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Ciaran Whyte Risk Administrator Planning & Strategic Projects Unit
Risk Register January 2011 Ciaran Whyte Risk Administrator Planning & Strategic Projects Unit
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Agenda Objectives of Seminar Why manage risks?
Who should have a risk register? Risk Management Theory Risk Register format Risk Register Intranet Tool Risk Registers and Coordinators Examples of managing risks Risk Assessment Process Active Risk Management
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Objectives of Seminar At the end of the seminar you should -
Know why you should create a risk register Be able to create a risk register Know how to keep the register up to date Have an awareness of University risk management practices Know how to be more successful in risk management
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“the threat or possibility that an action or event will adversely or
Why manage risks? risk definition “the threat or possibility that an action or event will adversely or beneficially affect an organization's ability to achieve its objectives” KNOWN PROBLEMS POTENTIAL PROBLEMS Issues pro-active management Risks Fire-fighting Damage limitation Costly emergency actions Containment actions Contingency lower costs less stressful
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Who should have a risk register?
Project management teams College / School management teams Administrative Department management teams University senior management teams (SAM / SMT) All groups of people who meet to achieve common objectives Current problems - Minutes / action items Future problems - Risk register
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Risk Management Theory
past experiences inputs focus areas ignore risks outside control Risk Identification Risk Evaluation determine likelihood or probability of occurrence determine magnitude of loss or impact Risk Mitigation Risk Monitoring avoid contain active acceptance passive acceptance transfer chase actions / reassess probability & impact / add new risks regular reviews of register quick & simple communication to key stakeholders
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Identifying Risks When you have a plan for the future project tasks - step back and consider the possibility of each task failing to meet timescales / budget / quality objectives - review all assumptions Write down a clear definition of the risk – ‘there is a risk that ….... which will impact......’ Consider past experiences - lessons from past projects or other intellectual material - review list with other project managers and key project team members Consider all the evidence - requirements and design documents, dependencies, resourcing, status reports Brainstorm with key project individuals - facilitated sessions – Delphi technique / SWOT analysis - expert interviews Foster open communication within project team - give the team the opportunity to raise risks - don’t shoot messengers! Ignore risks over which you have no control - keep within your scope and what is manageable
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Evaluating Risks Determine likelihood or probability of occurrence - consider how many times this has been an issue before - use past experience to guide probability - select HIGH / MEDIUM / LOW Determine magnitude of loss and impact - assess impact in terms of scale of consequences should issue arise - assess in relation to scope of area being managed - select HIGH / MEDIUM / LOW
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Mitigating Risks avoid - eliminate the cause - remove task/activity causing risk from plan contain - add actions to plan to reduce probability (high medium low) - add actions to plan to reduce impact (high medium low) active acceptance - set aside contingency - allocate extra resource or finance - take out insurance passive acceptance - do nothing - accept consequences transfer - pass risk to another party - commercial agreement is the action appropriate to risk severity? is cost of action effective enough? is the action timely enough? is the action realistic within project context? is the action agreed by all parties? is the action owned by a responsible person?
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Monitoring Risks be disciplined in ensuring that all actions are completed ensure risk status covered in regular project reports consider new risks as the situation changes Gather feedback from owners of existing risks changes to probability/impact/trend Review RED risks and assign new actions Review ‘increasing’ trend risks and assign new actions Do NOT review all risks – manage by exception escalate in good time to allow mitigation actions to be improved – don’t wait until it becomes an issue!
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Red - existing controls not working/adequate (to escalate)
Amber - existing controls in danger of failing Green - controls are working Risk Register format Identification Evaluation Mitigation
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Risk Register Intranet Tool - Solution
HR/payroll Risk log print-out for meetings Owners – read only access Authorised names/depts Intranet Risk Register Warning messages Coordinators – update access Administrator – total access and Audit reporting
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Risk Register Intranet Tool - Roles
Risk Database Risk Owner Risk Coordinator Administrator Register Owner Project Manager View all risks in register Manage risks for assigned School or Admin Dept ‘owned’ Manage risks for named project View all University risks create new project register School/Dept register restructuring access control audit and monitoring reporting to SAM/SMT/Audit Committee University / School / Administrative Department Project
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Risk Registers & Coordinators
Administrative Department Code Risk Coordinator Academic Registry ACR Adrian Novis ISS Tony Ollier DRI Chris Talbot Catering CAT Les Carmichael Conference Services CON Peter Belcher Egypt Centre EGY Carolyn Graves-Brown Estates EST Ian MacPherson Finance FIN Phil Gough HR HRE John Cox Marketing MKT Chris Marshall PSPU PSP Ciaran Whyte Residential Services RES Gareth Atkinson Safety Office SAF Graham Jones Sport & Physical Recreation SPR Kevin Harrison Student Services STS Sarah Huws-Davies Taliesin Arts Centre TAL Sybil Crouch VC’s Office VCO Martin Lewis University UNI School / College Code Risk Coordinator Arts & Humanities AAH Debbie Marshall Business & Economics BAE Alan Evans DACE DAC Judith James Engineering ENG Steve Davies SOTEAS SOT Adrian Luckman Health & Human Sciences HHS John Davies Law LAW Andrew Beale Medicine MED Paul Roberts / Sian Roberts Physical Sciences PHY Niels Jacob
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Examples of managing risks
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Risk Assessment Process
Pre-risk assessment checklist 22 multiple choice questions A – low risk B – medium risk C – high risk Identifies impacts to administrative functions Risk Assessment Review Risk assessment checklist Risk register DRI summary of finances Summary presentation (major projects) SMT approval
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Active Risk Management
track risk actions as part of your status reporting foster a ‘heads-up’ culture as part of tracking to keep looking ahead start all tasks as early as possible to increase mitigation options maintain open and non-threatening communications decriminalise risk within project team – keep a positive attitude! Involve the key project skills in risk management – not just PMs communicate risk information – stakeholders & project team maintain your Project Files– and risk audit trail Risk management provides a – more efficient and cheaper way of working less stressful working environment
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THANK YOU for your time today
Conclusions THANK YOU for your time today
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