IT Projectmanagement Risk Utility function and risk preference Risk-Averse Risk-Neutral Risk-Seeking utill utili potential payoff potential payoff potential payoff Project Integration Management
Project Integration Management 6 Risk Utility Function and Risk Preference IT Project Management
IT Projectmanagement The Importance of Project Risk Management Project risk management is the art and science of identifying, assigning, and responding to risk throughout the life of a project and in the best interests of meeting project objectives Project Integration Management
Project Integration Management 7 The Importance of Project Risk Management ◼ Project risk management is the art and science of identifying, assigning, and responding to risk throughout the life of a project and in the best interests of meeting project objectives IT Project Management
IT Projectmanagement The Importance of Project Risk Management Risk management is often overlooked on projects but it can help improve project success by helping select good projects determining project scope developing realistic estimates KPMG Study found that 55 percent of runaway projects did no risk management at all Project Integration Management
Project Integration Management 8 The Importance of Project Risk Management ◼ Risk management is often overlooked on projects, but it can help improve project success by ◼ helping select good projects ◼ determining project scope ◼ developing realistic estimates ◼ KPMG study found that 55 percent of runaway projects did no risk management at all IT Project Management
Project Management Maturity by Industry Group and Knowledge Area KEY: 1= LOWEST MATURITY RATING, 5= HIGHEST MATURITY RATING KNOWLEDGE AREA ENGINEERING/ TELECOMMUNICATIONs INFORMATION HI-TECH CONSTRUCTION SYSTEMS MANUFACTURING Scope 3.52 3.45 3.25 3.37 Time 3.55 3.41 3.03 3.50 Cost 3.74 3.22 3.20 3.97 Quality 2.91 3.22 2.88 3,26 Human Resources 3.18 3.20 2.93 3.18 Communications 3.53 3.53 3.21 3.48 Risk 2.93 2.87 2.75 2.76 Procurement 3.33 3.01 2.91 3.33 Ibbs,C.william and Young Hoon Kwak. Assessing Project Management Maturity, Project Managenent Journal(March 2000) Project Integration Management
Project Integration Management 9 Project Management Maturity by Industry Group and Knowledge Area
IT Projectmanagement Project Risk Management The goal of project risk management is to minimize potential risks while maximizing potential opportunities Major processes include Risk management planning Risk identification Qualitative risk analysis Quantitative risk analysis Risk response planning Risk monitoring and control Project Integration Management
Project Integration Management 10 Project Risk Management The goal of project risk management is to minimize potential risks while maximizing potential opportunities. Major processes include: ◼ Risk management planning ◼ Risk identification ◼ Qualitative risk analysis ◼ Quantitative risk analysis ◼ Risk response planning ◼ Risk monitoring and control IT Project Management