Including mental health support in project delivery
APM Four seasons of risk - Scotland: Identification
1. Four Seasons of Risk
6th February 2013
Risk Identification
Steve Smith
2. Basis of discussion
You have a PRAM Guide, so I will not summarise
that
I will not address why we need RM
I will focus on dimensions of risk identification,
largely drawn from experience, that may help to
shape your thinking and approach…
or at least stimulate debate!
4. Project Success Criteria
Before you start…
Understand the Aims and Requirements
– Use them as context to check whether identified risks and
opportunities can feasibly impact the project
Understand the boundaries/drivers
– What can the project control/influence?
– What does the business/organisation control?
– What is beyond the boundary?
– Assumptions & Dependencies cross the boundary
5. Risk Identification
The important foundation
– Obvious; but get this wrong and all subsequent RM
activities could be undermined
Many Standards and RM literature such as the PRAM
Guide provide a comprehensive range of tools and
techniques
– Important to select those that are right for your project and
organisation
– Don’t use them all, but use more than one
6. Characteristics of Identification
Start top down – use any ‘breakdown structures’ with prompt
lists
Use a few complimentary techniques
Use understandable terminology
– The Stakeholder Test
Visualise future situations
– Stage/phase reviews
Use learned experience (not just checklists)
– relevant to the business
Group risks together if ownership and cause is similar
7. When to Identify Risks?
Many studies (and experience) shows that
risks are introduced or missed in the bid or
proposal phase
Risk identification usually focuses on ‘the
project’, but the project really starts at
‘Gate 1’, the decision to bid
– Early risk/opportunity identification can
guide the bid phase
– Include ‘bid risk’, not just ‘project risk’
8. PESTLE
Root cause analysis of risk impact events
often exposes ‘environmental’ factors
The PESTLE analysis tool can be useful for
framing risk identification
Three cases are given as examples of
impacts that could have been avoided if the
business or project environment had been
considered early enough…
9. Case 1: Resource Costs
Recent ME metro project
Assumption that resources could be deployed from
subsidiary in neighbouring country
No-one checked that it was viable
In fact, the foreign nationals were not ‘welcome’
and European replacements were 2.5 x budget
PeStle!
10. Case 2: Requirements
Recent ME international airport project
Understanding of interface between own Contract
Package scope and others CP scope was not
complete
~€2M hardware scope not included in budget or
plans
IT specialists were unfamiliar with construction
practices and works
pesTle!
11. Case 3: Accessibility
G8 nuclear security project
Assumption that foreign contractors could operate in
Russia
In fact only Russian-certificated organisations are
licenced to carry out ‘work’
Several programmes had to be reconfigured and re-
tendered causing significant delays and rework costs
pestLe!
13. …and remember
‘What gets measured, gets managed
…even when it’s pointless to measure and
manage it, and even if it harms the purpose
of the organisation to do so.’
14. Summary
Get senior management and stakeholder buy-in
Start early; include bid/proposal risks
Start simple; top down
Use a few techniques
Consolidate
Repeat at stages/phases
Think laterally
Good facilitators are worth their weight in EV