The RMMM Plan
Effective strategy must consider three issues:
- risk avoidance
- risk monitoring
- risk management and contingency planning
- Proactive approach to risk – avoidance strategy.
- Develop risk mitigation plan.
- e.g. assume high staff turnover is noted as a project risk, r1.
- Based on past history
o the likelihood, l1, of high turnover is estimated to be 0.70
o the impact, x1, is projected at level 2.
o So… high turnover will have a critical impact on project cost and schedule.
- Develop a strategy to mitigate this risk for reducing turnover.
- Possible steps to be taken
- Meet with current staff to determine causes for turnover (e.g., poor working conditions, low pay, competitive job market).
- Mitigate those causes that are under our control before the project starts.
- Once the project commences, assume turnover will occur and develop techniques to ensure continuity when people leave.
- Organize project teams so that information about each development activity is widely dispersed.
- Define documentation standards and establish mechanisms to be sure that documents are developed in a timely manner.
- Conduct peer reviews of all work (so that more than one person is “up to speed”).
- Assign a backup staff member for every critical technologist.
- Project manager monitors for likelihood of risk
- For high staff turnover, the following factors can be monitored:
- General attitude of team members based on project pressures.
- The degree to which the team has jelled.
- Interpersonal relationships among team members.
- Potential problems with compensation and benefits.
- The availability of jobs within the company and outside it.
- Project manager should monitor the effectiveness of risk mitigation steps.
- Risk management and contingency planning assumes that mitigation efforts have failed and that the risk has become a reality.
e.g., the project is underway and a number of people announce that they will be leaving.
- Mitigation strategy makes sure:
- backup is available
- information is documented
- knowledge has been dispersed across the team.
- RMMM steps incur additional project cost
e.g. spending time to “backup” every critical technologist costs money.
- Large project – 30 or 40 risks.
- 80 percent of the overall project risk (i.e., 80 percent of the potential for project failure) can be accounted for by only 20 percent of the identified risks.
- Work performed during earlier risk analysis steps will help the planner to determine which of the risks reside in that 20 percent (e.g., risks that lead to the highest risk exposure).
THE RMMM PLAN
- Risk Mitigation, Monitoring and Management Plan (RMMM) – documents all work performed as part of risk analysis and is used by the project manager as part of the overall project plan.
- Alternative to RMMM – risk information sheet (RIS)
RIS is maintained using a database system, so that creation and information entry, priority ordering, searches, and other analysis may be accomplished easily.
- Risk monitoring is a project tracking activity
- Three primary objectives:
- assess whether predicted risks do, in fact, occur
- ensure that risk aversion steps defined for the risk are being properly applied
- collect information that can be used for future risk analysis.
- Problems that occur during a project can be traced to more than one risk.
- Another job of risk monitoring is to attempt to allocate origin (what risk(s) caused which problems throughout the project).