Risk Management - Unit 1 Lesson 4

Risk Management UNIT1 BUSINESS LEADERSHIP & PROJECT MANAGEMENT LESSON4 What are risks Potential events or conditions can have a negative effect on a project's objectives. Typically revolve around scope, time, cost, and quality. technical challenges resource constraints stakeholder conflicts e...

Risk Management UNIT1 BUSINESS LEADERSHIP & PROJECT MANAGEMENT LESSON4 What are risks Potential events or conditions can have a negative effect on a project's objectives. Typically revolve around scope, time, cost, and quality. technical challenges resource constraints stakeholder conflicts environmental factors regulatory changes Impact of risks Can be positive and negative Positive: opportunity Technology currently being developed that will save you time if released Negative: threats Lack of an action plan to deal with budget overspending A technology project that fails to account for rapid changes in software development tools may be outdated before launch  1.Identifying the risks Brainstorming Sessions Gather the project team and stakeholders to brainstorm possible risks. Expert Interviews Consult with industry experts or individuals with extensive experience in similar projects. SWOT Analysis Evaluate the project’s strengths, weaknesses, opportunities, and threats. Historical Data Analysis Identifying the risks Technical Risks Systems or applications may fail because of bugs and hackers!!! Leading to downtime or loss of functionality Resource Risks No labor, no money, no place to run the project Stakeholder Risks One wants profit one wants ethics External Risks Policy adverse to project, strict regulation, natural disasters 2.Assess the risks Qualitative Assessment: categorize risks based on their severity (low, medium, high) probability of occurrence relies on the expertise and judgment of the project team Quantitative Assessment: numerical techniques to measure risk impact and probability Monte Carlo simulation  3.Mitigate the risks Avoidance Change the project plan to eliminate the risk E.g. chose a proven technology rather than an experimental one can avoid technical failures. Transfer Shift the risk to a third party E.g. through insurance or outsourcing specific project components Mitigation Implement actions to reduce the impact or likelihood of the risk. E.g. through regular quality checks, monitoring, supervising Acceptance preparing contingency plans to manage the risk if it occurs Edpuzzle: Risk Management Case study: Healthcare.gov Read the article about healthcare.gov launching failure, complete the worksheet We will discuss it as a whole class Google question After watching the video, please go to google classroom and respond to one of the three questions. In addition, leave a comment to your peers’ response, whether you agree or disagree with their thoughts, why? 1. How could the government have better anticipated and mitigated the risks associated with launching a complex system like Healthcare.gov? 2. Discuss potential risk management strategies that could have been employed. 3. Considering the political implications of the Healthcare.gov launch, how might project risk management strategies need to account for both technical and political risks in high-profile government projects?