PM Network - September 2016

helps identify what’s true. “That’s how you verify the information,” he says. “If it’s from one source, you’re taking the risk of not having accurate information. But different sources will confirm information or tell you what pieces you’re missing.”

BOTTOM-UP RESPONSES

Mapping the risk landscape is just the first step, of course. Knowing when and how to escalate a risk up the organizational ladder comes next. National Security Technologies in Las Vegas, Nevada, USA recently created an enterprise risk management process to identify strategic risks emanating from lower-level risk management processes, says Thomas Andrews, PMI-RMP, PMP, project and risk management division manager. (The organization contracts with various U.S. federal defense agencies to execute R&D projects.) Mr. Andrews and a team of subject matter experts developed the necessary procedures and tools to establish and manage the process. An enterprise risk register now tracks and scores risks that require elevation to the enterprise level, helping the risk management team (made up of a risk manager and risk integrators from each business unit) decide when to bring them to the attention of senior management.

“We use traditional risk-handling strategies to address our enterprise-level risks. They are: accept, mitigate, avoid and/or transfer,” he says. High-scoring risks require that a formal risk response plan be developed by the risk owner and submitted for senior management review.

The risk management team holds risk review meetings with senior management every three months to go over new and emerging risks. Funding instability is a recurring risk. Although the political situation in the U.S. is far more stable than in many other countries, elections and partisan gridlock can be disruptive to organizations reliant on federal funding for projects.

“Our business is dependent upon steady government funding. Each year, particularly in election Source: Global Risks Report 2016, World Economic Forum. Methodology: 742 people in organizations around the world were surveyed in late 2015.