Risk Management of Cyclically Recurring Project Activities of Product Realisation

Abstract

An extended risk-analysis procedure for new product/service realisation projects is presented in this paper. The usual risk analysis of project activities is based on evaluation of the probability that risk events occur and on evaluation of their consequences. Product/process realisation projects are cyclically recurring, so the third parameter has been added in the proposed procedure: an estimate of the incidence of risk events. On the basis of the calculated activity risk level in a three-dimensional risk analysis, a project team prepares preventive and corrective measures that should be taken according to the status indicators. An important advantage of the proposed solution is that the project manager and team members also take into account the recurring risk events in risk management. By successive elimination of sources of recurring risk events, the three-dimensional risk analysis of project activities can be transformed to the well-known two-dimensional risk analysis. A template was created in the MS project environment. The project team used the template for testing the proposed methodology in a case study of realisation of a die-cast tool for manufacturing a car component.