How do we align the two? Are the risk tolerance and impact ratings similar in a project setting as opposed to the overall corporate risk management ratings and tolerance levels?? Saving Changes...
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Thomas WalentaGlobal Project Economy ExpertHackenheim, Germany
I do not think so.
The process used may be similar, but clearly objectives are different between project and organizational level, and hence the impact will be measured differently (a risk meaning to cost 10K more in a 100K project might be considered high, but neglectable on organization level).
Another view is that risk appetite will be different, as a project normally wants to deliver in time and budget while a business needs to take (calculated) risks or it is stagnant. Saving Changes...
Sergio Luis ConteHelping to create solutions for everyone| Worldwide based OrganizationsBuenos Aires, Argentina
Corporate Risk Management is hugh item that must be defined at strategical level. From that projects are started to implement the corporate strategy around risk. On the other side, each initiative you start have to take into account the corporate risk strategy. So, what you stated is possible but not in all items. For example, estimation and thersholds relating to cost and time are usually aligned with the corporate risk. Saving Changes...
In the word of medical device we place the safety of the consumer above all else and this drives our risk management strategies and aligns project and corporate risk processes, regardless of the tools or systems that are used to assess, manage and mitigate.
I have used a FMEA tool that incorporates both Project/technical and business/corporate risks. I am sure there are many other kinds of risk tools that do the same. The type and level of risk must be well defined and the ratings meaningful.
I truly believe that The overarching objective and/or mission of the corporation will align any kind of risk management such as project and corporation, regardless of the tools or system being used.
Long term, the corporation's brand and reputation and market share will be positively impacted If the safety of the customer/patient/ end user is placed first, Its decisions about customer centric, value added, quality design will lead corporation to also focus on the quality and risk associated with suppliers, materials, manufacturing processes, employee choices, etc.. Saving Changes...
Scoring for probability and impact for individual projects are the same than enterprise level
One thing you have to know is that the scoring definition varies from industry you work.
For example a multilateral financial institution like IABD (Inter American Development Bank) defines probability and impact as low, medium or hight on the other hand a the goverment defines on a scale from 1 to 10 Saving Changes...
