Managing Projects with PRINCE2®

Risk Management Strategy

ICA Part 2

Dr Myriam Mallet
 Risk Management

You have a full module on this so this session only focuses on what
we expect the team to cover in the PID in terms of Risk management
 A number of essentials need to be in place
before a project can be managed
effectively. These can be summarised as
the Why, the What and the How
Project risk is the potential that something can happen

during the project that could change the project’s

outcomes (positively or negatively).

It could have consequences on the deliverables of the

project, the timeline or the budget.

Project risks can be caused by different factors some

totally independent of the project (political, legal,
technological, environmental) others local to the
project e.g., staff illness, supply chain delays etc

Complex More
project risks
Risk Management process – 5 steps
 Step 1 – Risk Identification

• Project manager is the lead (in a real project but in your case, you can delegate this
to one of the team members)
• Risk identification often done in a team workshop (this could be your case)
• Workshop provides comprehensive and moderated list of risks
• Risks identified are listed in a “risk register” see example on Blackboard
• Identification of the risk but also of its cause
• Identification of the route cause is very important as it affects how you will deal with it
 Probability impact grid

Step 2 – Risk Estimation

• Likelihood (probability) of this risk happening

• Impact that this would have on the project
• Both qualitative and quantitative data are used
• Quantitative data e.g. Statistical data / factory records etc
• Qualitative assessment – four or five band grid called a “Probability Impact grid”.
• The severity of the risk being the combination between probability and impact.

Risk register including one example

Step 3 - Communicate
Step 4 –Take action

Four different actions can be taken:

1 Accept the risk (do nothing about it)
2 Transfer the risk (take an insurance)
3 Reduce the probability of the risk (get electrical storage to reduce probability of loss of
power)
4 Reduce the impact of the risk (bring forward a supplier order date to reduce impact of
a late delivery)
Step 5 – Reviewing risks

• Map of risks changes with time so risks register needs to be

reviewed and updated at least each time there is a significant event
happening.
• Also review the actions in the risk register.
• You could add ‘ Risk action’ in your formal meetings agenda as a
standing item.
Risk management work expected for the ICA

• Write a short paragraph to explain how risk management will be

carried during the project
• Create a risk register as the example provided earlier
• Identify 10 risks in your project
• Work out the root cause, probability, impact and severity
• Identify appropriate actions
ICA PART2 (40%) – Deadline 2nd of May
Presentation format
• Each team will be invited to attend a specific time slot during timetabled practical classes
• No other team will be present in the room, just yours
• 5 minutes per team member + time for questions
• Max 4 slides per member
• Presentation is done as part of the team
• One PowerPoint file used for the team
• Each member create their own slides
• Each member present their own slides
• Include name of the member on the appropriate slides
• Assessed individually
• Each member upload the presentation file to Blackboard
Presentation topic – 2 main aspects
Critically evaluate individual experience when using PRINCE2 in ICA Part1
• Demonstrate own learning. Discuss challenges and how you overcame them.
• Identify what should be done differently next time
• This is not a description of wat was done!!!!! This is REFLECTIVE presentation

Choose a project management topic to explore in more depth (link it to PRINCE2)

• Topic could be linked to your role in ICA Part 1, or role in industry
• Topic could be comparation between PM methodologies including PRINCE2
• Topic will be negotiated and agreed with your tutor
• Must demonstrate engagement with the literature & inc. references in last slide