Kaizen Rules of Project Risk Management
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KAIZEN RULES OF PROJECT RISK MANAGEMENT www.anwara.net from ideas of Bart Jutte
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Like a lot of things in life, risk management is about common sense, about doing simple things one at a time and about accomplishing something of good for the benefits of many. Practice of risk management is in a way, very much like Kaizen practice, where a step by step actions are required to do what is right and to do things right.
Transcript of Kaizen Rules of Project Risk Management
KAIZEN RULES OF
PROJECT RISK MANAGEMENT
www.anwara.net from ideas of Bart Jutte
RULES OF RISK
RISK METRICS
No return without risk
Fully understand
risk
Risk is managed by
people
Question any assumptions
Discuss Risks openly
Diversify for consistency
Show discipline
Be approximatel
y right
Considering risk and return
DEAL WITH UNCERTAINTY
RISK MANAGEMENT
Deal with uncertaint
y
Minimize impact & likelihood
Seize opportunitie
s
On time completio
n
On budget
completion
Good performan
ce
Happy project sponsor
Happy project team
Makes a lot of
money
NOTHING WILL GO WRONG ...
1. RISK MANAGEMENT PLAN
Nothing will go wrong ...
We have vast experience
WHAT RISKS?Something is
not right! What to do?
ANYTHING CAN
HAPPENS
2. IDENTIFY RISKS
Experiences,
experties
Similar projects,
old projects
Brain-storming
Newspaper, blogs, books,
magazines
Project plan,
resource planning
Can we anticipate
?
3. COMMUNICATE RISKS
Do not be too
confident
Allow for pessimistic
view
Put risk as agenda
number 4
Appreciate the
messenger
Don’t surprise the
Bosses
Ask Project
Sponsor to make
BIG decision
UNCERTAINTIES MAY BE GOOD
4. THREATS & OPPORTUNITIES
Bad ‘uncertainties’
Overloaded
No time ...
Only the bad matters
Good ‘uncertainties’
Completed faster
Completed better
Make more money
WHO IS RESPONSIBLE?
5. OWNERSHIP
List of Risks
Who is responsible?
Who bear the cost?
Who take credit for success?
Optimise Risk
Reduce Likelihood &
Impact
Improve Control
Suggest alternate
WHICH ONE!
6. PRIORITIZE
Treat all risks equally?
What are the best possible results?
Some risks have higher impact and
probability
Be consistent
What may be on ‘critical path’
Risk Parameter
Gut feeling
Criteria
DON’T JUMP INTO CONCLUSIONS
7. ANALYSE
Understand risk
Don’t jump into conclusions
What a risk is all about
Think of effects and causes
Respond
Immediately, over time or
consequences
Effect to time, cost or quality?
What Cause precede an Effect
7. RISK RESPONSE
Activity which adds value
Prevent threat
Minimize negative effect
Take advantage of BIG opportunities
Focus on BIG wins
Avoid > Supplier, contractor, technology
Minimise > Analyse Likelihood and
ImpactAccept > Difficult, Time consuming,
Expensive
DESCRIBE A RISK
8. RISK REGISTER
Book Keeping and Log
View progress, tract record
So we won’t forget
So we won’t be blame
A Good Log
Risk description
Clarify risk owner, cause and effect
A communication tool
10. RISK TRACKING
Track risks
Changes in circumstances
Control still effective?Status of
mitigation plan, tasks and activities
Risk tasks
Review list of risks and analysis
Which risks are critical and likely
to happen
Generate, select and response
RISK
OPPORTUNITIES
KAI ZEN
Prepare for the worst• To change, to renew
Pray for the best• through habitual work
www.anwara.net
