To manage your
project successfully
@nalyse your project risk effectively
PSA Project have recently been acknowledged for our expert advice in the field of risk management. Whilst many of you are aware of our other specialist services in the areas of strategic project planning and management and our online project services, we also draw your attention to the following article, which appeared in a Special Report undertaken by the Australian Financial Review on Project Management. It may be of interest to you.
Regards,
The PSA Project Team
It's vital to plan for those unforeseen circumstances A
professional project manager will have contingency plans prepared
for all eventualities, says Mark Lawson. |
"....One consultancy that believes risk management is such an important part of project management that it has adopted the area as a declared specialty is PSA Project Management PSA director Paul Steinfort says that project managers have always assessed the risks involved with projects, even if they did not consciously realise they were managing risks. But as a matter of course, and as part of a formal process, managers should go through each of the different factors in the project, and the assumptions behind each factor, then look at what will happen if the assumptions are changed. Apart from other considerations, a proper risk assessment will affect the tender price, by managers adding excess risk factors into the price, or may persuade the managers not to tender for the project in the first place, he says. Various risk factors include drawings being incomplete |
or filled with errors, untried designs or unresolved architectural issues in the design and even political interference. Steinfort says that one important way of assessing risks is simply to check records for previous projects, which should have been kept. For example, the project manager should be able to find out the usual rate of error in building designs, or possibility of industrial action from previous records on major projects. Once managers have assessed the risk, they can look at ways to offset it, possibly by insurance or by renegotiating the contract. But whatever happens, project managers have to be much more careful about assessing risk than they have been in previous years. With the industry so competitive and margins tight, a miscall on risks can put the project manager out of business, Steinfort says.” Extract from Special Report- Project Management, Australian Financial Review, Thursday 28 August 2003 |
Risk Management:
It is simply essential that any project management practice
or methodology has an effective risk management process solidly integrated
into its core process. A good risk management process is a key part of
the planning and implementation of a project methodology and is also
very useful in communication and sign off of risk analyses and mitigation. This
has proven itself time and time again.
PSA Project have established specialist processes and software for the identification, assessment, quantification, prioritisation and mitigation of risk and would be pleased to provide our readers with further insight into how these can assist you to meet your business needs. These processes are in accordance with Australian/New Zealand Standard 4360:1995 – Risk Management.
PSA Project offer to undertake an audit or review of your current risk management processes to develop a solutions oriented outcome.
Read more about our Risk Management Processes Online or Try our Free Project Management Online.
Coming Events:
PSA Project believe in continual improvement and are always looking for the best and most effective means to provide advice and services to our clients and interested readers. Our website and particularly our online Project Management Services – Your Project Path, have undergone significant upgrade and improvement in recent months. Please take a moment to check out our latest features at www.psaproject.com.au
We will be re-launching our online services in the near future, stay tuned for details of this exciting event
Contact us:
If after reading this newsletter you wish for further “obligation free” information on risk management or other information about successful project delivery, please do not hesitate to contact us
PSA Project
Phone: 9529 7500
Fax: 9529 7672
Email: mailto:psa@psaproject.com.au
Web: http://www.psaproject.com.au/
620 St Kilda Road
Melbourne
Vic, 3004
Australia
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