Project Management

Project Management Central

Please login or join to subscribe to this thread
Portfolio Risk Management: How to develop it?
Hello everyone! I'm defining a Portfolio Risk Management in my Company, but I'am new at the topic and I have some doubts. Anyone has done it before and can help me?
I really would like to know some example of "project portfolio metrics", only by using information in SAP System.
According to my current idea, there are two possibilities to obtain a project portfolio risk overview:
1. Doing Project Risk Management on each of the projects on portfolio (but if you have a high number of projects, it is quite difficult..)
2. Define a portfolio risks metrics and do Project Risk Management on the most "relevant projects".

My question: Example of metrics for overall portfolio risks (without making risk management on each projects?

I'm looking forward to read your answeres.
Teresa
Sort By:
Teresa -

Portfolio risk is not just the sum of the individual project or program-level risks.

I'd recommend downloading and reading PMI's Standard for Risk Management in Portfolios, Programs, and Projects (https://www.pmi.org/pmbok-guide-standards/...isk-management) as it will provide a lot of guidance on this in section 5.

Kiron
...
1 reply by Teresa Ciorciaro
Mar 05, 2020 3:44 AM
Teresa Ciorciaro
...
Hi! Thank you for your answer! I've already read the document and I have understood how a good Portfolio Management should be, but what I tried to obtain with my question are some examples, I have no so much experience and most of the time "theory" is so far from the reality I face, so "practical examples" may could help me :)
Look at http://www.spiderproject.com/images/img/pd...%20Problems.pdf
There are some ideas that can be useful.
...
1 reply by Teresa Ciorciaro
Mar 05, 2020 3:40 AM
Teresa Ciorciaro
...
Thank you! A very interesting document!
good discussion.....Teresa I am not sure degree of difficulty is justification for not doing RM on all of the projects....they must be unique in some way therefore there could be unique risks
Portfolio is not about projects at least you are talking about project portfolio. That´s is critical to understand because portfolio exceeds to project and programs and project portfolios. So, creating risks for company portfolios is an activity that must be than with enough level of abstraction to instantiate it into project portfolio risks.
Hello Teresa:

You can derive many metrics for your portfolio depending on your need. For example:

(1) Number of risky projects - a simple measure
(2) Number of cross-project risks - those risks that are capable of causing risks in other projects
(3) Depth of related risks tree - if you have (2), then you can estimate how deep a risk trigger could go

etc.

I understand that some project risks could also be portfolio level risks. But, the PM has to ensure success of each projects. Therefore, I don't think that there is a way out of risk assessment for each project within the portfolio.
Mar 04, 2020 1:57 PM
Replying to Vladimir Liberzon
...
Look at http://www.spiderproject.com/images/img/pd...%20Problems.pdf
There are some ideas that can be useful.
Thank you! A very interesting document!
Mar 04, 2020 12:06 PM
Replying to Kiron Bondale
...
Teresa -

Portfolio risk is not just the sum of the individual project or program-level risks.

I'd recommend downloading and reading PMI's Standard for Risk Management in Portfolios, Programs, and Projects (https://www.pmi.org/pmbok-guide-standards/...isk-management) as it will provide a lot of guidance on this in section 5.

Kiron
Hi! Thank you for your answer! I've already read the document and I have understood how a good Portfolio Management should be, but what I tried to obtain with my question are some examples, I have no so much experience and most of the time "theory" is so far from the reality I face, so "practical examples" may could help me :)
...
1 reply by Kiron Bondale
Mar 05, 2020 8:28 AM
Kiron Bondale
...
I'd suggest starting simple and tackling this at two levels:

1. Elevate critical risks from individual projects & programs for visibility at the portfolio level.

2. Add cross-portfolio risks such as change management risks of concurrent projects having "go lives" all around the same time, the financial impact of failure to multiple projects, and cross-business risks (i.e. projects - operations and operations - projects).

Does your company have an established enterprise risk committee? I served on one when I led the EPMO for a government agency and we had leaders from each major division who'd share the risks in their areas and I'd present the risks from our portfolio to their areas.

Kiron
Mar 05, 2020 3:44 AM
Replying to Teresa Ciorciaro
...
Hi! Thank you for your answer! I've already read the document and I have understood how a good Portfolio Management should be, but what I tried to obtain with my question are some examples, I have no so much experience and most of the time "theory" is so far from the reality I face, so "practical examples" may could help me :)
I'd suggest starting simple and tackling this at two levels:

1. Elevate critical risks from individual projects & programs for visibility at the portfolio level.

2. Add cross-portfolio risks such as change management risks of concurrent projects having "go lives" all around the same time, the financial impact of failure to multiple projects, and cross-business risks (i.e. projects - operations and operations - projects).

Does your company have an established enterprise risk committee? I served on one when I led the EPMO for a government agency and we had leaders from each major division who'd share the risks in their areas and I'd present the risks from our portfolio to their areas.

Kiron
I am developing the risk management process using Oracle Primavera Cloud (OPC). Oracle integrated Primavera Risk Analysis in this product. You can call the risk level at the portfolio level but the risk analysis is done at the project level. My approach is to create risk templates by project type to quickly and easily apply the template to the project. Only minor adjustments that are unique to a project need be made before running the analysis.
The key to developing a risk management process is that you must have enough data to identify risks, actions, probability of occurrence, cost and time impact probabilities, etc. A lot of the data can come from subject matter experts, field engineers, and project managers.

Please login or join to reply

Content ID:
ADVERTISEMENTS
ADVERTISEMENT

Sponsors