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Project Risk Management and Assurance

Project Risk Management and Assurance


Why do so many organisations embark on high-risk projects without demanding robust project
?assurance

 Projects fail for many reasons. Recent global studies indicate that inadequate risk management is a
.common cause

 Successful project managers aim to resolve high levels of exposure before they occur, via systematic
.risk management processes


Project Risk Management and Assurance





Numerous undertakings are characteristically presented to heap hazards and are frequently
noteworthy in scale, intricacy and desire. Conveying huge scope activities can regularly be
.unfavorably affected by a predisposition towards being over-hopeful

Blemished, lacking or deficient information builds introduction that frequently results in ove
.assessing benefits and under-evaluating costs

Overseeing full scale and small scale level occasions identified with accomplishing venture
expectations, while adjusting the requirements of numerous partners, has gotten progressively
.significant

Surveying dangers at both portfolio and work-stream levels helps increment certainty that dangers are comprehended

Tasks are regularly organized applicable to their degrees of saw presentation and one has its own risk
. profile


Project Risk Management

.Project risk management focuses on identifying, analysing and responding to project events

It should be designed to systematically identify and manage levels of uncertainty and potential threats 
to delivering project objectives successfully

Risk management processes should be iterative throughout a project's life-cycle and embedded in 
project management planning and activities. Smaller projects often require minor work and periodic 
.monitoring

.Complex projects need formalised processes to analyse, manage and report risks

Good reporting relies on clear descriptions of all exposure, their impact on the projects, and potential 
.costs for mitigation and inaction

This helps ensure project personnel understand the potential impact risks may have on projects' 
.success and have prepared strategies to minimise negative consequences

Problems occur when there is limited visibility of risks at project and portfolio levels or approaches 
.to risk-management are ad-hoc and inconsistent

Further problems can arise when risks are identified but recorded at a very high level accompanied by 
.highly subjective risk ratings, rather than being the result of more substantive risk assessment

When these problems arise, an organisation would benefit from clearer, more formal and wide-spread 
.processes for capturing and monitoring risks



Project and Portfolio Risk Assessments


Project and portfolio risk assessments should be undertaken to understand their risk profiles and 

.associated threats in achieving business objectives

Assessments should identify the action plans to address the risks identified and allocate executive responsibility to manage them. Additional risk assessments should be carried out on selected projects 
.(perhaps by prioritising them by value or complexity)

.Risk management processes should be on-going and monitored throughout a project's life-cycle

Regular risk reports would provide Project Sponsors, Senior Responsible Officers and Steering 
.Groups with better visibility of projects' risk profiles

Whether you're responsible for overseeing or managing a project, robust project assurance will help 
.you address the risks that threaten its success



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