Tiffany's Tip of the Month
How do you assess risk?
At Ready2ACT, we help various companies anticipate, assess, and prepare for risks to their projects. Most large companies, have processes in place to plan, monitor, and control their risks. However, there are some common pitfalls to avoid when you conduct a risk assessment.
Here are the steps with tips:
- Identify the risks. It's important to be descriptive and specific about what the risk is. If you don't understand the true risk, then it'll be impossible to complete the next three steps.
- Qualify the risk. You can do this in terms in Probability and Impact or Likelihood and Consequence. This step tends to be subjective and requires discussion among team members to ensure that everyone understands and agrees with the risk description and its qualification.
Quantify the risk. Some companies simply use scales of 1-10, others use more complex, weighted systems. Regardless of the rating system, ensure that it accurately reflects each risk because you'll use it to rank all the risks from highest to lowest for monitoring and control purposes.
- Plan risk responses. There are several risk response strategies. A common one is called, "Mitigation", meaning it is a pro-active approach to reduce the probability and/or the impact of the risk. Most mitigation strategies involve scope, cost, time, and resources, so you'll need to estimate the impact to your project before deciding if the mitigation is worth reducing the risk.
Whether your risk assessment is formal or in your head, always do a risk assessment. Here's video demonstrating all four steps in action. As you will see, sometimes the mitigation strategy can cause another risk.
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What is Business Analysis, anyway?
Business Analysis is a profession designated by the IIBA (International Institute of Business Analysis). Similar to PMI, the IIBA sets the global standard practices and now has certification in Business Analysis. These generally-accepted practices are contained in the BABOK (Business Analysis Body of Knowledge) which has six knowledge areas (vs. PMBOK's nine).
Since most people have not heard of "business analysis" as a role, it shows up instead in various titles such as DBA, systems analyst, financial analyst, consultant, process engineers, business architect, and data analyst to name a few. Employees may play the role of Business Analyst and not even know it has a name (like I once did). Business analysis can involve these processes (corresponding knowledge areas are in parenthesis):
- Identifying needs and opportunities in the business (Enterprise Analysis)
- Gathering, Clarifying and Validating Requirements (Elicitation)
- Writing and communicating requirements to stakeholders (Requirements Communication)
- Developing a plan to gather requirements, clearly define scope, and manage changes to requirements (Business Analysis Planning and Monitoring)
- Making sure that the requirements well-written, specific, and complete (Requirements Analysis)
- Ensuring that the solution is the best solution according to the requirements, not the other way around (Solution Assessment and Validation)
Getting it right the first time saves companies time and money, making training for Business Analysts a critical and necessary investment. Ready2ACT can help: Join us in Denver on Oct. 10- 12, 2012 for our "Practicing Business Analysis"
workshop. We guarantee you'll get a huge return on your investment.
One Day Crash Course In Project Management
Want to know how to do a risk assessment and apply it to a real project, then understand how mitigation strategies can impact the scope, time, cost, and resources on your project? We cover that and more in only one day during our Essential Project Management workshop on October 31 in Denver, CO. You'll get a ton of tools and techniques to save time and money on your projects. Class size is limited to 15 participants, so register today to save your seat.. |
"The most difficult thing is the decision to act. The rest is merely tenacity ... You can do anything you decide to do. You can act to change and control your life, and the process is its own reward."
- Amelia Earhart
"My mother wanted us to understand that the tragedies of your life one day have the potential to be comic stories the next."
- Nora Ephron
August 17, 2012
11:00 a.m.- 12:00 noon
$50 per person
Practicing Business Analysis
October 10-12, 2012
8:30 a.m.- 4:30 p.m.
$1,495 per person
Essential Project Management
October 31, 2012
8:30 a.m.- 5:30 p.m.
$495 per person
November 28-29, 2012
8:30 a.m.- 5:30 p.m.
$595 per person