Management Reserves & Estimated Monetary Value

In project management, a Management Reserve is “an amount of the project budget withheld for management control purposes. These are budgets reserved for unforeseen work that is within the scope of the project. The management reserve is not included in the performance measurement baseline” (PMBOK).

There are three different types of management reserves identified in

Risky Links

In Practice Standard for Project Risk Management the authors illustrate the structure of a quantitative risk analysis. The structure contains Risk Prioritization, Examine Interrelationships Between Risks, Collect High Quality Risk Data, Project Model, Perform Quantitative Risk Analysis, and Results. The second step in this process, examining interrelationships, can have significant impact on the risk analysis…

A Black Swan in Oklahoma

Much of the conversation about project risk management approaches the subject from a negative perspective.  Project risk is just as much about improving the chances of a positive event as a negative one.  The PMBOK states that “the objectives of project risk management are to increase the likelihood and impact of positive events, and decrease…

Balancing Your Bias

Everyone has a bias.  A bias is generally understood as a preconceived position on a subject often viewed as unreasoned by others.  The reality is the bias is generally not developed through unreasoned mental programming, but rather built out of causal reasoning.  Our experiences in our own life are the anecdotal evidence for much of…

Charting the Project Ocean

Navigating the risky waters of a project requires the same tools that helped navigators travel across the ocean, good charts.  In this post I review the usefulness of using tables and charts in communicating project risk.  Two common types of charts used in communicating about projects are Pareto diagrams and Probability & Impact Matrix.  Risk…