MANAGING RISK

1. MANAGING RISK ISMU KUSUMANTO JURUSAN TEKNIK INDUSTRI UIN SULTAN SYARIF KASIM RIAU

2. FILOSOFI Great deeds are usually wrought at great risk

3. Cost Risk High Low Project life cycle RISK EVENT GRAPH

4. Step 1 Risk Identification Analyze the project to identify source of risk Known risks Step 2 Risk Assessment • Assess risks in terms of : • Severity of impact • Likelihood of occurring • Controllability New risks Risks assessment Step 3 Risk response development New risks • Develop a strategy to reduce possible damage • Develop contingency plans Step 4 Risk response control Risks management plan • Implement risk strategy • Monitor & adjust plan for new risk • Change management New risks THE RISK MANAGEMENT PROCESS

5. STEP 1 : RISK IDENTIFICATION • The risk management process begins by trying to generate a list of all the plossible risks that could effect the project. • One common mistake that is made early in the risk identification process is to focus on consequences and not on the events that could produce consequences. • The focus in the beginning should be on risks that can effect the whole project as oppose to a specific section of the project or network. An effective tool for identifying specific risks is the work breakdown structure (WBS).

6. STEP 2 : RISK ASSESSMENT • The undesirable event • All the outcomes of the event’s occurrence • The magnitude or severity of the event’s impact • Change probability of the event happening • When the event might occur in the project • Interaction with other parts of this or other projects

7. STEP 3 : RISK RESPONSE DEVELOPMENT • Mitigating risks • Avoiding risks • Transferring risks • Sharing risks • Retaining risks • Technical risks • Schedule risks

8. STEP 4 : RISK RESPONSE CONTROL • Executing the risk management strategy • Monitor risks • Controlling the cost of risks is documenting responsibility • Risk management is not formalized, responsibility and responses to risk will be ignored – it is not my area

9. TERIMA KASIH