A risk is an uncertain event or condition that, if it occurs, has a positive (opportunity) or negative (threat) effect on a project’s objectives. Unlike issues, which are certain to happen, risks are events that could occur, and you may not be able to tell when. Because of this uncertainty, project risk requires serious preparation in order to manage them efficiently. DRMcNatty’s team of experienced risk assessment specialists can better evaluate and reduce risk exposure, increase confidence, identify areas of potential acceleration of schedule and help establish reasonable contingency.
Project Schedule Review
The schedule is an essential part of any project’s Risk Analysis. This initial phase of the analysis will consist of reviewing scheduled activity durations, logic ties and documenting the basis of assumptions for durations and relationships. The project critical path will be reviewed and analyzed for CPM best practices and identify any gaps or anomalies in the project’s critical path.
Establish Uncertainty Ranges for Durations
In the planning phase of a project, durations for tasks are estimates and typically have some degree of uncertainty. Whether the durations are optimistic or pessimistic in planning, the degree of uncertainty for schedule activities is an essential part of the project risk model.
Identify Project Risk Events
DRMcNatty will lead the project team in a risk workshop aimed at identifying the potential risk events that have the potential to impact the project. This risk register will facilitate the process of aligning the schedule activities to the appropriate risk events during the risk analysis. The results will serve as triggers to pinpoint the key drivers causing the most significant delays and then mitigate those most influential.
Conduct Quantified Risk Analysis Calculations for Project
The Risk Analysis calculations will reveal probability of finishing projects in accordance with the schedule. This will provide guidance where areas of the project plan may be enhanced to provide better predictability of the project outcome. DRMcNatty & Associates will guide your team through the results and provide recommendations that may be incorporated back into the project plan, creating a more robust, achievable end result.
Risk-Based Schedule Optimization
At this point, it’s important to address the key drivers and formulate (as much as possible) any mitigation measures the team can perform to reduce, eliminate, defer or transfer. While ideal to eliminate Risk, it’s just not realistic to think that it will go away. A project early on that has a life expectancy of 2+ years will see several major risks added and eliminated. It’s important to keep the exercise current and refreshed to capture those added and eliminated so that the completion date itself can remain fluid and messaged. DRMcNatty can guide you confidently through this process and help you successfully navigate the uncertain waters of risk.