© Mahindra Satyam 2009 Risk Management QMS Training

2 © Mahindra Satyam 2009 Mahindra Satyam Confidential Objective To identify, analyze,mitigate, handle and continuously monitor the risks in the project

3 © Mahindra Satyam 2009 Mahindra Satyam Confidential Process Prepare Risk Management Plan Identification and Analysis of Risks Plan for Risk Response Action Implement and Analyze Risk Response Actions Monitor and Control Risks Revisit risks Risk Management at Organization Level Review Risk Management Plan

4 © Mahindra Satyam 2009 Mahindra Satyam Confidential Prepare Risk Management Plan The Risk Management Plan prepared during project planning is documented at the stages of Contract Review,Project Planning and Project Execution and is available as a separate template.

5 © Mahindra Satyam 2009 Mahindra Satyam Confidential Identification and Analysis of Risks A set of possible risks for the project are to be identified under standard risk categories. The inputs for identification are:  Guidelines for Risk Identification  Standard Risks (worksheet in template)  Standard Risk Categories  Check list for development projects( worksheet in template)

6 © Mahindra Satyam 2009 Mahindra Satyam Confidential Identification and Analysis of Risks The risks that are identified have to be analyzed for the impact of the risk on the project and also for the probability of its occurrence to arrive at risk criticality on the scale of 5. Inputs for analysis are  Instructions work sheet in template – Impact-Probability Table – Risk Impact categorization work sheet in template – Risk rating table

7 © Mahindra Satyam 2009 Mahindra Satyam Confidential Plan for Risk Response Action For all the identified risks, need to choose type of action plan.  Risk Avoidance  Risk Transfer  Risk Mitigation  Risk Acceptance Need to identify person responsible for implementing action plans

8 © Mahindra Satyam 2009 Mahindra Satyam Confidential Plan for Risk Response Action Need to identify target date by which action plan should be implemented. For all the risks with criticality greater than or equal to 4, should be ready with the risk handling plan too.  Inputs for risk response planning are – Guidelines for risk response planning.

9 © Mahindra Satyam 2009 Mahindra Satyam Confidential Review Risk Management Plan Once the risks are identified, analyzed and risk response action is planned, the risk management plan needs to be reviewed and approved by project manager and if possible by customer too so as to ensure the completeness and correctness of the plan.

10 © Mahindra Satyam 2009 Mahindra Satyam Confidential Implement and Analyze Risk Response Actions  The response actions identified are implemented for all the identified risks.  Update the risk management plan with actual actions taken.  Recalculate the residual impact and probability to arrive at residual risk criticality.  If greater than cut off, need to re-plan the response action to bring it down to acceptable limits.

11 © Mahindra Satyam 2009 Mahindra Satyam Confidential Monitor and Control Risks The project will be monitored for the symptoms of occurrences of  any of the risks that are already identified  new risks The potential risks and the risk response action plans will be discussed in the Project review meetings and reported thru PMI/QMR QRs to conduct risk audits during PPMs to check the compliance with the risk management plan and also in identifying/reporting the risk, if there is a lack of project process compliance. Risk management plan may have to be revised based on these inputs.

12 © Mahindra Satyam 2009 Mahindra Satyam Confidential Revisit Risks Whenever, risks occur in the project or new risks are identified during project execution  it is updated in the risk management plan  the project plan and/or the project schedule is to be revised, if necessary Whenever the project plan is modified, the risks are to be re-assessed and the Risk Management Plan is to be revised, if required

13 © Mahindra Satyam 2009 Mahindra Satyam Confidential Risk Management at Organization Level PMG analyzes the risk reports of projects to identify most common causes of risks PMG to maintain list of standard risks contributed by projects. To mitigate these risks Organization level risk mitigation actions will be taken  These common risks and their mitigation plans will be documented in the organization Risk Management Plan  Organization level risk analysis and revision of Organization level Risk Management Plan will be done every six months