Project Risk Assessment using Advanced Risk Assessment

Manage your project risks by using the Project Risk Assessment capability. Risk administrators, projects managers, and risk owners can manage the complete project risk life cycle by using the Project Risk Assessment capability.

As your organization grows, it is important to perform risk assessments of your projects. Because each project is unique, it is important to customize the project risk management process according to the unique project requirements. Determining the right level of project risk management process constitutes the risk management plan. The project risk life cycle consists of phases such as project risk identification, project risk assessment, project risk mitigation, and project risk monitoring.

With version 11.0.1, you can use Governance, Risk, and Compliance (GRC) Advanced Risk Assessment to assess your project risks. The feature is integrated with a strong risk assessment engine which you can use with strong project risk management requirements. This feature also provides efficient visibility and reporting of the project risks posture by using tools such as aggregated project risk ratings and heatmaps. The integration also ensures that when a project risk threatens to affect the enterprise, the risk can be easily reported to the enterprise risk team. The enterprise risk team can then define the necessary mitigating actions.

Benefits of the GRC and Project Portfolio Management integration for managers

Using this integration, Project Managers can do the following activities:

• Identify the risks from a standard risk taxonomy.
• View the risks for their projects within the Project form.
• Identify and assess the risks from the Project form itself.
• Assess the inherent and residual risks.
• Elevate a project risk to an enterprise risk if the risk impacts the enterprise.
• Calculate the roll-up risk scores across projects, programs, and portfolios so that the stakeholders can view this information.
• Monitor the risk posture of a project through risk aggregation.
  Note:

  Only the project risks that are assessed contribute to the final risk scores.
• View the heatmap of the risks as well as understand the mitigating actions.
• View the Project Risk Overview dashboard to get an overall risk posture.

Enterprise Risk Managers also benefit from the integration. They can do the following activities:

• View the project risks that affect the enterprise and take necessary action.
• Get an overall view of the enterprise-level risks and their nature at all levels.

Use case for the GRC and Project Portfolio Management integration

To understand the use case for this integration, consider the following scenario. An organization can have multiple projects. Some projects are complex and some are less complex. Risk management of complex projects may be aligned to ISO 31000 risk assessment standards. Complex projects require various activities such as risk identification, assessment, response, and monitoring. Less complex or simpler projects might require only simple assessments. The integration between Project Portfolio Management and Advanced Risk Assessment supports the risk assessment of project risks.

• Workflow of project risk assessment
  To understand the integration of Project Portfolio Management and Governance, Risk, and Compliance risk management capabilities, it is important to understand the workflow of project risk assessment.
• Configure Project Portfolio Management and Advanced Risk integration
  Use the Project Integration Configuration form to set up the risk assessment. You have to select the risk assessment methodology, the right assessors and approvers, and the formula to roll up the risk scores and show the scores at a project level.
• Assign project risks to stakeholders for assessment
  Assign the project risks to the relevant stakeholder for assessment. You must manually assign the risks to the stakeholders.
• Assess project risks using Advanced Risk Assessment
  Assess the project risks by responding to predefined factors or questions. Arrive at a risk score for the project.
• Elevate a project risk to enterprise risk
  Elevate a project risk to an enterprise risk if the project risk has an impact on the enterprise.

Related topics

• About Project Portfolio Management