:AACE CERTIFICATION 2009-2010:

• Plan for Risk Management
• Risk Assessment (identify risk factors)
• Risk Analysis (quantify the properties of risk factors)
• Risk Mitigation
• Develop Risk Management Plan
• Analyze Contingency
• Control Risk Factors and Impacts

Reference from Ericsson Risk Management Hands-on Training material (ECT-09:001655Uen)
Risk Management process is,

• Risk Management Planning
  Prepare Risk Management Plan – describe how and when the different steps shall be performed. Shall also state who shall attend, etc.
• Risk Identification
  Find risk and opportunities.
• Risk Analysis
  Estimate impact and costs.
• Risk Response Planning
  Create mitigation plan.
• Risk Monitoring and Control
  Implement according to plan.
  Follow-up the risk situation

Comparing Risk Management between TCM Framework and Ericsson Risk Management Process

• The Risk Management process starts at Strategic Asset Planning or once the steering group decides to Pursuing the Sales Opportunities.
• The overall process are the same which start from planning the scope, Risk Assessment, Risk Analysis, Risk Mitigation/Develop risk management plan and finally Monitoring and Control it. Including the feedback loop from Control part to Identify process.
• In Risk Assessment: to identify the risk factors by addressing the uncertainties which are both Threat and Opportunities. This is the same concept
• Risk Analysis that Ericsson uses are both methodologies;
  
  Qualitative Analysis which classify the risk in low, moderate and high categories which require different level of monitoring and control action. This is simple and incorporate several important factors.* Cite from Project Management using Earned Value by Humphreys & Associates page 72. This method is quite rely on gut feeling which require effective risk workshop and brainstorming technique that will gathering risk factors from project stakeholders.
  Quantitative Analysis using the enterprise Risk Template which based on Triple-estimates with Erlang distribution by utilizes the method of most likely, minimum and maximum method. And also using Monte Carlo theory.
  
  This is good in term of quantitative point of view because it can translate the feeling of risk level into figure which enable project to put back in project planning process in term of cost and budget. Second point, it also put back into project scope, schedule and resource planning process which will be monitoring, control.

However in practical, many project managers may start with good risk analysis but neglect or not continue with the monitoring and control of the risk. This will damage the total project and be worthless the risk analysis initiation at the beginning.

Eventually, I would like to summarize that the risk management process concept is good no matter what source it is, which provide the same purpose is to increase the probability that a planned asset or project outcome will occur without decreasing the value of the asset or project*. (cited from TCM Framework page 159). But the purpose will not be achieved if we do not work through to all sub process.

Next week, I plan for holiday which cannot access internet. So I will not submit my weekly blog.

Long Live The King Bhumibol Adulyadej

# posted by Maneesuda (Nui) @ 12/05/2009 09:43:00 PM