What is Project management?
It is a disciplined approach towards leading, identifying, defining,
planning, organising, controlling and closing a finite endeavour.
What is Project Risk Management?
It is a subset of project management that includes the processes
concerned with identifying, analysing, and responding to project
risk. It covers risk identification, quantification, control
What is a Risk?
Risk is a complex entity formed by possible outcomes related
to a threat/opportunity and their associated probabilities. Sometimes
"acceptance" is also considered (i.e. the measure of
our attitude towards risk). Specific definitions of PRIMA:
- Risk may be positive (-opportunities-) or negative (-hazards,
threats-), internal or external.
- Risk is an integrated pivot-variable allowing to balance every
time it is necessary the company's risk action plan and control
(internal risk) against external risks considered as a target
What is Risk Management?
The art and science of identifying, analysing, controlling and
reporting vs. risk factors throughout the life of a project and
in the best interests of its objectives.
What is an External risk?
A threat (opportunity) of not meeting customer evaluation criteria
with respect to competitors. Usually it is measured by the probability
of winning (PWIN). External risk relates to factors, which arise
in the company environment (context, customer, market, competitors,
environment impact of the product, customer's risk using the
What is an Internal risk?
A threat (opportunity) of not meeting planned project cost, time
and performance. Usually it is measured by over/under-running
Including risk between all the partners, personal relationship,
transfer of technology, information technology ...
What is Risk analysis?
It's the second step of risk management. It involves analysing
by converting collected data using a selected technique during
Using information to identify sources of risk and to estimate
the risk. The aim is to provide a basis for risk quantification,
treatment and acceptance.
What is Risk Typology?
Risk can be classified in the following categories a) strategic
risk - affects global strategy of the project or the own partner
strategy, b) organisational risk - affects project organisation,
c) personal risk - affects relationships between partners, d)
dynamic risk - affects global project point of view and includes
the three previous typologies.
What are the objectives of PRIMA?
The objectives of the PRIMA project are to define, develop and
- a "design to risk" method , which is a pro-active
risk management approach focused and starting from the bidding
- a risk management corporate memory (RMCM) tool, which organises
risk knowledge processing.
- a Decision support system (DSS) tool which assists and promotes
the bidding method with a pricing decision support connected
to risk knowledge processing.
What is The «Management by Risk» Method in
The «Management by Risk» Method will define:
- how risk knowledge is captured and reused during the bidding
- a classification scheme for risks (or «referential»),
which comprises precise definitions of internal and external
risks, including both positive risks (opportunities) and negative
risks (hazards). Risk knowledge is stored in the Risk Management
- a bidding process which
a) helps to build technical solutions incorporating
risk information and
b) systematises an early bid / no bid phase;
- a mechanism to estimate and weight risks, provided by the Decision
What is the risk management corporate memory (RMCM)?
The RMCM will provide:
- a classification scheme for risks, comprising products and
processes broken down by their risks (called risk breakdown structure
- a knowledge capitalisation process of both internal and external
- a process for company learning.
What is a DSS?
A DSS is an interactive, flexible, and adaptable Computer-based
information systems (CBIS) that utilizes decision rules, models,
and model base coupled with a comprehensive database and the
decision maker's own insights, leading to specific, implementable
decisions in solving problems that would not be amenable to management
science optimization models per se. Thus, a DSS supports complex
decision making and increases its effectiveness.
How a DSS is composed?
A DSS is composed of the following:
- Data Management. It includes the database(s), which contains
relevant data and it is managed by software called database management
- Model Management. A software package that includes financial,
statical, management science, or other quantitative models that
provides the system's analytical capabilities, and a n appropriate
- Communication. Interface with user.
What will support PRIMA DSS?
The Decision Support System for Bidding will support:
- a co-operative framework for the bidding team to build technical
- a mechanism for the bid manager to estimate and weight risks
- comparison of technical solutions for a bid by weighting their
- Implementation and promotion of the method and the RMCM inside
What is the Decision Making?
Decision Making is a process of choosing among alternatives courses
of action for the purpose of attaining a goal or goals.
The phases of Decision Making are:
- Intelligence (Study of the organization's inputs, processes
- Design (Modeling and evaluation)
- Choice (searching for the appropriate course of actions that
will solve the real problem)