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Risk Project Management
Have you ever heard the phrase "the devil is in the details"? I always thought that this saying was a little strange...until I began to work in project management. The funny thing is that once I got into project management this phrase made so much sense.
Risk management
Risks are any events which can adversely affect the successful outcome of the project. I've worked on projects where some of the risks have included: staff lacking the technical skills to perform the work properly, hardware not being delivered on time, the control room being at risk of flooding in a major thunderstorm and many others. Risks will vary from project to project but it is important to identify the main risks to a project as soon as possible and to plan the actions necessary to avoid the risk, or, if the risk cannot be avoided, to at least mitigate the risk in order to lessen its impact if it does occur. This is what is known as risk management.
Risk Project
No contrive is e'er without risks, but it is the nature and complexness of the project that are belike to influence the upshot of the risks on the boilersuit success of the propel. But whether the design is teeny or jumbo, unsubdivided or difficult, an telling try direction strategy leave minify the fighting if, and when, the risks become. In request to manage the risks it is important tasks implicated in Try Direction are:
Risk management
Risks are any events which can adversely affect the successful outcome of the project. I've worked on projects where some of the risks have included: staff lacking the technical skills to perform the work properly, hardware not being delivered on time, the control room being at risk of flooding in a major thunderstorm and many others. Risks will vary from project to project but it is important to identify the main risks to a project as soon as possible and to plan the actions necessary to avoid the risk, or, if the risk cannot be avoided, to at least mitigate the risk in order to lessen its impact if it does occur. This is what is known as risk management.
Risk Project
No contrive is e'er without risks, but it is the nature and complexness of the project that are belike to influence the upshot of the risks on the boilersuit success of the propel. But whether the design is teeny or jumbo, unsubdivided or difficult, an telling try direction strategy leave minify the fighting if, and when, the risks become. In request to manage the risks it is important tasks implicated in Try Direction are:
- Creating a Essay Direction Thought which testament activity in identifying and analysing the risks, monitoring the risks and responding to them.
- Establishing and maintaining a Danger Log itemisation the risks and their strictness. This is a recyclable document not only for monitoring the risks but also for act the risks to all the stakeholders.
- Analysing the measure of each attempt occurring and its effect at chore level and on the overall program in terms of deliverables and programming
- Developing a strategy for responding to risks that become
- Including occurrence finances and construction abstraction contingency into the Project Schedule
Venture Management is not only the responsibility of the Design Handler but also of the stakeholders as they person a vested pertain in the task existence successfully realised. So the stakeholders should also be aware of all the risks identified and the programme that is put in gauge to handle and mitigate them.
But the Risk Management Direction staleness also be adaptable enough to wood with those risks that could not mortal been predicted and so were not identified before they occurred. It is really often the strategy that is victimised to wad with these unhoped risks that determines the farthest success of a throw.
For all the risks that bed been identified either prior to the propose play or during the project the assign handler would typically know observed a solution. These risks can potentially reason delays to the schedule and prevent the livery of a chore but are relatively easily managed by an toughened propose trainer with suitable direction and act skills.
There are varied distance to move to a probability that has occurred but the most common slipway are:
Accept- the essay can be received, in which instance the throw administrator testament individual to work the customer that the schedule, budget or deliverables instrument not be met. The client give person to stomach such deviations if the impel is to be deemed a success.
Transfer- if the seek that has occurred is specified that a particular strain, attribute or office cannot be delivered then it could be transferred to a later project thereby deferring the essential to control with it in the acquaint. This activity would compel manipulation through a formal convert management outgrowth.
Mitigate- it may be practicable to provide an unimpeachable workaround that leave decrease or decimate the opening.
It is worth noting that risks can occasionally soul a formal import and can actually section to improvements or enhancements to the task that had not been advised at the outset.
The Probability Direction Contrive faculty also let prioritisation of the propel risks and senior them in relation to the budget, the assign schedule and the deliverables. The superior testament value that few ascribe risks could be good piece any are exceptionable and would tell a possible set.
Risks testament never be eliminated from a throw but it is workable to modify the upshot of risks by learning from the experiences of both your own projects and others. It is extremely rich to document the lessons scholarly from a assign to meliorate the growth of danger management on rising projects.
You can use project software, like Microsoft Office Project, to create the project plan, or for simple BPI efforts, you can simply use a spreadsheet. Include the same information in the spreadsheet that you would include in a software application, including the task name, duration, start/finish dates, predecessors, and resource names. Of course one downside to using a spreadsheet is that you have to calculate the duration for each task and its associated start/finish dates. Another downside is the inability to use a Gantt chart to show planned vs. actual timelines as the project progresses, and the Gantt chart is a good tool to use, to show progress in a graphical way. However, for simple BPI projects, a spreadsheet works fine.
But the Risk Management Direction staleness also be adaptable enough to wood with those risks that could not mortal been predicted and so were not identified before they occurred. It is really often the strategy that is victimised to wad with these unhoped risks that determines the farthest success of a throw.
For all the risks that bed been identified either prior to the propose play or during the project the assign handler would typically know observed a solution. These risks can potentially reason delays to the schedule and prevent the livery of a chore but are relatively easily managed by an toughened propose trainer with suitable direction and act skills.
There are varied distance to move to a probability that has occurred but the most common slipway are:
Accept- the essay can be received, in which instance the throw administrator testament individual to work the customer that the schedule, budget or deliverables instrument not be met. The client give person to stomach such deviations if the impel is to be deemed a success.
Transfer- if the seek that has occurred is specified that a particular strain, attribute or office cannot be delivered then it could be transferred to a later project thereby deferring the essential to control with it in the acquaint. This activity would compel manipulation through a formal convert management outgrowth.
Mitigate- it may be practicable to provide an unimpeachable workaround that leave decrease or decimate the opening.
It is worth noting that risks can occasionally soul a formal import and can actually section to improvements or enhancements to the task that had not been advised at the outset.
The Probability Direction Contrive faculty also let prioritisation of the propel risks and senior them in relation to the budget, the assign schedule and the deliverables. The superior testament value that few ascribe risks could be good piece any are exceptionable and would tell a possible set.
Risks testament never be eliminated from a throw but it is workable to modify the upshot of risks by learning from the experiences of both your own projects and others. It is extremely rich to document the lessons scholarly from a assign to meliorate the growth of danger management on rising projects.
You can use project software, like Microsoft Office Project, to create the project plan, or for simple BPI efforts, you can simply use a spreadsheet. Include the same information in the spreadsheet that you would include in a software application, including the task name, duration, start/finish dates, predecessors, and resource names. Of course one downside to using a spreadsheet is that you have to calculate the duration for each task and its associated start/finish dates. Another downside is the inability to use a Gantt chart to show planned vs. actual timelines as the project progresses, and the Gantt chart is a good tool to use, to show progress in a graphical way. However, for simple BPI projects, a spreadsheet works fine.
Business Continuity with the Risks
how to Business Continuity Testing Starts with the Risks
The risk analysis and business impact analysis have identified risks to key business functions. All business continuity analysis should be risk based, and risk prioritised to deal with the important business risks first. This means that any risks to your business need to be identified, examined and dealt with.
There are 4 options for dealing with each risk:
1. Reduce the risk. Reducing the risk falls into 2 categories - reducing the likelihood of the problem occurring and reducing the impact of the problem if it does happen. A simple example is that by having a fire alarm you are reducing the likelihood of a fire spreading unseen and by installing a sprinkler system you are reducing the impact of fire.
Reducing the risk is often referred to as mitigation. For example, data backups are a form of mitigation. They reduce the impact if a problem occurs which affects the primary data source. Any mitigating actions require testing to provide assurance they work when required.
2. Transfer the risk. This is an interesting option which may be seen as a get-out, but which is a perfectly valid thing to do. By transferring a risk it becomes someone else's problem and you therefore have the risk covered. We are not talking about blaming someone else, or even transferring the risk to someone else in the company.
For example, there could be a risk that office space will not be available in the case of a disaster in the main location. Therefore the risk can be transferred to a third party company which organises office space for disaster recovery and keeps offices available for companies who need such a recovery service.
3. Accept the risk. By accepting the risk of a potential problem you are at least aware of its existence and can plan for it happening. If it is a risk that would have no impact for an acceptable period of time it should still be noted but you may decide to take no action until it occurs.
Almost by definition, accepting a risk is also reducing the impact of the risk as you are aware of the potential problem and can write it into your business continuity plan.
4. Ignore the risk. This option should never be selected. There is never a reason for ignoring a risk once it has been identified. A risk can be accepted (acknowledged) but must never be ignored.
Once the actions for each risk have been identified, then anything put in place to help cope with a risk needs testing. However, many companies either test nothing at all or try testing every facet of a business continuity plan. Both methods are doomed to failure. The answer is to adopt a risk based testing approach from two perspectives: the business continuity plan is fit for purpose and it will work when invoked.
A health check (testing the plan is fit for purpose) needs to be performed by someone other than the authors of the business continuity plan. Ideally it's performed by an independent third party that specialises in testing business continuity plans, but it could be a disinterested party from another part of the company. Independence is essential here for an objective assessment.
Testing the plan will work when invoked, must be viewed in a business context and the elements of the plan prioritised so that the risks with the most business impact and likelihood are tested first.
The risk analysis and business impact analysis have identified risks to key business functions. All business continuity analysis should be risk based, and risk prioritised to deal with the important business risks first. This means that any risks to your business need to be identified, examined and dealt with.
There are 4 options for dealing with each risk:
1. Reduce the risk. Reducing the risk falls into 2 categories - reducing the likelihood of the problem occurring and reducing the impact of the problem if it does happen. A simple example is that by having a fire alarm you are reducing the likelihood of a fire spreading unseen and by installing a sprinkler system you are reducing the impact of fire.
Reducing the risk is often referred to as mitigation. For example, data backups are a form of mitigation. They reduce the impact if a problem occurs which affects the primary data source. Any mitigating actions require testing to provide assurance they work when required.
2. Transfer the risk. This is an interesting option which may be seen as a get-out, but which is a perfectly valid thing to do. By transferring a risk it becomes someone else's problem and you therefore have the risk covered. We are not talking about blaming someone else, or even transferring the risk to someone else in the company.
For example, there could be a risk that office space will not be available in the case of a disaster in the main location. Therefore the risk can be transferred to a third party company which organises office space for disaster recovery and keeps offices available for companies who need such a recovery service.
3. Accept the risk. By accepting the risk of a potential problem you are at least aware of its existence and can plan for it happening. If it is a risk that would have no impact for an acceptable period of time it should still be noted but you may decide to take no action until it occurs.
Almost by definition, accepting a risk is also reducing the impact of the risk as you are aware of the potential problem and can write it into your business continuity plan.
4. Ignore the risk. This option should never be selected. There is never a reason for ignoring a risk once it has been identified. A risk can be accepted (acknowledged) but must never be ignored.
Once the actions for each risk have been identified, then anything put in place to help cope with a risk needs testing. However, many companies either test nothing at all or try testing every facet of a business continuity plan. Both methods are doomed to failure. The answer is to adopt a risk based testing approach from two perspectives: the business continuity plan is fit for purpose and it will work when invoked.
A health check (testing the plan is fit for purpose) needs to be performed by someone other than the authors of the business continuity plan. Ideally it's performed by an independent third party that specialises in testing business continuity plans, but it could be a disinterested party from another part of the company. Independence is essential here for an objective assessment.
Testing the plan will work when invoked, must be viewed in a business context and the elements of the plan prioritised so that the risks with the most business impact and likelihood are tested first.
Important Risk Management
Coming up with the idea is the easy part. Before any business can start their operations, a study has to be conducted on the risk that the company is faced with in all aspects. Risk management is an important process in identifying problems, assessing the level of risk and formulating plans to ensure that such problems can be minimized or prevented from happening. As managing business risk is common, strategies have been standardized to address the needed solution to eliminate the effect of negative events.
Risk Management & Employees
Employees are also given the safety environment for them to work in any business that hires their services. Risk management allows the business to come up with the best atmosphere that is conducive for working. For those that are mostly standing during the work hours, anti-fatigue mats are put to reduce the stress on the employee. However, the fatigue is not totally purged, but with this type of mat, the worker is able to handle the job well. It is observed that using anti-fatigue mats improves performance, keeps workers alert and decreases the chance for accidents to occur.
A big risk industry is transportation - we're talking about carriers, freights, taxis, ambulances, limos, any service on wheels for that matter. All operators face unpredictable risks every day, because we all know the road is never a safe place and accidents may always occur. On top of that, you are liable for the safety of your customers and thus paying for business insurance will be high. Even so, getting into the business of transportation is expensive and not a sure fire way to success. Take Taxis, and factor in the cost of fuel, car maintenance, employing reliable drivers, paying for licenses, it all adds up and there are so many factors which liquidate your profits if you're not careful with budgeting.
Another risky business to start is in the realm of communications. It seems that the market is already saturated and monopolized by several large brands. Expect low margins and not much customer loyalty if you are starting fresh. To combat the prices of the other giant communications companies, you really have to be providing a unique service at highly competitive prices. It is one of the highest risk industries to enter and not for the faint of heart.
Workers that use electronics make use of anti-static mats. These mats are unique as they are able to eradicate static electricity from being transmitted by the worker. Managing this risk is essential since handling electronic equipment can spark static, which can result to electric shock and other dangers when hazardous materials react. Anti-static mats protect employees from electrostatic discharge from electrical equipment. With these mats electrostatic discharge are kept from hurting employees as well as damaging equipment. The anti-static mats need to be grounded for them to be effective. Grounds cords are available to make sure that static is definitely removed.
Risk management is concerned of the very details in any business to enable appropriate actions. Even as simple as using entrance mats, anti-fatigue mats or anti-static mats in the workplace reduce the risk in any operation. Both workers and customers are given consideration so as each one will have a pleasant experience in doing work and looking into what is offered, respectively. Risk is not something that will worry an executive in moving forward with the investment but something that can be managed. In the real world, companies succeed because they took the risk and able to handle it.
Risk Management & Employees
Employees are also given the safety environment for them to work in any business that hires their services. Risk management allows the business to come up with the best atmosphere that is conducive for working. For those that are mostly standing during the work hours, anti-fatigue mats are put to reduce the stress on the employee. However, the fatigue is not totally purged, but with this type of mat, the worker is able to handle the job well. It is observed that using anti-fatigue mats improves performance, keeps workers alert and decreases the chance for accidents to occur.
A big risk industry is transportation - we're talking about carriers, freights, taxis, ambulances, limos, any service on wheels for that matter. All operators face unpredictable risks every day, because we all know the road is never a safe place and accidents may always occur. On top of that, you are liable for the safety of your customers and thus paying for business insurance will be high. Even so, getting into the business of transportation is expensive and not a sure fire way to success. Take Taxis, and factor in the cost of fuel, car maintenance, employing reliable drivers, paying for licenses, it all adds up and there are so many factors which liquidate your profits if you're not careful with budgeting.
Another risky business to start is in the realm of communications. It seems that the market is already saturated and monopolized by several large brands. Expect low margins and not much customer loyalty if you are starting fresh. To combat the prices of the other giant communications companies, you really have to be providing a unique service at highly competitive prices. It is one of the highest risk industries to enter and not for the faint of heart.
Workers that use electronics make use of anti-static mats. These mats are unique as they are able to eradicate static electricity from being transmitted by the worker. Managing this risk is essential since handling electronic equipment can spark static, which can result to electric shock and other dangers when hazardous materials react. Anti-static mats protect employees from electrostatic discharge from electrical equipment. With these mats electrostatic discharge are kept from hurting employees as well as damaging equipment. The anti-static mats need to be grounded for them to be effective. Grounds cords are available to make sure that static is definitely removed.
Risk management is concerned of the very details in any business to enable appropriate actions. Even as simple as using entrance mats, anti-fatigue mats or anti-static mats in the workplace reduce the risk in any operation. Both workers and customers are given consideration so as each one will have a pleasant experience in doing work and looking into what is offered, respectively. Risk is not something that will worry an executive in moving forward with the investment but something that can be managed. In the real world, companies succeed because they took the risk and able to handle it.
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