Friday 23 March 2007

LinkedIn: Question: How does your organisation assess project risk?

LinkedIn: Question: How does your organisation assess project risk?
I would like a quick poll of the complexity of risk assessments for project risk. Does your company have a project risk register with Impact and Probability listed a High/Medium/Low? Or does it attempt to financially assess the impact (ie. put it in dollar terms) and then fund a separate project risk budget/trade risk funding with the client? I see both ends of the spectrum (and everything in between) being used in my organisation and would like to put the project risk management culture on a more professional footing. Please feel free to share you experiences of assessing project risk.

Tom Clark wrote:
We started to go down the route of financial impact and then using portfolio management techniques to look at your overall project investment. However, it is a leap for some PMs to make. Directionally I would advocate a dollar value approach, but backed up by a formal risk management training programme i.e. give the PMs the skill first, followed by the process - and then back this up with tools.

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