A CONCEPTUAL FRAMEWORK OF PROJECT RISK MANAGEMENT

‡ 10 GOLDEN RULES OF PROJECT RISK MANAGEMENT ‡ ELEMENTS OF RISK MANAGEMENT. ‡ NEED FOR RISK ANALYSIS. ‡ CONCLUSION. . ‡ RISK MANAGEMENT PLAN. ‡ CLASSIC MISTAKES OCCUR IN SOFTWARE PROJECT DEVELOPMENT. ‡ OBJECTIVE OF PROJECT RISK MANAGEMENT. ‡ THE RISK MANAGEMENT PROCESS.SYNOPSIS: ‡ INTRODUCTION TO PROJECT RISK MANAGEMENT.

INTRODUCTION : What is a Project? A project is a temporary endeavor undertaken to produce a unique product or service Temporary Characteristics of Projects Unique What is a Risk? A risk is any anticipated unfavorable event that can occur while a project is ongoing.analysing and responding to risk throughout the project and in the best interest of meeting project objective . What is a Project Risk Management? It is an art and science of identifying .

OBJECTIVE OF PROJECT RISK MANAGEMENT: The broad objectives of the project risk management process are : Survival of the organization. Efficiency in operations. and apply them in a consistent way. Uninterrupted operations. Extend the organization¶s overall risk management processes to projects. Continued growth . in all respect. Enhance the capability of the organization. . Enhance the management of projects across the organization and obtain better project outcomes.

NEED FOR PROJECT RISK MANAGEMENT .

Make Risk Management Part of Your Project 2.10 GOLDEN RULES OF PROJECT RISK MANAGEMENT 1. Communicate About Risks 4. Track Risks and Associated Tasks . Clarify Ownership Issues 6. Plan and Implement Risk Responses 9. Identify Risks Early in Your Project 3. Register Project Risks 10. Analyze Risks 8. Priorities Risks 7. Consider Both Threats and Opportunities 5.

Fix on failure .ELEMENTS OF RISK MANAGEMENT The job of Project Risk management is to identify. . address and eliminate sources of risk before they become threats to completion of a project. Prevention. Different elements of risk management are: Crisis management. Risk mitigation. Elimination of root causes.

RISK MANAGEMENT PLAN: .

For risk assessment. each risk should first be rated in two ways: 1.The likelihood of a risk coming true (r).RISK IDENTIFICATION: Identify all the possible risk events that could affect the project. Based on these two factors. impact severity and controllability. 2. Severity of damage caused due to the risk becoming true (s). the priority of each risk can be computed as : p=r*s . 3 MAIN CATEGORIES OF RISK PROJECT RISK TECHNICAL RISK BUSINESS RISK RISK ASSESSEMENT: Assess each risk in terms of probability.

RISK CONTAINMENT: This involve monitor and control risks dynamically.RISK DEVELOPMENT: Develop a strategy and/or contingency for responding to each risk. Different risks require different containment procedures. 3 MAIN STRAYEGY USED FOR RISK CONTAINMENT Avoid the risk Transfer the risk Risk reduction .

shorter schedules. and higher quality. . and schedule. cost.PROJECT RISK MANAGEMENT PROCESSES It help project teams make informed decisions regarding alternative approaches to achieving their objectives and the relative risk involved in each project. Maximize opportunities to improve the project¶s objectives with lower cost. Risk management encourages the project team to take appropriate measures to: Minimize adverse impacts to project scope.

PROJECT RISK MANAGEMENT PROCESSES Fig.: The Project Risk Management Process .

it can be used with project planning and risk management which will definitely help the development speed of project. you won¶t get rapid development.CLASSIC MISTAKES OCCUR IN SOFTWARE PROJECT DEVELOPMENT: What is classic mistake? Some ineffective practices chosen by many people who produce predictable and unpredictable bad results. Once if these mistakes are analyzed. during and at the end of the project are known are classic mistakes. . The main effect of these mistakes is.

pullme negotiation Research oriented development y y Silver bullet syndrome Overestimated savings from new tools or method Switching tools in the middle of the project Lack of automated source-code control . y y Overly optimistic schedules Insufficient risk management Contractor failure Insufficient planning Wasted time during the fuzzy front end Shortchanged upstream activities Inadequate design Requirement gold-plating Feature creep Developer gold platting Push-me. PEOPLE RELATED MISTAKES y y y y y y PROCESSED ORIENTED MISTAKES y y y y y PRODUCT RELATED MISTAKES y y y y y TECHNOLOGY RELATED MISTAKES y y y y y Undermined motivation Weak personnel Uncontrolled problem employees Heroics Noisy. process. crowded offices Friction between developers and customers Unrealistic expectations Lack of user-input Wishful thinking. product and technology.Classic mistakes have been divided along the development dimensions of people.

CONCLUSION: As the problem and risk faced by each project are unique. risk management plans are developed and risk management continues throughout the project life cycle. A good project risk management within an organization has the following characteristics: (a) Project risk management activities commence at the initiation of the project. . so it is not possible to prescribe a standard format. (c) The implementation of project risk management is the responsibility of all project stakeholders and they participate actively in the process. but is integrated with other project management functions. (b) Project risk management is not a discrete stand-alone process.

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