Are there any stats showing the typical loss (in terms of money and/or time) on projects not implementing risk management? Are there any data showing savings (in terms of money and/or time) on projects implemented risk management?
In other words I wonder if I would spend 20% more budget while not dealing with risk management, how much of those 20% I would save if I manage risks? Saving Changes...
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Patrick QuirkManaging Partner| FOQUS Partners LLCLexington, Ky, United States
PMI tweeted this today. It isn't the exact stat you are seeking, but I thought you might find a way to use it:
83% of high-performing orgs report frequent use of #riskmanagement practices. Learn more: http://ow.ly/OruCR #PMIpulse #pmot Saving Changes...
Rogerio SantosDirector| .: RIZ | iko Software :.Rio De Janeiro, Rj, Brazil
It is NOT a single question, there is no cake recipe. You have to: a) define risk threshold (lose boundaries); b) identify risks; c) prioritize identified; d) estimate from quantitative analysys techniques 'how much money will be lost if risk event occurs"; e) estimate "how much money to avoid, mitigate or transfer it"; f) compare cost of reacting against thresholds; and finally show to your sponsors that they will save money by following your (avoid / mitigate / transfer) recomendation. Saving Changes...
Thanks Patrick and Rogerio! What I am looking for is some general basis to approve the need of risk management in terms of complex systematic approach. For a large company it's not enough to have some PMs using risk management the way they believe it right. Instead a serious and smart system of risk management should be introduced and integrated with other registering and accounting systems.
So once the question arises in such a manner the company owners want to know what are the benefits in regard to expenses for passively happening risks.
It's obvious that risk prevention is cheaper than acceptance, but I need some stats to financially assess the whole approach. Saving Changes...
Rogerio SantosDirector| .: RIZ | iko Software :.Rio De Janeiro, Rj, Brazil
From pmsurvey.org, for free, we can figure out that 43% of project issues arise from lack of Risk Management; only 19% of organizations don't manager risks and more. I recommend you. Sorry for misunderstanding your request. Saving Changes...
