Category Archives: Tips&Tools@Risk™

#23 – RISK IN THE INSURANCE INDUSTRY – FRANK PHILLIPS

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Having worked in the insurance industry for many years and many major carriers as an underwriter  – I have heard the word risk about as many times as one can imagine.  But no matter what the coverage in the property and casualty world there is a common risk evaluation process that can be applied. This process can certainly be incorporated into more broad enterprise risk management functions in corporations. In taking the Chartered Property and Casualty Underwriter (CPCU designation) tests there was invariably a question related to implementing the risk evaluation process. Continue reading →

#23 – MAGIC WORDS AND ENCHANTED BEANS – MARK MOORE

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Mark MooreSeveral discussions on LinkedIn recently have prompted me to think once again about how we place our projects and organizations at risk – sometimes severe risk – by relying on what amounts to “magic words and enchanted beans”.  And by that, I mean the tendency to either talk about buzzword tactics or strategies or throw tools at problems and believe we have actually implemented them.  Not only does this ignore the hard work of applying something we’ve never done before, it ends up as a fool’s errand and could cost us dearly in the end.  Give you some examples you say?  Certainly!  I’m glad you asked … Continue reading →

#23 – CAN PROJECTS INCORPORATE TOO LITTLE RISK PART II – HOWARD WIENER

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Howard Wiener PixIn the previous post, I discussed an approach to valuing projects using Discounted Cash Flow (DCF) analysis.  In this post, I will use the DCF technique combined with a fixed scenario to demonstrate a difference in Net Present Value (NPV) resulting from implementing a series of projects on an existing platform vs. replacing the aging platform and fulfilling the same requirements with up-to-date tools.  The horizon of the analysis is 20 years.

But first, read our last article on incorporating too little risk. Continue reading →

#23 – UNDERSTANDING THE TOP DRIVERS FOR REDUCING QUALITY RISK – LNS RESERACH

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When it comes to building compliance into production processes, we’ve spoken to numerous companies in the past several years that have done an admirable job. However, there are still many – particularly in the manufacturing sector today – that struggle to meet product and process specifications set out of by regulatory bodies, customers, and even internal management. These companies are more vulnerable to quality risk than others. Continue reading →

#22 – WHEN TO INCORPORATE A RISK INTO THE BASELINE SCHEDULE OR RISK REGISTER – JOHN AYERS

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John Ayers pixRisk management involves the identification of risks, prioritization of the risks based on probability of occurrence and impact of occurrence, and mitigation plans to control the risks.  Once identified and prioritized the question then becomes which risks should be incorporated into the schedule and which ones should be included in the risk register? 

The general rule of thumb I have used requires risks with a 50% or greater probability of occurrence to be incorporated into the schedule. The other risks are entered into the risk register. Continue reading →