Risk Management: A Real Challenge For The Construction Sector

Risk management is a challenge for construction professionals due to the shortage of qualified manpower, limited resourceful contracting agencies (technical and commercial), and the scarcity of resources. This article aims to explain risk management principles, the implementation of a risk management plan, and strategies to overcome threats and turn around the perception of risks from negative to positive opportunities.

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Risk Management for Program Managers

Program management is a relatively young discipline within the project management profession. That means there are fewer tools and techniques to address the challenges of program risk. At the same time, the larger responsibilities of program managers mean greater disruption from risk events. Consider the following findings about the state of program management…

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The Implementation of Risk Management

Risk management allows a company to strike a balance where growth and related risks are in line with the strategy and objectives of the company. In order for these processes to function efficiently and effectively, there must be enterprise-wide commitment and involvement in day-to-day risk management activities. Properly implemented, risk management can immediately add value to your company.

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Effective Risk Management

Few project leaders want to spend the up-front time and money to actually put together a risk management plan, but it truly needs to be your first step in effectively managing risks on your project. Your planning needs to include four steps in order to be effective and in order to be a “sellable” tool in your PM process.

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Framework for Integrating Project Quality, Risk Management, and Integration Management into Earned Value Management (EVM) for Deriving Performance Based Earned Value (PBEV)

Multidimensional project control systems, which integrate the critical to quality metrics of the project quality management, risk management, and program integration requirements into the earned value management system, delivers capability for the enterprise project team(s) in measuring the performance-based earned value of the project deliverables.

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Planning, Assessing, Analyzing and Monitoring Country and Political Risk During the PMI Risk Management Process

Pursuing overseas or cross-borders business requires an understanding of the country and political risk—it is, indisputably, a key consideration. The author demonstrates how PMI risk management processes and best practices can be customized to expand the picture of country political risk assessments, identification, analysis and monitoring.

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Visual Ishikawa Risk Technique (VIRT)—An Approach to Risk Management

Visual Ishikawa Risk Technique (VIRT) is a technique that is consistent with the Identify Risks process group of the PMBOK® Guide and uses a risk breakdown structure as its main principle artefact. However, it differs in that it uses the Ishikawa diagram (commonly also known as a fishbone, or cause and effect diagram), for the risk structure, to create a graphic view, as opposed to being text based or tabular.

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Times, UK: Diversity and Risk management

From the Times: The failure of financial institutions to manage risk and the role this has played in creating today’s economic crises has created awareness of the need for a new risk-management approach. This may well become the new Holy Grail of financial economics. There are two essential constituents: first, developing a more diverse mindset regarding financial risk; and second, applying more powerful techniques to capture financial reality than risk managers have used in the past. A new method for risk management does not mean that all elements of the present system must be replaced or that all the discredited financial instruments they spawned should be discontinued. Discrimination is needed: Many existing techniques have validity, but only in certain market conditions; and innovative financial products can contribute to wealth creation, but only if they are used judiciously. A new approach must start by understanding the reasons for the failure of risk-management systems. Why did risk models grossly understate risks? Why did managements fail to understand this? And why did regulators fail to provide effective checks and balances against the banks’ risk-management mistakes? ( Read the entire article.)

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Corporate Executives Report Need to Overhaul their Approach to Risk Management

NEW YORK–(BUSINESS WIRE)–The vast majority (85 percent) of corporate executives say they need to overhaul their approach to risk-management if the lessons of the economic crisis are to be used to improve business results, according to results of an Accenture (NYSE: ACN) study released today. Accenture’s 2009 Global Risk Management Study, based on a survey of 260 chief financial officers, chief risk officers and other executives with risk-management responsibilities at large companies in 21 countries, also found that 40 percent of respondents said that their companies already have increased or will increase their investments in broader risk-management capabilities in the next six months. Nearly another third (31 percent) of respondents said their companies are currently considering increasing their future investment in risk management capabilities. Read the full release.

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Enhanced Risk Assessment Matrix for the Management of Project Risks

There are many tools available to assess project risk. However, the tools may be used infrequently due to the lack of a prescriptive risk management protocol coupled with an abundance of options. The author details the relative benefits of the Risk Fishbone Diagram and the Enhanced Risk Assessment Matrix (ERAM), and explains why they may be the only two tools necessary to facilitate risk management for most projects.

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Applying Risk-Driven Project Management to Achieve Success in Complex, Innovative Projects

In today’s rapidly changing corporate environment, innovative projects often must be completed in a very short time frame. After a thorough analysis of different methods and tools, the authors developed the Risk-Driven project management method (RiD) to facilitate the creation of complex enterprise value. Applying the 12-point maturity-value-success metric (12-point MVS metric) can help ensure proactive risk monitoring.

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Project Management and the Art of Managing “Shock Waves”

A “shock wave” may be defined as “a major issue that occurs close to a milestone while everything seems to be quiet.” This article provides practical suggestions for combining the science of project management, especially the “verification and control” step for mitigating risk, with the art of project management, leadership skills, in order to better manage shock waves and make the right decisions throughout the project life cycle.

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Risk Finale

Our 12-part series on organizational risk management concludes with a call to action — it starts with assessment and identification … leads to investment, buy-in and ownership … and makes use of tools and concepts like the risk profile, capacity and constraints hierarchy.

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Enterprise IT Integration Framework for Integrating Positive Risks into Project SDLC Processes

Positive risks always exist, whether or not they are detected or recognized by the project management team. In the context of IT project/program risk management practices, project team(s) are predominantly focused on negative risk identification, related priorities, the probability of occurrence, and associated impact on the project goals/objectives and risk response–planning strategies such as avoid, mitigate, transfer, and accept to address the negative risks. It is important that the project management team is cognizant of the risk/reward duality and that they implement the positive risk/opportunity management integration rigor into project systems development life cycle (SDLC) processes.

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Managing At-Risk Knowledge Adds Value

This article presents a structured approach to managing the risk of losing critical knowledge due to resources becoming unavailable for the project. For key resources, the activities of this approach are ideally carried out even before the project is fully ramped up and before project risk management is fully underway. The four sequential processes-initiate, analyze and plan, execute, and close-ensure that the project’s risk exposure to knowledge loss is effectively reduced in an efficient way.

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How to Plan an Information Technology (IT) Risk Assessment

Risk management is the process that allows IT managers to balance the operational and economic costs of protective measures and achieve gains in mission capability by protecting the IT systems and data that support their organizations’ missions. The purpose of performing an IT risk assessment for IT systems is to minimize any negative impact to an organization and provide a sound basis for management decision making. Effective risk management must be totally integrated into the software/system development life cycle.

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Take a Risk (Part 1)

Don’t let today’s risks become tomorrow’s problems, and don’t sit back and wait for events to happen. Take a proactive approach to managing uncertainty. In this article, you will learn how and why using this risk management approach can greatly increase the chances of delivering your project on time and on target.

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