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| Preface | |
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| Introduction | |
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| What Is Risk and How Is It Managed? | |
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| Example of Project Risks | |
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| Risk Management and Product Development | |
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| What Is a Risk? | |
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| Uncertainty | |
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| Loss | |
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| Time Component | |
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| Why Companies Fail in Managing Risk | |
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| Cross-Functionality | |
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| Proactiveness | |
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| The Antithesis of Risk Management: Firefighting | |
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| How Much Risk Management? | |
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| Risk As an Ally | |
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| Attitudes toward Risk | |
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| Summary | |
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| Supplementary Reading | |
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| Using Project Risk Models | |
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| Standard Risk Model | |
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| Simple Risk Model | |
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| Cascade Risk Model | |
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| Ishikawa Risk Model | |
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| Summary | |
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| Supplementary Reading | |
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| The Risk Management Process | |
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| Overview of the Process | |
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| Identifying Project Risks | |
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| Analyzing Risks | |
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| Prioritizing and Mapping Risks | |
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| Planning Resolution of Targeted Risks | |
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| Monitoring Project Risks | |
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| Summary | |
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| Supplementary Reading | |
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| Step 1--Identifying Project Risks | |
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| Plan and Prepare | |
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| Assemble a Diversity of Opinion | |
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| Verify Risk Management Knowledge and Explain Project Details | |
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| Get Participants Thinking Creatively | |
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| Start Early--But Not Too Early | |
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| Capturing Project Risks | |
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| Schedule Based | |
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| Development Process Based | |
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| Success-Thwarting Based | |
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| Prompt-List Based | |
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| Facilitating the Session | |
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| Balance between Optimism and Pessimism | |
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| Running Example | |
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| Summary | |
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| Supplementary Reading | |
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| Step 2--Analyzing Risks | |
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| Establish the Facts | |
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| Conducting the Workshop | |
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| Developing Risk Event Drivers | |
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| Developing Impact Drivers | |
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| Quantifying Total Loss | |
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| Risk Scaling Considerations | |
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| Calculate the Risk | |
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| Probability Estimation Techniques | |
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| Estimate Risk Event Probability | |
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| Estimate Risk Impact Probability | |
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| Calculate Expected Loss | |
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| Working with Differing Units and Qualitative Scales | |
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| Running Example | |
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| Summary | |
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| Supplementary Reading | |
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| Step 3--Prioritizing and Mapping Risks | |
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| How to Prioritize | |
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| Sort Risks by Expected Loss | |
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| Develop a Risk Map | |
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| Develop a Prioritized List | |
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| Communicate the Prioritized List | |
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| Running Example | |
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| Summary | |
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| Supplementary Reading | |
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| Step 4--Planning Resolution of Targeted Risks | |
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| Risk Resolution Process | |
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| Action Planning | |
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| Avoidance | |
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| Transfer | |
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| Redundancy | |
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| Mitigation | |
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| Mitigation Actions | |
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| Prevention Planning | |
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| Contingency Planning | |
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| Reserves | |
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| Balancing Benefits with Cost | |
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| Running Example | |
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| Summary | |
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| Supplementary Reading | |
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| Step 5--Monitoring Project Risks | |
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| Ongoing Risk Management | |
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| Progress on Resolution | |
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| Terminating Action Plans for Risks Successfully Resolved | |
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| Identifying New Risks | |
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| Initiating New Action Plans | |
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| Communication | |
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| Product Development Team Communication | |
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| Risk Management Metrics | |
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| Strategic Metrics | |
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| Tactical Metrics | |
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| Risk Status Trend | |
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| Current Risk Status | |
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| Active Risk Loss Summations | |
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| Active versus Inactive Losses | |
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| Running Example--Conclusion | |
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| Summary | |
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| Supplementary Reading | |
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| Risk Management Toolkit | |
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| Sticky Density | |
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| Sticky Density for Risk Identification | |
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| Retrospective Application to Root Causes | |
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| General Guidance on the Sticky Density Technique | |
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| Spreadsheets | |
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| Decision Analysis | |
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| Decision Analysis Methodology | |
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| Decision Analysis Example | |
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| Risk Simulation | |
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| Design Structure Matrix | |
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| Summary | |
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| Supplementary Reading | |
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| Risk Management Approaches and Strategies | |
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| Avoid Risk When It Does Not Add Value | |
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| Stay Flexible on Unresolved Issues | |
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| Maintain Contact with Customers | |
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| Address the Risky Items First | |
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| Apportion Risk Carefully | |
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| Test at a Low Level | |
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| Use Failure to Your Advantage | |
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| Summary | |
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| Supplementary Reading | |
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| Implementing a Project Risk Management Program Successfully | |
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| Fitting Risk Management into Project Management | |
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| Build Risk Management into All Project Phases | |
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| Provide Data Management Tools | |
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| Implementation Guidance | |
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| Consider Risk Also As an Opportunity | |
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| Train Your People | |
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| Make Risk a Concern of Management | |
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| Take Potential Problems Seriously | |
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| Spare the Messenger | |
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| Do Not Let the Engineers Run Project Risk Management | |
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| Collect and Publicize Risk Metrics | |
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| Jump In | |
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| Do Not Oversell Project Risk Management | |
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| Continuously Improve Your Implementation | |
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| Extract the Learning from Each Project | |
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| Summary | |
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| Supplementary Reading | |
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| Case Studies from Allied Fields | |
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| Manufacturing Ramp-Up Case Study | |
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| Identify Risk | |
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| Analyze Risk | |
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| Prioritize and Map Risk | |
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| Plan Resolution | |
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| Monitor Risk | |
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| Embedded Software Development Case Study | |
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| Identify Risk | |
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| Analyze Risk | |
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| Prioritize and Map Risk | |
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| Plan Resolution | |
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| Monitor Risk | |
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| Summary | |
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| Supplementary Reading | |
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| Glossary | |
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| Index | |