Project Risk Management is the systemic process of identifying, analyzing and responding to project risk.
... Reference: A Guide To The Project Management Body of Knowledge
On Risk Management
Current project management body of knowledge documents, (the APM(BoK) and PMI® PMBOK™) describe risk management as a lead discipline in project management practice. The US Federal Government's Department of Energy provides a great deal of useful information on the strategy and practices devoted to reporting on Engineering Risk Management. The Lumina Site's Decision/Risk On-Line Resources gives academic background and other risk analysis methods for implemenation in quantitative risk management practices.
The Software Risk Management Program of the Software Engineering Institute provides insight into the uncertainty factors that must be considered during software project management.
The Critical Role of Risk Management in DoD Directive 5000.2-R
DoD Directive 5000.2-R applies to all elements of the United States Department of Defense (DoD). Its procedures are mandatory for Major Programs as well as serving as a general model for all contractors.
The importance of Risk Management in DoD 5000.2-R is evident throughout. A summary statement from the Directive says; "Project Managers and other acquisition managers shall continually assess program risks. Risks must be well understood, and risk management approaches developed, before decision authorities can authorize a program to proceed into the next phase of the acquisition process. DoD Directive 5000.2-R, Section 3.3.3.2, (Cost Management Incentives), clearly states that contractors with superior risk management plans have the advantage in procuring contracts: "RFPs shall be structured to incentivize the contractor to meet or exceed cost objectives. Whenever applicable, risk reduction through use of mature processes shall be a significant factor in source selection."
RiskTrak, from Risk Services & Technology has a Risk Management software tool designed to help meet the mandate of DoD 5000.2-R. RiskTrak uses customizable Expert "Wizards" to generate project-specific database(s) and can be shipped with an adaptation of the (DoD-funded) Software Engineering Institute Taxonomy Based Questionnaire. The software can help to manage risk throughout DoD 5000.2-R Program Structure, Design, Assessments, Decision Reviews, and Reporting stages, as well as meeting CAIV (Cost As an Independent Variable) guidelines.
A white paper on RiskTrak and DoD 5000.2-R (in MS Word) as well as PDF files of the Directive and the CAIV Report, may be found on the RiskTrak Web. For more info, send Email to: risktrak@stgrp.com or call Risk Services & Technology at 603-673-9907 or FAX 603-673-9913.
Project Risk Management Survey
"Investigating the Benefits of Project Risk Management"
The Association for Project Management Specific Interest Group on Project Risk is conducting a survey to determine the measurable benefits of project risk management.
A questionnaire has been designed to investigate the impact that the use of formal project risk management process might have on project execution and outcome. In fact there are three separate questionnaires, depending on your perspective of :
The APM Contact is:
Philip Rawlings
APM Risk SIG BoE-Q
%Eurolog Limited,
Orlando House,
3 High Street
Teddington,Middlesex TW11 8NP, UK
email:
philipr@eurolog.co.uk
Risk management benchmarking
Risk Management Processes Examination/ Questionnaire
Broadleaf Capital International, Australia have developed a questionnaire to examine risk management processes and the way they are implemented. It is based Broadleaf's work in a wide range of sectors and our interpretation of the Australian/New Zealand Standard for risk management, AS/NZS4360.
Broadleaf hopes to learn something from the exercise and offer respondents a free evaluation in return. We also anticipate that simply filling in the questionnaire will stimulate useful insights into your current approach to risk management. All material relating to an individual response will be kept entirely confidential. Summary results and insights arising from the analysis will be published when sufficient material has been accumulated.
The questionnaire will take about 20 minutes to complete. There is no charge. The questionnaire is not confined to project risk management alone. and this initiative is separate from the UK APM's risk management Body of Evidence questionnaire (Webmaster note: see above notice) which seeks to gather information about the effectiveness of project risk management, which is complementary to the Broadleaf questionnaire's interest in how the process is structured and operated.
Anyone interested to assess their existing risk management practices and consider how they can develop or refine them, whether they are formal or just part of the way you work, is welcome to fill in the questionnaire and send it to Broadleaf Capital International. The questionnaire has been mounted on the Broadleaf web site at http://www.broadleaf.com.au
The Maryland Chaos Group
US News has ranked the Maryland Chaos Group number one in the USA for Non-linear Dynamics, or Chaos. Chaos is an interdisciplinary science founded on the idea that "nonlinear deterministic systems can behave in an apparently unpredictable and chaotic manner." The department's homepage has been divided into three main sections General Info, Publications, and Pointers. The General Info section holds brief descriptions of the group's research interests as well as a Chaos Pictures Gallery. The Publications section will be of value to researchers as it contains general references, abstracts, and papers.
Risk Analysis and Management for Projects
A Risk Analysis and Management for Projects (RAMP) Working Party has been set up jointly by the actuarial and civil engineering professions in the UK, to study project risk. In July 1998 a handbook was published on a new methodology called RAMP (Risk Analysis and Management for Projects). The method provides a framework for the identification, management, mitigation and control of risks in all kinds of project, whether involving physical assets or not.
The RAMP Handbook takes a "cradle to grave" approach and is not only concerned with the construction phase. It is used in conjunction with an investment model, for example to obtain a probability distribution of the net present values which may result from the project. Details of the method and how to obtain the handbook are obtainable on the RAMP website www.ramprisk.com
The working party may also be contacted through Mark Symons, Institute of Actuaries, Staple Inn Hall, High Holborn, London, WC1V 7QJ (telephone 0171 632 2133).
Risk Management Concepts And Guidance
Risk Management Concepts and Guidance is a US DoD Defense Systems Management College textbook that has been updated to reflect the project environment of the 90's. Carl L. Pritchard, editor, offers specific techniques for organizational risk identification, assessment, and management within the DoD project or program environment. Go to the DoD Risk Management Site at http://www.acq.osd.mil.
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