1. How will you define a project? A project is a set of task/activities undertaken to create a product, services or results.

These are temporary, in the sense that they are not routine work like production activity but most often one time set of activities undertaken. 2. Provide some examples. A project for a product will result in a complete product or part of a product. An example would be the creation of the Microsoft Surprise tablet that used a liquid magnesium deposition process to create the enclosure. The process developed in the project will be used for subsequent production of the tablet. Examples could include development of a new product or process (as in the example), constructing a road or a bridge (infrastructure in general), developing a computer/information system, etc. 3. What is your view of Project Management? Project management involves applying the knowledge & skills of the project team members including the project manager, application of tools and techniques available to ensure the defined tasks are completed properly. Proper completion means implies achievement of end results within given cost and time constraints. It usually means balancing of the constraints of scope, budget, schedule, quality, risks and resources. 4. Are there distinct kinds of activities in a project? Most often any project goes through some easily identifiable set of activities during its lifetime. Some typical activities can be identified as related initiating a project. Planning set of activities are required to plan the activities to be undertaken to achieve the defined goals. Executing group of activities help getting the project done. A related set of activities are required to monitor and correct the course of actions to keep the project on the planned course charted for it. Final set of activities are related to the systematic closure of the project. Most important of which is, of course, to formally record what has been learnt during the execution of the project. When documented, this set of documents, related forms to be used, the way estimates are to be made, database of estimates of similar projects etc. are often referred to as Organizational process assets. 5. What do you think is the difference between projects, programs and a portfolio? Projects are undertaken for a specific or a set of related purposes. A program is a set of projects managed in a coordinated manner to achieve different parts of an overall goal. For example the NASA lunar landing program had the development of the command module and the lunar landing modules as separate projects. A portfolio is a collection of projects, programs and even other portfolios that help an organization achieve some common high level business purpose. 6. Who is a stakeholder? Any person, organization or an entity whose interest is affected, positively or negatively, because of the project. The influence of stakeholders is an important issue to take into account in any planning and subsequently during execution of it as well. 7. What are organizational influences? Every organization has a certain way of doing things, collective wisdom about how things can best be done, etc. and these influences the planning and execution processes. These influences need to be taken into account when estimating, planning for activities related to projects. These are often mentioned as organizational environmental factors. 8. Can you explain project life cycle? A project has distinct phases when the range of activities required to carry out the project work differ. There is a distinct start phase, followed by an organizing and preparing phase. Carrying out is the actual execution part of the project. Closing phase makes sure the temporary activities related to the project are closed systematically. The points in time when the phase changes happen are named variously as phase gate, exits, milestones or kill points. If a project is to be closed, it is decided at these stages based on the performance or if the need of the project has disappeared.

9.What to you understand by a project charter? This is a document where it all begins. Project authorization is done on this document and a project would be initiated with the top level requirements listed in this document. Initial requirements as seen by stakeholders and the outcomes of the project also are listed in it. 10. What do you understand by plan baselines? Baselines are the final version of all plans before the project execution starts. Project baselines are the starting versions of all related plans of a project, be it the time schedule, the quality plan, the communication plan or whatever. This acts as the reference against which project performance is measured. 11. What qualifications are required to be an effective project manager? Besides being a good professional manager, the PM needs to have additional personal skills for being effective. It is not only essential for him to have project management skills but be proficient in them. Attitude, core personality characteristics and leadership qualities are needed. Team management and leadership skills that help the team reach common objectives and goals are required. 12. What are processes and process groups? A process is a defined way of doing things. Not only does the process define the actions to be taken but also in what sequence they are to be carried out. Process groups are a set of processes that are applicable to various stages of a project. For example, initiating process group, planning process group, etc. Each of the processes has a defined set of inputs and produce defined outputs by applying a set of tools and techniques on the input. 13. What are the knowledge areas relevant to doing a project? Scope management, time and cost management knowledge areas are quite obvious. Same goes for quality management too. To complete a project in all its aspects one needs to be aware of the project integration knowledge area. Communications is an essential issue so is the communication management knowledge. Procurement and risk management are two vital support areas. Since people get things done Human resources management is also an equally important area. 14. What is RAID as it related to project management? RAID stand for risks, assumptions, issues and dependencies. These are vital items that a PM should always be aware of. There are always risks about actions and a PM must take least risk actions. Unless assumptions about any estimates or actions are clear, these can go wrong. Issues and dependencies also limit the choices of actions often. 15. What are the important processes for project integration management? It starts with a project charter development. Project management plan development is another important activity. Direct and manage project execution and monitor and control are plans that are to be followed all through the project. Closing of the project (or the current phase) is the final set of activities for integration management. Since changes are often unavoidable an integrated change management plan must be developed to guide all changes systematically. 16. What is a SOW? SOW or the statement of work is a detailed description of the outcomes of the project in terms of what products, services or results are expected from the project. Most detailed SOW are usually given by the customer if he is the one requesting the project. 17. What does Scope management involve? Typically this process involves collecting requirements, defining scope, creating WBS, verifying scope and controlling the scope. The project scope statement, WBS and WBS dictionary defines the scope baseline. Controlling the scope process must minimize scope creep. 18. How should changes controlled? Through the integrated change control process. Requested changes will have to be reviewed

by a change control board. Only the approved changes shall be included in the document changes guiding project execution. 19. What is Work Breakdown Structure (WBD) and how does it affect the work estimates of tasks/activities? Work breakdown structure defines the work activities required for the project and the sub activities of each of the work requirement. The breakdown goes down to levels where all the work required is clearly understood. Work need not be broken down further than that. Work breakdown dictionary includes additional details that help define the tasks. Time and effort estimates can be accurate when everything about the work and dependencies are known. 20. How do you define a milestone? Milestone is a point in project schedule when some objective, a part of a result or a part of the planned services planned are achieved. 21. What are some techniques used for defining scope? Product breakdown, requirements analysis, systems engineering, systems analysis, value engineering, value analysis and alternatives analysis. Alternatives analysis can be helped by brain storming, lateral thinking and pair-wise comparisons, etc. 22. How do project scheduling help achieve project execution? When the activity effort and resource estimates are known getting the work done depends on how the tasks are sequenced. Dependencies with other activities have to be clearly known. The basic sequence is determined by what activities should be carried out first and what should follow. Unconnected tasks/activities can be sequenced in parallel to reduce project time. Most optimized sequencing would give you the best possible time needed given the resources allocation is ideal and there are no constraints there. Scheduling is done from activities list prepared after WBS has been finalized. 23. How is the activity time estimates done? Parametric estimates, three point estimates and analogous estimates are the techniques used for estimating activity time estimates. 24. How do you estimate in the three point estimating method? One optimistic estimate, a pessimistic estimate and one most likey estimate is considered for an activity. (Op estimate+6 X most likely+ pess. Estimate) is calculated and divided by 6. This result then may be further iterated. This is the estimate to be used. 25. How in the project time schedule represented most often? Activity scheduling network diagram is the most common form of representation for the project time schedule. This is often accompanied by milestone chart, and bar charts. 26. What is a critical path in schedule network diagram? When activity scheduling is done there will be activities whose start time and/or end times are not critical. It may be possible, due to dependencies, to start a task later than the date on the schedule, similarly an activity could be completed later as there are no other activity waiting for its completion. These time pads are called floats. There is always a path from start to finish, which does not have any floats. Not only all the activities in the path must be carried out in planned time, but also there cannot be any delays. Any delays will directly reflect on project completion time. This chain of activities or the path from start to finish is known as the critical path. 27. What are the ways a project time schedule can be compressed? Crashing and fast tracking are two methods of accelerating a project time schedule. Crashing method tries to optimize the schedule making use of the time floats available while keeping costs under control. Fast tracking is to make selected activities faster by applying additional resources if necessary. It may mean paying team members overtime, paying for the time of a consultant, etc.

28. What is effort variance? It is the difference in estimated effort and the effort actually needed. Work performance is monitored periodically to find if there is any variance in efforts so that corrective actions could be taken. 29. What is EVM, earned value management? At every monitoring point the planned value (PV), earned value (EV) and actual cost (AC) are monitored. PMB, performance measurement baseline is the aggregation of all planned values. Variances from baselines are determined and Schedule variance (SV) and cost variance (CV) are calculated. If earned value is equal to the planned value then the project is achieving what it is supposed to. If there is schedule or cost variance is significant, appropriate action needs to be taken to correct the slips. Estimate at completion (EAC) is estimated and compared with budget at completion. In case there is a slip, the cost consequences will be known. 30. What does A processes ensure? According to a dictionary, A is a way of systematic monitoring and evaluation of aspects of a project, service or facility to ensure that standards of quality are met. Thus, whatever ensures products meet customer expectations are part of A efforts. Ensuring quality of everything that goes into making a product and that no mistakes are made while making it ensures quality. 31. What is quality control? QC procedures include inspections to ensure quality requirements are being met

32. Whats the need for process improvement plans? A cornerstone of A is that processes are continuously improved. Process improvements help mistakes in processes and thus help improve quality. 33. What is the tool used for arriving at improvements in processes? GM, or the goals, questions and metrics is the method used. Goals are set, questions are asked about what improvements can be made and metrics (measurements that tell us something about the process) are carried out 34. What are the important aspects of a HR plan for the project team? Acquiring the team, forming the team, assigning roles & responsibilities, appraisal policies, rewards & recognition are the areas where clear cut policies should exist and be well known to team members. 35. Why is the performance management process in the HR management plan important? People like to be recognized for their contributions. The project management team needs to recognize talent and reward and recognize the performers. The assessment should not only be fair but seen to be fair. 36.How do you determine the communication needs of stakeholders? The communication needs of stakeholders depend on their position in the power/influence grid, power/interest grid as also impact/influence grid. Salience modeling is another technique to determine who is the most effective for the interest of the project. This is a qualitative assessment and will determine the kind and details of communications they need on the project. 37. What are the types of risks you may encounter in a project? These could be categorized as technical, external, internal/organizational, etc. Depending on the type of projects other categories may have to be considered. 38 What is a risk register? This is a register/document that contains all the identified risks of a project. List of actions of potential actions are also included.

39. Are there any positive aspects of the risk identification process? The risk identification process may be able to come up with some opportunities too. 40. What is risk impact and probability? When assessing risks the project team also tries to determine the probability of the risk actually happening and the impact it will have on the project when it does. 41. What is the role of Isikawa/ Fishbone diagrams in determining root causes of risks? This is a graphical method of determining cause and effect relationships leading to a specific risk. One could then determine mitigation actions for that risk. 42.What do you understand of Pareto (80/20) principle/analysis? This is a statistical analysis method that helps decide priorities between several actions to be taken. The basis is that there are about 20% action which when executed gets you 80% of the results. In QA this is used to identify the 20% of causes that create 80% of the problems. 43. What are fixed type contracts in procurement processes? The seller must supply the contracted items at a fixed price determined at the time of contract. 44. What are time & material contracts? In this type of contracts the contractor gets paid for time used on the project and expenses for material used and other agreed upon expenses. 45 What is the primary purpose of procurement management plan? To determine what exactly is to be procured, ensure they are procured at the best price and is made available to the project team at the right time. 46.What does procurement administrator involve? To keep monitoring and ensure that all open procurement contracts are progressing as expected. 47. Why does a PM need to be very proactive? A PM needs to be able to see any signs of a deviation in time and/or cost to project progress as early as possible. This gives the team as much reaction time as possible to correct the situation or to minimize the impact. 48.Forming a team, developing the team and improving knowledge are direct responsibilities of the project manager, do you agree? It is the team that executes the project. Thus ensuring you has right people is essential. Developing the team is important as whatever gaps are there need to be bridged. Improving self and the team knowledge is equivalent to the continuous improvement of A process and should impact the quality of the project outcome. 49. Do you think professionalism and integrity are essential qualities of a PM? PM is charged with managing all aspects of the project. Unless he is a professional and has integrity there are many things that can go wrong. Not so truthful progress reporting will easily boomerang on the PM but the organization will have a delayed or a failed project. 50. Explain the team forming process? After the members are collected as a project team there is a turmoil before everything settles down. This is known as the forming-storming-norming-performing process. The team people go through a storming of relationships when before settling to the role assignment. Over time they then get used to the structure of the relationship, that is the norming phase. It is only after everybody has settled into their new roles that the team starts performing.

What are the necessary steps to successful project management? What is your understanding and experience of the project manager role?

Include aspects such as setting clear project objectives, building the project requirements, managing project cost, time, quality and scope. Refer in you answer to the specific steps you took to successfully manage and close a recent project. What are the priorities to consider when planning a project in your field? Refer again to a recent project and outline your most important considerations in the planning stage. Time, scope and budget are the usual constraints to consider, but how did you allocate and integrate all the necessary inputs to meet the project objectives and plan for risk? The more in-detail the planning the greater the chances of project success. Highlight how each activity that is expected during the course of the project gets due attention. In your experience what are the warning signs that your project may fail? All project managers have had this experience. How did you pick up the warning signal (your monitoring and control processes and systems) and how did you manage it (corrective actions and implementing changes)? Warning signals can include constantly changing specifications, lack of interest from executive management, incompetence on the project team, changes in the business environment and inadequate resources. A project manager has to understand the uniqueness of each project and keep checking the projects contours against what they have learned on previous projects. What are the most important considerations when recruiting and building an effective project team? Project management is all about team work. Your ability to effectively manage a team is essential. When answering this project manager interview question highlight how you not only consider the necessary experience and technical skills but look at critical roles and responsibilities and the dynamics between team members. How will the person fit in with organizational beliefs and goals? How will the person relate to the stakeholder group? A clear understanding of what is expected of each project member is essential. Describe some innovative ways you have improved effectiveness on recent projects. Solutions and improvements need to be found through the generation of ideas and alternatives in a creative, out-of the-box manner. Show your willingness to be creative and inventive with both the initiation of a new project and the components of an existing project. What did you learn from your last project?

In your project manager interview focus on technical skills and knowledge as well as soft skills such as people and client management. Perhaps you learned something valuable about yourself as a project manager such as your willingness to adapt to a changing environment or your ability to mentor a team member. Highlight how you are able to learn from mistakes. What would you do differently knowing what you now know about the project? What do you consider to be the most important project manager skills in terms of people management? Leadership skills are key to successful project management. What are the methods you have used to guide and influence the project team towards reaching objectives. Good leaders make team members feel they have a real stake in the successful completion of the project. How do you structure your team, introduce and maintain good intra-team communication and improve team motivation and satisfaction?

Costing

Project Cost Management is a group of processes required to ensure the project is completed within the approved budget. Processes There are following processes which are part of Project Cost Management. Estimate Costs Determine Budget Control Costs Few Important points You can expect five to ten questions related to Earned Value Management. Planned Value (PV) refers to what the project should be worth at this point in the schedule. It is also referred as BCWS (Budgeted Cost of Work Scheduled). Earned Value (EV) is the physical work completed to date and the authorized budget for that. It is also referred as BCWP (Budgeted Cost of Work Performed). Actual Cost (AC) is the actual amount of money spent so far. It is also referred as ACWP (Actual Cost of Work Performed). Estimate At Completion (EAC) refers to the estimated total cost of the project at completion. CPI refers to Cost Performance Index. It is defined as CPI = EV/AC If CPI is less than 1, this means that the project is over budget. BAC refers to Budget at Completion. It is related to EAC. EAC = BAC/CPI

ETC refers to Estimate to Completion. It is defined as ETC = EAC - AC CV refers to Cost Variance. It is defined as CV = EV - AC SV refers to Schedule Variance. It is defined as SV = EV - PV Negative cost or schedule variance means that project is behind in cost or schedule. SPI refers to Schedule Performance Index. It is defined as SPI = EV/PV VAC refers to Variance At Completion. It is defined as VAC = BAC - EAC 1. Estimate Costs

2. Determine Budget

3. Control Costs

These questions are randomly taken from certchamp PMP exam kit

Question - 9 Your company has been hired to configure software in 500 computers. All computers need equal time to configure. The contract for the project is set at a fixed cost, and the incentive based on how fast the project work is going to be completed. Management has requested that you study the work method to determine a faster, less costly, and a better method to complete the project. This scenario is an example of _________. 1.Time Constraint 2.Schedule Constraint 3.Value Analysis 4.Learning Curve Correct Answers are : 3 Explanation : Value Analysis is a systematic approach to find less costly ways to complete the same work. A and B are incorrect, as this situation does not describe a specific time or cost constraint. D is incorrect: the learning curve happens as the project team completes the work.

Question - 12 You have just started a project. The project team member reported that 20 percent of the project is done. You agree with their completion status, but do not change any of the progress in your report to the customer. This is an example of which one of the following? 1.0/100 Rule 2.50/50 Rule 3.Percent Complete Rule 4.20/20 rule Correct Answers are : 1 Explanation : The 0/100 Rule allows for zero percent credit on an activity until it is 100 percent complete. B is wrong (50/50 rule): 50 percent completion when the work begins and 50 percent when the work is completed.

Question - 19

You have two possible projects to manage, but you can only choose one. Project MKTG is worth $23,000, while Project SALESPTR is worth $25,000. Management elects to choose Project SALESPTR. Which one of the following is the opportunity cost of this choice? 1.$23,000 2.$27,000 3.$50,000 4.$4000 Correct Answers are : 1 Explanation : The opportunity cost is the amount of the project that was not chosen.

Question - 39 Your project has a budget of $240,000 and is expect to last for 1 year, with the work and budget spread evenly across all months. The project is now in the fourth month, the work is on schedule, but you have already spent $120,000 of the project budget. What is your COST Variance in this case? 1.-$40,000 2.$40,000 3.$240,000 4.$56,000 Correct Answers are : 1 Explanation : A is the correct answer. The project is now in the fourth month, the work is on schedule means , percentage of work completed = (4/12)*100 Cost Variance = Earn Value - Actual Cost Earn Value = total cost * percentage of work actually completed = $240,000 * (4/12)=$80,000 CV = $80,000 - $120,000 = -$40,000

POV: The Project Pyramid

Project management has become key to companies that achieve long-term customer satisfaction, increased profit, employee morale, and quality improvement. Many companies treat project management as a person, not as a process. They usually assign their best troubleshooter or lead technician as project manager, since that person can pull a project out of the fire. This strategy relies on the individual's ability to be a reactive problem-solver and doesn't foster proactive planning and up-front communication. A project manager's key role is to keep primary elements in balance, which does not exactly mean perfection. A project can be viewed as a pyramid with five interrelated elements that must be kept in balance. The project manager's role is somewhat like a newspaper reporter's job constantly asking questions of key individuals to find answers to make the project viable. Project managers must also be aware that although they may think their views are important, the most important opinions belong to the client. The first element on the project pyramid is the scope of the deliverable whether it is a videoconference room, a home theater, a boardroom, or an auditorium. The questions to be asked are, What are we delivering? and What are we not delivering? The second element is time. Two main issues arise here: The first is, How will this deliverable be designed, installed, commissioned, trained, etc.? It is an activity-based question, and the project manager needs to rely on the company's functional managers and process owners for those answers. The second question is, How long will it take to deliver this project? The duration is often determined by the client. The third element is the cost associated with the resources and materials needed to accomplish the project's deliverables. First ask, Who is needed to fulfill this project? That determines the skill set and competence required. Secondly, What materials are required (plasmas, cabling, microphones, racks, control systems, etc.)? The third question is, How much? pertaining to both the amount of man-hours needed, as well as the quantity of materials required. In my experience with the AV marketplace, the effort actually required to fulfill a project is often underestimated, or collapsed with the duration (time) element.

The fourth element, quality, makes up the volume of the pyramid, and is dependent upon, and impacted by, all previous variables: scope, time, and cost. How well do the deliverables have to function? What are the performance specifications for reliability, maintainability, availability, and ease of use? How good are the processes used to design, install, test, train, and commission the products and services to be delivered? Are there standards, procedures, or guidelines in place that are followed, or do individuals do their assigned work in their own way? How good are our human resources? Have they been well trained, and are they rewarded for performing in compliance with established standards? How high quality are the materials being used? Does each individual piece meet the desired quality specifications, or will the ultimate deliverable suffer because components and functions are a mix-match of capabilities? The fifth element is risk, which makes up the foundation of the project. Ask, How sure are we regarding the outcome of this particular project? The more similar a project is to previous projects, the more predictable the outcome should be, and therefore, the project ought to have a sense of stability. The more unique a given project is, the less predictable the outcome and the weaker the foundation. In order to make the project more stable, the project manager will typically have to revise one of the other elements increase cost, increase time, decrease quality, or decrease scope. A project manager must have flexibility in at least one or a combination of scope, time, or cost. This flexibility is determined by prioritizing the three elements. In the AV marketplace, scope and time are often fixed or constrained by the client, as is the ultimate price. But price does not equal cost. The price may be fixed at the beginning of the project by the sales organization, but the project manager must have flexibility in the costs of the project, especially with regard to the amount of effort required by project team resources. The more unique the project, the wider the variance threshold required by the project manager

Project management methodologies are the various ways in which projects are initiated, planned, and executed unto completion. For different industries and different types of projects, there are specific methodologies that can be used. In the sections below, these project management methodologies are discussed in greater detail.

Project Management Methodologies, Processes, and Frameworks: Clarification

The word methodologies is sometimes confused with other terms like processes and frameworks. However, there are important distinctions between the three. A framework is a state of mind for approaching a project, whereas a methodology is a prescriptive form of approaching a project. A process is a specific function in which the stages of a methodology are carried out. It is generally agreed that within the management hierarchical structure, the frameworks precede the methodologies, and the methodologies precede above the processes. Even with this clarification of terminology, the differences between project management methodologies, processes, and frameworks continue to undergo constant discussion. The intent of this article, however, is not to argue the categorization of these terms, but rather, it is to provide a basic understanding of what practices are available in project management. Below is a list of common methodologies, processes, and frameworks. Because project management methodologies have been developed for literally thousands of years, this list is in no way inclusive.

Project Management Methodologies, Processes, and Frameworks: Basic List

Traditional project management is a step-by-step approach through each of the projects five stages initiation, planning, execution, monitoring, and completion. Each stage is broken down and begins only when the previous stage has been completed (though it is not uncommon for traditional projects to cycle back to a previous stage). This methodology is most common in construction projects where the work is very linear and rarely subject to significant change. The Critical Path Method (CPM) associates each task with a time duration then determines the resources necessary to carry out the project within that time. As one project management professional puts it, The critical path is simply all the tasks that determine the end date in your project schedule. If one of those tasks is late by one day, then your project end date will be extended by one day. In other words, the critical path method aligns all tasks to bring about the greatest possible timeefficiency. Critical Chain Project Management (CCPM) is in contrast to the critical path method in the way that it focuses on resources rather than time constraints. The critical chain is essentially the sequence of tasks that the team members are able to efficiently handle. When a project has limited resources and its time schedules are less strict, CCPM is used to distribute work in a flexible, collaborative way. Event Chain Methodology (ECM) is used for projects with tasks that initiate chains of events. Each task, upon completion, causes a new event in which a new task must be worked on. Because these events can be either anticipated or unanticipated, risky or safe, they must be managed very carefully in order to achieve the desired results. ECM is very different from traditional project management where each stage of the project is predetermined and executed in a linear fashion. Below are a few other project management methodologies, processes, and frameworks more specific to the IT industry. As these tend to be much more complicated, their names are only listed: Agile Six Sigma Scrum XP (Extreme Programming) Crystal FDD (Feature Driven Development) DSDM (Dynamic Systems Development) Adaptive Software Development RUP (Rational Unified Process) PRINCE2 Once again, for clarification, the exact definitions for these project management practices are not always agreed upon among project managers. For example, some may insist that a methodology is a process while others insist that a process is a framework. Some may even use the three synonymously. However, the list is intended only to demonstrate what most project managers consider to be the best practices associated with project management methodologies.

Risk Management
This post aims to explain what a risk is and describes the risk management process, so that at the end of this article you will have everything you need to successfully find, manage, and report on risks throughout the duration of your project or program. What is a Risk? There is no one single definition of a risk. How risk is defined depends on the context under consideration. For example, financial risk is often described as the volatility of returns, both above and below the expected rate of return. In the context of projects and programs, we can define risk as being the likelihood of a specific event occurring which has a negative impact on our project or program. Often when we speak of risk, we really mean the risk severity, which is defined as the product of the probability that the risk will occur and the impact the risk will have on our program should it materialise: Risk Severity = (probability of risk occurring) x (impact of risk) I typically score both Risk Probability and Risk Impact using a scale of 1 to 5. A probability score of 1 for a given risk means the risk has a low probability of occurring, whereas a probability score of 5 means the risk has a very high probability of occurring. I use a similar 1 to 5 scoring for Risk Impact, with one being low impact on the program if the risk materialises, and 5 being a very high impact should the risk materialise. How we manage a risk will depend very much on the combination of Risk Impact and Risk Probability. For example, although a risk may have a very high probability of occurring, we may not devote too much time to managing it if the impact on our program is negligible. If the impact of a risk occurring was very large, such that it resulted in the termination of our program mid execution, we would obviously be prepared to devote a lot of time to managing it even if the probability of it materialising was low.

If we always measure Risk Impact and Risk Probability using our scale of 1 to 5 then we have a standard range of 1 to 25 for our Risk Severity. Having a standard range for Risk Severity is important as it allows using to compare risks against each other and allows us to understand the total level of risk facing the program at any given time. Benefits of Risk Management There are a number of benefits to having a solid risk management process, including:

Clear ownership and accountability for all risks Creation of an environment where risks and be accepted by the business on an informed basis An increased likelihood that the program will be a success, along with the increased likelihood that the objectives of the organisation will

be met The Risk Management Process The risk management process I use looks like this:

One we have determined our Risk Strategy, which simply means we have decided how we are going to manage risk throughout the duration of the program, we enter a 6-step loop as follows:

Identify Risk: here we must identify what is the risk, and what is at risk. It could be timescales, the realisation of a benefit, or the delivery of a capability.

Allocate Ownership: As the program manager, it is ultimately your responsibility to manage the risks within the program, however, each risk should be given an owner who is best positioned to perform mitigating actions on the risk and monitor the risk.

Evaluate Risk: this simply refers to evaluating and assigning the risk with an impact and probability score. Plan Mitigations:In a general sense, every risk has a standard set of mitigations which can be applied to it. These are commonly referred to as The 4 Ts:

Transfer: can the risk be transferred to another party, for example, could an insurance policy be taken out. Tolerate: this is frequently used for risks with very low impact, and is effectively the do nothing option. Tolerate effectively means the risk is monitored but the program proceeds without proactive action being taken to address the risk.

Terminate: this refers to adjusting the program so the risk is no longer applicable to the program, for example, a project may be removed entirely from the program so the risk can never now materialise.

Treat: this is where concrete actions are taken to reduce the probability of the risk materialising or impact of the risk should it materialise.

Implement Actions: here concrete actions are given to the risk owner to ensure they are carried out Monitor and Control: all risks and actions which have been created need to be reviewed regularly, so the risk impact and probability can be updated following any actions which have been performed to treat them.

This 6-step loop should be a continuous process throughout the program. Most program management textbooks will tell you that the frequency of

the risk management process should vary with the complexity of the program, with more complex programs requiring a greater frequency, however, I would argue that most programs should carry out this process as frequently as practical, as risk management is one of the most important things to get right on any program. Embedding Risk Management It is obviously important that the risk management process described above be repeated continually throughout the duration of the program, but it is equally important that the risk management process be fully embedded into all the projects running within the program. How frequently the risk management cycle is repeated will depend on the process being followed by each sub-project, and the Risk Strategy for each project within the program should be agreed when initiating each project. As an example, let us consider an R&D team within the program using an Agile software development life cycle (SDLC). Within the R&D team there may be a number of sprints. The simple way to embed the 6-step risk process described above into this agile life cycle is simply to complete the risk management loop once for each sprint:

No matter which team a person is part of, or which project they are working within, every single person working within the program should have the opportunity at any time to raise risks to the program. The way I like to do this is by creating a form on a Wiki that allows risks to be submitted to the program. Then whenever I perform an Info Sharing

session or write my weekly program team communications I actively encourage the team members to submit risks. If you do this well then you will have a lot of emails to sift through, but this is preferable to missing an important risk. The other benefit of this approach is that it flattens the organisation, allowing everyone to communicate directly with the program. Highlighting Risks to Stakeholders Now that we understand risks and the risk management process, we are ready to use a Risk Map to highlight key risks to stakeholders:

To learn how to create a Risk Map, read the article on Risk Mapping. We are also ready to track the total risk being faced by the program over time using a Risk Burn Down Graph:

To learn how to create a Risk Burn Down Graph, read the article on Charting Total Program Risk. Key Success Factors in Risk Management In my opinion, the three key factors needed to successfully manage risk are:

Fully embed the risk management process into the program allow everyone the opportunity to engage with the risk management process Each risk should have an owner, with clearly defined actions against the risk. Clear communication with steering group, so that risks can be accepted by the business on an informed basis.