THE BIG 5 SAUDI 2018

Transcription

1

2 Practical Project Risk Management Implementation Challenges in By: Hisham Haridy Saudi Arabia

3 HISHAM HARIDY BSc, MBA, PMP, PMI-RMP, PMI-SP Project Management Director

4 CONTENT Risk Management Overview Challenges of Implementing Project Risk Management Best Practice for Risk Management Implementation

5 Risk Management Overview

6 RISK Uncertain event or condition that, if it occurs, has a positive or negative effect on at least one of the project objectives. Impact Probability If occurred Opportunity Project Management Institute RISK= f (Probability, Impact) Threat

7 RISK ATTITUDE Organizations and stakeholders are willing to accept varying degrees of risk depending on their risk attitude. It can be classified into three themes: 1. Risk appetite 2. Risk tolerance 3. Risk threshold The organization s risk exposure Risks an organization s to engage Risk an organization could potentially tolerate

8 WHY DO WE MANAGE RISKS? THE BIG 5 SAUDI 2018

9 PROJECT RISK MANAGEMENT 1. Risk Management is the process of identifying, analyzing and responding to risk factors throughout the life of a project and in the best interests of its objectives. 2. Proper risk management implies control of possible future events and is proactive rather than reactive. 3. The objective of the risk management is to: Project Management Institute Reduce the impact of negative risks, and Increase the positive impact of risk.

10 RISK MANAGEMENT PROCESS Consultation / Communication Establish Goals & Context Assess Risks Identify Risks Analyse Risks Evaluate Risks Monitor / Review ISO Treat Risks

11 PROJECR RISK MANAGEMENT INTERACTION Plan Risk Management Risk management Plan Identify Risk Risk Register Project Management Institute List Of Risks for Further Analysis Perform Qualitative Risk Analysis Risk Monitor and Control Risk Register (Updates) Perform Quantitative Risk Analysis Risk Register (Updates) Perform Qualitative Risk Analysis Risk Register (Updates) Plan Risk Responses Risk Register (Updates) Direct and Manage Project Execution

12 PROJECT LIFE CYCLE AND RISK Project Management Institute

13 Challenges of Implementing Project Risk Management

14 PMI Study 2017: Causes of Project Failure Feedback and insights from 3,234 project management professionals. Respondents span North America; Asia Pacific; Europe, the Middle East and Africa (EMEA); and Latin America and Caribbean regions.

15 CHALLENGES Management People Resources Strategy Barriers to Implement Risk Management

16 CHALLENGES Risk management plan requires time and effort. Project managers knowledge about risk management! Qualified risk professionals! Communication issues! 5 Leadership issues!

17 CHALLENGES Risk culture! Risk software is the magic stick! More sophisticated approach! Risk monitor and control! 10 Risk knowledge bases, polices, and procedures!

18 CHALLENGES Abraham Lincoln once said, If I had six hours to chop down a tree, I would spend four hours sharpening the ax. He knew that advance planning and preparation are essential to successfully completing a project.

19 Best Practice for Risk Management Implementation

20 BEST PRACTICE Clear requirements - Owner assigned expertise. - Clear requirements and objective. Realistic schedule - Avoid padding and consider buffer. - Team buy-in and stringent monitor & control. Qualified supplier - Stringent criteria for contractor selection. - Contract created after Risk management completion. Qualified team - Project management training. - Culture difference awareness, leadership, and motivation.

21 BEST PRACTICE Clear communication - Collaboration and open communication. - Experience in cross-cultural environments. Realistic budget - Contingency based on risk analysis (oppo. and thre.). - Stringent monitor & control. Risk management - Risk major topic in the status meeting. - Risk reassessment and audit. Regulations and Processes - Stability of regulations. - Processes to obtain authorities approval is reasonable.

22 BEST PRACTICE # Status Risk Catego ry Retired Active Active Active Construction Construction External Project Management Risk Identification Qualitative Risk Assessment Risk Response Plan Risk Event Cause Effect The demolish the existing XXXXXX. Site is unsafe for workers The rate of Currency may be change (FOREX) Incomplete quantity estimates (Civil) The location of the existing store is the best location of the new XXX and its XXX Safety culture for local supplier is poor. Project cost increases Injury/ fatality and project delay The rate from Euro Project cost can be to $ is 1.3 decrease Lack of information for soil may lead to increase of substructure concrete Project cost increases Threat or Opport unity Threat Threat Opportunity Threat Primary Objectiv e P I Risk Matrix / Score Respons e Strategy Response Actions P I Risk Matrix / Score Cost 4 4 The approval to be done 3 Mod 3 Very Very and the demolishing scope 2 Transfer Low erat 2 6 High High to be included with the 1 e 1 supplier scope Impact Impact 5 25 Select supplier from 5 4 XXXXXXX vendor list and 4 Time 3 ensure that all safety 3 Very Very 2 Avoid requirements are included Low Low 2 High High 1 in tender documents Profissional safety to be Impact hired. Impact Cost 3 To consider the total 3 Very High High Very 2 Accept amount of on site suppliers High High 2 1 as the rate can be Impact Impact Cost 3 3 Very High High 10% of concrete quantity Very 2 Accept to be considered. High High Impact Impact Probability Probability Probability Probability Probability Probability Probability Probability

23 RISK MANAGEMENT SUCCESS FACTORS Open and Honest Communication Organizational Commitment Integrate with Project management Risk Effort Scaled to Project Value Risk Management Risk Management Success Responsibility

24 THE REWARD OF RISK MANAGEMENT Advancing the state-of-the-art Desired result using limited resources Improving a schedule Enhancing profitability Increasing reserves Saving money Improving the organization market position Ensuring customer satisfaction

25

26 THANK YOU FOR ATTENDING THE PRESENTATION A wealth of presentations and reports will be available at The BIG 5 Saudi are available at