Lessons Learned Risk Policy 2009 Summer

The fourth PMBOK Café explored the Risks involved with Managing Global Projects. Global Projects have additional risks that must be identified, monitored and controlled.

Political Regulational and Economic Risks are dynamic and have a huge impact on global projects. To deal with these risks Project Managers need to have smart research strategies. Examples of Political Risk that were presented in the Café were projects involving North Korean facilities with South Korean employees. North Korea released South Korea's Hyundai Asan worker on Thursday after four-and-a-half months of detention amid an ongoing visit by the company's chairwoman, Jung Un, Hyun and Project member, Mr. Yu Seong-jin, detained in North Korea for 136 days.

Global Projects are also subjected to Currency Exchange risks. Managing these risks involve hedging against a currency change that might impact the project.

Global Projects also involve a significant Socio-Cultural risk that are difficult to manage due to cultural differences. This cultural gap impacts communication and trust. If different cultures cannot trust each other for example differences in high context and low context countries there is a risk the project will run into difficulties.

Global Markets impact Projects because of rapidly changing competitive conditions. Shifting market conditions may cause external changes to scope requirements. Project Managers should actively gather information and analyze the data. If there is a need the Project Manager should trigger risk response strategies.

Brainstorming Risk Policy 

How to Manage Global Risks effectively?

Global Project face unique risks, for example; political, economic, market, competitive and technological risks and project management methodology risk.  How can we identify and manage these global risks? The goal of the Fourth PMBOK Cafe workshop is to explore the Global Project Risks. What are the top Risks? If these Risks happen what will be the effect? What can we do to manage these Risks? We will also focus on what are the Risks to our Project Management Methodologies? What can we do to improve our Schedule and Cost Risks on our global projects?

2010 S3W4 RM

Brainstorming Risk Policy 

How to Manage Global Risks effectively?

Global Project face unique risks, for example; political, economic, market, competitive and technological risks and project management methodology risk.  How can we identify and manage these global risks? The goal of the Fourth PMBOK Cafe workshop is to explore the Global Project Risks. What are the top Risks? If these Risks happen what will be the effect? What can we do to manage these Risks? We will also focus on what are the Risks to our Project Management Methodologies? What can we do to improve our Schedule and Cost Risks on our global projects?

2010 S2W4 RM

Political/Regulational/Economical

Introduction

Identify and Mitigate top Political/ Regulational/ Economical Risks to Global Project Management
To identify and propose ideas to mitigate risks on Political/ Regulational/ Economical area to Global Project Management
Global Projects Compared to local projects, we face more dynamic risks which have huge impacts
The goal is to be on budget, on Time, with satisfied customers
Smart Research Strategies, Proper Risk Response
Show 2 risks & explain how they could be controlled & managed.

Political Regualtional and Economic Risk from Robert Higgins on Vimeo.

Political Regualtional and Economic Risk from Robert Higgins on Vimeo.

Body

1st sample of risk : Saving Private Korean

Incident happened around April 2009
Kaesong Industrial complex
Car manufacture, construction, chemical, etc....

North Korea released South Korea's Hyundai Asan worker on Thursday after four-and-a-half months of detention amid an ongoing visit by the company's chairwoman, Jung Un, Hyun
Project member, Mr. Yu Seong-jin, detained in North Korea for 136 days
Lesson learn from the sample

Now the South Korea Government requests you to time travel back to the planning phase of the project.
Knowing the political risk which was happened, how would you plan and mitigate, and prepare the contingency plan?
Plan: form a risk management team with Korea Government SME, North Korea Ambassador.
Hold weekly meeting with the RMT.
Mitigation:
Closely keep an eye on the country political activities, seek advice from SMEs
Have a trigger and plan to evacuate project members

Vote another President if possible...

Contingency: Come up with contingency plan for each "high" risks

Obtain consensus, sign agreement for the contingency plan - so that Mr. Yu Seong-jin would not be detained for 136 days

2nd sample of risk : Current currency changing(e.x TOYOTA)

Lesson learn from 2nd sample
-How to control & manage a risk
Managing

- Risk hedge action before actualizing a risk

Monitoring
- Continual monitoring to each local site (goverment, economy)

Controlling
- Do an action which is prepared beforehand.

Conclusion

We showed 2 risks & explained how they could be controlled & managed. Then give conclusion
Comparing with local projects, we would face more dynamic risks which have huge impacts in global projects
Within budget, on Time, customers satisfied
Smart Research Strategies, Proper Risk Response

PMBOK Cafe Presentations "Global Project Risks"

What are the top Overall Risks to Global Projects?

The goal of the Fourth PMBOK Cafe workshop is to explore the Global Project Risks. What are the top Risks? If these Risks happen what will be the effect? What can we do to manage these Risks? Participants explored this concept as individuals, teams and as a group.

Political/Regulational/Economical

Socio-Cultural/Uncertainty/Organizational

Risk Management and Traning for Japanese Project Management

Brainstorming Risk Policy 

How to Manage Global Risks effectively?

Global Project face unique risks, for example; political, economic, market, competitive and technological risks and project management methodology risk.  How can we identify and manage these global risks? The goal of the Fourth PMBOK Cafe workshop is to explore the Global Project Risks. What are the top Risks? If these Risks happen what will be the effect? What can we do to manage these Risks? We will also focus on what are the Risks to our Project Management Methodologies? What can we do to improve our Schedule and Cost Risks on our global projects?

Global Risk Management