Chapter 9: Project Risk Management Note: See the

Transcript:Chapter 9: Project Risk Management Note: See the:
Chapter 9: Project Risk Management Note: See the text itself for full citations. Information Technology Project Management, Seventh Edition Project risk management is the art and science of identifying, analyzing, and responding to risk throughout the life of a project and in the best interests of meeting project objectives Risk management is often overlooked in projects, but it can help improve project success by helping select good projects, determining project scope, and developing realistic estimates The Importance of Project Risk Management Information Technology Project Management, Seventh Edition 2 Figure 11-1. Benefits from Software Risk Management Practices* Information Technology Project Management, Seventh Edition 3 *Source: Kulik and Weber, KLCI Research Group A dictionary definition of risk is “the possibility of loss or injury” Negative risk involves understanding potential problems that might occur in the project and how they might impede project success Negative risk management is like a form of insurance; it is an investment Negative Risk Information Technology Project Management, Seventh Edition 4 Positive risks are risks that result in good things happening; sometimes called opportunities A general definition of project risk is an uncertainty that can have a negative or positive effect on meeting project objectives The goal of project risk management is to minimize potential negative risks while maximizing potential positive risks Risk Can Be Positive Information Technology Project Management, Seventh Edition 5 Some definitions of risk ‘the chance of exposure to the adverse consequences of future events’ PRINCE2 ‘an uncertain event or condition that, if it occurs, has a positive or negative effect on a project’s objectives’ PM-BOK Risks relate to possible future problems, not current ones They involve a possible cause and its effect(s) e.g. developer leaves > task delayed 6 Example For example, if sales for next month are above a certain amount (a desirable event), then orders will reduce the inventory, and there will be a delay in shipping orders (an undesirable event). If a shipping delay means losing orders, then that possibility presents a risk. 7 Actors relate to all those involved in the project including both developers, users and managers e.g. a risk could be that high staff turnover leads to information of importance to the project being lost Technology – both that used to implement the project and that embedded in the project deliverables – risk could be that the technologies selected are not in fact appropriate. Categories of risk Information