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IT P roject Risk Management Ali Taşarkan 125301

IT P roject Risk Management Ali Taşarkan 125301. IT P roject Risk M anagement. Organizations have been practicing risk assessment and risk management since the 17th Century.Yet , most companies do not formalize their risk management plan.

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IT P roject Risk Management Ali Taşarkan 125301

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  1. IT Project Risk ManagementAli Taşarkan 125301

  2. IT Project Risk Management Organizations have been practicing risk assessment and risk management since the 17th Century.Yet, most companies do not formalize their risk management plan. The benefits of risk management in projects are huge. You can gain a lot of moneyifyoudealwithuncertainprojectevents in a proactivemanner. Theresultwill be thatyouminimisetheimpact of projectthreatsandseizetheopportunitiesthatoccur. Thisallowsyouto deliver yourproject on time, on budgetandwiththequalityresultsyourproject sponsor demands. Alsoyourteammemberswill be muchhappierifthey do not enter a "fire fighting" modeneededtorepairthefailuresthatcouldhavebeenprevented.

  3. Make Risk Management Part of Your Project Thefirstrule is essentialtothesuccess of project risk management. Ifyoudon'ttrulyembed risk management in yourproject, you can not reapthefullbenefits of thisapproach. You can encounter a number of faultyapproaches in companies. Someprojectsusenoapproachwhatsoeverto risk management. Theyareeitherignorant, runningtheirfirstprojectortheyaresomehowconfidentthatnoriskswilloccur in theirproject (which of coursewillhappen).

  4. Make Risk Management Part of Your Project Professional companies make risk management part of their day to day operations and include it in project meetings and the training of staff.

  5. IdentifyRisksEarly in Your Project Thefirst step in project risk management is toidentifytherisksthatarepresent in yourproject. Thisrequires an openmind set thatfocuses on futurescenariosthatmayoccur. Two main sourcesexisttoidentifyrisks, peopleandpaper. People areyourteammembersthateachbringalongtheirpersonalexperiencesandexpertise. Otherpeopleto talk toareexpertsoutsideyourprojectthathave a trackrecordwiththetype of projectorworkyouarefacing. They can revealsomeboobytrapsyouwillencounterorsome golden opportunitiesthatmay not havecrossedyourmind.

  6. IdentifyRisksEarly in Your Project Interviewsandteamsessions (risk brainstorming) arethecommonmethodstodiscovertheriskspeopleknow. Paper is a differentstory. Projectstendtogenerate a significantnumber of (electronic) documentsthatcontainprojectrisks. Theymay not alwayshavethat name, but someonewhoreadscarefully (betweenthelines) willfindthem. Theproject plan, businesscaseandresourceplanningaregoodstarters. Anothercategoriesareoldprojectplans, yourcompany Intranet andspecialisedwebsites.

  7. CommunicateAboutRisks Failedprojectsshowthatprojectmanagers in suchprojectswerefrequentlyunaware of thebighammerthatwasaboutto hit them. Thefrighteningfindingwasthatfrequentlysomeone of theprojectorganisationactuallydidseethathammer, but didn'tinformtheprojectmanager of itsexistence. Ifyoudon'twantthistohappen in yourproject, youbetter pay attentionto risk communication.

  8. CommunicateAboutRisks A goodapproach is toconsistentlyinclude risk communication in thetasksyoucarryout. Ifyouhave a teammeeting, makeprojectriskspart of thedefaultagenda (and not the final item on thelist!). Thisshowsrisksareimportanttotheprojectmanagerandgivesteammembers a "natural moment" todiscussthemandreportnewones.

  9. CommunicateAboutRisks Anotherimportantline of communication is that of theprojectmanagerandproject sponsor orprincipal. Focus your communication efforts on the big risks here and make sure you don't surprise the boss or the customer. Also take care that the sponsor makes decisions on the top risks, because usually some of them exceed the mandate of the project manager.

  10. ConsiderBothThreatsandOpportunities Project riskshave a negativeconnotation: theyarethe "badguys" that can harmyourproject. However modern risk approachesalsofocus on positiverisks, theprojectopportunities. Thesearetheuncertaineventsthatbeneficialtoyourprojectandorganisation. These "goodguys" makeyourprojectfaster, betterandmoreprofitable.

  11. ConsiderBothThreatsandOpportunities Unfortunately, lots of projectteamsstruggletocrossthefinishline, beingoverloadedwithworkthatneedsto be done quickly. Thiscreatesprojectdynamicswhereonlynegativerisksmatter (iftheteamconsidersanyrisks at all). Make sure youcreatesome time todealwiththeopportunities in yourproject, evenif it is onlyhalf an hour. Chancesarethatyousee a couple of opportunitieswith a high pay-offthatdon'trequire a biginvestment in time orresources.

  12. ClarifyOwnershipIssues Someprojectmanagersthinktheyare done oncetheyhavecreated a listwithrisks. Howeverthis is only a startingpoint. The next step is to make clear who is responsible for what risk. Someone has tofeeltheheatif a risk is not takencare of properly. Thetrick is simple: assign a risk ownerforeach risk thatyouhavefound. The risk owner is theperson in yourteamthat has theresponsibilitytooptimisethis risk fortheproject. Theeffectsarereallypositive. At firstpeopleusuallyfeeluncomfortablethattheyareactuallyresponsibleforcertainrisks, but as time passestheywillactandcarryouttaskstodecreasethreatsandenhanceopportunities.

  13. ClarifyOwnershipIssues Ownershipalsoexists on anotherlevel. If a projectthreatoccurs, someone has to pay thebill. Thissoundslogical, but it is an issueyouhavetoaddressbefore a risk occurs. Especiallyifdifferentbusinessunits, departmentsandsuppliersareinvolved in yourproject, it becomesimportantwhobearstheconsequencesand has toempty his wallet. An importantsideeffect of clarifyingtheownership of risk effects, is thatlinemanagers start to pay attentionto a project, especiallywhen a lot of money is at stake. The ownership issue is equally important with project opportunities.

  14. PrioritiseRisks Some risks have a higher impact than others. Therefore, youbetterspendyour time on therisksthat can causethebiggestlossesandgains. Checkifyouhaveanyshowstoppers in yourprojectthatcouldderailyourproject. Ifso, theseareyournumber 1 priority. Theotherrisks can be prioritised on gut feelingor, moreobjectively, on a set of criteria. Thecriteriamostprojectteamsuse is toconsidertheeffects of a risk andthelikelihoodthat it willoccur. Whateverprioritisationmeasureyouuse, use it consistentlyandfocus on thebigrisks.

  15. AnalyseRisks Understandingthenature of a risk is a preconditionfor a goodresponse. Thereforetakesome time tohave a closerlook at individualrisksanddon'tjumptoconclusionswithoutknowingwhat a risk is about.

  16. AnalyseRisks Risk analysisoccurs at differentlevels. Ifyouwanttounderstand a risk at an individuallevel it is mostfruitfultothinkabouttheeffectsthat it has andthecausesthat can make it happen. Looking at theeffects, you can describewhateffectstakeplaceimmediatelyafter a risk occursandwhateffectshappen as a result of theprimaryeffectsorbecause time elapses. A moredetailedanalysismayshowtheorder of magnitudeeffect in a certaineffectcategorylikecosts, lead time orproductquality. Anotherangletolook at risks, is tofocus on theeventsthatprecede a risk occurrence, the risk causes. Listthedifferentcausesandthecircumstancesthatdecreaseorincreasethelikelihood.

  17. AnalyseRisks Another level of risk analysis is investigate the entire project. Eachprojectmanagerneedstoanswertheusualquestionsaboutthe total budgetneededorthedatetheprojectwillfinish. Ifyoutakerisksintoaccount, you can do a simulationtoshowyourproject sponsor how likely it is thatyoufinish on a givendateorwithin a certain time frame. A similarexercise can be done forprojectcosts. The information you gather in a risk analysis will provide valuable insights in your project and the necessary input to find effective responses to optimise the risks.

  18. Plan andImplement Risk Responses Implementing a risk response is theactivitythatactuallyaddsvaluetoyourproject. Youprevent a threatoccurringorminimisenegativeeffects. Execution is key here. Theotherruleshavehelpedyoutomap, prioritiseandunderstandrisks. Thiswillhelpyoutomake a sound risk response plan thatfocuses on thebigwins.

  19. Plan andImplement Risk Responses Ifyoudealwiththreatsyoubasicallyhavethreeoptions, risk avoidance, risk minimisationand risk acceptance. Avoidingrisksmeansyouorganiseyourproject in such a waythatyoudon'tencounter a risk anymore. Thiscouldmeanchangingsupplieroradopting a differenttechnologyor, ifyoudealwith a fatal risk, terminating a project. Spendingmoremoney on a doomedproject is a badinvestment.

  20. Plan andImplement Risk Responses The biggest category of responses are the ones to minimise risks. You can trytoprevent a risk occurringbyinfluencingthecausesordecreasingthenegativeeffectsthatcouldresult. Ifyouhavecarriedout risk analysisyouwillhaveplenty of opportunitiestoinfluence it. A final response is toaccept a risk. This is a goodchoiceiftheeffects on theprojectare minimal orthepossibilitiestoinfluence it proveto be verydifficult, time consumingorrelativelyexpensive. Justmake sure that it is a consciouschoicetoaccept a certainrisk.

  21. Register Project Risks This is about bookkeeping. Maintaining a risk log enables you to view progress and make sure that you won't forget a risk. It is also a perfectcommunicationtoolthatinformsyourteammembersandstakeholderswhat is going on.

  22. Register Project Risks A good risk logcontainsrisksdescriptions, clarifiesownershipissuesandenablesyoutocarryoursomebasicanalyseswithregardtocausesandeffects. Mostprojectmanagersaren'treallyfond of administrativetasks, but doingyourbookkeepingwithregardstoriskspaysoff, especiallyifthenumber of risks is large. Someprojectmanagersdon'twanttorecordrisks, becausetheyfeelthismakes it easiertoblamethem in casethingsgowrong. Howeverthereverse is true. Ifyourecordprojectrisksandtheeffectiveresponsesyouhaveimplemented, youcreate a trackrecordthatnoone can deny. Evenif a risk happensthatderailstheproject. Doingprojects is takingrisks.

  23. TrackRisksandAssociatedTasks The risk register you have created as a result of registering Project Risks, will help you to track risks and their associated tasks. Tracking tasks is a day-to-day job for each project manager. Integrating risk tasks into that daily routine is the easiest solution. Risk tasks may be carried out to identify or analyse risks or to generate, select and implement responses. Tracking risks differs from tracking tasks. It focuses on the current situation of risks. Which risks are more likely to happen? Has the relative importance of risks changed? Answering this questions will help to pay attention to the risks that matter most for your project value.

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