When you know a thing, to hold that you know it, and when you do not know a thing,to allow that you do not know it—this is knowledge. —Confucius
The problem with the future is that more things might happen than will happen. —Plato
Presented By
Alfonso Bucero, PMPBUCERO PM Consulting
www.abucero.com
Presented By
Alfonso Bucero, PMPBUCERO PM Consulting
www.abucero.com
Risk Management
Risk Management
2© 2009 Randall L. Englund www.englundpmc.com
Presentation Objectives
This case study highlights steps in a process to facilitate and roll out an improved risk management process within a professional culture [biotechnology] and identify strategies for success…or not.
Purpose:
• Present a viable approach to risk management implementation that can be
readily applied in any environment. Lessons to be illustrated:
• Identify clear roles and responsibilities for risk management at all levels
across the organization
• Address the terms and drivers that teams can use to improve risk planning
• Develop meaningful action plans and get commitment to follow them
• Explore steps to follow through on risk implementations
• Explore the use of case studies and live examples in training as a key
ingredient of a risk management initiative.
Risk Management
Risk Management
3© 2009 Randall L. Englund www.englundpmc.com
Problem Statement
Have you ever had :
• Team members question the value of risk analysis
• Team be unprepared for a risk
• Difficulty with the risk analysis process
• Looked back on a project and thought “hum….could we
have prevented that?”
• Wondered if “Could we have reacted differently?”
Risk Management
Risk Management
4© 2009 Randall L. Englund www.englundpmc.com
Corporate Response
Management picked Risk Management as one of three
initiatives to focus on for the current year
Sponsor and project team assigned
Contracted Englund Project Management Consultancy
• not to train on risk management, but to
• facilitate application of the process
Conducted initiative as a project
Met regularly to design, develop, and deliver training.
Risk Management
Risk Management
5© 2009 Randall L. Englund www.englundpmc.com
Risk Management
Risk Management
6© 2009 Randall L. Englund www.englundpmc.com
My Approach - Assessment on Risk Management
Interviewed a cross-section of managers (18) to elicit inputs about the process and
how to improve it
Sample findings:
• Current forms appear bulky, are barely useable, and are not required during review
proceedings. Consequently, few projects use them. Forms need to be easily
accessible and streamlined to guide teams through key items impacting projects,
utilizing XXX terminology.
• Current process conducted at superficial level; concerned about pushing through
w/o considering resource issues
• Need business rules of governance; have agreement on process by management
& teams
• Focus on fewer but deeper, tangible items that can do something about
• Keep it simple and visible
• Cover how to conduct risk management and provide examples.
Risk Management
Risk Management
7© 2009 Randall L. Englund www.englundpmc.com
Reasons to Have a Risk Management Plan
Part of good planning
• Principal benefit: engaging in a productive process
• Unknown risks cannot be managed proactively
• Preliminary read on feasibility
Life with a good risk management plan in place
• Increased likelihood of success
• Time is on your side = less stress
• External benefits (outside team).
Risk Management
Risk Management
8© 2009 Randall L. Englund www.englundpmc.com
Overcoming the Perception that “There is No Time” for Risk Management
Educate the team about how formulating a risk
management plan is implicit to good planning
Benefits of proactive plans vs reactive actions
Best illustration: relevant, real life examples
• Meaningful to them (WIIFM)
• Motivation.
Risk Management
Risk Management
9© 2009 Randall L. Englund www.englundpmc.com
Purpose of Workshop
Improve the risk management process used within the
XXX organization
Roll out a refined, simple process that can be easily duplicated
across all project teams
Reduce ambiguity about risk management terms and process
Ensure that risk analysis and plans are conducted, communicated
and updated on project teams in a consistent manner
Provide simple tools that allow project managers to work with your
teams and prepare consistent, value-add risk management plans
Identify roles and responsibilities of all stakeholders.
Risk Management
Risk Management
10© 2009 Randall L. Englund www.englundpmc.com
Workshop Outline
Module One –Risk Definition, Identification
Define risk and risk management process consistently
Identify risks
Module Two—Risk Qualification
Capture risk probability and impact
Develop risk register
Prepare to develop action plans to address high priority risks
Module Three—Risk Planning
Prepare action plans
Plan monitoring mechanisms
Module Four—Risk Communication
Monitor and control risks
Communicate and manage the risk management process.
Risk Management
Risk Management
11© 2009 Randall L. Englund www.englundpmc.com
Define Terms: What is Risk?
A risk is an uncertain event or condition which, if it occurs, will have a positive
or negative effect on a project’s objectives
All projects have risks
All assumptions are risks
Risks cannot be eliminated but can be understood
Components of a risk:
• Uncertain event; probability; impact
• Time driven; consequence
Risk management addresses events that may adversely impact a project’s
stated outcome.
Risk Management
Risk Management
12© 2009 Randall L. Englund www.englundpmc.com
Risk, Outcomes, & Issues
A risk is an uncertain event or condition, if which it occurs, will have a positive or
negative effect on a project’s objectives
An outcome is the result of a risk event
An issue has 100 percent certainty; risks are uncertain
The risk management process seeks to identify and act on cause elements or
drivers rather than outcomes or effects
For example:
• Instead of, “Agency does not agree that safety data is sufficient.”
• State,“As a result of the trial design selected, there is a chance that the safety
database may fail to meet Agency requirements; the need for additional studies will
cause a 6-12 month delay and increase costs.”
“As a result of <an existing condition>, there is a <probability> that an
<uncertain event> may occur, which would result in <impact on objectives>.”
Risk Management
Risk Management
13© 2009 Randall L. Englund www.englundpmc.com
The Risk Management Process
Do Something Now
Avoid
Mitigate (Minimize)
Possible Risk
Event
Trigger Happens
Do Something Later
AcceptDo Nothing
Mitigate Issue (Minimize Impact)
Resolve Issue
Prevent
Contingency Plan, Trigger Points
“As a result of <an existing condition>, there is a <probability> that an
<uncertain event> may occur, which would result in <impact on objectives>.”
Probability
Impact
Risk Management
Risk Management
14© 2009 Randall L. Englund www.englundpmc.com
Risk, Impact, & Timing Priority: Prob/Impact Response
1: Safety DatabaseR: M/H
2: Patient EnrollmentY: M/M
3: Device DesignY: M/M
As a result of <an existing condition>, there is a <probability> that an <uncertain event> may occur,
which would result in <impact on objectives>.
OWN: J___PRE: Contract with collaborator's experienced with these patient populations.TRG: 25% of target patients not enrolled by Jun 30, 200xMIT: Add more sites
OWN: J___PRE: Submit current safety data from ongoing studies for each individual molecule to FDATRG: End of Phase II Meeting MIT: Estimate costs using x00 patients. Include contract terms for XXX to terminate if the study becomes significantly large and costly
OWN: Owner PRE: Prevent TRG: Trigger MIT: MitigateR: Red Y: Yellow G: Green H: High M: Medium L: Low
The proposed device design is entirely new to this patient population and may not be successful in user studies. Result is up to 2 Qtr delay for redesign
OWN: J___PRE: Test concepts with users prior to developing a working prototype TRG: Device fails the first user studyMIT: Plan for at a redesign in the timeline and in the vendor contract. Gate high cost activities (i.e. scale-up) to a successful user study.
A lack of regulatory precedent with combination biologics means FDA may require a larger safety database (x000 patients) than the y00 patients currently included in the clinical program. Above x00 patients, XXX would kill the program (low value), but collaborator would likely want to continue program (market valuation is higher than XXX's)
Since we are dealing with a new patient population, Phase III enrollment may go slower than estimated, resulting in a 1-2 Qtr delay and 10% increase in trial costs
Develop Simple Tools: Risk Register
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Risk Management
15© 2009 Randall L. Englund www.englundpmc.com
Establish Roles & Responsibilities (1)
Project Team Leaders
• PTLs are accountable for risk management, ensuring a plan is
created and implemented; this accountability is a key step to ensure
suitable emphasis on risk management is present.
Project Managers
• PMs are accountable for creating and implementing the risk
management plan (by using the pre defined process), ensuring that
initial risk analysis happens early in the project and thereafter, is
presented for review, executed, and tracked aggressively during the
project. They accurately reflect technical risks in the PTS and non
technical risks in final asset valuation (FAV).
Risk Management
Risk Management
16© 2009 Randall L. Englund www.englundpmc.com
Roles & Responsibilities (2)
Core Team Members
• Team members are accountable for identifying risks, preparing
action plans, getting buy-in from functional area management,
executing plans as required, identifying triggers for risk elements
and contingency plans for dealing with risks if they occur, report
accurate status regularly.
Directors/Senior Managers
• Directors and Senior Managers are accountable to review and
approve functional risk management plans per the PDP process.
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Risk Management
17© 2009 Randall L. Englund www.englundpmc.com
Roles & Responsibilities (3)
Facilitator
• The facilitator is accountable to get a thorough job done most
efficiently and to stay on track.
• The PM facilitates the risk analysis process or may want to be
more of a participant. In that case, bring in an outside facilitator
familiar with the risk management process.
• The facilitator may come from another project, a different group, or
be an external consultant.
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Risk Management
18© 2009 Randall L. Englund www.englundpmc.com
Identify Challenges of Risk Management
Organizational resistance
• Resistance to the process
• Question the value of risk analysis
• Busy dealing with “real” issuesOperational pitfalls
• Ignoring team preferences /cultural norms
• Universal risks
• Focused on outcome, not drivers
• Not tying risk to tangible outcome
• Not keeping plan “alive”
Look at total project risks but especially emphasize risks getting to next stage gate or milestone
Risk Management
Risk Management
19© 2009 Randall L. Englund www.englundpmc.com
Clarify Results of Good Risk Management
Increase PTS and overall project success:
• All risk management practices that increase Probability of Technical Success (PTS) are of interest to upper management
• Risk management, however, also applies to elements beyond technical factors
Gate overall investment:
• Consistent risk analysis indicate where investments need to be made to improve project success
• High risks integrated into development plans and other standard processes
Drive focus on essential value drivers (instead of “all inclusive" lists):
• Focus on risks that have a significant impact to the next project milestone
• Present a few key factors considered with well thought through mitigation and contingency plans that directly relate to value-generating activities.
Risk Management
Risk Management
20© 2009 Randall L. Englund www.englundpmc.com
Establish Standards
Each project Core Team develops and maintains standard risk
management plans in accordance with this process.
Through well defined roles and responsibilities with regards to risk, all
individuals accept accountability for the overall success of the project.
Risk management impact, probabilities, triggers, and mitigation or
contingency plans are near term, realistic, and based on expert
judgment and historical data, with input from operational experts.
Each risk has an owner.
Risk management is a continuous process; focus is on next milestone.
Risk Management
Risk Management
21© 2009 Randall L. Englund www.englundpmc.com
Focus on Drivers
As a consequence of [driver], there is [probability] that
[result] will happen, causing [impact].
Not effective Better Best
Phase I clinical
trial may take too
long.
Phase I clinical trial
may not meet
enrollment target in
desired time frame.
As a consequence of low enrollment
rates, there is an 80% chance that
Phase I clinical trial may not meet
enrollment target by Q3 200x, which
will delay Phase 2 startup activities by 3
months.
Risk Management
Risk Management
22© 2009 Randall L. Englund www.englundpmc.com
Understanding Risk Events
Ask probing questions:
• “Why?”
• “What makes you think that?’
• “Why do think this is important?”
• “Who else would be impacted?”
• “Have we encountered this before?”
–“If so, what was done?”
Think about root cause(s)
• What drives the risk to occur?
• When evaluating risks, other follow on risks may be identified.
Risk Management
Risk Management
23© 2009 Randall L. Englund www.englundpmc.com
How to Write Better Risk Statements
Don’t focus on undesirable outcome
Instead, identify specific drivers
• An undesirable outcome, many different drivers
• Different drivers can lead to same outcome
• Different drivers, different response plansWord risks such that response plans
(mitigation/contingency) can be crafted
Elucidation can be challenging
• Ask “Why?” repeatedlyPractice.
Risk Management
Risk Management
24© 2009 Randall L. Englund www.englundpmc.com
Risk Identification Brainstorming Tools
Technique Works Best When:
1. Group Discussion• PM facilitates an open group discussion• or PM can come prepared with a list of risks based on prior
team discussions and ask the group to comment on the list
There are a only few major risks that are commonly known on the project and can quickly be discussed. If there are too many risks this discussion will consume a lot of time.
2. Post-It Notes Hand out 3-5 post-it notes to each team member. Write down 1 risk per note and hand them back to the PM. This can be done at the end of the meeting (and then continued in subsequent meeting) or at the start of a risk assessment meeting
Either to save time or if you have strong personalities that tend to quiet other team members from openly stating risks
3. E-mail to PM prior to meetingTeam members requested to send risks to PM in advance of the meeting
Can save time and if team members are good about e-mailing responses
4. 1:1 Meetings with technical expertsMeet with sub-team leaders individually or in small groups to generate a list of risks for their function and for the overall project.
Time intensive for PM, but minimizes team time. Enables a more in-depth discussion of a specific function’s risks. Also works well for quiet team members or if strong personalities tend to overpower the group
5. Good Questions to ask to elicit risks• What keeps you up at night?• What worries you the most on this project?
Always
Risk Management
Risk Management
25© 2009 Randall L. Englund www.englundpmc.com
Why Do We Prioritize?
We:
Categorize risk events based on their probability of occurrence AND
the magnitude of the impact if they do occur
So that we can:
Compare risks
Identify which risk events must be acted upon vs. those that merely
need monitoring
Focus efforts on the more critical risks.
Risk Management
Risk Management
26© 2009 Randall L. Englund www.englundpmc.com
Use a Common Risk Probability Chart
Likelihood of Risk Occurring Probability
High ≥ 75%
Medium > 25% to < 75%
Low ≤ 25%
Risk Management
Risk Management
27© 2009 Randall L. Englund www.englundpmc.com
Probability Estimation Tools
Technique Works Best When
1. Group Consensus You have a small group and the issue is not contentious. Also works well when further discussion is required to understand the risk and assign it a probability
2. Silent Vote (post-its) The issue is contentious and subject to argument. Also makes the vote more “official.”
3. Voice vote Team members are comfortable expressing their assessment openly in front of the group. Requires strong facilitation to avoid discussions breaking out
4. E-mail vote You don’t have time to hold a meeting and the risk requires no / minimal further discussion.
Risk Management
Risk Management
28© 2009 Randall L. Englund www.englundpmc.com
Use Common Risk Impact Chart [EXAMPLE ]
Impact of Risk
TimelineDelay
DevelopmentCost Increase
Value Loss
High > 2 Qtr > 50% of Budget> 50%
Medium < 2 Qtr < 30% of Budget < 25%
Low < 1 Qtr < 10% of Budget < 10%
Strategic context: fast time to market
Risk Management
Risk Management
29© 2009 Randall L. Englund www.englundpmc.com
Impact Assessment Methods
Technique Works Best When
1. Back of the Envelope, on the spot An order of magnitude estimate is needed and precision is not important. Useful in moving rapidly through the risk assessment and in setting priorities.
2. Off-Line by sub-team leaders A deeper dive is needed and precision is important. Works well in preparing recommendations for senior management approval, for assessing highly complex risks, or for high priority risks
Risk Management
Risk Management
30© 2009 Randall L. Englund www.englundpmc.com
Develop a Risk Matrix [WHAT IF?]
Probability of Occurrence (%)
Imp
act
of
Occ
urr
ence
Ris
k G
rou
p:
High
Medium
Low
0 < Low ≤ 25% 25 < Med < 75% 75 ≤ High < 100%
RED Assign owner and develop action plan to be implemented immediately as part of the PDP.
YELLOWYELLOW Assign owner, develop a contingent action plan, define trigger points that signalactivation of the plan. Include in PDP as possible requirement. Monitor the situation.
GREEN Monitor and address if classification changes.
124
35
78 910
1112
1314
15
6
# = Risk Identification number
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31© 2009 Randall L. Englund www.englundpmc.com
Managing Risks (1)
Avoidance and prevention plans normally affect probability of
risk event drivers
• Avoid the risk by reversing decisions that involve unnecessary risks
that do not offer potential benefit
• Transfer, subcontract, or outsource the risk to another entity
• Plan actions that minimize probability of risk occurring
• Design redundant, duplicate, parallel solution, or alternative path(s)
For example,
• “Avoid risk by choosing not to pursue device”
• “Prevent risk by testing concepts with users prior to developing a
working prototype”.
Risk Management
Risk Management
32© 2009 Randall L. Englund www.englundpmc.com
Managing Risks (2)
Contingency plans normally affect impact
• Identify triggers that warn the risk is about to occur or indicate it has occurred
• Mitigate risks (make less severe) through response plans (contingencies)
• Target root causes
• Prepare preliminary cost and resource requirements for contingency plan
• Decide who is risk owner and how to monitor the risk
For example,
• “Device fails the first user study” is a triggering event
• “Gate high cost activities to a successful user study” is a contingency plan.
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33© 2009 Randall L. Englund www.englundpmc.com
Considerations
Be realistic and careful in planning project objectives, costs, and
deadlines
Address Red risks immediately as part of the development plan
Focus detailed planning on Yellow risks
Consider :
• Unknown risks that may occur
• Issues that still occur despite prevention and contingency plans
• Low priority risks that received little action
• Accepted risks that occur
Even with good prevention plan, still need a contingency plan.
Risk Management
Risk Management
34© 2009 Randall L. Englund www.englundpmc.com
Develop Action Plan
An objective
Means of measuring when the objective is achieved
Completion date
Owner
Prepare budget requirements
Adequate funding and resources available.
Risk Management
Risk Management
35© 2009 Randall L. Englund www.englundpmc.com
Plan Monitoring Mechanisms
Include Risk Register in project documentation
Decide how to report regular risk status
Make risk triggers meaningful and visible
Make commitments to:
• Engage in regular dialogue about risks
• Present at management reviews
• Focus on value-generating activities.
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Risk Management
36© 2009 Randall L. Englund www.englundpmc.com
Identify Next Steps (1)
The Risk Register is complete - now what?
• Red risks: Incorporate into plans (schedule, budget,
and collaborator contracts). All timelines presented to
review committees must incorporate activities required
to resolve red risks
• Yellow risks: Prepare contingency plans with impact to
cost and timeline understood
• Green risks: Do nothing - monitor for changes.
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Risk Management
37© 2009 Randall L. Englund www.englundpmc.com
Next Steps (2)
Review risks at phase change and/or when new data becomes
available
• Is this risk still a risk?
• Has this risk increased/decreased in priority, probability, or impact?
• Have new risks emerged? (and how to manage these new risks)
Step back and look at overall risk profile for the strategy being followed:
• How many red risks have been identified?
• How do these red risks affect the timeline and costs?
• Is this project worth pursuing?
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Risk Management
38© 2009 Randall L. Englund www.englundpmc.com
Develop Communications Plan
Integrate risk management plan into communication tools
Update Risk Register and review with teams
• Monthly for short term risks/milestones
• When something happens
• Quarterly for long term milestones
• Annually
Reports
• Weekly reports in news or issues section - changes only
• Monthly tracking sheets/reports
• Product development plans.
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39© 2009 Randall L. Englund www.englundpmc.com
Presenting to Review Committees
Portfolio Committee – Focus on strategic impact (not tactical)
• Red Risks Included in Currently Proposed Timeline and Budget
1. …
2. …
3. …
• Yellow risks – Contingency Plan Costs:
– Identify the Risk
– Summarize approach of the Risk Response Plan
– Identify incremental costs of the Contingency Plan
– List triggers, timing, and/or gating factors
– Identify benefits of the response plan
- Consequences if not done.
Risk Management
Risk Management
40© 2009 Randall L. Englund www.englundpmc.com
Example Case Study
XXX is exploring two molecules with different Mechanisms of Action
(MOA’s) along the same metabolic pathway to take into
development for the treatment of cancer. Both molecules appear to
have some promise, but data from YYY models is highly variable. A
strong competitor in this indication was expected to get approval
next year with a molecule that shares one of the MOA’s, but it failed
to reach its primary endpoint in a pivotal Phase III study. In three
weeks, upper management would like to be able to report to the
Board of Directors (BOD) that a molecule has been selected.
What are the risks?
XXX Confidential – For Internal Use Only
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41© 2009 Randall L. Englund www.englundpmc.com
Risk Identification Exercise
For the case study assigned to your team:
• Decide what Risk Categories apply
• Brainstorm potential risks (~5–10)
• Identify drivers of each risk event
• Describe impact if the risk occurred
• Identify potential timing of risk
Look for:
• Factors that may decrease (or increase) PTS
• Known events that could impact project value
• Known unknowns that may require investment to avoid or overcome
• Unknown unknowns that jeopardize project success
Be prepared to:
• Fully describe the risk event
• Characterize why the risk was identified (historical data, experience, trends, …)
Risk Management
Risk Management
42© 2009 Randall L. Englund www.englundpmc.com
Risk Prioritization Exercise
For the case study assigned to your team:
• Define criteria for probability and impact
• Select probability and impact for each risk
• Prioritize the risks by assigning to a Risk Group
• Rank the risks within the Red group
• Fill in the template
Look for:
• Factors that may decrease (or increase) PTS
• Known events that could impact project value
• Known unknowns that may require investment to avoid or overcome
• Unknown unknowns that jeopardize project success
Be prepared to:
• Fully describe the risk impact
• Characterize what drives risk likelihood (historical data, experience, trends, …)
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Risk Management
43© 2009 Randall L. Englund www.englundpmc.com
Risk Planning Exercise
For the case study assigned to your team:
• Discuss overall risk response
• Develop prevention steps for top priority (~1-3) risk drivers
• Identify triggers that the risk is occurring
• Develop contingency plans to mitigate impact
• Consider alternatives
• Make recommendation
• Fill in the template
Look for:
• Factors that may decrease (or increase) PTS
• Known events that could impact project value
• Known unknowns that may require investment to avoid or overcome
• Unknown unknowns that jeopardize project success
Be prepared to:
• Fully describe the risk response plan
• Provide justification for action (losses, benefits, drive value…)
Risk Management
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44© 2009 Randall L. Englund www.englundpmc.com
Risk Action Item Exercise
For your project(s) at XXX:
• Prepare an action plan
–How you will integrate risk management into team activities
–How to overcome implementation hurdles
• Example:
–Objective: Implement a more effective and efficient risk management process utilizing a
consistent tool set
–How: Plan a risk management agenda for next team meeting; put together slide set to introduce
the process, combining material from workshop with project specific materials; share the
distinction between reducing probability of risk occurring and minimizing impact once the risk has
occurred; commit to presenting high impact plan to review committee, focusing on top three
risks; monitor other risks at monthly meeting
–Hurdles: Need to work with “Jack” to develop a positive attitude about the process
Be prepared to:
• Share your approach; receive answers; give feedback to others
• Fully describe the risk management action plan
• Identify areas needing further assistance
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Risk Management
45© 2009 Randall L. Englund www.englundpmc.com
Risk Communication Exercise
Using a knowledge café approach, brainstorm with team members, addressing the topics:
• Ways to monitor and control risks?
• Hurdles to implementing risk management?
• How to measure successful risk management?
Directions:
• Add the assigned topic to the top of a flipchart.
• Brainstorm the topic and record your response on the flipchart. (Approximately 10 minutes)
• Rotate (clockwise) to the next chart. Brainstorm the new topic and add your responses. (Approximately 5 minutes)
• Rotate (clockwise) to the next chart. Review the information on the flipchart, brainstorm, summarize key points, and record responses. (Approximately 10 minutes)
Debrief the topic in summary form
Other concerns?
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46© 2009 Randall L. Englund www.englundpmc.com
What to Expect
This risk management process is a first step
Do it, see what works well, what to improve – your involvement and
feedback are crucial
• Share risk experiences with other PMs
• Address best and worst practices at Forums
Potential future enhancements:
• More sophisticated risk management tools and tracking
–Improve online reporting tools
–Establish relational database
• Process refinement
• …
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47© 2009 Randall L. Englund www.englundpmc.com
Conduct Summary Quiz
Why is risk management important for projects at XXX?
• Since only 10-25% of projects in clinical development reach market, risk management is an effective tool to minimize risks, increase probability of projects reaching market and coming in on budget and on schedule
• All projects have risks; we have to manage them better to achieve our commitments
What three areas does senior management want teams to focus on for risk management planning?
1. Improve probability of technical success
2. Gate overall investments
3. Focus on key value drivers
What elements go into a complete risk statement?
• “As a result of <an existing condition>, there is a <probability> that an <uncertain event> may occur, which would result in <impact on objectives>.”
How do you plan for a potential risk?
• Analyze, avoid, prevent, mitigate; prepare action plan with triggers & contingences; communicate
Risk management is a one time exercise? (True/False)
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48© 2009 Randall L. Englund www.englundpmc.com
Ensure that the Risk Management Plan Stays “Alive”
A risk management plan is created
• Beginning of project
• Beginning of given phase Living document - valuable reference / guide
• Celebrate successes in averting disasters
• Analyze potential plan improvements real-time
• Incorporate as part of daily lives
• Share examples Reviewed/revised
• Whenever there is a change
• Pre-determined review schedule
• Part of “business as usual.”
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49© 2009 Randall L. Englund www.englundpmc.com
Reminders
All projects have risk; our mission is to manage the risks
Avoid or prevent risks by focusing action on what drives risks to occur
For risks you cannot prevent, identify clear triggers to warn when risks
are about to or have occurred
Develop a contingency plan to minimize impacts of risks that occur
Focus on near term, actionable risks
Document alternative approaches in a Risk Register
Communicate about risks with all stakeholders
Be willing to speak truth to power
Make the commitment to manage risks, achieve greater project
success, and improve the risk management process.
Risk Management
Risk Management
50© 2009 Randall L. Englund www.englundpmc.com
Looking Forward[PROPOSAL to Management]
• Express interest• Ask questions• Expect focused,
detailed analysis• Follow through
• Overview training at staff meeting(s)
• Share ways to encourage compliance
• Updates on progress
• Sponsor training sessions
• Be present• Use appropriate risk
terminology
• Enthusiastic about risk management contribution
• Expect template use• Expect results
PBO,Upper Mgrs
PTL,Program Mgrs
ProjectManagers
• Accept & demonstrate accountability for better RM practices
• Participate• Inquire about status
• Overview training session
• Review available materials
• Support teams to conduct risk analysis
• Provide feedback on risk analysis & reports
• Update PDF forms
• Reinforce necessity to improve RM practices
• Reward effective & efficient practices
• Lead by example in using appropriate risk management terminology and applying techniques on all projects
• Facilitate effective and efficient risk management sessions
• Attend risk management training session• Participate in refresher session• Share practices in Forum sessions• Read about risk examples in memos,
reports, reviews, …
• Training reference documents• Risk Register• Online examples & ease in reporting• Time allocated to risk discussions• Management expectations
• Training provides the L2M2 to adopt, adapt, & apply risk management techniques
• Believe results are worth the effort• Positive consequences from management
attention & rewards
LeadershipLeadership
LearningLearning
MeansMeans
MotivationMotivation
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51© 2009 Randall L. Englund www.englundpmc.com
Conclusions
Facilitating Risk Management into a Corporate Culture
requires:
• Upper management support
• Clear roles and responsibilities across the organization
• Common terminology, simple templates
• Focus on drivers
• Meaningful case studies, tailored to the organization
• Practice, with feedback
• Reinforce through periodic forums
• Follow through.
Risk Management
Risk Management
52© 2009 Randall L. Englund www.englundpmc.com
References
Englund Project Management Consultancy