wendy romeu, president proprietary information of the alluvionic inc. and may not be disclosed...

Wendy Romeu, President

Proprietary information of the Alluvionic Inc. and may not be disclosed without written permission. 1

Proprietary information of Alluvionic Inc. and may not be disclosed without written permission.

Agenda Risk and Opportunity Management

What is a Risk (How about opportunity)Overview of Risk Management ProcessReportingAvailable Software ToolsOther Items To Consider

First, let’s start with a question.

2


What is a Risk (How about opportunity)Risk

Opportunity

Risk Management

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Overview of Risk Management Process1. Planning

2. Identification

3. Analyze & Prioritize

4. Response Planning

5. Execution, Evaluation and Updating

6. Lessons Learned (Feed the Process)

4


Risk Management PlanningEstablish Context

How & When are you going to identify risks & prioritize

How & When are you going to communicate

5


IdentificationDuring planning

Brainstorming

Email requests

Taxonomy (Triggers List)

Tools

People

One tool does not fit all

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Taxonomy (Triggers Lists)Project Trigger•Uncertain requirements•Unprecedented efforts•Infeasible design•Unavailable technology•Unrealistic schedule estimates•Inadequate Staffing •Inadequate skills

Business Unit •Human•Operational•Reputation•Procedural•Project•Financial•Technical•Natural•Political•Structural

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Contracts•Subcontractors Inadequacy•New Industry•Changing Environment•International Considerations•Political•Authority Issues•Audits/Compliance•Technical Data Rights•Conflicts of Interest•Flow Downs


Risk Register Example 1

Actions and Status

ID # Sta

tus

Pri

ori

ty

Risk/Opportunity Description

Risk Rating/

Category/Likelihood

How soon is the risk

Estimated Risk Impact effect on

Schedule

Estimated Risk Impact

Effect on Cost

Opportunity Rating/

Estimated Savings

Actual Impact Mitigation Plan/Status

Affected WBS/SWO

and Responsibility Project Phase

Characterization, Assessment and Analysis Tracking DataIdentification

PROGRAM RISK/OPPORTUNITIES MANAGEMENT PLAN

• Description• Impact • Likelihood• Priority

• Risk Owner• Current status of the risks• Mitigation or actions to be taken

Key Items within a Risk Register

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Analyze & Prioritize1 2 3 4 5

Near Certainty L M H H H

Likely L M M H H

Nominal L M M M H

Unlikely L L L M M

Remote L L L L M

Impact Level Matrix

Tech Performance Schedule Cost Staffing Skills

1No Loss in Technical

Performance against SpecMinimal or None Minimal or None Minimal or None Minimal or None

2Acceptable - Minimum

Reduction in Margin

Added Resources Required to

Meet Dates

<5% Impact on Total Program

Cost

Shortfall Can Be Handled

through Overtime

New Tech Area - Related

Direct Experience

3Acceptable - Significant

Reduction in Margin

Minor Slip in Interim Dates -

Delivery Dates Unimpacted

5%-10% Impact on Total

Program Cost

<10% Added Resources Hired

or Contracted

New Tech Area - Training

Available to Address

4Acceptable - No Remaining

Spec Margin

Major Slip with Delivery

Dates at Risk - No Slack

10%-20% Impact on Total

Program Cost

10%-20% Added Resources

Hired or Contracted

Limited Skills in New Tech

Area - No Training

5Unacceptable - Does Not

Meet Spec Requirements

Major Slip with Delivery

Dates Impacted

>20% Impact on Total

Program Cost

>20% Added Resources Hired

or Contracted

No Skills or Training in New

Tech Area

Risk Impact

Consistency within the Projects and OrganizationHave Guidelines to Analyze Risks

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Analyze & PrioritizeRisk Value = Probability of Event x Cost of Event

0.80 (Probability of Event) x $500,000 (Cost of Event) = $400,000 (Risk Value)

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Proprietary information of Alluvionic Inc. and may not be disclosed without written permission.11

Example Risk ChartL

ow

Me

diu

mH

igh

Low Medium High

Ris

k L

ike

l iho

od

Risk Consequence

Low HighMediumRisk Level:

2

1

3

# Risk Description

The MS Windows upgrade might slow down productivity

Single source item may cause project to be delayed if the vendor is late in delivering.

Risk Mitigation Plan

Supply Chain is locating a second source for XXX item

1

Cost of XYZ component is rising and the increase may make project over budget

Purchasing is securing raw material at a lower price to reduce this risk

2

3 Perform the upgrade and overview training during off peak hours.

X XRisk Migration: Current Reporting Period Previous Reporting Period

1

2

3

Chart Date: 3/12/14


Risk Register Example 2

Taxonomy/Trigger List

Business Unit/Department:Date:

Y/N ID # Impact Level

Probability Potential Cost

Impact

Potential Schedule

Impact (Days)

Risk Type

Event Name

Risk Timing

Risk Rating

Mitigation Status

Responsibility Stakeholders

HumanAre key individuals likely to leave?Are key individuals not performing to expected levels?

OperationalIs there a risk to the disruption to suppliesIs there a risk to the flow of operationsIs there a risk to the essential assets not being availableIs there a risk to distribution channels

ReputationIs there an event that could cause a loss in customer confidence

Is there an event that could cause a loss in employee confidenceIs there a risk to our market reputation

ProceduralDo we have an accountability issueAre there concerns within our internal systemsDo we have possible breakdowns in our controls

Projects within our Business UnitDo we have projects that might go over budgetDo we have projects that might be over scheduleDo we have any product or service quality issues

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Risk Register Example 2Business Unit/Department:Date:

Y/N ID # Impact Level

Probability Potential Cost

Impact

Potential Schedule

Impact (Days)

Risk Type

Event Name

Risk Timing

Risk Rating

Mitigation Status


HumanAre key individuals likely to leave? YAre key individuals not performing to expected levels? N

Operational NIs there a risk to the disruption to supplies NIs there a risk to the flow of operations NIs there a risk to the essential assets not being available NIs there a risk to distribution channels N

ReputationIs there an event that could cause a loss in customer confidence NIs there an event that could cause a loss in employee confidence YIs there a risk to our market reputation N

ProceduralDo we have an accountability issue NAre there concerns within our internal systems NDo we have possible breakdowns in our controls Y

Projects within our Business UnitDo we have projects that might go over budget YDo we have projects that might be over schedule NDo we have any product or service quality issues N

Answer Yes or No to the possible risks on the Taxonomy/Trigger List

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Risk Register Example 2Y/N ID # Impact

LevelProbability Potential

Cost Impact

Potential Schedule

Impact (Days)

Risk Type Event Name Risk Timing Risk Rating Mitigation Status


HumanAre key individuals likely to leave? The VP of Operations is looking for other positions in a different region and Business Unit. Y _001 5 Likely HAre key individuals not performing to expected levels? N


ReputationIs there an event that could cause a loss in customer confidence NIs there an event that could cause a loss in employee confidence Y _002 3 Unlikely LIs there a risk to our market reputation N

ProceduralDo we have an accountability issue NAre there concerns within our internal systems NDo we have possible breakdowns in our controls Y _003 5 Unlikely M

Projects within our Business UnitDo we have projects that might go over budget Y _004 2 Likely MDo we have projects that might be over schedule NDo we have any product or service quality issues N

Continue to Analyze “Yes” ItemsRed & Yellow are Priorities

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Risk Register Example 2Y/N ID # Impact

LevelProbability Potential

Cost Impact

Potential Schedule

Impact (Days)

Risk Type Event Name Risk Timing Risk Rating Mitigation Status


HumanAre key individuals likely to leave? The VP of Operations is looking for other positions in a different region and Business Unit which may cause a disruption in our business operations.

Y _001 5 Likely 20,000.00 Event DrivenVP of Ops

Leaving30 to 90

days H

Active: Start identifying possible replacement. Create plan for gap just in case the new person is not found right away. HR Director

Employees, Executive Mgmnt,

CustomersAre key individuals not performing to expected levels? N


ReputationIs there an event that could cause a loss in customer confidence NIs there an event that could cause a loss in employee confidence Y _002 3 Unlikely LIs there a risk to our market reputation N

ProceduralDo we have an accountability issue NAre there concerns within our internal systems NDo we have possible breakdowns in our controls Y _003 5 Unlikely M

Projects within our Business UnitDo we have projects that might go over budget Y _004 2 Likely MDo we have projects that might be over schedule NDo we have any product or service quality issues N

Customizable to your Business or Project

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Response PlanningMitigateTransfer/InsureAccept /ContingentExploit/EnhanceShare

This is where & how it happens:“Shaping Risk into Reward in Dynamic Times”

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Response PlanningWARNING - - New Risks

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Execution, Evaluation and UpdatingMay create separate projects

Keep up to date

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Lessons LearnedFeedback Incorporate into standard processes and

templates Update the risk register template and

corresponding taxonomy/triggers templateDon’t skip this step/ It is often ignored

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Some Available Software ToolsRisk Registrar

Active Risk Manager

Compliance 360

@Risk

Intelex

MS Project (when used properly)

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Other ConsiderationsRisk Appetite

Risk introduction when implementing mitigation plans

Risk Communication

Visual Representation

New Risks

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Summary 1. Planning

2. Identification

3. Analyze & Prioritize

4. Response Planning

5. Execution, Evaluation and Updating

6. Lessons Learned (Feed the Process)

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Questions

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Contact Information

Wendy [email protected]

321-508-1770Alluvionic.com

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Business ImprovementUtilized CMMI®, Six Sigma and PMI best practices to perform gap analyses and identify specific organizational weaknesses and opportunities. Created and executed measurable business & process improvement plans with cross-functional teams.

Risk & Opportunity Management Subject matter expert in Risk and Opportunity Management. Provided Risk Management training to international audiences. Created customized risk management tools tailored for immediate ROI. Leveraged identified opportunities to improve cost and schedule performance by 30% on numerous high profile programs.

ComplianceGuided organizations through internal compliance activities in preparation for external audits. Performed reviews and reporting in support of several compliance agency audits such as; DCMA, GSA, ISO & CMMI®. Led discovery and reconciliation efforts based on agency audit findings achieving a successful outcome of each audit.

Project & Program ManagementExtensive Project and Program Management experience in DoD and commercial industries. Complete program life-cycle responsibility; guiding teams through successful execution while providing quality deliverables. Established PP&C (Program Planning and Control) philosophy and tools which led to scalable ANSI compliant EVMS (Earned Value Management) systems.

ERP and TechnologyBroad ERP and technology implementation experience. Implemented ERP systems for small and large multi-national LMHV DoD and HMLV commercial manufacturing organizations. Performed comprehensive gap analyses and trade studies identifying best in class, size appropriate software and tool solutions for multi-disciplinary divisions. Consolidated numerous processes and incompatible tools into a single streamlined system with increased efficiency and communication.

Background:

Wendy has over twenty years of systems analysis technical experience and Project Management experience in the defense and commercial industries. She has provided extensive Program Management, Risk Management, CMMI®, Six Sigma, cost accounting, Process Improvement, ERP and proposal writing services. Wendy led multi-site DOD organizations to successful CMMI® maturity level 3 certification. This included successful implementation of Program Management, Engineering, and Finance organizations to complete a level zero to level 3 CMMI® rating.

Additionally, Wendy has led cross-functional ERP selection teams during comprehensive business gap analyses ultimately, resulting in ERP recommendations including Oracle and Deltek. Wendy has also instituted various technology innovations for business & process improvement.

Wendy holds a Masters in Management Information Systems (MIS) from Florida State University. She is a longtime member of Project Management Institute (PMI) and The Association of Operations Management (APICS) and has her PMP, CPIM and Six Sigma Black Belt certifications.

Wendy RomeuPhone: +1 321 508 1770Email: [email protected]: www.alluvionic.com

Proprietary information of the Alluvionic Inc. and may not be disclosed without written permission.25

wendy romeu, president proprietary information of the alluvionic inc. and may not be disclosed...

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