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Index
Cover
Half Title
Title Page
Copyright Page
Contents
Preface
Introduction
Chapter 1: What Is Risk and How Is It Managed?
Example of Project Risks
Risk Management and Product Development
What Is a Risk?
Uncertainty
Loss
Time Component
Why Companies Fail in Managing Risk
Cross-Functionality
Proactiveness
The Antithesis of Risk Management: Firefighting
How Much Risk Management?
Risk As an Ally
Attitudes toward Risk
Summary
Supplementary Reading
Chapter 2: Using Project Risk Models
Standard Risk Model
Simple Risk Model
Cascade Risk Model
Ishikawa Risk Model
Summary
Supplementary Reading
Chapter 3: The Risk Management Process
Overview of the Process
Step 1: Identifying Project Risks
Step 2: Analyzing Risks
Step 3: Prioritizing and Mapping Risks
Step 4: Planning Resolution of Targeted Risks
Step 5: Monitoring Project Risks
Summary
Supplementary Reading
Chapter 4: Step 1—Identifying Project Risks
Plan and Prepare
Assemble a Diversity of Opinion
Verify Risk Management Knowledge and Explain Project Details
Get Participants Thinking Creatively
Start Early—But Not Too Early
Capturing Project Risks
Schedule Based
Development Process Based
Success-Thwarting Based
Prompt-List Based
Facilitating the Session
Balance between Optimism and Pessimism
Running Example
Summary
Supplementary Reading
Chapter 5: Step 2—Analyzing Risks
Establish the Facts
Conducting the Workshop
Developing Risk Event Drivers
Developing Impact Drivers
Quantifying Total Loss
Risk Scaling Considerations
Calculate the Risk
Probability Estimation Techniques
Estimate Risk Event Probability
Estimate Risk Impact Probability
Calculate Expected Loss
Working with Differing Units and Qualitative Scales
Running Example
Summary
Supplementary Reading
Chapter 6: Step 3—Prioritizing and Mapping Risks
How to Prioritize
1. Sort Risks by Expected Loss
2. Develop a Risk Map
3. Develop a Prioritized List
4. Communicate the Prioritized List
Running Example
Summary
Supplementary Reading
Chapter 7: Step 4—Planning Resolution of Targeted Risks
Risk Resolution Process
Action Planning
Avoidance
Transfer
Redundancy
Mitigation
Mitigation Actions
Prevention Planning
Contingency Planning
Reserves
Balancing Benefits with Cost
Running Example
Summary
Supplementary Reading
Chapter 8: Step 5—Monitoring Project Risks
Ongoing Risk Management
Progress on Resolution
Terminating Action Plans for Risks Successfully Resolved
Identifying New Risks
Initiating New Action Plans
Communication
Product Development Team Communication
Risk Management Metrics
Strategic Metrics
Tactical Metrics
Risk Status Trend
Current Risk Status
Active Risk Loss Summations
Active versus Inactive Losses
Running Example—Conclusion
Summary
Supplementary Reading
Chapter 9: Risk Management Toolkit
Sticky Density
Sticky Density for Risk Identification
Retrospective Application to Root Causes
General Guidance on the Sticky Density Technique
Spreadsheets
Decision Analysis
Decision Analysis Methodology
Decision Analysis Example
Risk Simulation
Design Structure Matrix
Summary
Supplementary Reading
Chapter 10: Risk Management Approaches and Strategies
Avoid Risk When It Does Not Add Value
Stay Flexible on Unresolved Issues
Maintain Contact with Customers
Address the Risky Items First
Apportion Risk Carefully
Test at a Low Level
Use Failure to Your Advantage
Summary
Supplementary Reading
Chapter 11: Implementing a Project Risk Management Program Successfully
Fitting Risk Management into Project Management
Build Risk Management into All Project Phases
Provide Data Management Tools
Implementation Guidance
Consider Risk Also As an Opportunity
Train Your People
Make Risk a Concern of Management
Take Potential Problems Seriously
Spare the Messenger
Do Not Let the Engineers Run Project Risk Management
Collect and Publicize Risk Metrics
Jump In
Do Not Oversell Project Risk Management
Continuously Improve Your Implementation
Extract the Learning from Each Project
Summary
Supplementary Reading
Chapter 12: Case Studies from Allied Fields
Manufacturing Ramp-Up Case Study
Step 1: Identify Risk
Step 2: Analyze Risk
Step 3: Prioritize and Map Risk
Step 4: Plan Resolution
Step 5: Monitor Risk
Embedded Software Development Case Study
Step 1: Identify Risk
Step 2: Analyze Risk
Step 3: Prioritize and Map Risk
Step 4: Plan Resolution
Step 5: Monitor Risk
Summary
Supplementary Reading
Glossary
Index
About the Authors
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