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A CONCEPTUAL FRAMEWORK
OF
PROJECT RISK MANAGEMENT
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SYNOPSIS:
INTRODUCTION TO PROJECT RISKMANAGEMENT.
OBJECTIVE OF PROJECT RISK MANAGEMENT.
NEED FOR RISK ANALYSIS.
10 GOLDEN RULES OF PROJECT RISKMANAGEMENT
ELEMENTS OF RISK MANAGEMENT.
RISK MANAGEMENT PLAN.
THE RISK MANAGEMENT PROCESS.
CLASSIC MISTAKES OCCUR IN SOFTWAREPROJECT DEVELOPMENT.
CONCLUSION.
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INTRODUCTION :
What is a Project?A project is a temporary endeavor undertaken to produce a
unique product or service
What is a Risk?
A risk is any anticipated unfavorable event that can occurwhile a project is ongoing.
What is a Project Risk Management?
It is an art and science of identifying ,analysing andresponding to risk throughout the project and in the bestinterest of meeting project objective
Temporary Characteristics ofProjects
Unique
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OBJECTIVE OF PROJECT RISK MANAGEMENT:
The broad objectives of the project risk managementprocess are :
Survival of the organization.
Efficiency in operations.
Uninterrupted operations.Continued growth .
Enhance the capability of the organization.
Extend the organizations overall risk management
processes to projects, and apply them in a consistent way.
Enhance the management of projects across the
organization and obtain better project outcomes, in all
respect.
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NEED FOR PROJECT RISK MANAGEMENT
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10 GOLDEN RULES OF PROJECT
RISK MANAGEMENT
1. Make Risk Management Part of Your Project
2. Identify Risks Early in Your Project
3. Communicate About Risks
4. Consider Both Threats and Opportunities5. Clarify Ownership Issues
6. Priorities Risks
7. Analyze Risks
8. Plan and Implement Risk Responses
9. Register Project Risks
10. Track Risks and Associated Tasks
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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.Different elements of risk management are:
Crisis management.
Fix on failure .
Risk mitigation.
Prevention.
Elimination of root causes.
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RISK MANAGEMENT PLAN:
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RISK IDENTIFICATION: Identify all the possible riskevents that could affect the project.
RISK ASSESSEMENT: Assess each risk in terms of probability,impact severity and controllability.
For risk assessment, each risk should first be rated in two ways:1.The likelihood of a risk coming true (r).2. Severity of damage caused due to the risk becoming true (s).Based on these two factors, the priority of each risk can be
computed as :p = r * s
3 MAIN CATEGORIES OF
RISK
PROJECTRISK
TECHNICALRISK
BUSINESSRISK
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RISK DEVELOPMENT: Develop a strategy and/or
contingency for responding to each risk.
RISK CONTAINMENT: This involve monitor and control
risks dynamically. Different risks require different
containment procedures.3 MAIN STRAYEGY USED FOR
RISK CONTAINMENT
Avoid the risk Transfer the risk Risk reduction
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PROJECT RISK MANAGEMENT
PROCESSES
It help project teams make informed decisionsregarding alternative approaches to achievingtheir objectives and the relative risk involved ineach project.
Risk management encourages the project team totake appropriate measures to:Minimize adverse impacts to project scope, cost,
and schedule.Maximize opportunities to improve the projects
objectives with lower cost, shorter schedules, andhigher quality.
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PROJECT RISK MANAGEMENT
PROCESSES
Fig.: The Project Risk Management Process
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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, during
and at the end of the project are known are classicmistakes.
The main effect of these mistakes is, you wont get rapid
development.
Once if these mistakes are analyzed, it can be used with
project planning and risk management which will
definitely help the development speed of project.
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Classic mistakes have been divided along the development dimensions
of people, process, product and technology.
PEOPLE RELATED
MISTAKES
PROCESSED
ORIENTED
MISTAKES
PRODUCT
RELATED
MISTAKES
TECHNOLOGY
RELATED
MISTAKES
y Undermined
motivation
y Weak personnel
y Uncontrolled
problem employees
y Heroics
y Noisy, crowded
offices
y Friction between
developers and
customers
y Unrealistic
expectations
y Lack of user-input
y Wishful thinking.
y Overly optimistic
schedules
y Insufficient risk
management
y Contractor failure
y Insufficient
planning
y Wasted time
during the fuzzy
front end
y Shortchanged
upstream activities
y Inadequate design
y Requirement
gold-plating
y Feature creep
y Developer gold
platting
y Push-me, pull-
me negotiation
y Research
oriented
development
y Silver bullet
syndrome
y Overestimated
savings from new
tools or method
y Switching tools in
the middle of the
project
y Lack of automated
source-code control
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CONCLUSION:
As the problem and risk faced by each project are unique, soit is not possible to prescribe a standard format.
A good project risk management within an organization hasthe following characteristics:
(a) Project risk management activities commence at theinitiation of the project, risk management plans are developedand risk management continues throughout the project lifecycle.
(b) Project risk management is not a discrete stand-alone
process, but is integrated with other project managementfunctions.(c) The implementation of project risk management is the
responsibility of all project stakeholders and they participateactively in the process.
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THANK YOU
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