...same way. Nevertheless, a good relationship with their lead regulator is vital to its success. Therefore, most of the banks’ design of internal risk management systems will reflect in terms of the core elements, the risk evaluation process used by the regulator. Q - What does the «three lines of defence» model involve? * The Business - It’s accountable for the ownership and day-to-day management and control of operational risk. Responsible for implementing processes in compliance with group policies. * Operational Risk – Implementation and maintenance of the operational risk framework, tools and methodologies. * Group Internal Audit – Providing independent assurance on the design, adequacy and defectiveness of group’s system of internal controls. Q - How are risk exposures measured within RBS? What are the main limitations of the measurement techniques used by the bank? It’s usually the Group of Directors who set the overall risks appetite and philosophy and they all participate in discussing the strategy, performance and the financial risk management of the organization. This kind of system brings some disadvantages as the CEOs may dominate decision-making. There might be a high degree of cynicism among the investors about the statements of risk management that appear in the annual reports. Q - Which are the key risk...
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...Use a Risk Breakdown Structure (RBS) to Understand Your Risks David Hillson, PhD, PMP, FAPM, MIRM, MCMI, Director of Consultancy, Project Management Professional Solutions Limited Introducing the Risk Breakdown Structure (RBS) The risk management process aims to identify and assess risks in order to enable the risks to be understood clearly and managed effectively. The key step linking identification/assessment of risks with their management is understanding. This is, however, the area where the project manager or risk practitioner gets least help from current guidelines or practice standards. There are many commonly used techniques for risk identification (see, for example, the risk management chapter of A Guide to the Project Management Body of Knowledge (PMBOK® Guide, Project Management Institute, 2000). These identification techniques, however, tend to produce an unstructured list of risks that often does not directly assist the project manager in knowing where to focus risk management attention. Qualitative assessment can help to prioritize identified risks by estimating probability and impacts, exposing the most significant risks; but this deals with risks one at a time and does not consider possible patterns of risk exposure, and so also does not provide an overall understanding of the risk faced by the project as a whole. In order to understand which areas of the project might require special attention, and whether there are any recurring risk themes, or concentrations...
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...Young BUS 519 Project Risk Management May 13, 2012 Abstract This paper pertains to the Dabhol power project case regarding the risks and the causes of the risks that the project faced during this project. A Risk Breakdown Structure (RBS) was done to identify main project categories for further analysis. A Risk Breakdown Structure (RBS) includes all possible sources of risk listed as risk categories to make it easier to identify them to key stakeholders. From the RBS, a prioritized risk list was developed in order to identify those risks associated with the project that would require response plans. The methods for analyzing risks for prioritization include qualitative and quantitative risk analysis. This paper further explains quantitative and qualitative analysis. As a result of the analysis, a risk priority list was developed reflecting the top three risks from the RBS. Those top three risks are identified from the technical, management, and commercial categories of the RBS. And finally, this paper describes the nature of the three risks in addition to the significance of each one to the Dabhol project success. A Risk Breakdown Structure (RBS) includes all possible sources of risk listed as risk categories to make it easier to identify them to key stakeholders. The main categories of risks are assessed for the Dabhol project in the following RBS: RBS LEVEL 0 | RBS LEVEL 1 | RBS LEVEL 2 | 0. PROJECT RISK | 1. TECHNICAL RISKS | 1.1 Scope...
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...An Introduction to the Risk Breakdown Structure When planning a project to meet targets for cost, schedule, or quality, it is useful to identify likely risks to the success of the project. A risk is any possible situation that is not planned for, but that, if it occurs, is likely to divert the project from its planned result. For example, an established project team plans for the work to be done by its staff, but there is the risk that an employee may unexpectedly leave the team. In Project Management, the Risk Management Process has the objectives of identifying, assessing, and managing risks, both positive and negative. All too often, project managers focus only on negative risk, however, good things can happen in a project, "things" that were foreseen, but not expressly planned. The objective of Risk Management is to predict risks, assess their likelihood and impact, and to actively plan what should be done ahead of time to best deal with situations when they occur. The risk management process usually occurs in five distinct steps: risk management planning, risk identification, risk analysis, risk response planning, and risk monitoring and control. The central point of risk identification and assessment in risk management is understanding the risk. However, this is also where project managers and risk subject matter experts (SMEs) get the least help from recognized references, best practices, or work standards. Currently, the Project Management Institute (PMIr) has a...
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..."Project Risk Management" Please respond to the following: * Describe some of the tools and techniques that you can use as a project manager to mitigate risk in your projects. Support your response. * Provide realistic examples of each of the risk response strategies for both negative and positive risks. According to Schwalbe, risks can be assessed qualitatively or quantitatively. Tools for qualitative risk analysis include a probability/impact matrix and the Top Ten Risk Item Tracking Technique. Tools for quantitative risk analysis include decision trees and Monte Carlo simulation. Expected monetary value (EVM) uses decision trees to evaluate potential projects based on their expected values. Simulations are a more sophisticated method for creating estimates to help you determine the likelihood of meeting specific project schedule or cost goals. Sensitivity analysis is used to show the effects of changing one or more variables on an outcome. The four basic response strategies for negative risks are avoidance, acceptance, transference, and mitigation. Risk avoidance involves eliminating a specific threat or risk. A project team may decide to continue using a specific piece of hardware because they know it will work. Risk acceptance means accepting the consequences of a risk, should it occur. A project team can take an active approach to risk by having a backup plan if they cannot get approval for a specific site for a meeting. Risk transference is shifting the consequences...
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...One major requirement for the A&D High Tech Internet Store project is to complete the project and bring the store online before the Christmas season. This requirement may be the single most important factor in determining the success of the project. Identifying the risks that affect this requirement will be a major step in ensuring that the requirement is met. This section of the paper identifies those risks and defines the impact of those risks. Pin It 3.1 Determine the Risks Brainstorming and the Delphi technique were employed to identify possible risks that could affect the A&D High Tech Internet store project. The main sources of information for these sessions were the project documentation and WBS. Some of these risks carry a very low probability of occurrence with a high possible impact. Other risks carry a high probability of occurrence with a low impact on the project. The following is a list of the types of risks that may impact the successful completion of the A&D High Tech Internet Store project and the varying impacts that those risks impose: * Changing business requirements The impact of a change in the business requirements depends on the project phase during which those requirements change. Early changes would carry less impact than later changes. The actual impact of changing business requirements is hard to predict but the probability for this project is relatively low since the requirements appear to have been clearly defined. * Change...
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...goal of a risk management plan is to understand what risks the project will be exposed to. The Project team supports the premise that “risk management goals and objectives should be consistent with and supportive of the enterprise’s business objectives and strategies.” Therefore, the risk management plan associated with this expansion utilizes the company’s vision and strategic objectives as its foundation. The risk management plan was developed with the goal of assisting the organization in improving its current capacity to identify, prioritize, and respond to the risks associated with the expansion in to China. As previously stated the primary objective of the risk management plan is to increase the organization’s understanding of the risk associated with this expansion project. In order to effectively utilize risk management the risk management plan must develop a “common understanding” of these risks. The benefits of a common understanding of risk across the organization structure are numerous. For instance, the risk management plan will help to achieve cost savings through better control of both internal and external resources. One way this control will be realized is by developing safeguards that impact the organization’s earnings. This cost savings then makes it possible for the organization to allocate capital more efficiently. Development of the risk management plan utilized the project’s Scope Statement, Cost, Schedule, and Communication Management plans found...
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...University of Nottingham Credit Risk Management in Major British Banks By Xiuzhu Zhao 2007 A Dissertation presented in part consideration for the degree of “MA Finance and Investment” Acknowledgement I would like to express my special thanks to my supervisor Mrs. Margaret Woods, who has given me strong support and encouragement during the whole research, and I am very appreciate of the expert guidance and inspiration she brought me. I am very grateful to my parents for their love and encouragement during my whole education period. The academic suggestions my father has given help me a lot in designing the dissertation. Last but not least, I would like to thank all my friends especially those in Melton Hall. I will never forget the help they have offered, which raises my confidence in completing this dissertation. i Abstract Credit risk is always treated as the major risk inherent in a bank’s banking and trading activities. And if not well managed, this kind of risk may drag a bank into great trouble or even bankruptcy, which can be proved by various bank failure cases. For banks, managing credit risk is not a simple task since comprehensive considerations and practices are needed for identifying, measuring, controlling and minimizing credit risk. In this dissertation, the credit risk management practices of major British banks are examined through the quantitative research on all Major British Banking Group members and qualitative analysis on the four sample banks....
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...Risk Management Plan for A&D High Tech Risk Management Plan Template Raiford Wallace Capella University TS5334-01u10a1 Date: June 13, 2016 Section 1 – Introduction • 1.1 Benefits of Risk Management Barkley says, “Risk is a tradeoff with benefits, opportunities, and payoff. In other words, risk is the reason for investment...” (2004, p. 5). One major requirement for the A&D High Tech Internet Store project is to complete this project and bring the store online before the Holiday season. In reading the case study, getting this Internet store online will determine the success of the project according to Webb, Walter, and Johnson the senior managers of A&D. The benefit of the project will potentially bring more profitability to the company growth and will tackle the lack of presents online to its competition. “In 2002, faced with tough competition and decreasing margins, A&D decided to explore new segments of the market for growth…with focus on sales via the Internet” (Jeffery, 2008, p.2.). • 1.2 Project Goals and Objectives The goals of the project are to increase revenue by allowing sales on a national level, while maintaining the friendly level of customer service that the company is so proud of and wanting to maintain that feel. The scope controlling the organization’s retail operations are “new orders, add-on orders, order amends, order status, and lead capture with the following capabilities”...
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...Risk Management Plan for Parking Lot Construction Project at the Chicago Loop Campus Prepared By: Sameer Khan Date: August 29, 2013 Table of Contents Contents | Page # | Project Description | 3 | Project Sizing | 4 | Stakeholder Analysis | 5 | RBS | 6 | Probability-Impact Matrix | 7,8 | Risk Register | 9 | Summary Risk Report | 10,11 | Conclusion and reference Page | 12 | Project Description Risk Management Plan for the DeVry University Chicago Loop Campus Parking Project Prepared By: Sameer Khan Approved By: Dr. Moretti Project Description and Objectives: This project will address the problem of the DeVry Chicago Loop campus parking. There has been this ongoing problem of high parking charges for students to park at the Chicago Downtown campus. There is a high need of a parking lot near the campus. It is understandable that this is a downtown campus and parking is expensive and more conjusted with less parking lots, but it is definitely achievable. Objective: “To lease or purchase a parking lot space for parking at the Chicago loop campus for student parking to be included in the student tuition and fees.” This is not a high-priority project for most people that take the train to campus or work in downtown and walk to class, but can be high priority project for students and faculty driving to campus. Objectives of the Risk Process: The risks associated with this project include: * Resistance from the campus to approve the project ...
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...Risk Breakdown Structure RBS Level 0 | RBS Level 1 | RBS Level 2 | Example Risks | | 1. Technical Risk | 1.1 Scope Definition1.2 Requirement Definistion1.3 Technical Interfaces1.4 Reliability1.5 Installation1.6 Reporting | Scope changes such as to what we want to monitor may arise.Product testing may uncover new requirements as the Smith Drivers use product.Individual units may experience unexpected interactions. Such as seatbelt lock not compabible with unit sensors.Consistency of signal strength. The DIM uses satellites in order to orient the vehicles and register the speed of the vehicles. Target field trial reliability targets may be unattainable.The software may not be compatible with the other systems being run on the computers that will be used for monitoring and reporting.The software may not be able to populate all the reports Smith requires. | | 2. Management Risk | 2.1 Operations Management2.2 Comminications | Project may not be given sufficient priority for installation into all Smith Driver’s vehicles and the importance of continuous use may not be stressed enough.Potential confusion about who to contact for support issues. Smith will be installing, maintaining and monitoring the systems, however any issues that occur with the individual units will be addressed through the vendor. | Project Risk | 3. Commercial Risk | 3.1 Vendor3.3 Advancement | Chosen vendor may not be able to support any change to scope or volume of technical support.As the vendor constently...
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...Eric Bani Professor James Young “Politics, Institutions, and Project Finance: The Dabhol Power Project. Strayer University 2011 Project risk management has been identified as the number one cause of project failure by most if not all organizations. In view of that project risk management is given prominent place in any project undertaken by businesses. Project managers are therefore are under immersed pressure to practice the best risk analysis methods in order to complete projects in time and within budget for the organization to be profitable. Project risk management is a science if you will, that uses several methods in identifying and accessing the risk factors and opportunities associated with a particular project and devising an effective response plan to avoid, mitigate, transfer or accept the risk. The project manager should assemble a professional team of different technical skills needed to complete the project making sure the project specifications are met. As a leader the project manager has to possess leadership qualities and most importantly communications skills to be effective in managing his/her team. The Dabhol power project was a good idea designed to generate additional electricity to India’s growing population but there were several problems including political, institutional and financial from the onset. Politically, India was a communist country aligned with the former Soviet Union thus the country was run by the central Government...
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...Electric owning 10 percent, and the state of Maharashtra Electricity Board holding 15 percent. Enron asserted that the Dabhol power plant is the largest gas-fired power plant in the world producing 2, 184 megawatts of electricity. The plant ceased operations in June 2001 that had arisen from a payment[pic] and contract dispute between the owners of the plant and the state of Maharashtra government. The paper will analyze the critical success factors (CSFs) as applied to the various facts found in the case study in “Politic, Institutions and Project Finance: The Dabhol Power Project”. The paper will also attempt to determine the benefits of the project, organizational readiness, and risk culture of the company with facts stated in the case study. By analyzing the CSFs and other components project risk recommendations will be given after a thorough analysis of the criteria. Critical Success Factors (CSFs) of Dabhol Power Project The term critical success factors are used to define the elements or components that are mandatory for an organization or project to achieve its mission. They can also be considered as the critical factors or the needed activity to make sure that the company or organization meets with success. According[pic] to Freud (1988), critical success factors are...
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....4 Stakeholder Analysis……………………………………………………….…….…5 RBS……………………………………………………………….………………….6 Probability-Impact Matrix……………………………………….…………………7 Risk Register…………………………………………………….….………………..8 Summary Risk Report……………………………………….…….………………..10 Conclusion…………………………………………………….…………………..…11 Reference Page………………………………………………….…………………...12 Appendices……………………………………………………………………..……13 Top Risk, Actions and Owners & Probability-Impact Matrix Prepared by: Adrian Martinez, George Ogaja, and Daniel Matos Approved by: Professor Festus Elleh Introduction This document is the Risk Management Plan for the Wi-Fi Service at DFW Terminals Project, defining the risk management process to be employed throughout the life of this project. The Dallas/Ft. Worth International Airport and AT&T have joined efforts to provide free Wi-Fi services across four DFW Terminals (Terminals A through D). Customers will be able to access the complimentary Wi-Fi service by the beginning of September 2015. Dallas/Ft. Worth International Airport has contracted out its infrastructure cable built out to Real Services Inc. DFW Airport, AT&T and Real Services Inc., will plan, execute and complete the backbone cabling within the allotted time. This document has been created to assist in ensuring that the project gets completed on time. The document also contains several methodologies that will be used and implemented by the team. Several risks will be identified and will be registered throughout the project...
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...Contents of a Risk Register A risk register is a table that lists information about each of the risks you identify during the Identify Risks process. It includes a description of each risk, its potential impact, and its root causes. Information gathering sessions provide you with important information about project risks. However, if this information is not properly documented, it won't benefit the current project or serve as a useful resource for subsequent projects. To avoid this, it's important to record the output of the sessions in the risk register. New and more detailed information continues to be added to the risk register as other risk management and general project management processes are conducted. Tracking number, RBS, WBS, and date The first four columns in the register enable you to track each risk and its context throughout the project life cycle: • a tracking number uniquely identifies each recorded risk so it can be easily referenced and monitored. • the RBS column links each risk to its category within the risk breakdown structure. • the WBS column associates each risk with the work components it may affect within the work breakdown structure. • the Date column lists the date at which each risk was identified. Another identifying characteristic that could be included in the risk register is risk status, which could be recorded as pending, current, or ended. Description The Description column contains a clear and concise description of each identified...
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