[PDF] How to Use a Project Go/No Go Risk Management Matrix - RLI Corp PDF proj-risk-mgmt-matrix-instructions.pdf

How to Use a Project Go/No Go Risk Management Matrix This Matrix, designed by RLI's Risk Management team, is intended to help guide you through the four

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How to Use a Project Go/No Go Risk Management Matrix

This Matriǆ, designed by RLI's Risk Management team, is intended to help guide you through the four steps of risk

to work for you.

Step 1: Reǀiew the list of risk issues that we'ǀe identified in the first column. You'll notice that there are twenty issues in all,

and we'ǀe broken them down into four categories͗ Project, Place, People, and Process. Most of these will sound familiar to

you, but if you're unclear as to our intent, look over to the third column, which provides a brief explanation for each of the

issues. An item in the Explanation column that has a symbol after it offers additional detail or clarity if you hover over the

explanation.

Step 2: Once you think that the risks have been properly identified (and you can feel free to modify the matrix to suit your

own circumstances), it's time to moǀe on to the assessment part of the process. For this Matriǆ, we'ǀe suggested that in the

second column, you score each issue on a scale of 1 (low risk) to 5 (high risk). When you'ǀe completed this part of the process

(and as we'ǀe designed it, the Matriǆ calculates the sums for you), you can step back and think about:

how risky the project is overall (the bottom line of the Matrix provides some guidance) within the categories of Project, Place, People, and Process, where the riskier issues lie whether or not this project is starting to look like a ͞go" or a ͞no go."

Step 3: As you form your opinions and approach, the next step is to define a risk mitigation strategy. In the fourth column,

you can detail a strategy for each of the issues or just focus on the higher risk issues. Again, the additional details provided in

the ͞Eǆplanation" column may also giǀe you some thoughts about mitigating the risks associated with a particular issue.

Step 4: The last step in our Matrix approach is Control. Even the best risk managers will miss a detail or two in their

benefit of this project, but for the benefit of the lessons learned that you apply to future projects.

Final Analysis

Why do firms take on projects that they think are destined to fail? The question is somewhat rhetorical, but the answers

might include: a perceived (or real) need to take on more projects, inadequate tools to help with the evaluation, or difficulty

in standing up to a client and saying no. This Matrix is designed to help identify, assess, manage, and control the risks in your

projects. You may decide that this Matriǆ isn't the right fit for your firm, and that's okay. The key is to use it to develop a

matriǆ that works for your firm. And if you can't get to an appropriate comfort leǀel on a particular project͍ That's the

project where you want to consider saying ͞No go͊"

Our Claims professionals at RLI hear that time and time again. Unfortunately, by the time those words are

uttered, it's often too late for the insured who's uttering them.

Is it possible to predict the future of every project? Not exactly. But with eǆperience, it's certainly possible to see

problems coming before they actually arise. And that's the point of a Project GoͬNo Go Risk Management Matriǆ.

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[PDF] [PDF] How to Use a Project Go/No Go Risk Management Matrix - RLI Corp

Final Analysis