Kaizen Rules of Project Risk Management

KAIZEN RULES OF

PROJECT RISK MANAGEMENT

www.anwara.net from ideas of Bart Jutte

RULES OF RISK

RISK METRICS

No return without risk

Fully understand

risk

Risk is managed by

people

Question any assumptions

Discuss Risks openly

Diversify for consistency

Show discipline

Be approximatel

y right

Considering risk and return

DEAL WITH UNCERTAINTY

RISK MANAGEMENT

Deal with uncertaint

y

Minimize impact & likelihood

Seize opportunitie

s

On time completio

n

On budget

completion

Good performan

ce

Happy project sponsor

Happy project team

Makes a lot of

money

NOTHING WILL GO WRONG ...

1. RISK MANAGEMENT PLAN

Nothing will go wrong ...

We have vast experience

WHAT RISKS?Something is

not right! What to do?

ANYTHING CAN

HAPPENS

2. IDENTIFY RISKS

Experiences,

experties

Similar projects,

old projects

Brain-storming

Newspaper, blogs, books,

magazines

Project plan,

resource planning

Can we anticipate

?

3. COMMUNICATE RISKS

Do not be too

confident

Allow for pessimistic

view

Put risk as agenda

number 4

Appreciate the

messenger

Don’t surprise the

Bosses

Ask Project

Sponsor to make

BIG decision

UNCERTAINTIES MAY BE GOOD

4. THREATS & OPPORTUNITIES

Bad ‘uncertainties’

Overloaded

No time ...

Only the bad matters

Good ‘uncertainties’

Completed faster

Completed better

Make more money

WHO IS RESPONSIBLE?

5. OWNERSHIP

List of Risks

Who is responsible?

Who bear the cost?

Who take credit for success?

Optimise Risk

Reduce Likelihood &

Impact

Improve Control

Suggest alternate

WHICH ONE!

6. PRIORITIZE

Treat all risks equally?

What are the best possible results?

Some risks have higher impact and

probability

Be consistent

What may be on ‘critical path’

Risk Parameter

Gut feeling

Criteria

DON’T JUMP INTO CONCLUSIONS

7. ANALYSE

Understand risk

Don’t jump into conclusions

What a risk is all about

Think of effects and causes

Respond

Immediately, over time or

consequences

Effect to time, cost or quality?

What Cause precede an Effect

7. RISK RESPONSE

Activity which adds value

Prevent threat

Minimize negative effect

Take advantage of BIG opportunities

Focus on BIG wins

Avoid > Supplier, contractor, technology

Minimise > Analyse Likelihood and

ImpactAccept > Difficult, Time consuming,

Expensive

DESCRIBE A RISK

8. RISK REGISTER

Book Keeping and Log

View progress, tract record

So we won’t forget

So we won’t be blame

A Good Log

Risk description

Clarify risk owner, cause and effect

A communication tool

10. RISK TRACKING

Track risks

Changes in circumstances

Control still effective?Status of

mitigation plan, tasks and activities

Risk tasks

Review list of risks and analysis

Which risks are critical and likely

to happen

Generate, select and response

RISK

OPPORTUNITIES

KAI ZEN

Prepare for the worst• To change, to renew

Pray for the best• through habitual work

www.anwara.net