PRINCE2 - Management of Risk part 5
of the Cabinet Office under delegated authority from the Controller of HMSO.
Interdependencies
Risk assessment may not be straight forward. Situations can be complex. Many risk issues are a combination of many smaller problems. The way risks combine depend on these interdependencies.
[see, these aspects are covered in more detail in 'The Complete Risk Management package‘].
These interdependencies may be across other projects and different areas within a project.
There may be conflict between services that supply two projects which may not be obvious without thorough investigation.
Risk often crossed project boundaries, for example, geographical and good communication skills are vital.
Additional considerations
Internal versus external
Many risks are similar in type whether they are internal or external to the project.
It is clearly easier to influence internal risks than external.
However, both risks may be very complex and difficult to manage.
The risk management process will be the same for both.
Risk process costs
The cost of the risk management process will vary depending on the project and the complexity of the risks identified.
Typically, planners might expect to spend about 1 to 3% of their budget on initial risk management effort and an additional 2% on monitoring and updating this through the project life cycle.
Use of a checklist
OwnershipHave all parts of the complete risk process been allocated to an owner? This may apply to suppliers that will be asked to assess and evaluate risk as part of their contracts.
DefinedAre the roles and responsibilities of ownership completely defined?
AuthorityCheck that all owners have the authority to carry out their responsibilities.
CommunicationAre the various roles and responsibilities well communicated and completely understood.
Appropriate ownersAre the owners the correct ones?
Ownership reallocationCan ownership be moved to another quickly if necessary?
The Project Manager’s Daily Log will be useful to add notes concerning the progress of his or her owned risks.
At the same time notes can be made to monitor the progress of other owners.
Where a risk interdependency crosses into a programme the programme managers will take ownership of it.
If necessary, a representative of the programme management should attend a meeting to provide relevant input into the risk management process. This will usually be at an end stage review.
Risks can be common across projects. Because of this, it may be better to consider allowing their management
At the programme level. If this is the case the chances of repeating work unnecessarily will be reduced.
Also, process methods will be of a particular standard with less chance of ambiguity and confusion.
Centralised communication will help to send a consistent message.
Managing Successful Projects with PRINCE2 - 2005 edition
Managing successful Projects with PRINCE2 – 2009 edition
Directing Projects with PRINCE2.
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The Complete Project Management package.
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