Project Risk Assessment and Decision Support Tools

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INITIAL CONSIDERATIONS (Part 1 of 3)

MANAGEMENT’S:

  • Corporate culture (ask many; at all levels; unwritten rules.)
  • Embarrassed.
  • May be defensive (self-preservation) about answering questions and having their judgement questioned. Could possibly accuse independent evaluators of “rushing to judgement”.
  • Could lose the business.
  • Loss of prestige/ possible adverse impact on legacy.
  • Loss of market share. Competition may discover firm’s weakness.
  • Differing agendas.
  • Loss of profit.
  • May not state, to you, their expectations.
  • Risk tolerance. What is the firm’s resolve?
  • Possible job loss or authority.
  • A feeling of betrayal/been misled or accused of misleading others/ concerned about a lack of transparency.
  • Denial/ pushback that there is a problem: refusal to admit that theirs is an ill-conceived project.
  • Management may not have had the skills to have embarked on the project in the first place.

Other possible consequences

  • Legal: Lawsuits, wrongful death/injury claims, shareholder/ class-action suits, actual/impending regulatory action
  • Political.
  • Succession.
  • Fines.
  • The project will be difficult to execute.
  • Management may want an objective assessment of the project’s viability.
  • Resources are being consumed but objectives are not being met.
  • Management wants to reduce the number of costly learning curve mistakes.
  • Management wants quick and visible ANSWERS/ results FAST!!!
  • May attempt to hide behind a web of convoluted arguments that would render them legally untouchable.
  • May wish to escape possible consequences/ obscure responsibility/ escape accountability/ deflect criticism/ May want to delay an independent investigation.
  • May be blamed for “experimenting” irresponsibly/ quitting/ losing.
  • May be viewed as being inexperienced. Have more questions than answers.
  • May not want you to know that they don’t know.
  • May be accused of “moving too slowly” to resolve issues.
  • Could be accused of failing to proactively inform/ sound alarm to all concerned of the problem.
  • Could be accused of being “asleep and the wheel”, “absent”, “insulated” or “detached” from the “situation on the ground”.
  • Perception of management’s lack of awareness/ loss of control/absence/ mismanagement/ loss of direction of the project.
  • Certain situations (e.g., wars, acts of God) may have occurred which were beyond management’s ability to control)
  • Management may be losing patience with results, thus far.