course | Managing Opportunity and Project Risk

Introduction
 

• The state of project risk and opportunity management today
• Evidence of the value of risk and opportunity management
   

Risk and Opportunity Concepts and Terms
 

• What is project risk management?
• What is project opportunity management?
• What is project risk and opportunity management?
• Discuss and capture current perceptions of and relationships between key risk terms
• Important risk definitions and concepts- success criterion (objective), threat, vulnerability, risk, and opportunity
• Perspectives on types and characteristics of risk
• Risk to whom? Considering project stakeholders
• Decomposing threats and risks
• Threat and vulnerability identification
• Risk-threat relationship
• Using countermeasures on threats to reduce risk
• Risk-opportunity relationships
• Risk and opportunity identification
• Other risk and opportunity-related definitions and concepts
   

Projects and Risk
 

• The reality of project performance
• Initiatives to improve project outcomes:
• Project Management Practice Guides, e.g., Project Management Body of Knowledge (PMBOK)
• Project Management Methodologies, e.g,. Projects IN Controlled Environments (PRINCE2)
• Systems Engineering
• Lean
• Agile
• Why Risk and Opportunity Management
• When to apply project risk and opportunity management
• Risk and risk management basics
• Styles of development, related to risk
• Do’s and don’ts leading to potential sources of risk
• Workshop 2-3: Principles of risk and opportunity management
• Exercise - how could the content shared in this chapter have helped you on your own project

Risk Management Standards, Guides, Frameworks, and Process Models

• International Standardization Organization (ISO)/Draft International Standard (DIS) 31000:2017- Risk Management
• ISO/International Electrotechnical Commission (IEC)/Institution of Electrical and Electronic Engineers (IEEE) 16085 Systems and software engineering -- Life cycle processes -- Risk management
• Project Management Institute (PMI) Practice Standard for Project Risk Management
• ISO/IEC 21500 Project Management Methodologies
• PRINCE2 Risk Management Methodology
• Other General Project Risk Management Frameworks
• A general project risk management framework (BSBPMG415) - Apply project risk management techniques (Australia)
• Domain-Specific Risk Management Standards
• ISO/IEC 27005:2008 on Information security risk management
• Central Computer and Telecommunications Agency (CCTA) Risk Analysis and Management Method
• (CRAMM)
• ISO 14971:2007 (EN) Application of Risk Management to Medical Devices
• Exercise - how could the content shared in this chapter help you on your own project

Risk and Opportunity Management Process Model

• Recommended risk management process model, and why
• Perspectives in system acquisition
• Acquirer application to the system life cycle
• Supplier application to the system life cycle
• Developer application to the system life cycle
• Exercise: Could the use of a good risk management process have improved your own experience of risk on your project?

Success Criteria (Objectives) Analysis
 

• Overview of success criteria analysis and their valuation
• No value - no risk!
• Outcome valuation methodologies: Cost, Project, and System Effectiveness Measures, Identifying project success criteria
• Valuing project success criteria (objectives)
• Workshop 5-1: Developing a simple system effectiveness model
• Software support for success criteria valuation
• Workshop 5-2: Developing compromise impact values
• Exercise: Did you consider risk on your project with respect to valued outcomes? If not, how would such consideration have changed your perception of the risk?
   

Risk Identification and Analysis Techniques

• Risk indicators
• Indicators of risk due to management
• indicators of risk due to requirements
• indicators of risk due to technology
• indicators of risk due to complexity
• indicators of risk due to a lack of competencies
• Risk identification and analysis overview
• Top-level risk matrix
• Workshop 6-1: Development of a risk matrix
• Expert interviews
• Industry Knowledge Base - Analogy comparison/lesson learned studies
• Technology readiness levels
• Estimating risk due to complexity
• Plan evaluation
• Transition templates
• Decision-event tree analysis
• Workshop 6-2: Construction of an Expected Monetary Value (EMV) decision tree
• Estimating relationship
• Network analysis
• Life cycle cost analysis
• Workshop 6-3: Review of LCC input & Monte Carlo analysis

Risk Identification and Analysis Techniques
 

• Cost risk/WBS simulation model
• Risk factors technique
• Workshop 6-4: Use of the risk factors technique
• Performance tracking
• Independent project assessment
• Independent cost estimating
• Earned Value Methodology
• Qualitative techniques for technology risk analysis - SDIO Method
• Workshop 6-5: Application of the SDIO method
• Other risk identification and analysis techniques
• Assumptions & Constraints Analysis
• Cause and Effect (Ishikawa) Diagrams
• Check Lists
• Critical Chain Project Management
• Schedule Compliance Risk Assessment Methodology (SCRAM)
• Failure Modes and Effects Analysis (FMEA)/Fault Tree Analysis/Event Tree Analysis
• Force Field Analysis
• Probability and Impact Matrix (PI-Matrix)
• Risk Workshops
• Root-Cause Analysis
• Strengths, Weaknesses/Limitations, Opportunities, and Threats (SWOT) Analysis
• System Dynamics/Influence Diagrams
• Variance and Trend Analysis
• Exercise: Which of these risk identification and analysis techniques would have been applicable to your projects? How would the use of such techniques have improved the success of your projects?
• Software support for risk identification and analysis

Risk Evaluation Techniques
 

• Evaluation of risk against established risk acceptability criteria

Risk and Opportunity Handling
 

• Risk handling planning
• Risk handling techniques
• Risk handling plans (RHPs)
• Integration of risk handling planning with overall planning – e.g., the Project Plan (PP), Systems Engineering Management Plan (SEMP), Software Development Plan (SDP), etc.
• Risk handling in a concept phase
• Risk-driven development strategies
• System development methodologies and risk
• Acquirer assurance measures
• Supplier assurance measures
• Risk handling in a detailed design phase
• Methodologies
• Aspects of risk handling special to software development
• Risk handling in production & deployment phases
• Typical risk areas
• Risk handling in operation & support (in-use) phase
• Risk introduced in the operation
• Risk introduced in support
• Risk handling in the disposal phase
• Risk handling checklists
• Purchasing guidelines and risk
• Workshop 8-1: Use of risk handling strategies
• Putting the RHPs into effect
• Software support to risk handling
• Exercise: Did you identify appropriate risk handling measures on your project? How would the use of such techniques have improved the success of your project?

Risk and Opportunity Management Planning

• Enterprise policies
• Risk and opportunity management within acquisition program planning
• Risk and opportunity management within system/product development planning
• Discrete risk management program planning
• Discrete risk planning of risk handling