Patners Description
 
 
 
  IST-1999-10193
 IST Web site


FAQ's

  • General
  • About PRIMA project

  • General

    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 and reporting.

    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 or constraint.

    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 product.).

    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 probability.
    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 risk identification.
    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.

     

    About PRIMA project

    What are the objectives of PRIMA?
    The objectives of the PRIMA project are to define, develop and disseminate:
    - a "design to risk" method , which is a pro-active risk management approach focused and starting from the bidding process.
    - 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 PRIMA ?
    The «Management by Risk» Method will define:
    - how risk knowledge is captured and reused during the bidding process
    - 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 Corporate Memory;
    - 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 Support System

    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 of products
    and processes)
    - a knowledge capitalisation process of both internal and external risk
    - 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 systems (DBMS)
    - 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 software management.
    - 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 solutions
    - a mechanism for the bid manager to estimate and weight risks
    - comparison of technical solutions for a bid by weighting their risks
    - Implementation and promotion of the method and the RMCM inside the company.

    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 and outputs)
    - Design (Modeling and evaluation)
    - Choice (searching for the appropriate course of actions that will solve the real problem)