Structure in Threes: Risk Management as a component of Portfolio Management
September 23, 2013 3 Comments
Continuing to research risk management as a component of the Modern IT Portfolio Management methodology this morning. Starting to investigate unexpected loss and uncertainty aspects. Will be rereading Shoemaker’s “Profiting from Uncertainty”. Looks like the financial risk management risk research I’ve been doing, is confirming the Real Options application research to portfolios I had previously developed two years ago. The key element that most of the PMP risk management activities track are around identifying and managing known risk (expected loss). Typically, this is not the area that causes the most problem unless the risk management plan is just pencil whipped (i.e., just a form competition exercise).
Ensuring that both expected, unexpected, and cascading or interconnected risks are addressed as more than just a side activity is a cultural aspect I’ll need to add to the adoption section of the book. I expect similar aspects of adoption management I used before for Strategy and Market Planning process deployment will be used here. I’ll relook at Kotter’s, DAGMAR, and ADKAR models for change next month when I detail out the adoption management methods and chapters.
In the meantime I’ll go back to researching risk today. On today’s agenda is investigating process failure risk components and cascading risk and failures. The later, cascading failures, should be more application than primary research, as standard engineering practices such as FMECA, RCA, and FEM have network analysis frameworks that I’ve adapted before with great results.. Right now I really miss all my White Boards. I’m looking into a paint that turns walls into white boards –it would be great if I could get touch displays the size of walls. I’d really build a think tank 🙂