This requires establishing why a project is underway, its value, and how buy-in from the organisation and sponsors will be obtained (PMI 2021). The project initiation phase is the start of the project. Let’s look into the different risk management processes across the project life cycle. Each activity associated with risk management requires interactions with stakeholders, considering internal and external contexts, the effectiveness of treatments and the overarching completeness of the identification process. The ISO 31000 is an iterative process which helps the project team establish strategies and informed decision-making for risk (ISO 2018). This is the assurance process which determines the improvement of quality and effectiveness in the design, implementation and outcomes (ISO 2018).Iterative reviews of risk management processes help determine if the treatments that are used in response to risk are effective or not. It includes determining risk treatment options, implementing the treatment, reviewing effectiveness, determining if the remaining levels of risk are acceptable and, where necessary, taking further action (ISO 2018). This requires selecting and implementing options to address different risks. This can lead to a decision to transfer, avoid, treat/mitigate, approve, or reject. It involves comparing the results of the risk analysis process to the pre-defined risk criteria which outlines when further action is required (ISO 2018). This process is used to support decision-making. A risk can have numerous causes and consequences and affect multiple objectives or goals. A key consideration is the risk exposure, which is the risk likelihood and consequence levels. This involves considering risks generally, their sources, consequences, likelihood, triggers, contingencies, controls and control effectiveness. This is a comprehensive analysis of risk, based on its characteristics (ISO 2018). The project team should use a wide range of techniques to identify risks which affect one or more objectives. This is the process of finding, recognising and describing potential risks which can support or threaten a project achieving its objectives (ISO 2018). It should be based on the most recent information and supported by further research as required. Risk assessment needs to be systematic, iterative and collaborative, using the stakeholders’ knowledge. This is the process of identifying, analysing and evaluating risk. Context within the risk management process needs to be established by developing an understanding of the internal and external environment in which the organisation operates (ISO 2018). Both internal and external stakeholders need to be part of the steps within the risk management process. Collaboration between stakeholders will assist in obtaining factual, timely, relevant, accurate and understandable information. This process seeks to promote awareness and understanding of risks, using consultation to obtain feedback to inform decision-making. This step assists the project team and stakeholders to understand the risk (ISO 2018). The process for the ISO 31000 (ISO 2018) is outlined below. ISO 31000 – authors’ interpretation based on the ISO 2018 source, by Carmen Reaiche, Samantha Papavasiliou and Frank Anglani, licensed under CC BY (Attribution) 4.0 The ISO 31000 is outlined in Figure 3.įigure 3. The ISO 31000 considers that all organisations face numerous internal and external factors and influences which add uncertainty to achieving objectives (ISO 2018). The most common approach to managing risks is using the International Organization for Standardization (ISO) 31000 approach (ISO 2018). Therefore, risk management requires taking an informed approach to understanding a project’s risk appetite. Risk management within a project is a process of identifying any potential risks prior to project commencement and creating a plan to mitigate risks and/or prevent them from occurring. Project risk management occurs throughout the life cycle and the process differs depending on the phase. The project life cycle commonly consists of 5 key phases: initiation, planning, execution, monitoring and controlling, and closure/handover.
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