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TOPIC 5 PROJECT RISK MANAGEMENT

Risk Def:

An uncertain or unforeseen event may occur and affect the outcome or success negative / positive of the project

NB:RISK ELEMENTS

• POLITICAL

Change in the government policy – lead to change in the development of a project

• PROFESSIONAL

Nature of profession

• ECONOMIC

Economical status of the country. Inflation

• SOCIO CULTURAL

Demographic change – Structure of population

• HEALTH AND SAFETY

Provide safety for workers

• TECHNOLOGICAL

Current system become obsolete or opportunities from technological development

• CONTRACTUAL

Failure to meet contract agreement

• ENVIRONMENTAL

Meet the environmental changes

• OPERATIONAL

Enough resources on production

FORCE MAJEURE(GREAT FORCE)

Extra-ordinary circumstance cannot be controlled by parties

Prevents the parties from complying with the contract when event aroused


Risk Def:

An uncertain or unforeseen event may occur and affect the outcome or success negative / positive of the project

NB:RISK ELEMENTS

• POLITICAL

Chang the in government policy – lead to change in the development of a project

• PROFESSIONAL

Nature of profession

• ECONOMIC

Economical status of the country. Inflation

• SOCIO CULTURAL

Demographic change – Structure of population

• HEALTH AND SAFETY

Provide safety for workers

• TECHNOLOGICAL

Current system become obsolete or opportunities from technological development

• CONTRACTUAL

Failure to meet contract agreement

• ENVIRONMENTAL

Meet the environmental changes

• OPERATIONAL

Enough resources on production

FORCE MAJEURE(GREAT FORCE)

Extra-ordinary circumstance cannot be controlled by parties

Prevents the parties from complying with the contract when event aroused


NB:PHASES IN THE RISK MANAGEMENT PROCESS • IDENTIFY THE RISK • ASSESS THE RISK • RESPOND TO THE RISK • MONITOR THE RISK

― Screen all the project document to determine which risk may affect project

― To identify future event that may affect the project PROJECT DOC Project Scope Statement WBS Project Schedule Project Budget Stakeholder Analysis

― What effects the risks could have on the success of the project

― Quantifies the frequency of occurrence and the impact

― Measure by probability and impact . Pg 238 ― Likelihood and impact

• CLASSIFICATION OF RISK • PG 238

Outlines what to do if the risk is becomes reality.

• NB:RISK MANAGEMENT STRATEGIES ― Accept risk - Take the chance that the risk will not

occur ― Avoid risk - Change the whole project plan ― Mitigation/ Reduced - Try to reduce the chances

for the risk to happen ― Outsource – Outsource the resources

• MITIGATE/REDUCE RISK ― Identify activities to reduce or stop risk ― Identify activities to recover from risk ― Identify activities to take advantage of risk


NB:REASON FOR RISK TO BE AVOIDED

•

• When the risk outweight the possible benefits.

• When there are no specific benefits to be gained.

• When the odds are not in favour of a positive outcome.

• When there are several possible alternatives.

• When there is not enough data to identify the possible outcome.

• When the risk does not help to achieve project goals


MONITOR AND CONTROL

― Monitor and control on-going project activities against the project management plan

― To implement the risk management plan by training team and communicate to all stakeholders

METHODS TO MONITOR AND CONTROL PROJECTS RISKS

• OBSERVATION

― Must be done randomly by project manager

― Ask question to keep up to date with project progress

• REGULAR REVIEWS

― Hold meetings to discuss progress

• Schedule evaluations

― Compare the actual quality output against the plan

TOPIC 6 REVIEW PROJECT EXPERIENCES

REVIEW PROJECT EXPERIENCES

• Provides opportunity for a project manager and team to learn experience from the project

• The manager review the achievement and improvements for the project

PROJECT EVALUATION(purpose of project evaluation)

• It is a research-based process of examining the success of a project

• Evaluation must be carried out by external people ( Evaluators) not by project implementers

• Evaluators must assist to determine major problems encountered in the project

• Project manager evaluate in order to compare the progress against original plan or objectives

THE PRINCIPLES OF EVALUATION • It should be impartial (fair) and independent

• Evaluation and project activities should be separate and done by different people

• Evaluators should have experience and expertise

• The process should be transparent

• There should be a distinction between findings and recommendation

• Evaluation should be useful , present information, clearly and concisely

• Involve stakeholders affected to raise views on project


THE PURPOSE AND TIMING OF EVALUATION

• During implementation (Execution)

To review progress and propose alterations to project design

• At the end of a project

To record lessons learned to improve future project design

• Afterwards (ex- post evaluation)

After completion of a project. Focuses on impact of the project

FINAL PRODUCT EVALUATION

• Determine the overall quality of the product

• Implement a mechanism for improving or maintaining the quality

• Evaluates the product against the original objectives

• Identifies outages (shortcomings) in the final product

• Determines how to address any shortcomings

• INITIATE A MAINTENANCE PROCESS

It is an on going process, and it includes continuing support of the project and correctional errors e.g Inspection, preventive maintenance.

• PROCESS IMPROVEMENT

It is the final step in a quality process. It identifies the lessons learnt in the project. If likely could apply to future projects.

― Involves both technical and business staff

― Cover the project process

― Identifies things that worked well

― Identifies things were not necessary

― Improves the estimating model for the process


• STEPS TO FOLLOW FOR PROCESS IMPROVEMENT (Evaluator)

― Prepare End of Project Review

― Conduct End of Project Review

― Update Process Metrics

― Implement Process Improvement

• Prepare Review

• Meeting

• Facilitated workshop

• Questionnaire

• Conduct Review

• The evaluators should come with recommendations to change the process and estimating model should be recorded

• Update Process Metrics

• The evaluators should review and assess changes made.

• They must decide if changes are suitable to apply to future projects

• Implement Process Improvement

• Review the recommendation changes

• Assess each changes

• PROJECT COMPLETION (Project Manager)

It is conducted to complete all outstanding project work

• STEPS TO FOLLOW FOR PROJECT COMPLETION

• Close Outstanding Project Work

• Prepare for Project Closure Meeting

• Conduct Project Closure Meeting

• Follow Up Project Closure Meeting


• PROJECT CLOSURE

When the project coming to an end there is a formal machanisms to close the project.

NB: Purpose of Project Closure

• Establishes mechanisms for the continued development or improvement of the final product of the project

• Improves the standard process for this type of project

• Updates the estimating model for this type of project

• Project resources can be re-deployed

• To review of the project

• To complete unfinished activities

• Assess the extent to which the results met the expectations

• To discuss lessons learnt which could be applied to future projects

• Provides a normal ending for all procedures including delivery of the final product

• Project deliverables can be hand over

• WRAPPING UP THE PROJECT

• Preparing the final report

• Hand over Archiving of information

• Post project evaluation

• Disbanding the project team

REASON FOR LESSON LEARNED

•To improve performance for future similar projects

• Not to repeat the same mistakes with the next projects

• Develop competitive advantage

• To check if the stakeholders participated effectively during the project

• To see what was done well

• To evaluate was achievements with the project

• To identify problems encountered and recommendation for future projects

• To share the lesson learnt on previous project

• To keep record of the previous project

• To use lesson learnt as a reference for the future project