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

Socio-Culture, Uncertinty and Organizational Risks in Global Projects

All Projects are inherently risky. Additionally global projects are prone to socio-cultural risks due to cultural difference. Because we are working on global projects, and global projects could have more socio-cultural, uncertainty, and organizational risks than domestic projects in nature.  Socio-Cultural Risks:  All Projects are inherently risky. Additionally global projects are prone to socio-cultural risks due to cultural difference.   Uncertainty Risks: Natural disasters are commonly uncertainty risks.  Impacts & probabilities are hard to predict. But yet need to prepare for it. Organizational Risks: Organizational risks are everywhere right from selecting project, planning to project closing. Need to know this risk at each stages of project in advance.   Risk is like wine. Either too much or none of it can kill the party!   Roadmap: You should know the risk well (it`s source, probability, impact). Apply your tolerance and plan accordingly your mitigation. We pick up 3 most could-be-serious risks in each of our categories.

One of the major risk in the category of organizational risks is "Lack of Subject Matter Experts" especially when project across multiple domains.

We ranked its impact 4 and likelihood as 4.   Have SME’s in your team to make domain related risks as foreseen as possible and manage that risk effectively.  The "Cultural Gap" matters most in socio-cultural risks. The bigger the  gap, so as the related risks.    We ranked its impact 3 and likelihood as 4. To manage these risks 1) Respect local cultures 2) Develop global mindset 3) Develop cultural intelligence 4) Understand the importance of language. Never underestimate cultural difference the top risk in the category of uncertainty risks is "Natural Disaster”. We ranked its impact 5 and likelihood as 2. Our suggestion to deal with this risk is 1) to distribute key assets, 2) identify unchangeable factors for running project and insure them, and 3) include disaster management plan in your project plans.

We picked up examples of risks with high impact/possible to occur. As we have seen, You should know the risk well (it`s source, probability, impact). Apply your tolerance and plan accordingly your mitigation.  Socio-Cultural Risks:  All Projects are inherently risky. Additionally global projects are prone to socio-cultural risks due to cultural difference. Uncertainty Risks: Natural disasters are commonly uncertainty risks.  Impacts & probabilities are hard to predict. But yet need to prepare for it.  Organizational Risks: Organizational risks are everywhere right from selecting project, planning to project closing. Need to know this risk at each stages of project in advance.   Risk is like wine. Either too much or none of it can kill the party!   Risk is directly related to reward, if you take it in controlled way.

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