Risk Management
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.