Transforming the Risk Register into Enterprise Value
Mature project management teams do a good job of identifying risks up front during the early phases of projects. Robust risk register spreadsheets and templates are often readily available to project teams. We also see project managers conducting risk register reviews during status meetings, showing that there is an ongoing focus on risks as teams move through projects.
Overall, these observations indicate that the profession is in a relatively mature state when it comes to risk management activity (given PMI’s focus on risk activity, we should expect no less).
The purpose of this article is to suggest that there is an opportunity for organizations to uncover the hidden potential of individual project risk registers and transform risk data into enterprise value. This can be done by developing a set of metrics that link the quality of the risk management process to project outcome.
This new enterprise information can be applied like any other learning that comes out of the lessons learned and post-implementation review processes. This discussion will be most relevant to mature organizations that execute many projects.
Several inputs are required to build our risk management metrics:
- risk characteristics and attributes that can be measured
- risk registers from competed projects
- ratings of completed projects
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