Chapter 17 - PRMS Objectives

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is a critical first task in PRMS implementation?

Establishing consistent and reliable PRM processes

Raising risk awareness in the organisation

Improving PRM performance

Finding a champion in the organisation (correct)

What is one of the objectives for the PRMS implementation?

To enhance customer relationship management

To streamline financial reporting processes

To optimize supply chain operations

To systematise risk management for all projects (correct)

What is a key consideration in PRMS planning?

Assessing employee satisfaction

Evaluating marketing strategies

Implementing new technological tools

Determining system requirements (correct)

What further information might be needed if the PRMS objectives do not fully encapsulate the system requirements?

Answers to further questions about project risk management Signup and view all the answers

What should be established to comply with international standards for risk management?

A PRMS Signup and view all the answers

What is a key aspect to consider when determining formal risk management for projects?

Which projects clearly require formal risk management Signup and view all the answers

What is important to assess regarding informal PRM activity in the organization?

How effective it is Signup and view all the answers

What should be done to fill the obvious gaps in the organization's current risk management practice?

Determine how the gaps could be filled Signup and view all the answers

Who should be involved in establishing the PRMS?

Those with sufficient authority to drive it through to operational readiness Signup and view all the answers

What is the initial focus of PRMS planning?

Determining the system requirements Signup and view all the answers

What does the text suggest about the secrecy associated with competitive advantage in business?

It hinders the sharing of information, even if it could be mutually beneficial in the long term Signup and view all the answers

What are some signs of decay to look for in system performance reviews?

Neglect of project context establishment and rote activity in risk identification Signup and view all the answers

What is the suggested review frequency for a Level 3 organization in the PRMS Performance Review and Improvement Cycle?

Every three to four years Signup and view all the answers

Why is external benchmarking considered more robust than internal benchmarking?

It provides insights from outside the organization, offering diverse perspectives Signup and view all the answers

What does the text suggest about risk knowledge capture in the context of system decay?

It is either not carried out at all or not done thoroughly Signup and view all the answers

What is the suggested maximum interval between PRMS performance reviews according to the text?

Five years Signup and view all the answers

What are some indicators of system decay in risk monitoring and control procedures?

Planned risk monitoring and control procedures are not carried out diligently Signup and view all the answers

What does the text suggest about the content of the organizational risk register in the context of system decay?

It is stagnant in terms of content or knowledge mining activity Signup and view all the answers

What is the suggested review frequency for a Level 4 organization in the PRMS Performance Review and Improvement Cycle?

Once every four to five years Signup and view all the answers

What does the text imply about the impact of contextual risk drivers in system decay?

Indifference to the significant influence of contextual risk drivers contributes to system decay Signup and view all the answers

What does Level 3 (Growing) in PRM maturity involve?

Establishment of a risk management department within the organization Signup and view all the answers

What is the advantage of in-house project teams in system building for PRMS?

Intimate knowledge of the organization and its risk culture Signup and view all the answers

What does component testing involve in PRMS system building?

Individually testing each link in the PRMS chain of processes Signup and view all the answers

What is the recommended approach for PRMS trials?

Following a cycle, examining stages in pairs and culminating in a full system trial Signup and view all the answers

What is the requirement for PRMS implementation according to the text?

Starting with a low-key roll-out on selected live projects Signup and view all the answers

How is PRMS performance review conducted?

Relies on staff feedback and subjective opinion Signup and view all the answers

What is the primary focus of Level 1 (Mostly Unaware) in PRM maturity?

Sporadic, reactive, ad hoc, and inconsistent risk management Signup and view all the answers

What does Level 4 (Maturing) in PRM maturity indicate?

Radical changes in managing both project and general organizational risks Signup and view all the answers

What is the involvement of system building tasks for PRMS?

Establishing preferences, creating checklists, adapting management tools, and clarifying analysis justifications Signup and view all the answers

What is required for PRMS system building according to the text?

Project leaders, champions, and potential specialist help Signup and view all the answers

Study Notes

Project Risk Management System (PRMS) Maturity and Implementation

PRM maturity can be categorized into four levels: Mostly unaware, Starting, Growing, and Maturing.
Level 1 (Mostly Unaware) signifies sporadic, reactive, ad hoc, and inconsistent risk management.
Level 2 (Starting) occurs when an organization recognizes the need for a more formal risk management approach.
Level 3 (Growing) involves the establishment of a risk management department within the organization.
Level 4 (Maturing) indicates radical changes in managing both project and general organizational risks.
System building for PRMS requires project leaders, champions, and potential specialist help.
In-house project teams offer the advantage of intimate knowledge of the organization and its risk culture.
System building tasks involve establishing preferences, creating checklists, adapting management tools, and clarifying analysis justifications.
Component testing involves individually testing each link in the PRMS chain of processes.
PRMS trials should follow a cycle, examining stages in pairs and culminating in a full system trial.
PRMS implementation should start with a low-key roll-out on selected live projects and may require emergency rostering and out-of-work-hours communication.
PRMS performance review relies on staff feedback and subjective opinion, while internal benchmarking observes the system's performance across projects.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge of Project Risk Management System (PRMS) Maturity and Implementation with this quiz. Explore the four levels of PRM maturity and the steps involved in building and implementing a PRMS. Evaluate your understanding of system building tasks, component testing, trials, implementation strategies, and performance review processes.