Risk&Opportunity Register structurep

“Bureaucracy is not an obstacle to democracy but an inevitable complement to it.”

The following list has been conceived as shared tool available to all stakeholders. It is the first step toward the full (balanced) involvement of anyone in the effort of delivering the successful project.

The choice of using the same registry for managing Risk and Opportunities comes from the idea that any variation shall be analyzed from the most “neutral” viewpoint. While it is foolish ignoring the risks, the worrisome attitude toward them creates friction. This wastes a lot of people’ energies, who fell pressed for hiding the reality.

1. Risk ID – It is part of the Registrar Section (see post)
2. Issue ID – If available, it means that the Risk has been detected after the release of the Plan (more to come in the next posts)
   1. Impact Report ID
3. Item ID – the reference to the Product Breakdown
4. Risk Plan ID – the reference to the most specific item in the mitigation plan(s)
   1. Exception Report ID – the reference to the document describing the proposed actions (when the proximity is very small or the event has been triggered – see pending status)
5. Version – The versioning (see post ) it is not only the best way for tracking changes; it offers the possibility to understand the (d)evolution of the current situation.
6. Sign – Is it a Risk or an Opportunity (see post )? Using the same register makes possible to catch and adjust any possible occurrence.
7. Risk Category – See Category Risk’s list
8. Description – It is a key value. The reason for this lies in the clarity and then the understandability of the threat to the outcome.
9. Cause – It could be a sensitive topic. It is not only a problem of “savoir faire” with the involved people. Sometime the complexity of the argument requires the usage of Fishbone diagram.
10. Event – It is the situation that triggers the occurrence that influences the outcome. The event cannot be analyzed without explicit references to the Cause.
11. Consequence – Its description cannot be limited to the financial costs (impact). Again the importance of a clear and fully referenced description represents a huge asset for the project.
12. Impact – This topic has been discussed in that post . In essence, it is the cost to be paid if the event had it full effect on the output.
    1. Inherent – It is the main part of the analyzed risk.
    2. Residual – It is the remaining part left by any action to be taken (mitigation etc.). The term remains meaningful only if it is still indicating an acceptable risk. See DAU definition.
13. Probability – AKA likelihood. While it definition is quite easy; its application presents a lot of challenges. Especially when the history (e.g. team productivity) is not available.
    1. Inherent – It is pointing out the main “flow”.
    2. Residual – It indicates the collateral situations. Sometimes, after a careful investigation of the “Causes” it is possible that these two values are reversed.
14. Expected Value – It is the correspondence of the Impact when we are dealing with the Opportunities
    1. Inherent
    2. Residual
15. Proximity – As discussed in the previous posts, this value gives the timing. However, there are some scenarios where the time is not a calendar value; it is created by other factors, for example: production rhythm.
16. Risk Response Categories (see post). It is one of the following type of action:
    1. Risk Response
    2. Assumption – the risk is positively accepted
    3. Transferred – any action that moves the responsibility toward an entity able to tackle it better (e.g. insurance)
    4. Mitigation – an action that reduces the impact. It could be a workaround.
    5. Avoidance – When the root of the problem can be eliminated
17. Risk Owner – The person who is responsible for monitoring the event. He/she has to be just one for each risk and directly involved in the production.
18. Risk Status – It states the condition of the process. These can be some useful labels:
    1. Discovered – it has been classified, but it is still not assessed.
    2. Analyzed – there is a “price”, but the Owner is still to be assigned.
    3. Allocated – The Owner have been assigned.
    4. Active – The event is not yet happened.
    5. Pending – The event has been triggered, operations are undergoing.
    6. Closed – The event did not happened.

More readings

http://www.bmpcoe.org/library/books/rmg%206th%20edition/2.html