Project Risk Management - Essential Methods for Project Teams and Decision Makers

An easy to implement, practical, and proven risk management methodology for project managers and decision makers
 
Drawing from the author's work with several major and mega capital projects for Royal Dutch Shell, TransCanada Pipelines, TransAlta, Access Pipeline, MEG Energy, and SNC-Lavalin, Project Risk Management: Essential Methods for Project Teams and Decision Makers reveals how to implement a consistent application of risk methods, including probabilistic methods. It is based on proven training materials, models, and tools developed by the author to make risk management plans accessible and easily implemented.
* Written by an experienced risk management professional
* Reveals essential risk management methods for project teams and decision makers
* Packed with training materials, models, and tools for project management professionals
 
Risk Management has been identified as one of the nine content areas for Project Management Professional (PMP) certification. Yet, it remains an area that can get bogged down in the real world of project management. Practical and clearly written, Project Risk Management: Essential Methods for Project Teams and Decision Makers equips project managers and decision makers with a practical understanding of the basics of risk management as they apply to project management.

List of contents

Foreword xv
 
Preface xix
 
Acknowledgments xxix
 
PART I: FUNDAMENTAL UNCERTAINTY OF A PROJECT OUTCOME
 
Chapter 1: Nature of Project Uncertainties 3
 
Phases of Project Development and Project Objectives 4
 
Quest for Predictability of Project Outcome 5
 
Sources and Types of Deviations from Project Objectives 7
 
Key Objects of Risk (or Uncertainty) Management: Do We Really Know What We Try to Manage? 15
 
Uncertainty Exposure Changers 24
 
Conclusion 26
 
Notes 26
 
Chapter 2: Main Components of a Risk Management System 29
 
Risk Management Plan 30
 
Organizational Framework 32
 
Risk Management Process 39
 
Risk Management Tools 52
 
Conclusion 59
 
Notes 60
 
Chapter 3: Adequacy of Methods to Assess Project Uncertainties 61
 
Review of Deterministic Qualitative (Scoring) Methods 62
 
Review of Deterministic Quantitative Methods 68
 
Review of Probabilistic Qualitative Methods 76
 
Review of Probabilistic Quantitative Methods 80
 
Conclusion 87
 
Notes 88
 
PART II: DETERMINISTIC METHODS
 
Chapter 4: Uncertainty Identification 91
 
When Risk Management Becomes Boring 92
 
Three Dimensions of Risk Management and Uncertainty Identification 93
 
Risk Identification Workshops 95
 
Sources of Uncertainties and Risk Breakdown Structure 98
 
Bowtie Diagrams for Uncertainty Identification 101
 
Three-Part Uncertainty Naming 107
 
Role of Bias in Uncertainty Identification 110
 
Room for Unknown Unknowns 113
 
Conclusion 118
 
Notes 118
 
Chapter 5: Risk Assessment and Addressing 119
 
Developing a Risk Assessment Matrix 120
 
Using a Risk Assessment Matrix for Assessment As-Is 129
 
Five Addressing Strategies 136
 
Assessment after Addressing 141
 
Project Execution through Risk Addressing (PETRA) 145
 
Role of Bias in Uncertainty Assessment 147
 
Conclusion 149
 
Notes 150
 
Chapter 6: Response Implementation and Monitoring 151
 
Merging Risk Management with Team Work Plans 152
 
Monitor and Appraise 153
 
When Uncertainties Should Be Closed 154
 
When Should Residual Uncertainties Be Accepted? 155
 
Conclusion 155
 
Note 156
 
Chapter 7: Risk Management Governance and Organizational Context 157
 
Risk Management Deliverables for Decision Gates 158
 
Ownership of Uncertainties and Addressing Actions 160
 
Management of Supercritical Risks 162
 
Risk Reviews and Reporting 164
 
Bias and Organizational Context 168
 
Conclusion 175
 
Notes 175
 
Chapter 8: Risk Management Tools 177
 
Three Dimensions of Risk Management and Structure of the Uncertainty Repository 178
 
Risk Database Software Packages 181
 
Detailed Design of a Risk Register Template in MS Excel 184
 
Commercial Tools for Probabilistic Risk Analyses 185
 
Conclusion 191
 
Notes 192
 
Chapter 9: Risk-Based Selection of Engineering Design Options 193
 
Criteria for Engineering Design Option Selection 194
 
Scoring Risk Method for Engineering Design Option Selection 195
 
Decision Tree for Engineering Design Option Selection (Controlled Options) 199
 
Conclusion 202
 
Note 202
 
Chapter 10: Addressing Uncertainties through Procurement 203
 
Sources of Procurement Risks 204
 
Quantitative Bid Evaluation 207
 
Package Risk Managem

About the author

DR. YURI RAYDUGIN is an experienced risk management professional who has developed and implemented successful risk systems for several major energy companies, including Royal Dutch Shell, SNC-Lavalin, and TransCanada Pipelines. He provides risk management coaching and training as well as risk assessment services and has published white papers and articles for a number of journals, including the International Journal of Risk and Contingency Management.

Summary

Drawing from the author's work with several major and mega capital projects for Royal Dutch Shell, TransCanada Pipelines, TransAlta, Access Pipeline, MEG Energy, and SNC-Lavalin, this book reveals how to implement a consistent application of risk methods, including probabilistic methods.

Product details

• Authors: Raydugin, Y Raydugin, Y. Raydugin, Yuri Raydugin, RAYDUGIN Y, Yuri Raydugin
• Publisher: Wiley, John and Sons Ltd
• Languages: English
• Product format: Hardback
• Released: 25.10.2013
• EAN: 9781118482438
• ISBN: 978-1-118-48243-8
• No. of pages: 400
• Series: Wiley Corporate F&A; Wiley Corporate F&A (Unnumbere; Wiley Corporate F&A; Wiley Corporate F&A (Unnumbere
• Subject: Social sciences, law, business > Business > Management