U03a1 Risk Management Best Practices
BMGT8434 Advanced Risk Management Systems and Research January 24, 2013
Project Risk Plan
HESU Global’s (pseudo named) PMO in conjunction with the Business Continuity Department will develop and implement the risk management approach. Organizational assets and support for the project will be directed and managed by business continuity. An example project and brief scope are included below for instructional purposes. PMO will assign a project manager to oversee the project daily activities, however the PMO maintains responsibility for:
• Develop modification requirement and specifications of the project.
• Develop messaging specifications and applications
• Design the network
• Tailor the application to support HESU Global line of business applications and operations
• Install production computer services and applications
• Design new business processes for applications
• Conduct alpha and beta testing
• Conduct organizational wide implementation
The Project Management Team will need a proactive approach in the management of risks and related uncertainty. Management of risks for this project will follow a continuous risk management model, refined as the PLC develops. Involvement of support from the business, technical, executive, and external partners is crucial to having a viable risk management process. Tasks will be evaluated and identified for the mitigation of risks; uncertainty of organizational environmental factors will be included in the evaluation of impact and probability, as appropriate. This will ensure that tracking of progress, or lack thereof, occurs and necessary resources are identified for corrective/mitigating actions planned.
The purpose of the risk management plan is to develop a structured formal document for the description of the risk management process. The risk management plan is developed by review of best risk management practices described in the PMBOK (Project Management Institute, 2008) and Chapman and Ward (2011) How to Manage Project Opportunity and Risk : Why Uncertainty Management can be a much better approach than Risk Management. Risk management is an integral part of the project lifecycle and works within the project to reduce threats and introduce opportunities based evaluation of the risk associated with the activities planned. Successes in risk management provide value to the organization, delivering benefits to the project environment that contribute to high project performance.
The Project Environment is the environment in which project planning, execution, control/monitoring and closing of projects is done. HESU Global’s project environment overlaps the organizational environment and operations. Human resources for the project are typically involved in operations and must be planned for accordingly. Budgetary processes are initiated in the project environment but may require organizational support or approval.
Risk Management Process
The HESU Global RMP will follow a continuous, progressive risk management model. The model consists of 6 phases. Standardization of the risk management process will create a common method for managing risk. The phases are Identify, Focus, Analyze, Plan, Clarify, Track and Control. Each phase has detailed tasks as shown in the following table:
| Phases |Tasks | |Identify |Identify potential risks, look at overall project risk creating high level categories of risk. | | |Engage expert judgment, senior managers, PM, stakeholders, project team. | |Focus...
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