Identifying and Managing Project Risk: Essential Tools for Failure-Proofing Your Project

by Tom Kendrick

Book Overview

The most essential component of every project manager's job is the ability to identify potential risks before they cause unnecessary headaches and turmoil all around.All projects are inherently risky,... This description may be from another edition of this product.

• Format: Hardcover
• Language: English
• ISBN: 0814407617
• ISBN13: 9780814407615
• Release Date: January 2003
• Publisher: Amacom
• Length: 368 Pages
• Weight: 1.50 lbs.
• Dimensions: 1.3" x 6.3" x 9.3"
• Age Range: 17 years and up
• Grade Range: Grade 12 and higher

Customer Reviews

Some interesting information

This is a very readable book that provides some good overviews of managing risk. There are more in depth books out there, but this is a worthy addition to a project manager's bookshelf. Recommended.

Good overview, heavy in IT & scheduling

This risk management book provides a good overview of the risk management process from start to finish, and provides examples from technical projects. The text guides the reader through the three steps of risk identification, assessment, and management, and discusses the difference between macro-management of risk at a corporate or portfolio level, and micro-management of risk at the project level. The book stresses the need for an understanding of each facet of the project in order to identify areas of risk. There is a very strong emphasis on scheduling, with many good suggestions regarding risk reduction, and the timing of risky activities during the course of the project. The information provided is largely qualitative, with some brief discussion about quantitative analysis, methods, and risk assessment tools. Some of the quantitative methods described are specifically for IT projects, with criteria such as technology, architecture, and system complexity. The material in the book relies heavily on the PMI Guide to the Project Management Body of Knowledge, 2000 edition (PMBOK). The bulk of the book focuses on good risk management techniques, decision-making, and project planning. Management tools, such as root cause analysis, diagnostic project metrics, and financial metrics, are described in detail. The author provides the reader with a broad scope of information regarding risk management, and the book is an excellent resource for those who seek an introduction or refreshment of good project management and risk management concepts.

I Got What I Needed From This Book

I found the book well written, easy to read and follow and packed with a lot of good information. I used the book to help respond to a proposal for IT risk management. I used a lot of information from the book to help write our response to the proposal. The author does a good job of explaining the process and procedures for a sound organizational risk management program. I definitely recommend this book to anyone wanting to start a risk management program at their company.

Required reading for all project managers and sponsors

This volume may be the best one I have ever read on the subject of risk in the project arena. Kendrick has captured the best of current practical thinking on project risk and how to identify and manage it. And the author has carefully linked theory and practice to the Project Management Institute's "Project Mangement Body of Knowledge." In addition this book is exceedingly well written and very readable (a rarity in this genre).Kendrick approaches risk identification from the perspective of the project manager in the areas of scope (project deliverables and product), resources (people, materials, and money), and schedule (time). He addresses each area in a separate chapter with practical advice on how to identify and document potential risks. An aspect of these three chapters I particularly appreciate is the depth of information that allows the reader to address each area of risk at different levels. Kendrick does this by providing an array of analytical tools. For example in Chapter 4, "Identifying Project Schedule Risks," the reader could use the list of common schedule risks and probably account for 80% of the schedule risks for their project, or move to a deeper analysis of risks associated with delays, dependencies, and errors in estimation. In the area of estimation the reader is presented with an array of estimating techniques that can be used as appropriate to detect potential risks in estimation.Chapter seven on "Quantifying and Analyzing Activity Risk" appears just in time. After reading the first six chapters the reader may throw up their hands and declare "I can't manage all of this!" As an experienced project manager, Kendrick gives us tools to help select the risks to manage. All potential risks on a project are not manageable or worth the time and effort to manage. This chapter gives sage advice on how to select the vital few.A key element in Kendrick's approach is distinguishing what he calls "activity risk" from "project risk." It is easy for the project manager to focus on risks associated with various activities and forget the larger picture. In fact there may be times when the risks associated with each activity seem minor but when the project is viewed as a whole the project is very risky. Kendrick provides tools for quantifying and analyzing risk at the project level as well as a chapter on managing project level risk.I end this review with three overall comments. First, pages 17-24 should be required reading for all senior managers and anyone who sponsors a project and there should be a test at the end. The biggest risk for too many projects is unknowing, unthinking, or uncaring managers who are driven by near term profits and stock prices. Second, readers should not be put off by Kendrick's inclusion of statistical and mathematical information. Such information comprises less than 5% of this book and it would be a shame to miss the other 95% due to a fear and loathing of numbers. Finally, if you can't

Practical Risk Management

Reviewed by Al DeLucia DirectorProject Management Division GSA, PhiladelphiaAnyone who - like me -- has struggled to relate the abstract discussion of Risk Management in the PMBOK to actual project management practice will welcome this down-to-earth presentation. This book shows how to incorporate risk management into the planning of your project along the way - the entire way -- of the project development sequence.Mr. Kendrick had many years of practical project management experience with Hewlett- Packard and headed their in-house project management training and consulting program. Over a period of 10 years, he trained hundreds of project managers at HP, in other organizations world-wide, and at the University of California at Berkeley and systematically collected information about the most significant risks they had encountered in their projects. The result is a database called PERIL (Project Experience Risk Information Library), that contains 222 projects sorted into risk categories based on type and impact. In this book, these results are integrated with the PMBOK processes of project development in a way that shows what project management is really all about. Anecdotes from the construction of the Panama Canal are interestingly presented at the ends of the chapters. These describe how the concepts of each chapter were applied - or not - first by the French in their failed attempt to build the canal, and then by the Americans in their successful endeavor under the sponsorship of Teddy Roosevelt.