Risk Management Success Factors
Success Factor 6.1
Understand the threats and opportunities associated with the project plan and objectives
To meet Risk Management Success Factor 6.1 the project will:
- Agree a strategy and plan for threat and opportunity management.
- Identify threats to achievement of its objectives.
- Assess these threats to determine their likelihood, impacts and proximity.
- Identify opportunities arising in delivering the project and its objectives.
- Assess these opportunities to determine their likelihood, impacts and proximity.
- Continue to review threats and opportunities associated with the project plan and objectives through the life of the project.
The objectives and project management plan detail what the project is required to deliver, how and when. Promptly identifying uncertain events or activities that could impact or enhance the delivery of the project objectives within time, cost and quality, then assessing these events or activities in terms of likelihood and effect will enable informed management decisions to be made. Identification and analysis of threats and opportunities will influence opinion on whether the project is still viable or whether re-planning action is required to deal with individual threats and opportunities.
Success Factor 6.2
Respond effectively to threats
To meet Risk Management Success Factor 6.2 the project will:
- Plan how it will respond to identified threats.
- Manage the implementation of threat responses.
- Update the project management plan where required.
- Monitor the effectiveness of threat responses.
Once threats have been identified, actions, plans and reviews relating to how the threats will be mitigated are required to control the potential impact to delivery of the project objectives. This may include threats which could impact upon other related projects, these must be communicated or reported.
Success Factor 6.3
Respond effectively to opportunities
To meet Risk Management success factor 6.3 the project will:
- Ensure that the pursuit of opportunities does not affect the ability to meet its objectives.
- Plan how it will respond to identified opportunities.
- Manage the implementation of opportunity responses.
- Update the project management plan where required.
- Monitor the effectiveness of opportunity responses.
The identification and management of opportunities could result in improved project performance in terms of time, cost or quality. Opportunities are often identified as part of the threat and opportunity management process and a considered assessment of the outcome is required before deciding to pursue. Effort diverted to pursuing opportunities should not impact the ability to deliver the project objectives. There may be a need to assess opportunities within the programme or strategic context to fully understand the benefit or impact outside of the project.
Resource Management Success Factors
Success Factor 7.1
Secure resource through the life of the project
To meet Resource Management Success Factor 7.1 the project will:
- Identify the resources required to deliver its aims and objectives (to include equipment, staff and expertise; premises; information; tools and techniques).
- Have a plan for acquisition of resources.
- Ensure that resource provision for the project is agreed and confirmed with the provider and this is recorded.
- Consider succession and contingency planning.
(Financial resources are considered under Financial Management perspective)
The project will need to identify the resources required to deliver its objectives within the agreed timeframes – the amount of required resource is essential for planning purposes and for costing purposes. Failure to secure appropriate resource at the right time will lead to delays and cost escalation.
Success Factor 7.2
Evaluate, enhance and share improved ways of working
To meet Resource Management Success Factor 7.2 the project will:
- Monitor resource requirement and usage against the plan (to include supplier resource provision and management).
- Assess efficiency of resource utilisation and consider upgrade / upskill.
- Identify resource or expertise shortages / peaks and aim to level these.
- Consider sustainable use of resources.
- Release resource when no longer required .
To ensure deployment of the right resources when and where needed, in accordance with the plan to deliver the project objectives. Improved resource allocation may lead to cost and time savings via sharing or effective deployment of skills / expertise / facilities / equipment.
Success Factor 7.3
Establish and maintain effective relationships with suppliers
To meet Resource Management Success Factor 7.3 the project will:
- Determine the optimal type of supplier relationship.
- Agree and establish relationship with supplier/s.
- Monitor and review the effectiveness of the supplier relationship.
- Take action to ensure that the supplier relationship continues to be effective.
- Refer to Contract Management plan.
Establishing a clearly defined, agreed supplier relationship and encouraging dialogue achieves a better, more constructive working relationship between customer and supplier. Relationship expectations can be set early and performance and improvement measured against the agreed baseline.
Article series on “Project Management Success Factors”:
- Management Control Succes Factors
- Benefits Management and Stakeholder Engagement Success Factors
- Organisational Governance and Financial Management Success Factors
- Risk Management and Resource Management Success Factors
(c) This series of articles are subject to Crown Copyright.