CERM® Risk Insights

Guest Post by James Kline (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

James Toney has more than thirty years of experience in the quality profession. His clients have included the U.S. Department of Labor, IRS, Federal Aviation Administration, U.S. Navy, Housing and Urban Development, Pension Benefit Guaranty Corporation, the Federal Deposit Insurance Corporation, and Health and Human Services. Commercial clients included financial, telecommunications, hospitality, educational, and healthcare organizations.

Guest Post by Malcolm Peart (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

You wait 15 minutes for people to turn up, call-in, or get on-line.  Some may have popped down to Starbucks to get their daily fix of skinny hazelnut caramel latte, or green tea or Evian water.  The punctual few chit-chat away about anything and everything except the meeting agenda in case they commit some anticipatory faux pas.  Then there are those, particularly the decision makers, who let everybody know that they only have a certain amount of time available; they will need to leave promptly so they won’t be late for their next meeting and with all plausible deniability may avoid decisions and conclusions; but wasn’t that the point of the meeting?

Guest Post by Andrew Sheves (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Asking ‘what is risk management?’ often gets you the trite answer ‘it’s the management of risk’ or we get a list of activities associated with risk management. Neither result is satisfying and we need a better definition that explains the intent of risk management along with some clarification of what this is and is not. Here, I’ve presented some initial ideas on a definition along with four components that should give us a more thorough definition. 

Guest Post by John Ayers (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Studies show that the majority of companies today outsource up to 60-70% of their work scope to subcontractors to stay competitive. As a result, subcontractors are a major source of risk to a project.

How to minimize the subcontractor risk on a project is addressed in this paper. The approach to do this is based on my 30 years of project and project risk management experience and knowledge.

Guest Post by Malcolm Peart (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

I was once taught that good project management and mitigating the risk of failure was a combination of Fayol’s three pillars of planning, organising and controlling glued together by effective communication and enclosed in a bubble of morale.  I was later to learn that that if one overindulges or ignores any one pillar, or fails to communicate effectively rather than just efficiently, the oftentimes thin bubble of morale may rupture.  The unfortunate result is the loss of management coherence and the real possibility of project failure.

Guest Post by Daniel Burrus (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

These days, you can find a slurry of memes and motivational graphics on social media alluding to the concept that you must always beat out your competition in business. But contrary to popular belief, competing with other businesses is actually quite counterproductive, especially in the post-pandemic “new normal” we face – something we never expected to be facing as we entered this new decade.

Guest Post by Malcolm Peart (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

A project with a problem…not a new phenomenon and more likely than not ‘business as usual’ for most, but how do we address the problems on our projects?

Theoretically there’s the risk register and plan with a predetermined set of mitigation actions and designated owners who, although being potential scapegoats, are expected to manage risks magnificently while still dealing with the rest of their, hopefully, nonproblematic scope.  Problems plague projects despite alleged prior preparation and proper planning.  But it’s the way that people behave and interact that can make all the difference when resolving the problem and keeping the rest of the project on-track.

Guest Post by Malcolm Peart (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

“Puttin’ wood in t’ole after ‘oss ‘as bolted“… this is actually English, it really is, and it’s a Yorkshire phrase meaning ‘shutting the gate after the horse has gone’.

How often are we wise after the fact?  How often is more time and effort spent focusing on the gate rather than retrieving the horse?  There is a tendency to try and find the person responsible for not closing the gate, requiring more people to check on gate closing, writing procedures for closing the gate and this is coupled with hours of pointless and misdirected discussions by every man along with their barking dogs.  But what about catching the horse that now runs free and ensuring it can’t bolt again?

Guest Post by Andrew Sheves (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Most of the risk assessment models I’ve discussed before use a basic formula to calculate a value for risk. By adding or multiplying values for the individual factors, you’ll get a numeric value for the risk itself. That’s going to allow you to put things into order, apply a color-code or description. That gives you enough differentiation to start a risk-based discussion or determine where you need to focus your attention and resources.

Guest Post by John Ayers (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

My contention is management many times compromises quality to mitigate budget and cost issues resulting in a major risk to the project.

How to minimize the quality risk on a project is addressed in this paper. The approach to do this is based on my 30 years of project and project risk management experience and knowledge. Let’s start with a story to illustrate my contention.

Guest Post by Andrew Sheves (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Many people have a few smoke alarms dotted around their house and, to me, these are some of the most straightforward set-it-and-forget-it risk management tools you can get. You set these up and then…nothing. You can forget about them until that annoying ‘chirp’ sound wakes you up one night, telling you to change the battery.

And most people will never hear their smoke alarm go off except for those times that their cooking gets a little out of hand.

However, if there were a fire, they’d know about it immediately and be able to react.

Guest Post by John Ayers (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

Studies show most projects fail due to poor management of known risks. The known risks on a project are:

1. Scope.
2. Schedule.
3. Cost.
4. Quality.

Generally speaking, cost problems are due to insufficient budget, poor budget control, and poor planning. How to minimize the cost (budget) risk on a project is addressed in this paper. The approach to do this is based on my 30 years of project and project risk management experience and knowledge.

Guest Post by Howard M. Wiener (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

In the previous article (Enabling Agile Enterprise Risk Management Part II: Disciplines) I identified the disciplines necessary to enable you to transform your enterprise at speed. At the conclusion of that article, I promised to present a design for a repository and system to support AERM.  This article will fulfill that promise.

Guest Post by Malcolm Peart (first posted on CERM ® RISK INSIGHTS – reposted here with permission)

This is not an article about an endangered species plundered to near extinction as trophies for big game hunters or being poached for its aphrodisiacal ivory or describing a mythical elephant’s graveyard…it’s about those metaphorical elephants that frequent rooms in political corridors of power, boardroom suites and project offices around the World.  Although these elephants are known to exist they are either not immediately recognised or conveniently avoided.