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2009 Summer Risk Policy Presentation Political, Regulational and Economical Global Risk

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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.

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

Youngduck Lee
Daniel Chu
Masaki Iwakura

Last modified on Monday, 21 June 2010 00:15

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