Project Risk Assessment using Advanced Risk Assessment

  • Release version: Washingtondc
  • Updated February 1, 2024
  • 2 minutes to read
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    Summary of Project Risk Assessment using Advanced Risk Assessment

    The Project Risk Assessment capability allows risk administrators, project managers, and risk owners to manage the entire project risk life cycle effectively. This process is crucial as organizations grow and undertake unique projects that require tailored risk management approaches. The project risk life cycle includes phases such as risk identification, assessment, mitigation, and monitoring, and is supported by the Governance, Risk, and Compliance (GRC) Advanced Risk Assessment feature in version 11.0.1.

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    Key Features

    • Integration with Project Portfolio Management enhances risk management capabilities.
    • Utilizes a robust risk assessment engine for comprehensive project risk management.
    • Offers visibility through aggregated project risk ratings and heatmaps.
    • Facilitates easy reporting of enterprise-impacting project risks to the enterprise risk team.
    • Allows project managers to identify, assess, and monitor risks using a standard risk taxonomy.
    • Enterprise Risk Managers can view and act on project risks affecting the enterprise.

    Key Outcomes

    By leveraging this integration, project managers can calculate roll-up risk scores, monitor project risk posture, and access a Project Risk Overview dashboard for an overall risk assessment. The workflow includes configuring the integration, assigning risks to stakeholders, assessing risks, and elevating significant project risks to the enterprise level. This structured approach ensures effective risk management tailored to the complexity of the project.

    Manage your project risks by using the Project Risk Assessment capability. Risk administrators, projects managers, and risk owners can manage the complete project risk life cycle by using the Project Risk Assessment capability.

    As your organization grows, it is important to perform risk assessments of your projects. Because each project is unique, it is important to customize the project risk management process according to the unique project requirements. Determining the right level of project risk management process constitutes the risk management plan. The project risk life cycle consists of phases such as project risk identification, project risk assessment, project risk mitigation, and project risk monitoring.

    With version 11.0.1, you can use Governance, Risk, and Compliance (GRC) Advanced Risk Assessment to assess your project risks. This feature enhances the risk management capabilities in Project Portfolio Management. The feature is integrated with a strong risk assessment engine which you can use with strong project risk management requirements. This feature also provides efficient visibility and reporting of the project risks posture by using tools such as aggregated project risk ratings and heatmaps. The integration also ensures that when a project risk threatens to affect the enterprise, the risk can be easily reported to the enterprise risk team. The enterprise risk team can then define the necessary mitigating actions.

    Benefits of the GRC and Project Portfolio Management integration for managers

    Using this integration, Project Managers can do the following activities:
    • Identify the risks from a standard risk taxonomy.
    • View the risks for their projects within the Project form.
    • Identify and assess the risks from the Project form itself.
    • Assess the inherent and residual risks.
    • Elevate a project risk to an enterprise risk if the risk impacts the enterprise.
    • Calculate the roll-up risk scores across projects, programs, and portfolios so that the stakeholders can view this information.
    • Monitor the risk posture of a project through risk aggregation.
      Note:
      Only the project risks that are assessed contribute to the final risk scores.
    • View the heatmap of the risks as well as understand the mitigating actions.
    • View the Project Risk Overview dashboard to get an overall risk posture.
    Enterprise Risk Managers also benefit from the integration. They can do the following activities:
    • View the project risks that affect the enterprise and take necessary action.
    • Get an overall view of the enterprise-level risks and their nature at all levels.

    Use case for the GRC and Project Portfolio Management integration

    To understand the use case for this integration, consider the following scenario. An organization can have multiple projects. Some projects are complex and some are less complex. Risk management of complex projects may be aligned to ISO 31000 risk assessment standards. Complex projects require various activities such as risk identification, assessment, response, and monitoring. Less complex or simpler projects might require only simple assessments. The integration between Project Portfolio Management and Advanced Risk Assessment supports the risk assessment of project risks.