Incorporating Project Risk Management Strategies in your Enterprise

We all know the figure of speech, "A camel is a horse designed by committee." The blog How to Manage a Camel promotes better group thinking around project management, bringing together conflicting opinions.

On January 7th, the Camel blog published "Nine Steps to Embracing Risk Analysis in the Enterprise" by Palisade's Randy Heffernan. This piece looks at some of the key advantages of implementing risk analysis in a holistic manner with an organization. It also gives guidelines for implementing a project risk management strategy within your enterprise.

A brief excerpt: "Increased use of risk analysis in the form of quantitative risk management (QRM) and decision-making under uncertainty (DMUU) is helping organisations to be prepared for unforeseen risk. Simply put, QRM and DMUU mean thinking more quantitatively, with numbers and probabilities. It means recognising that uncertainty exists in nearly every decision, and accounting for it in a quantitative way. One good example of this is the use of Monte Carlo simulation, which is an analytical technique that evaluates and measures the risk associated with any given venture or project. A computerised mathematical process, it allows users to define uncertain variables in their models and see, as a result, a range of possible outcomes and the probability that each will occur."

» Read the complete article here

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