Agilent understands that risk is inevitable when undertaking projects. As such our services in this area aim to ensure that risks are kept to a minimum.
Project risk management is very different from enterprise risk management. It must be very simple to minimise the cost overhead in implementation, it also needs to be much more dynamic than enterprise-wide risk management. In summary, project risk management involves:
- Risk Identification – Agilient helps project managers to identify and name the risks that occur when undertaking projects. These risks can be resolved through structured or unstructured brainstorming sessions. It’s important to understand that risks pertaining to the project can only be handled by the project manager and other stakeholders of the project. Risks, such as operational or business risks, will be handled by the relevant teams. The risks that often impact a project are supplier risk, resource risk and budget risk. Supplier risk would refer to risks that can occur where the supplier is not meeting the timeline to supply the resources required. Resource risk occurs when the human resource used in the project is not enough or not skilled enough. Budget risk would refer to risks that can occur if the costs are more than what was budgeted.
- Risk Quantification – Risks can be evaluated based on quantity. Agilent can help project managers to analyse the likely chances of a risk occurring with the help of the Agilent project risk matrix.
- Risk Quantification – Using the Agilent project risk matrix, the project manager can categorise the risk into four categories as either Low, Medium, High or Critical. The probability of occurrence and the impact on the project are the two parameters used for placing the risk in the matrix categories.
- Risk Response – Agilent can assist project managers to choose strategies that will reduce the risk to an acceptable level. In general terms, Project managers can choose between the four risk response strategies, such as: avoid; pass on the risk; take corrective measures to reduce the impact of risks; or just acknowledge and accept the risk.
- Risk Monitoring and Control – Risks should be monitored on a continuous basis to check if any change is required. New risks can be identified through the same constant monitoring and assessing mechanisms.
Agilent has developed a range of tools to simplify project risk management. One such tool is our simple Excel based risk management register, which automates the project risk management process. This document dramatically simplifies and improves project risk management. The risk register also has a comprehensive and easy to read dashboard to help with monitoring risk, actions and to assist with reporting.
In undertaking this work Agilient uses the following standards.
- Project Management Institute – Practice Standard for Project Risk Management;
- ISO 31000, Risk management – Principles and guidelines;
- ISO/TR 31004: Risk management – Guidance for the implementation of ISO 31000;
- ISO Guide 73: Risk management – Vocabulary;
- IEC 31010: Risk management – Risk assessment techniques; and
- ISO/AWI 31022: Guidelines for Implementation of Enterprise Legal Risk Management.