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

What’s the risk of not addressing a risk?  What happens on a project when a risk is identified and not addressed/mitigated?    There may be reasons not to correct it, e.g low probability of occurrence and minimal impact,  but how do we document and track this decision?  And if we’re delaying an implementation how do we insure the risk is addressed at a later date, e.g. next version release?   How do we insure that if an audit takes place the project team can clearly explain the reasons for the decision?  Is this even acceptable? [Read more…]

Basics: Project Risk Management

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

The project management body of knowledge generally focuses on scope management, time management, and cost management. Risk management generally comes in at about 8th place out of the ten.

However, risk management is potentially the biggest part of the project management planning process.

Often organizations assign resources, dollars and time to project objectives to know exactly when the project is going to finish, how much it is going to cost and what resources are needed.

The problem with doing this is they have not identified risks. [Read more…]

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

The project management body of knowledge generally focuses on scope management, time management, and cost management. Risk management generally comes in at about 8th place out of the ten.

However, risk management is potentially the biggest part of the project management planning process. [Read more…]

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

While we look at risk-based decisions and making decisions under uncertainty, these approaches all have one basic assumption – that the participants in these processes are doing so consciously, with eyes open and with an appreciation of the risks and consequences involved. [Read more…]

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

Overview 

The ability to effectively respond to and manage the consequences of an event in a timely manner is essential to ensure an organization’s survivability in today’s fast paced business environment. With the emergence of new threats, such as cyber-terrorism and bio-terrorism; and the increasing exposure of companies to traditional threats such as, fraud, systems failure, fire, explosions, spills, natural disasters, etc. an “integrated” approach to Business Continuity Planning is essential. [Read more…]

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

One of the keys to a successful project is having a set of requirements that are well defined and stable. We’ve all worked on projects where a lack of defined and controlled requirements has led to scope creep which result in schedule delays.  

The requirements development process must also include mitigations for the risks identified in the Risk Management Plan. To accomplish this the initial risk assessment must be completed before the requirements development process begins. [Read more…]

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

Last year, we reported that White House Office of Management and Budget (OMB – executive office) is requiring US departments to design and implement Enterprise Risk Management (ERM).  The requirements are part of the OMB Circular A 11 Section 270 – Performance and Strategic Reviews.

US Departments are:

expected to manage risks and challenges related to delivering the organization’s mission. ERM is a strategic discipline that can help agencies to properly identify and manage risks to performance, especially those risks related to achieving strategic objectives.

[Read more…]