Unit 13: Supplementary Slides for the Riskit Method

1. Unit 13: Supplementary Slides for the Riskit Method CSEM04: Risk and Opportunities of Systems Change in Organisations Dr Lynne Humphries & Prof. Helen M Edwards

2. Overview • Fundamental principles of Riskit • The Riskit Method and its Life Cycle • Components of Each Step • Risk Management Mandate • Goal Review • Risk Identification • Risk Analysis • Risk Control Planning • Risk Control • Risk Monitoring • Techniques in Riskit

3. Fundamental principles of Riskit • Aimed at controlling risk during systems development. • All stakeholders within a project should have input. • Difficult to evaluate risks quantitatively: • therefore need to cater for qualitative risk assessment. • Participant communication is essential.

4. Riskit: Part 1 Method

5. The Riskit Method and its Life Cycle The focus in typical risk methods

6. Components of Each Step • Description: • Entry Criteria • Input: • Output: • Methods and tools: N.B.in the term defined earlier these are techniques • Responsibility: • Resources: • Exit Criteria:

7. Risk Management Mandate • Entry Criteria: • Project planning has been initiated OR Stakeholders have changed OR Project's overall risk level has changed OR Stakeholders' risk tolerance has changed. • Input: • Project authorisation information: goals, resources, schedule, budget. Organisation's risk management policy and practice. • Output: • Risk management mandate.

8. Risk Management Mandate • Methods and tools: • Risk management mandate template. • Responsibility • Project owner or Project manager. • Resource: • Project owner or Project manager. • Exit Criteria: • Risk management mandate documented and approved.

9. Goal Review • Entry Criteria: • Project planning has been initiated OR New goals or stakeholders have been identified OR A change in goals or stakeholders has been identified. • Input: • Project authorisation information: goals, resources, schedule, budget. Risk management mandate. • Output: • Goal Definitions.

10. Goal Review • Methods and tools: • Goal-Question-Metric (GQM), Stakeholder-goal priority table, goal definition template. • Responsibility: • Project manager. • Resource: • Project owner, project stakeholders, project personnel. • Exit Criteria: • Goals are explicitly documented and participants agree with their definition.

11. Risk Identification • Entry Criteria: • Project planning has been initiated OR • New goals or stakeholders have been identified OR • A change in goals or stakeholders has been identified. OR • The time interval specified in the risk management mandate has elapsed. OR • A significant change in the project's situation has been detected. • Input: • Project authorisation information: goals, resources, schedule, budget. • Risk management mandate. Risk checklists: general (e.g. from literature) or organisation specific. Lessons learned from other projects.

12. Risk Identification • Output: • A "raw" numbered list of risks. • Methods and tools: • Brainstorming techniques, goal and stakeholder driven identification approaches, meeting aids, interviews. • Responsibility: • Project manager. • Resource: • Project personnel, risk management facilitator. • Exit Criteria: • The marginal yield of risk identification approaches zero even when identification techniques are changed, OR • Time or effort allocated for risk identification runs out.

13. Risk Analysis • Entry Criteria: • Potential new risks are identified. • Input: • List of risk items. • Output: • A prioritised list of risk scenarios. • Methods and tools: • Riskit analysis graph, multiple criteria decision making tools (such as Analytical Hierarchy Process), Riskit Pareto ranking technique, risk clustering.

14. Risk Analysis • Responsibility: • Project manager. • Resource: • Selected project personnel, risk management facilitator. • Exit Criteria: • Participants agree on the priority of the most important risks.

15. Risk Control Planning • Entry Criteria: • Important risk scenarios have been identified. • Input: • Partially prioritised risk scenarios. • Output: • Selected risk controlling actions. Risk monitoring metrics. • Methods and tools: • Risk element review, Riskit controlling action taxonomy.

16. Risk Control Planning • Responsibility: • Project manager. • Resource: • Project personnel, risk management facilitator. • Exit Criteria: • All selected risk scenarios have been addressed.

17. Risk Control • Entry Criteria: • A risk controlling action has been selected for implementation. • Input: • Selected risk controlling actions. • Output: • Implemented risk controlling action. Problems reports if problems arose in implementation • Methods and tools: • NA • Responsibility: • Project manager. • Resource: • Project personnel, external resources as needed. • Exit Criteria: • Selected actions have been implemented

18. Risk Monitoring • Entry Criteria: • Project has started. The process may be enacted on predefined frequencies. • Input: • Definitions for risk monitoring metrics. Risk management mandate. Goal definitions. Riskit analysis graphs. • Output • Status reports. • Methods and tools • Organisation measurement program or database. • Responsibility • Project manager. • Resource • Project personnel. • Exit Criteria • Project has been concluded or terminated.

19. Riskit: Part 2 Techniques

20. Techniques in Riskit

21. Summary of Techniques

22. Goal and stakeholder driven identification • A simple technique to rank the identified goals within each stakeholder. • N.B. Comparison cannot be made across rows (or goals) • Different stakeholders may be of different priority/importance in the project .

23. Risk Analysis Graph(example from the Riskit Manual)

24. Risk scenario ranking:Using Pareto-efficient sets

25. Risk element review

26. Riskit controlling action taxonomy.