Transcript of Lecture 2 Risk Management Process 1. Risk management It paves the path for project management. It...
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- Lecture 2 Risk Management Process 1
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- Risk management It paves the path for project management. It
results in analysis of external & internal situations Has the
potential to discover opportunities and uncover risks. 2
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- What is risk Management 3 Definition 1: The objective of risk
management is to reduce the harm due to risks. Definition 2: Risk
management is a systematic approach to reducing the harm due to
risk, making the project less vulnerable and product more
robust.
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- What is risk Management 4 The benefits of risk managements can
be grouped under two categories: 1. Primary (Direct) Benefits &
2. Secondary (Indirect) Benefits
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- What is risk Management 5 Primary benefits: 1. Targets are met
2. The projects are saved from major risks 3. The projects is less
vulnerable to risks 4. People are prepared and ready to solve
problems. 5. Products are more reliable and dependable 6. Cost of
poor quality drops 7. Ad hoc crisis management practices are
discouraged.
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- What is risk Management 6 Secondary Benefits: 1. Improvement in
goal setting, estimation and planning 2. Sensible decision making
3. Process optimization 4. Proactive Strategies 5. Team-work &
group thinking 6. Continued improvement
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- Risk OR Opportunity 7 Definition: Risk management also aims to
read risks as improvement opportunities and provide inputs to
growth plans
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- Risk Management Paradigms 8 Risk management flourish on
attitude & healthy approaches. These bring foster sensitivity
and vision in development meanwhile depth in planning and decision
making. The Project Management Institution (PMI) has developed
guidelines for risk management. One of the best set of guideline
available in any kind of project.
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- Risk Management Paradigms 9 The PMI presents the guidelines in
a few carefully chosen process steps; 1. Risk management planning
2. Risk identification 3. Qualitative Risk Analysis 4. Quantitative
Risk Analysis 5. Risk Response planning 6. Risk Monitoring &
Tracking For each process step, PMI defines input, tools,
techniques and output.
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- Risk Management Paradigms 10 Institution of Risk Management
(IRM) has developed a generic and valuable standards: 1. Risk
definition 2. Risk management 3. Risk assessment 4. Risk analysis
5. Risk evaluation 6. Risk reporting & communication 7. Risk
treatment 8. Monitoring and review of RM process.
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- Risk Management Paradigms 11 The SEI has developed the
continuous Risk management (CRM) paradigm, that have universal
appeal; 1. Identify 2. Analysis 3. Plan 4. Mitigate 5. Track 6.
Communicate
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- Risk Management Paradigms 12 Barry Boehm, the director of
center for software Engineering, University of southern California,
present a good Risk Assessment and Risk control. This Involves two
phases; 1. Risk Assessment, 2. Risk Control.
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- Risk Management Paradigms 13 1. Risk Assessment: a. Risk
Identification, b. Risk Analysis, c. Risk Prioritization. 2. Risk
Control: a. Risk Management Planning, b. Risk Resolution, c. Risk
Monitoring.
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- Is there a process? 14 Some questions exists regarding risk
management process are: 1. Can a risk culture be brought into a
framework? 2. Can be managed by institution by a defined process.
3. Can be there any scientific procedures to manage Risk that are
unknown, unpredictable & uncertain. 4. Is there any entry or
exit criteria? 5. Do we need creative steps that go beyond
traditional tactics?