Saturday, 25 October 2008

Risk Management

This Southbeach model shows some general principles of risk management. In this example, Work is the focus and is done in order to achieve the Goal. Issues and Risks may counteract achievement of the goal. Some risks may turn into issues and require significantly more effort to resolve if they are not addressed early. Risk mitigation is a useful activity and counteracts the risks and also reduces the diversion of resources that results from dealing with issues.

The following Southbeach model provides a more detailed example of risk management in action with the addition of a grid to separate the agents in the model by timespan and aspect. This simplistic yet realistic model shows how Southbeach can be used to assess the potential impact of issues and risks and how to mitigate against them.

This example shows swim lanes running across the page separating different aspects of a project into meetings, activities, Issues & risks, and mitigations. The columns represent months in the project plan. The project status meeting in October identified the issue that there are "more problems with the solution than expected". This model was then created to perform an impact analysis and create a risk mitigation plan.

The focus of this model is "delivery of phase 1 of the solution". The goal is "sign-off for phase 2". The ultimate delivery of phase 2 and realisation of benefits, the ultimate goal, are counteracted by lack of adoption of the solution, which has various root causes such as lack of understanding and lack of awareness. These are counteracted by different parts of the change management plan.

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