Effectiveness of risk management plan can be measured by the number of changes in performance baselines. Saving Changes...
saurabh mahajanPMP, ITIL, PRINCE2| vodafonePune, Maharashtra, India
Agree to above posts.
Also, better presentation on effectiveness can be to show how using the risk management plan, risk was avoided/mitigated and how it helped in saving cost/hours. This will also give chance to make the plan more effective if the metrics presented are project critical. Saving Changes...
Risk metrics can be considered a key risk indicator, which help to determine the direction from where the risks are coming, so they are extremely useful in any enterprise.
Like it''s CPI and SPI counterparts, an RMI greater than 1 is a good thing, while an RMI less than 1 is not.
You can do the RMI at a global level like the whole project or even organization, or you can measure it at a more granular level, say risk category or even risk scenario. Saving Changes...
Product Operations Program ManagerBarcelona, Cataluña, Spain
Great comments so far.
I may just add that Decision Tree Risk Analysis (Expected Monetary Value) is very useful to quantify the monetary value of a specific risk. If risk response A was chosen and turned out to be the optimum choice, then its value may be compared against the least favourable option B. Saving Changes...
Hari PratapFounder| Altistech Innovations India Private LimitedHyderabad, Not In Regions Listed, India
Based on my past experiances - below are few that i came across in Data Driven IT Projects
1. Percent of business strategy objectives mapped to enterprise risk management strategy
2. Percent of business value drivers mapped to risk management value drivers
3. Number of times audit committee reviews risk management strategy.
4. Number of times board discusses risk management strategy in board meetings.
5. Number of times board reviews risk appetite of the organization.
6. Number of times CEO invites risk management teams to participate in business strategy formation and proactively identify business risks. On the negative side check out the number of times, risk functions were not invited for business strategy discussions.
7. Number of times business strategy implementation failed due to improper risk mitigation. Compare this with number of times timely intervention of risk managers resulted in faster implementation
8. Number of times improper risk mitigation delayed business strategy implementation. Judge this against number of times timely intervention of risk managers resulted in faster implementation
9. Number of times the organization received negative media coverage due to improper risk mitigation. Evaluate against number of times timely risk mitigation strategy prevented a media disaster.
10. Number of times the organization faced legal problems due to improper risk mitigation with number of times risk departments prevented legal problems
11. Number of times the actual risk level of the organization exceeded the risk appetite of the organization. Analyze this against number of times risk departments controlled risks from exceeding risk appetite of the organization.
12. Amount of financial losses incurred due to ineffective risk management. Balance this with amount of financial losses prevented due to effective risk management. Saving Changes...
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