Risk Identification in large-scale projects

Problems and challenges

ByHåvard Holm Giske

03.05.2013

2007 - IT system development to manage sale of oil2012 - Project Deadline2012 - Project cancelled67 mill EUR out of the window

Not userfriendly

Too expencive to operate

New technology

iTrade

PM Solutions Research Report2011

© 2011 Project Management Solutions, Inc.

Large scale projects

Risk Identification

Projects can be:• Successful/Not Successful• Serious/Less Serious• Delayed/On Time/Before Time• Too expencive/Within Budget

Risk Identification

Projects can: Turn out to be wrong

Be a failure

SWOT analysis

Strenghts:• Location• Capital• Knowledge

Weaknesses:• Time• Resources

Opportunities:• Competive

advantage• Be a cornerstone

enterprise• Increase revenue

Threats:• Competitors• Government• Increased exchange

rate

Stakeholder analysis

The buyerThe seller Manager of business

Government (ex. Portfolio minister, local members)People who may be affected (ex. Community)Special interest groups (enviromental groups)The media Why?

Builds acceptanceGenerates constructiove solutions

Brainstorming

1. Gathering project team and expertise

2. Identify all risks

3. Find solutions (IPT)

To remember

Not eliminate risks from consideration

Understand the probability of a risk to occur – risk assessment

Identify risks in an early stage

Continue identify risks during the project

ONE STEP FURTHER A SUCCESSFUL PROJECT

Sources

1. Risk identification ISBN: 0-309-54754-7 (PDF) http://books.google.no/books?id=SvhBDVRVliEC&pg=PA23&lpg=PA23&dq=project+risk+identification+brainstorming&source=bl&ots=VhDtdqPaJ_&sig=NsUh0bYlphAm92ZvnvhqkQbRCuc&hl=no&sa=X&ei=njk-UeWkMMvA7Ab814CgCw&ved=0CDEQ6AEwAA#v=onepage&q=project%20risk%20identification%20brainstorming&f=false 2. SWOT http://www.mindtools.com/pages/article/newTMC_05.htm

3. Factors influencing the success or failure of large-scale projects http://www.diplomainfo.org.uk/documents/Factors_influencing_the_success_or_failure_of_large_scale_pr.pdf

4. Project Risk Management Guidelines – Managing Risks in Large Projects and Complex Procurements. ISBN: 0-470-02281-7

5. News article about Statoil and iTrade (Norwegian) www.aftenposten.no/okonomi/Sved-av-en-halv-milliard-kroner-pa-mislykket-IT-prosjekt-6937667.html#.UUXHYVfaie