required: Update Risk Heat Map Projects
What does the risk heat map at SBB CFF FFS contain?
Objectives & Plan
Execution
Results & Effects
Environment
Resiliency, Robustness
What do Objectives & Plan of the risk heat map at SBB CFF FFS contain?
Program objectives, finances
Planning
Organization, process
What does execution of the risk heat map at SBB CFF FFS contain?
Coordination, leadership
Execution efficiency
Equipment
What do results & effects of the risk heat map at SBB CFF FFS contain?
Acceptance
Requirements
Integration
What do program objective, finances of the risk heat map at SBB CFF FFS contain?
Effect
Outcomes
Dates & Events
Budget
What does planning of the risk heat map at SBB CFF FFS contain?
Development
Rollout
Commissioning
Organizational Change (OCM)
What do organization, process of the risk heat map at SBB CFF FFS contain?
Key persons
Project procedure, methods
Organizational form
What do coordination, leadership of the risk heat map at SBB CFF FFS contain?
Internal leadership
Communication and information
External interfaces
What does execution efficiency of the risk heat map at SBB CFF FFS contain?
Knowhow
Experience
Execution of tasks
What does equipment of the risk heat map at SBB CFF FFS contain?
Technology
Instruments and tools
Buildings, workplaces
What does acceptance of the risk heat map at SBB CFF FFS contain?
Status OCM, transformation
Market expectation
Hurdles, resistances
Certification, approval
What do requirements of the risk heat map at SBB CFF FFS contain?
Understanding the requirements
Fulfilment of requirements
What does integration of the risk heat map at SBB CFF FFS contain?
Architecture
System integration
Support of the company
What does environment of the risk heat map at SBB CFF FFS contain?
Policy
Organization
Compliance
What do resiliency, robustness of the risk heat map at SBB CFF FFS contain?
Buffers
Handling issues and events
Risk management
Illustrate the effects of risk transparency and risk management on project portfolio success!
Last changed2 years ago
