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Risk and Issue Management within the Transformational Flow Tutorial

1 Risk and Issue Management within the Transformational Flow

This lesson focuses on the relationship between risk and issue management and transformational flow. It also covers the various roles and their areas of focus in risk and issue management. Let us begin with the objectives of this lesson in the next screen.

2 Objectives

By the end of this lesson, you will be able to: ? Explain the relationship between transformational flow and risk and issue management ? Describe the roles of the Senior Responsible Owner, Programme Manager, Business Change Manager and Programme Office in risk and issue management ? Identify the documents used in the risk and issue management process Let us move on to the next screen to discuss the relationship between transformational flow and risk and issue management.

3 Risk and Issue Management within the Transformational Flow

The table on the screen depicts the relationship between transformational flow and risk and issue management. In ‘identifying the programme’, risk management focuses on identifying and clarifying ambiguity. The programme brief includes an initial set of the identified programme risks and issues. It also includes possible response actions. In ‘defining a programme’, risk management and issue management strategies are created. Risk and issue register are set to record risks and issues respectively and new risks and issues are captured. The continuity with programme will be influenced by the risks and issues of vision, blueprint, benefits profiles, programme plan and business case. In ‘managing the tranches’, all defined governance arrangements for risk and issue management are implemented. Active risk and issue management continues through every tranche with both risk and issue cycles being active. The effectiveness of these activities is measured at the end of tranche reviews. In ‘delivering the capability’, the main deliverable is project brief, which contains the guidance on risk and issue management. In this step, aggregated risks from projects are a major concern. The programme must pay attention to aggregated risks and issues as the total impact of the individual risks and issues can be greater than the sum of their individual parts. In ‘realising the benefits’, risk management helps to avoid failure. If any tranches deliver below expectation, this is treated as an issue. During the three phases of this process, pre-transition, transition and post-transition, risk and issue management provides the Business Change Managers or the BCMs (read as B-C-Ms) with means to anticipate and manage any deviations from the expected benefits realisation process. In the process, ‘closing a programme’, a programme can be closed prematurely if it has major risks and issues that cannot be managed by it. In the next screen, we will discuss the roles and their areas of focus in risk and issue management.

4 Roles and Areas of Focus in Risk and Issue Management

We will focus on the roles, namely, the Senior Responsible Owner or SRO, Programme Manager, Business Change Manager and Programme Office. The SRO authorises the risk management and issue management strategies and their enhancements. He intervenes to control risks and issues and initiates assurance reviews of risk and issue management effectiveness. He also takes the ownership of strategic risks and issues, ensuring mitigation actions are dealt with, at an appropriate senior level. Let us discuss the roles and areas of focus of the Programme Manager. The Programme Manager develops and implements strategies for handling risks and issues, designs and manages the risk and issue management cycle and also manages the aggregated levels of risks and issues. He also assures programme adherence to risk management principles, allocates risks and issues to the right individual as appropriate, and ensures that change control is undertaken by individuals with the right authority. The Programme manager also ensures that impact of individual and aggregated risks is understood by relevant stakeholders, defines clear rules for escalation, cascade and threshold and takes ownership of programme level risks and issues. He also deploys a consistent language for risk management across all projects, communicates the progress of resolution of issues in a clear and timely fashion and escalates items that cross programme boundaries to the SRO for resolution. The responsibilities also include designing and implementing the configuration management system. Let us discuss the roles and areas of focus of the Business Change Manager or the BCM (read as B-C-M).The BCM manages and coordinates the resolution of risks related to the operational performances and benefits achievement, ensures risk management cycle includes operational risks and manages risks that impact on the business performance and transition. The Business Change Manager also identifies operational issues and ensures that they are managed by the programme, identifies opportunities from the business operations and raises them for inclusion in the programme and contributes to the impact assessments and the change control. The responsibilities include monitoring and reporting on the business performance issues that may require the attention of the programme during transition. Now, let us understand the roles and areas of focus of the Programme Office. It manages and coordinates the information and support systems to enable efficient risk and issue management, maintains the programme risk and issue register, establishes, facilitates and maintains risk and issue management cycle. It also provides support and advice on risks and issues to the projects, coordinates risk and issue management interfaces with projects and maintains the configuration management systems. The responsibilities also include facilitating change control steps.

5 Risk and Issue Management Documents Information

Following are a few important documents used in the risk and issue management process. Let us begin with risk management strategy. The purpose of risk management strategy is to define programme approach to the risk management. It mentions the roles and responsibilities for managing risk in the programme and the process adapted from the organisation’s risk management standards. It also mentions the interface with the benefits management strategy on the approach to managing opportunities. It will also cover the scales for estimating the probability and impact along with the criteria for each level and guidance on calculating the expected value and proximity. It will clarify the risk response categories including threats and opportunities, risk templates including risk register and early warning indicators. It will also cover the timing of risk management activities and information flow and reports, the criteria for escalating risks and assessing effectiveness and the risk management standards. Next, let us discuss the risk register. The risk register is used to capture and actively manage the risks for the programme. Following are some important facts about risk register. It is used as a risk identifier that gives a unique risk id and description of the risk, such as, the cause of the risk, event which leads to the risk and effect of the risk on the programme. It categorises the risks as threats or opportunities; it calculates the probability and proximity of the risk occurring and its impact on the programme. The risk register also provides a description of the proposed risk response and the residual risk after the risk response has been implemented. It also defines the risk actionee, an individual who is responsible for the implementation of risk. It also mentions the risk owner who is responsible for the management and control of risk assigned to them and the current status of risk and progress of any action related to the risk. The risk actionee will be reporting to the risk owner to inform the progress of risk response actions. Risk register is a cross-reference to the programme plan to identify where risk responses have been scheduled. Now, let us discuss issue management strategy. The purpose of the issue management strategy is to describe mechanisms and procedures for resolving issues. It contains how issues will be identified, captured and assessed, how issues will be managed across programme, projects and operations and responsibilities for effective management and issue resolution. It also explains the process and explanation of how change control will work in programme, what would be the change control procedures for authorising changes resulting from issues and what procedures will be used for implementing and controlling the changes. It also explains how exceptions beyond tolerance levels will be managed, how responses to issues will be identified and by whom, and what would be the criteria for dividing the issues between project and programme and allocating severity ratings. It also covers other strategies used to support issue management strategy and monitoring and evaluating mechanism for issue response. Finally, let us discuss issue register. The issue register is used to capture and actively manage the issues in the programme. Following are a few important facts about issue register: It includes a unique reference for each issue raised along with the date, who has raised the issue and description that includes the cause and the impact of the issue. It covers the severity rating and categorisation and also the description of issue response action to be undertaken and by whom. It explains who would be the issue owner, the one responsible for the management and control of the issues and who would be issue actionee, the individual who is responsible for the implementation of the given issue response action, progress and status update. Issue register is used as a cross- reference to change control procedure. It contains the description of how the issue was resolved and what lessons were learnt.

6 Summary

Let us summarise what we have learnt in this lesson: The relationship between transformational flow and risk and issue management can be defined on the basis of identifying a programme delivering capability and closing the programme. The SRO intervenes to control risks and issues. The Programme Manager manages the aggregated levels of risks and issues. The BCM ensures that the risk management cycle includes operational risks. The Programme Office maintains the programme risk and issue register. The documents used in risk and issue management are the risk management strategy, risk register, issue management strategy and issue register. Next, we will look at a few questions based on the lessons covered so far.

  • Disclaimer
  • PMP, PMI, PMBOK, CAPM, PgMP, PfMP, ACP, PBA, RMP, SP, and OPM3 are registered marks of the Project Management Institute, Inc.

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