Summary of Recommended Actions
In conclusion, consider adopting the following recommended Risk management principles or actions:
- Effectively balance risk and reward by aligning project management business strategy with risk appetite, avoiding excessive concentration of risk through diversification, pricing appropriately for risk through preventative and detective controls, and transferring risk to third parties;
- Share responsibility for risk management with program and project component managers since they are responsible for active management of their respective risks;
- Make program and project decisions based on an understanding of risk through rigorous assessment of risks associated with the products, product development activities, and subsequent benefits that will be generated;
- Avoid activities that are inconsistent with the code of ethics, conduct and corporate policies that could otherwise damage the organization's reputation and ability to perform;
- Apply proper focus on the client's perspective of the on-going programs and/or projects, including actions and intended actions that must be clearly understood by these clients; and
- Use judgment and common sense for managing risk through out the program and/or on-going projects.
R. Max Wideman
FCSCE, FEIC, FICE, FPMI, FCMI
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General Approach