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Risk Management

B2

Establish an approach to identify and manage project-related risks.

Improvement Planning

Practices-Outcomes-Metrics (POM)

Representative POMs are described for Risk Management at each level of maturity.

2Basic
  • Practice
    Develop processes to identify project risks.
    Outcome
    The risk to the programme introduced by programme components is identified.
    Metrics
    • The number of unidentified risk events impacting projects.
    • The number of identified risks impacting projects.
    • Impact of risk events on projects (may be expressed as person days lost, schedule slippage, cost, and so forth).
  • Practice
    Develop processes and procedures to manage identified project risks.
    Outcome
    The management of project risk improves.
    Metrics
    • The number of unidentified risk events impacting projects.
    • The number of identified risks impacting projects.
    • Impact of risk events on projects (may be expressed as person days lost, schedule slippage, cost, and so forth).
3Intermediate
  • Practice
    Ensure both positive and negative risks are identified and managed.
    Outcome
    Risk management addresses the minimization of potentially negative risks and the maximization of potentially positive risks.
    Metrics
    • The number of unidentified risk events impacting projects.
    • The number of identified risks impacting projects.
    • Impact of risk events on projects (may be expressed as person days lost, schedule slippage, cost, and so forth).
  • Practice
    Communicate and promote the use of project risk management-related processes.
    Outcomes
    • Stakeholder assistance in identifying and managing project risk is enhanced.
    • Risk communication is simplified — this is particularly important where multiple companies are delivering the projects.
    Metrics
    • The number and percentage of projects using standard risk notation.
    • The number and percentage of risks documented using standard notation.
4Advanced
  • Practice
    Analyse risks as potentially emerging from multiple sources and as having multiple (differing) impacts on programme components.
    Outcomes
    • Project risk management is more comprehensive and effective.
    • Unforeseen risks are less likely.
    Metric
    Stakeholder group view of risk metrics e.g. the number of risks identified, managed, accepted, and the impact of risk events when they occur.
  • Practices
    • Consider cyclical criteria when identifying and managing project risks.
    • Leverage and enhance the project management information system (PMIS) to support on-going improvements.
    Outcome
    Many risks are cyclical (e.g. flooding, storms, etc.) and learning from the past enhances risk management approaches.
    Metrics
    • The number of cyclical concepts e.g. weather, seasons, rush-hour traffic, operations schedules, or other cyclical matters that may be relevant.
    • Number and percentage of risks highlighted at the start versus actual risks detected over the course of the project.
5Optimized
  • Practice
    Analyse risk and potential risk event impacts from multiple stakeholder perspectives.
    Outcomes
    • Better managed communications.
    • Some risk events can be beneficial to some stakeholders while negatively impacting others.
    • The rationale for decisions needs to be communicated sensitively.
    Metric
    Stakeholder group filters that can be applied to project risk metrics.
  • Practices
    • Execute a programme of continuous improvement around project risk management.
    • This should leverage best-known industry practice, research findings, and the advice of programme management tools vendors.
    Outcome
    Project risk management uses best-known industry practices.
    Metric
    The number of project risk management innovations.