Lightweight Risk Management

Risk Management

Anonymous

The new organization that I'm working for does no Risk Management on projects. We work in a high volume, quick turnaround environment where most projects are closed in 8 weeks or less. As a result, they have been of the opinion that Risk Management is an added cost, and that they don't have time to implement this in an efficient manner.

As you can imagine, this is something that I want to change. When projects go off the rails (as they do for about 30% of projects) I can almost always demonstrate how an effective Risk Management Plan would have prevented or reduced the cost.

I don't need help making the argument that Risk Management is necessary.

Where I could use some help is in how to implement something lightweight and quick that doesn't take a lot of time. What are some strategies I can implement with this team that is resistant to this change.

Posted: May 8, 2023 2:12 PM

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Latha Thamma reddi Sr Product and Portfolio Management (Automation Innovation)| DXC Technology Mckinney, Tx, United States

Thank You!.

Posted: May 16, 2023 1:56 PM

Miguel Figueroa ACCOUNTANT OFFICER| Bosnor Mexico

May 08, 2023 3:13 PM

Replying to Vladimir Liberzon

...

For last 25 years we use simplified but very efficient method of risk simulation that we call 3 scenarios method.
It is based on creation and analysis of optimistic, most likely and pessimistic versions of project schedule.
Look at this presentation http://www.spiderproject.com/images/img/pd...%20Analysis.pdf for more details.
In some projects we use this way of risk simulation in parallel with Monte Carlo. The results do not differ much. Though Monte Carlo simulation is recognized as most scientific and reliable method it is based on initial data of very low quality and so its advantage is questionable. In any case both methods provide similar results but three scenarios is simple and fast, Monte Carlo requires much more time and efforts.
Let me know if you will have any questions.

Hello Sir, when using 3 scenarios methods are you referring to this formula (optimistic + 4*most likely + pessimistic)/6, of there is something else and I am lost about your priceless comment. Regards

Posted: Jul 18, 2023 9:31 PM

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