Qassim University College of Engineering Civil Engineering Dep.

Project Management GE 402

Submitted by : Hatem Al- Humid

ID No. : 426035336

Group : 3
Supervision: Prof. Tomas Ucol Ganiron Jr
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Introduction :
We will be talking in this presentation for two subjects important : risk management and change management , risk management is one of the key project management processes and the change management is the process during which the changes of a system are implemented in a controlled .

1 - Risk Management :
The primary aim is to illustrate challenges that network cooperation brings to risk management. Risk management is one of the key project management processes. Numerous tools are available to support the various phases of the risk management process used and those that are associated with successful project management in general, and with effective project risk management in particular.
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This section provides an introduction to the principles of risk management. The vocabulary of risk management Vocabulary . In ideal risk management, a prioritization process is followed whereby the risks with the greatest loss and the greatest probability of occurring are handled first, and risks with lower probability of occurrence and lower loss are handled in descending order. In practice the process can be very difficult, and balancing between risks with a high probability of occurrence but lower loss versus a risk with high loss but lower probability of occurrence can often be mishandled .
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Intangible risk management identifies a new type of a risk that has a 100% probability of occurring but is ignored by the organization due to a lack of identification ability. For example, when deficient knowledge is applied to a situation, a knowledge risk materializes. Relationship risk appears when ineffective collaboration occurs. Process-engagement risk may be an issue when ineffective operational procedures are applied. These risks directly reduce the productivity of knowledge workers, decrease cost effectiveness, profitability, service, quality, reputation, brand value, and earnings quality. Intangible risk management allows risk management to create immediate value from the identification and reduction of risks that reduce 5 productivity.

Risk management also faces difficulties in allocating resources. This is the idea of opportunity cost. Resources spent on risk management could have been spent on more profitable activities. Again, ideal risk management minimizes spending and minimizes the negative effects of risks.

Method of Risk Management

For the most part, these methods consist of the following elements, performed, more or less, in the following order. 1- identify, characterize, and assess threats . 2- assess the vulnerability of critical assets to specific threats . 3- determine the risk (i.e. the expected consequences of specific types of attacks on specific assets) . 4- identify ways to reduce those risks 5- prioritize risk reduction measures based on a strategy. 7

Establishing The Risk Management

1- Identification of risk in a selected domain of interest 2- Planning the remainder of the process. 3- Mapping out the following: the social scope of risk management the identity and objectives of stakeholders the basis upon which risks will be evaluated, constraints.

4- Defining a framework for the activity and an agenda for identification.

5- Developing an analysis of risks involved in the process. 6- Mitigation or Solution of risks using available technological, human and organizational resources. Identification : After establishing the context, the next step in the process of managing risk is to identify potential risks. Risks are about events that, when triggered, cause problems. Hence, risk identification can start with the source of problems, or with the problem itself.

Risk Management Options

Risk mitigation measures are usually formulated according to one or more of the following major risk options, which are:

1. Design a new business process with adequate built-in risk control and containment measures from the start.
2. Periodically re-assess risks that are accepted in ongoing processes as a normal feature of business operations and modify mitigation measures. 3. Transfer risks to an external agency (e.g. an insurance company) 4. Avoid risks altogether (e.g. by closing down a particular high10 risk business area)

Potential risk Management treatments :

Once risks have been identified and assessed, all techniques to manage the risk fall into one or more of these four major categories: - Avoidance (eliminate, withdraw from or not become involved) . - Reduction (optimise - mitigate) . - Sharing (transfer - outsource or insure) . - Retention (accept and budget) .
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Create a risk management plan

Select appropriate controls or countermeasures to measure each risk. Risk mitigation needs to be approved by the appropriate level of management. For instance, a risk concerning the image of the organization should have top management decision behind it whereas IT management would have the authority to decide on computer virus risks.

The risk management plan should propose applicable and effective security controls for managing the risks. For example, an observed high risk of computer viruses could be mitigated by acquiring and implementing antivirus software. A good risk management plan should contain a schedule for control implementation and responsible persons for those actions.
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Implementation of Risk Management

Implementation follows all of the planned methods for mitigating the effect of the risks. Purchase insurance policies for the risks that have been decided to be transferred to an insurer, avoid all risks that can be avoided without sacrificing the entity's goals, reduce others, and retain the rest.

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Risk Management communication

Risk communication is a complex cross-disciplinary academic field. Problems for risk communicators involve how to reach the intended audience, to make the risk comprehensible and relatable to other risks, how to pay appropriate respect to the audience's values related to the risk, how to predict the audience's response to the communication, etc. A main goal of risk communication is to improve collective and individual decision making. Risk communication is somewhat related to crisis communication.
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Risk Management Processes: Monitor

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Risk Management Processes (RMP) : are logically consistent and structured approaches to enumerating and understanding potential risk factors and assessing consequences and uncertainties associated with these identified risk factors .

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most applications of the risk process :

still concentrate on managing threats, and approaches to opportunity management remain patchy and reactive. The tools and techniques available to risk practitioners seem to focus attention only on the negative side of risk .

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Risk Register
Risk statement Risk severity Response options considered, taken Symptoms and triggers Risk owner

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Risk Symptoms
Risk symptom an indication that a risk event is about to occur:
Late submission of time sheets or other project documentation may be a symptom of an impending overrun or delay. An increase in the number of unresolved issues may be a symptom of poorly understood requirements.

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Risk Triggers
Risk trigger a problem response should be implemented:
When the expected schedule delay reaches 2 weeks, start working overtime . When the drops below 0.90, request a budget increase . If the order hasnt shipped by June 1, pay for air freight .

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Support Systems
Change management include risk assessment as part of change control process . Issue management monitor issues for changes to risks . Performance measurement view variances as symptoms or triggers .

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Exercise: Project Risk Management

. Choose your project or someone in

your group is familiar with.

. Use a different project than the one

you have been working on.

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. Identify and prioritize the risks. Write

your risk statements in the proper format!

. Develop and select responses to the

high priority risks.

. Select a presenter and prepare a short

presentation to convince your stakeholders that you are in control of risk on this project.
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Example (1) :
cases are drawn from actual organizations and firms. Decision Making, Systems, Modeling, and Support. Data Warehousing, Access, Analysis, Mining, and Visualization, Modeling and Analysis.

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Example (2) :
Technical developments in electronic communication, computing, and decision support, coupled with new interest on the part of organizations to improve meeting effectiveness, are spurring research in the area of group decision support systems

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Summary of Key Points

.Risks are always in the future. .You can never eliminate all risk. .Focus your attention on the most
severe risks.
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2 - Change management
Is a structured approach to transitioning individuals, teams, and organizations from a current state to a desired future state. Change management (or change control) is the process during which the changes of a system are implemented in a controlled manner by following a pre-defined framework/model with, to some extent, reasonable modifications .
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In project management, change management refers to a project management process where changes to a project are formally introduced and approved.
The field of change management grew from the recognition that organizations are composed of people. And the behaviors of people make up the outputs of an organization.

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change management principles :

1- At all times involve and agree support from people within system (system environment, processes, culture, relationships, behaviours, etc., whether personal or organisational). 2- Understand where you/the organization is at the moment.

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3- Understand where you want to be, when, why, and what the measures will be for having got there.

4- Plan development towards above No.3 in appropriate achievable measurable stages.

5- Communicate, involve, enable and facilitate involvement from people, as early and openly and as fully as is possible.

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project change management

change management refers to a project management process where changes to a project are formally introduced and approved. The field of change management grew from the recognition that organizations are composed of people. And the behaviors of people make up the outputs of an organization.
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Types of Changes
Scope changes (modify product
documentation and often project plan):
Requirements changes Clarifications Site emergencies

Work changes (modify project plan):

Resource changes Modified approach Corrective action
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Organizational Change Management

Organizational change management takes into consideration both the processes and tools that managers use to make changes at an organizational level. Most organizations want change implemented with the least resistance and with the most buy-in as possible. For this to occur, change must be applied with a structured approach so that transition from one type of behavior to another organization wide will be smooth.
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Types of Organizational Change

- Strategic changes .
- Technological changes . - Structural changes .

- Changing the attitudes and behaviors of personnel .

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As a multidisciplinary practice, Organizational Change Management requires for example: creative marketing to enable communication between change audiences, but also deep social understanding about leaderships styles and group dynamics. As a visible track on transformation projects, Organizational Change Management aligns groups expectations, communicates, integrates teams and manages people training. It make use of metrics, such as leaders commitment, communication effectiveness, and the perceived need for change to design accurate strategies, in order to avoid change failures or solve troubled change projects.
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Change management in development projects :

Change Management is not typically responsible for overseeing changes that occur within deployment or development projects which are typically delegated to a change management process dictated by the project management methodology adopted for the project .

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Change Management would typically be composed of the raising and recording of changes, assessing the impact, cost, benefit and risk of proposed changes, developing business justification and obtaining approval, managing and coordinating change implementation, monitoring and reporting on implementation, reviewing and closing change requests.

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Evaluating Change Requests

All change requests are documented:
Emergency changes are documented after the fact. Non-emergencies are documented before being considered.

Change requests should be documented by the requestor.

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First Level Approval of Change Requests : . Usually provided by the project manager or
a senior team member :
- Are the expected benefits significant enough to merit further investigation?

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. Implications :
- Must have budget for this work! - Benefits may include cost avoidance

- Organizational politics must be considered

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Second Level Approval of Change Requests : . Usually provided by a Change Control

Board (CCB): - Do the expected benefits outweigh any negative impacts?

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. Implications :
- Must have budget for this work! - Benefits may include cost avoidance

- Organizational politics must be considered

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Summary of Key Points

.A formally constituted group responsible for

approving or rejecting change requests.

.Powers and responsibilities should be welldefined and agreed upon in advance.

.On larger, more complex projects, there may

be multiple ( Change Control Board ) .
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Conclusion :
Project management is the discipline of planning, organizing, and managing resources to bring about the successful completion of specific project goals and objectives. It is sometimes conflated with program management, however technically a program is actually a higher level construct: a group of related and somehow interdependent projects.
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Thank you
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