Quality Built In into Projects

Risk Identification Session

Speaker’s Name, SAP
Month 00, 2018

PUBLIC

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Quality Built-In

SAP places Quality Built-In at the center of projects that we deliver for our Customers.

Ensuring strong and robust ongoing Risk and Quality Management processes are carried
throughout will drive stronger disciplines and assure the success of the project.

The Risk Management process is a cornerstone of Quality Built-In and is crucial to the success
of our customer’s implementation.

We actively position and deliver a compelling Risk Management process throughout the project as
fundamental risk assurance provided by SAP.

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Agenda

• Risk Management Framework and Objectives

• Definition of “Project Risks”

• Risk Management Process

• Next Steps

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Risk Management Framework and
Objectives
What is Risk Management?

In its broadest definition, risk represents threats to our business objectives

• The possibility that something undesirable will occur

Risk management is the process by which we methodically address these risks

• The activities of identifying and controlling the undesired outcomes

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Why Risk Management?

Issues
Projects are like
icebergs…
Sometimes, it’s what we Risks
don’t see that gets us into
trouble

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Objectives of Risk Management

• Risk Management is the systematic process for identifying, analyzing, and responding to
project risks.

• This includes maximizing the probability and consequences of positive events and minimizing
the probability and consequences of adverse events to project objectives.

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Definition of “Project Risks”
Definition of Project Risks

A project risk is an uncertain event or condition that, if it occurs, has a positive or a

negative effect on a project’s objectives.

• Negative effect = Threat

• Positive effect = Opportunity

Risk has three primary components (risk factors)

• A risk event (possibility of experiencing harm or benefit)

• The probability/uncertainty that the event will occur

• The impact of the event (outcome, extent of consequences, amount at stake)

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An Issue is Not a Risk

An issue is a matter that is under discussion or dispute that requires resolution

• No uncertainty
• Impact = extent of adverse consequences, amount at stake

Issue management
• Assess the impact
• Prioritize the issue
• Accept the impact
• Mitigate/Avoid the impact
• Reduce the magnitude of the impact

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Risk Management Process
Risk Management Process Overview

Risk Risk Risk Risk Risk

Management
Identification Analysis Response Monitoring
Planning

Define risk Identify, Analyze Define if Regularly

management categorize risks and what review the
approach for and Regarding you are risks and
the project document probability of going to do make sure
risks occurrence, against response
impact and the risks strategies
timeframe are realized
and
effective

You are here

For further information, refer to PMBOK® Fourth Edition, © 2008 Project Management Institute
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Risk Management Process Detail

Step 1. Risk Management Planning

• Careful and explicit planning enhances the possibility of success for all Risk Management Processes or Steps.
• Risk Management Planning (Step 1) is the process of deciding how to approach and conduct risk management
activities for the project. Planning will ensure that the level, type, and visibility of risk management are
commensurate with both the risk and importance of the project to the organization, to provide sufficient
resources and time for risk management activities, and to establish an agreed-upon basis for evaluating risks.

Step 2. Risk Identification

• Risk Identification determines which risks might affect the project and documents their characteristics.
Participants in risk identification activities can include the project manager, project team members, risk
management team, subject matter experts from outside the project, end users, stakeholders, etc.
• It is important to note that risk identification should begin after the following project planning deliverables are
completed: project plan, work breakdown structure, assumption/constraints list, schedule logic, and cost &
duration estimates. Each of these deliverables serves as input to the risk identification process.

For further information, refer to PMBOK® Fourth Edition, © 2008 Project Management Institute
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Risk Management Process Detail (Continued)

Step 3. Risk Analysis

• Qualitative Risk Analysis includes methods for prioritizing the identified risks for further action such as
Quantitative Analysis or Risk Response Planning. Organizations can improve the project’s performance
effectively by focusing on high-priority risks.
• Qualitative Risk Analysis assesses the priority of identified risks using their probability of occurring, their
corresponding impact on project objectives, and other factors such as time frame, risk tolerance, and project
constraints.

Step 4. Risk Response Planning

• Risk Response Planning is the process of developing options, and determining actions to enhance
opportunities and reduce threats to the project’s objectives.
• It includes the identification and assignment of one or more persons to take responsibility for each agreed-to
risk response.

For further information, refer to PMBOK® Fourth Edition, © 2008 Project Management Institute
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Risk Management Process Detail (Continued)

Step 5. Risk Monitoring

• Risk Monitoring is the process of:

• Identifying, analyzing, and planning for newly arising risks
• Keeping track of the identified risks on the project risk register
• Reanalyzing existing risks
• Monitoring triggering conditions for contingency plans
• Reviewing the executing of risk responses while evaluating their effectiveness

• Risk monitoring may result in choosing alternative strategies, executing a contingency plan,
taking corrective action, and modifying the project management plan.

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Risk Management Plan

<Insert approved Risk Management Plan processes here>

For example:
• Risk analysis will be performed by …
• Next risk meeting will occur...
• Risk “owner” will be assigned by… and be responsible for…
• Etc.

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Common Risks on SAP Projects

• Offshore development deliverables to meet project quality standards

• Hardware is not available for pre-production testing (stress tests, etc.)
• End users are not adequately prepared to run SAP applications on go-live date
• Integration with external suppliers could disrupt business operations
• Procurement cycle controls do not satisfy regulatory compliance
• End-user support (help desk) is insufficient due to lack of assigned/dedicated support staff
• Business process requirements change while configuration and development are being
completed

Note: refer to Project Risk List as input to brainstorming exercise

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Affinity Diagramming Process

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Next Steps
Meeting Wrap-up

Next Steps:

1. Identified Risks will be logged in the Project Risk Register list

2. Risks will be analyzed for Probability & Impact (and as a result prioritized)

3. Response plans will be developed for each “significant” risk item

4. “Owners” will be assigned to monitor and control risks

5. Next Risk Review meeting will be held on <enter date here>

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Thank you.
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