risk management lecture - patrick lebreton

PMI Lebanon Chapter

“Risk Management – Best Practices”

Patrick LEBRETON

March 26th 2015

Session Outline

•Definition of a Risk

•Factors Influencing Risk Management Practice

•Risk Management Plan - When does it start?

•Risk Management Plan – What is next?

•Q&A

Definition of a Risk

According to the 5th Edition of the PMBOK Guide,

project risk is

“an uncertain event or condition that if it occurs has a

positive or condition that, if it occurs, has a positive or

negative effect on one or more project objectives

such as scope schedule cost or objectives such as

scope, schedule, cost, or quality”.

Factors influencing Risk Management Practice

Few factors or elements that have an influence on our

practice of Risk Management as project managers:

How much our organization is “risk averse”

Our Organization Structure

Our Field of practice

Our Project Nature, Scope, Deliverables and Timelines

Risk Management When does it start?

Starts at pre-sales phase or what we commonly call

“bid phase”

1. Risk Assessment

2. Risks Identification, Quantification, Qualification

3. Risk Mitigation Plan

4. Risk Response

Iterative process until contract signature

Risk Management Plan – What is next? Now that the Plan is there and contract signed what is next?

Make sure a mock-up or PoC is implemented

Get customer’s sign-off on solution

Refine Risk Register to cater for any unforeseen

Refine Scope accordingly to avoid scope creep

Identify Opps – to treat as Change Request

Ensure a UAT protocol is agreed

Engage Resourcing & Procurement

Agree on quality plan and measures to avoid rework

You are now fully into Delivery Phase!

Then

Establish periodic Risk Register reviews

Ensure proper contingency budget re-allocated to

project budget should Risk not occur or be fully

mitigated

Keep Financials abreast and enhance your

Profitability (P&L)

At project closure

Ensure administrative closure of all running

processes, inclusive of Risk Management Plan

Document Lessons Learned

Release Resources

Q&A

Thank You!