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Topics: Business Case, PMO, Risk Management
Project Business Case Development - Articulation of Risks
Network:23



I am looking into how to effectively articulate risks in business case development. Any pointers?

The way I currently look at this is through three lenses:
1. Business case risk - risks relating to not proceeding or proceeding with the project
2. Project delivery risks - relates to resource, skills, funding, scope, quality etc
3. Operational risks - relates to current and future impact of the project on BAU

I am wanting to learn and share this, and compare notes with the community.

Happy to discuss this off-line or over the phone.

Regards,

Jamal
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Network:71207



Jamal I think you three lenses are good

My experience is more with the first two, PMBOK cover the second in my view

Interested in knowing more
Network:23



Hi Vincent,

Sorry for not posting earlier. Just commenced in a new role and now 2 months has passed!

Still noticing that PMs are struggling with concept of risk management. It is different to issues management and clearly we are still a long way from nailing this.

I am wondering how others are handling the challenge I posted here as per my earlier message.

Keen to hear comments and ideas.

Jamal
Network:209



Item 1 is strategic and lends itself to a comparative risk analysis - exploring the risks in the two scenarios (do it/don't do it), evaluating each risk in the context of each scenario no matter which scenario brought it to mind, and looking at the picture each option then presents in terms of risk and other matters. This is particularly relevant where one of the motivations for a project is to reduce risk in routine operations - replace aging infrastructure, develop an in-house capability to supplement or replace an external source that is unreliable and so on. A similar approach can help select between alternative investments.

The second two can be addressed as two separate routine risk assessments if you are looking at management of implementation and operation. On the other hand, they can be combined if you are looking at quantitative assessment of financial uncertainty where the delivery costs and operating costs are just two parts of one overall cash flow and the implementation schedule determines when benefits, or revenue, start to flow to pay off the initial investment.

If you need to consider that perspective, you might want to do the same thing for the proposed investment and the do nothing case - look at cash flow, NPV etc. A simple example is looking at whether to invest in a hot standby for a business critical IT system. Costing the investment is not usually too hard and it is possible to think through the circumstances in which the service could be interrupted and what it would cost to cope with that with and without the backup.

You might find our book useful http://broadleaf.com.au/resource-material/...ent-guidelines/ and our web site has a lot of free materials on several aspects of risk management. Some of the case studies might be relevant http://broadleaf.com.au/work/
...
1 reply by Jamal Kadir
Aug 27, 2017 4:38 PM
Jamal Kadir
...
Thank you Stephen for your great response and links to your information. Will check them out soon.
Network:67238



If available, Jamal, your project management office should be able to help you out.
...
1 reply by Jamal Kadir
Aug 27, 2017 4:40 PM
Jamal Kadir
...
Thank you Stéphane, we do indeed have an Enterprise PMO and business unit PMOs and currently embarking on improving the maturity of our operations.
Network:23



Aug 24, 2017 10:40 AM
Replying to Stephen Grey
...
Item 1 is strategic and lends itself to a comparative risk analysis - exploring the risks in the two scenarios (do it/don't do it), evaluating each risk in the context of each scenario no matter which scenario brought it to mind, and looking at the picture each option then presents in terms of risk and other matters. This is particularly relevant where one of the motivations for a project is to reduce risk in routine operations - replace aging infrastructure, develop an in-house capability to supplement or replace an external source that is unreliable and so on. A similar approach can help select between alternative investments.

The second two can be addressed as two separate routine risk assessments if you are looking at management of implementation and operation. On the other hand, they can be combined if you are looking at quantitative assessment of financial uncertainty where the delivery costs and operating costs are just two parts of one overall cash flow and the implementation schedule determines when benefits, or revenue, start to flow to pay off the initial investment.

If you need to consider that perspective, you might want to do the same thing for the proposed investment and the do nothing case - look at cash flow, NPV etc. A simple example is looking at whether to invest in a hot standby for a business critical IT system. Costing the investment is not usually too hard and it is possible to think through the circumstances in which the service could be interrupted and what it would cost to cope with that with and without the backup.

You might find our book useful http://broadleaf.com.au/resource-material/...ent-guidelines/ and our web site has a lot of free materials on several aspects of risk management. Some of the case studies might be relevant http://broadleaf.com.au/work/
Thank you Stephen for your great response and links to your information. Will check them out soon.
Network:23



Aug 24, 2017 10:48 AM
Replying to Stéphane Parent
...
If available, Jamal, your project management office should be able to help you out.
Thank you Stéphane, we do indeed have an Enterprise PMO and business unit PMOs and currently embarking on improving the maturity of our operations.

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