Risk Management System
Focussing effort early and accurately reduces cost and improves delivery
Background
New products and technologies brought a new level of risk to a rapidly expanding space business, leading the management team to seek a more effective approach to risk and cost management.
Project Brief
Implement a risk management system:
• Compliant to industry standards, customer requirements and best practice
• Simple, user-friendly and useful
• Allowing risks to be managed at the appropriate level
• Payback within 12 months.
Solution
Main requirements were agreed and an overarching business-wide process created. A customisation of the existing project portfolio management system (Daptiv PPM) provided the software platform and modifications were completed in-house.
The final system delivered a simple software tool for project risk management, as well as an easy but powerful process for escalating risks up to programme and business level for review and control. Training was provided and the whole process supported for six months until it was bedded in.
Results
✓ Return on investment within 12 months
✓ Project teams actively managed-out risks
✓ Business level risks were more visible and managed more effectively
✓ 5% project-cost reduction in its first year.
“As the business and number of projects started to increase it became increasingly clear that the existing organisation, tools and processes needed to be overhauled to ensure bottom line as well as top line growth.
Andy established a project management office (PMO) to develop new systems based on established industry best practice and made the necessary organisational changes required to ensure that this best practice was then executed by the project teams.
The improved efficiency of the new delivery processes enabled more management time to be directed to proactive oversight including, for example, a new risk management process which provided further benefits to the business. All of which resulted in improved profitability.”