| If you have approached your project or programme | | | | Managing Risk. |
| well, you will have developed a Risk Plan/Strategy | | | | More detail can also be found in the following |
| document. Risk needs to be proactively managed, as | | | | publications: |
| opposed to allowing it to manage you and the | | | | Managing Successful Programmes |
| environment around you. | | | | OGC Management of Risk Guidelines |
| Many people are afraid of risk management and | | | | OGC's Achieving Excellence Guides |
| some Project and Programme Managers are often | | | | Management of Risk : Practitioner guide |
| reluctant to publicise risk to executive management. | | | | Some if not all of these can be purchased from the |
| The reality is that things change, assumptions | | | | TSO in London. |
| become false, expectations are not met and | | | | If you need a list of generic pain points that risk |
| suddenly you can find yourself facing a very different | | | | management will address to support your case for |
| looking environment. For a risk plan to really help (and | | | | better risk management within your organisation, you |
| play its role) it needs to be accompanied by a | | | | could start with these: |
| 'proactive' approach by applying Risk Avoidance, | | | | - increased certainty and fewer surprises; |
| Transference, Mitigation and Acceptance. | | | | - better service delivery; |
| Most well run organisations will have risk managed at | | | | - more effective management of change; |
| four distinct levels which are; | | | | - more efficient se of resources; |
| - Corporate or Strategic | | | | - better management at all levels through improved |
| - Programme | | | | decision making; |
| - Project | | | | - reduced waste and fraud and better value for |
| - Operational | | | | money; |
| To do this effectively, a framework for managing | | | | - innovation; |
| risk needs to be designed and implemented to | | | | - management of contingent and maintenance |
| address the following list of 9 hows: | | | | activities. |
| | | | To build your case, don't forget the more specific |
| 1. how risks are identified; | | | | pains that your organisation is already suffering. |
| 2. how information about their probability and | | | | I read an interesting article about risk and opportunity |
| potential impact is addressed; | | | | in the aerospace industry. Whilst PMBOK considers |
| 3. how risks are quantified; | | | | risk as both negative and positive, the folk in |
| 4. how options to deal with them are identified; | | | | aerospace consider risk as negative and opportunity |
| 5. how decisions on risk management are made; | | | | as positive. Good risk management is not about fear |
| 6. how all these decisions are implemented; | | | | of failure, but removing barriers to success. |
| 7. how actions are evaluated for their effectiveness; | | | | After all, project and programme management is |
| 8. how appropriate communication mechanisms are | | | | success oriented, focused on producing products and |
| set up and supported; | | | | services for customers. When the success orientation |
| 9. how stakeholders are engaged on an ongoing basis | | | | is combined with risk management, opportunity |
| But this is just the beginning because it's all very well | | | | management emerges, which is the identification of |
| having a thorough framework documented and sitting | | | | opportunities to help attain project goals, and the |
| pretty on the shelf with a tick in the box, but risk | | | | identification and implementation of actions to |
| management needs to instilled within the people of | | | | capture those opportunities. |
| the organisation. A healthy culture of risk | | | | Below are the keys to success taken from a Space |
| management needs to exist and for this to happen, | | | | Risk Management Symposium. Whilst their view on |
| everyone involved needs help in appreciating and | | | | risk is slightly different from others, the points are |
| understanding risk within the organisation. | | | | not rocket science and can help most people who |
| This often requires sponsorship from the top down | | | | are responsible for complex projects or programmes. |
| and if leaders at the corporate level understand this | | | | - Sound risk and opportunity management cannot |
| too, they will take the time to ensure that risk is | | | | save a poorly planned program with bad processes; |
| taken seriously and subsequently managed well. | | | | - Prevent the competition between risks and |
| Setting up a good risk culture is a real challenge and | | | | opportunities; |
| the UK OGC suggests that it involves at least the | | | | - Prevent unhealthy competition between teams; |
| following: | | | | - Risk and opportunity management provide |
| - strategic planning; | | | | diminishing returns if overused; |
| - legal requirements; | | | | - The costs of pursuing opportunities and managing |
| - agreements and contracts; | | | | risks must be weighed against the expected benefits; |
| - communication techniques and information | | | | - An environment should be created to encourage |
| management; | | | | risk and opportunity management; |
| - staff matters, including how staff can be motivated | | | | - Risks and opportunities are not just normal |
| and involved; | | | | variations in plan; |
| - education opportunities and continual professional | | | | - Recognise the difference between risks and |
| development; | | | | opportunities; |
| - continuous improvement and/or analytical | | | | - Opportunities are not 'positive risks'. |
| techniques; | | | | No matter where you sit within the organisation, if |
| - how the organisation is monitored and evaluated; | | | | you see that risk is not being appropriately |
| - resource management, including equal opportunities | | | | addressed, take the initiative, pluck up the courage |
| and delegation. | | | | and set out to facilitate some change. Remember |
| The subject of risk management is vast and if you | | | | that managing risk is the alternative to being |
| need help with some guidelines for a framework, a | | | | managed by risk. |
| great place to start is the OGC's Guidelines for | | | | |