Managing Project Risks, Assumptions, Issues and Dependencies

In this course students will learn that risk is an uncertain event or set of circumstances  which  are likely to occur and can impact one or more project objectives

there are several steps in managing project risk:-

• Identifying risk

• Recording/logging the risk in the risk register/log

• Classifying the risk

• Identifying and putting mitigating  measures in place in order to reduce the  likelihood and impact of the risk.

Risk identification can be achieved using the following methods

•Quantitative and qualitative methods

•Ranking risks – potential to impact project objectives.

An issue is an event that has already occurred and is currently impacting the project

•Issues must be resolved and not be ignored

• The Project Manager and team members must manage risks daily

• There must be a systematic risk management process in place.

There are 5 risk management steps, which are:-

Steps 1: Identify the Risk can be done by:

• Project Manager, project team and stakeholders

•Individually or face to face in a meeting environment

•During this step, a Risk Log should be prepared

There are a number of techniques you can use to find project risks:

a) Analogy Approach

•Analysing lessons learned from previous similar projects

•These help to identify and highlight risks which can impact your project

b) S.W.O.T Analysis

This technique focuses on the Weaknesses and Threats

•A Strength:

•A Weakness: (this can potential turn into a risk)

•An Opportunity:

• A Threat: (This is can also be a risk)

c) Project teams should be encouraged to report risks through various ways, such as

•Online

•Face to face

Step 2: Analyse the risk is done either

Qualitatively which involves classifying the risks into:

•Low

•Medium

•High

Quantitatively which involves classifying the risks into:

•1 = Low

•2=Medium

•3=High

Risk analysis helps to determine the impact of the risk on:

•Cost

•Resources

•Time

•Quality

Step 3: Evaluating the risk helps to

•Determine the risk magnitude which is combination of likelihood of the risk happening and the impact on the project.

• This helps the Project Manager to determine  the risk response

Step 4: Treating the Risk involves the following:

•How to respond to potential risk

•Assess your highest ranked risks

•Plan how to treat or modify to achieve acceptable risk levels.

•Mitigation strategies, preventive plans and contingency

•Avoid, accept, transfer or mitigate

Step 5: Monitor and Review the risk.

• This involves monitoring and reviewing risks continuously

• Helps to determine whether the measures put in place are still effective

• Most importantly is ensures that the project manager avoids going into a ‘fire fighting mode’

Risk response

This is the process of developing strategic options, and determining actions, to enhance opportunities and reduce threats to the project's objectives. A project team member is assigned to take responsibility for each risk response.

•Process of controlling identified risk

•Planning and decision making process

•Involves stakeholder decision on how to deal with each risk

Avoid

Risk can be avoided by removing the cause of the risk or executing the project in a different way while still aiming to achieve project objectives.  Not all risks can be avoided or eliminated, and for others, this approach may be too expensive or time‐consuming. However, this should be the first strategy considered

•This involves changing the risk strategy or plans

Mitigate

Risk mitigation reduces the probability and/or impact of an adverse risk event to an acceptable threshold. Taking early action to reduce the probability and/or impact of a risk is often more effective than trying to repair the damage after the risk has occurred. Risk mitigation may require resources or time and thus presents a trade off between doing nothing versus the cost of mitigating the risk.

Transfer

•To a third party; for example taking an insurance policy transfers risk to the insurance company, which is referred to as the third party.

Accept

• This involves the team making a decision to take the risk and agreeing to address it if and when it happens

Share

•Distributes the risk across multiple partners, teams or projects

Contingency

•Putting contingency plans in place to handle the risk if it happens

Enhance

•Response for a positive risk.

•Increase the chance of the risk occurring

Exploit

• Response for positive risk

• Creates an environment to encourage the risk to occur

a) Issues will arise throughout a project

b) Project Manager should encourage issue reporting among the team members

b) Issues are problems and should be resolved as soon as possible

Create an Issue Register

•Create a collaborative online issue register

•Increases the chances of issues being logged by the stakeholders as they occur

Logging Issues

•Project Manager to inform team members and ensure they know when, how to log issues

•Set issue logging in deadline

Assign actions

•Assign responsibility for each issue

•When to report to on the status of the issue

Monitor Issue Resolution Progress

•Are individuals following up on their action items

•Get updates on issue resolution

•Issues escalated where necessary

Assess impact

•Review long standing issues

•Define escalation time scale

Approve resolution

•Resolved issues must be signed off as done

•Obtain proof of resolution

Close the issue

• Remove resolved issues off the list.

Task dependencies:

•Links between project activities

•Defines – task depend on another

•Sequence in task execution

•Structured

Four types of task dependencies

Start-to-start:

•Both tasks start at the same time

•No overlaps

Finish-to-start:

•Default dependency

•One task ends before the other begins

Start-to-Finish

•2nd task cant finish before the first

•2nd task can start after 1st task starts

Finish-to-finish:

•2 tasks – start at different times

•Must finish at same time

a) Completing tasks/activities is critical

b) Dependencies not always clear

c) Manage dependencies – creates structure

List the Project Tasks

•Compile list of project tasks

•Collaborate with project team

•Identify tasks at hand offs

•Schedule and plan the work effectively

Define Internal Dependencies

•Identify tasks and activities – with the project environment

Define External Dependencies

•Identify links that your project with 3rd parties

•Establish good relationship with external parties

•Involve your project sponsor - for dependencies you don’t know about

Dependency Types

•Choose the right dependency type for the link you want to create between your tasks.

•Finish-to-start - most common

•For resources working in separate streams, consider start-to-start dependencies to save you time overall

Nominate Owners

•Delegate the responsibility for each dependency

•Task owners – will be the natural dependency owners

Regarding suppliers

•Allocate someone to monitor the relationship with that supplier

•Check progress on tasks

Update Your Schedule

•Enter the correct dependency information into your project schedule

When Dependencies Go Wrong

•Project delay

•Monitor dependencies regularly

•Communicate effectively with team

Dealing with Changes

•Managing dependencies isn’t a one-off activity

•Tasks added/get removed

•This will impact project plan - continue to monitor project progress and dependencies

a) Taking something for granted or supposing

b) Establish as true for the purposes of allowing us to proceed with our project work

b) Project moves forward without absolutely certain information.

1. An Assumption is, in one sense, the flip side of a risk

2. If its true , project benefits

3. If its wrong – risk – negatively impact project

4. Conduct a review

How To Manage Assumptions:

•Monitor and review regularly reviewing

•Follow up any actions, tracked

If assumption is false:

•Impact

•Probability

•Record in Risk Register

•Use the risk management process

What is a RAIDs analysis?

•Project planning technique

•Identifying key project aspects

RAID analysis focuses on four key areas:

Risks:

•Event that can impact the project negatively/positively

Assumptions:

•Things thought to contribute to project

Issues

•Things happening on the project, must be addressed current matters that need to be considered and addressed by the group.

Dependencies

•Other projects, triggers, tasks which your project depends on

• Other projects depend on the deliverables your project

Effective project management

Used to:

•Perform a broad environmental scan

•Inform regular reviews and keep the project organized and on track

•Involve in identifying critical issues

•Collate all the relevant matters affecting the project in one place

•Proactively assess changing project conditions

•Focus project efforts and resources

•Assure stakeholders

Engage with management when you need their input or support