Project Risk Management

Hi there,

one week ago we finished the Cost Management class and I developed a basic calculator for the Hybrid vs. non-Hybrid vs. Tesla S car comparison concerning ongoing and initial costs. Well with the estimation we had to implement the net present value of the Tesla was almost the same as the Hybrid and I of course recommended buying the Tesla S model…if you are interested in the simple calculator version let me know and I will send you the Excel data.

Yesterday our Project Risk Management class ended and it was interesting to see ways to approach risks in a project. What I liked most was the fact that I got a new view on the word risk itself. For most people risk is assoicated with something negative and no one really thinks about it the way that risk includes of course threats but also opportunities. If an opportunity is high likely to be reached and has a great impact on your project/business you should rather exploit it as avoid a medium-impact-threat which will happen only with a medium probability.

Moreover it was great to create a risk register as in a real life project because that’s something everyone should have for his project or business to be able to handle the risks before they occur. It would have saved a lot of money for big companies, tax payers and would have saved the environment and respected the culture in big projects as Deepwater Horizon BP (no contingency plan for the depth they were drilling for oil – that’s why they needed more than 100 days to solve the problem with their workaround) or the Big Dig in Boston in which some threats were not taken serious which lead the project cost be finally more than 700 % of the estimated costs. All things considered it shows that risk management is essential for projects. Do you have any examples from projects like these from your countries?

Today we start with monitoring and controling with the focus on the Earned Value Method.

Best regards,
Marcus

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