Project Partners Blog

By Tamim Kulaly, PMP

The first important question is “why do projects fail?” There could be several reasons:

• Project over run –  The project takes longer than planned
• Cost over run – Executing the project cost more than budgeted
• Underperformance  – The project team did not deliver the goals of the project
• Plan too optimistic – Evidencing a lack of understanding of true scope of the project
• Scope creep – The scope of the project increased but plans and budgets were not revised accordingly
• Other – Sometimes things go wrong due to lack of appropriate resources or equipment failure or bad weather or other unpleasant surprises.

To avoid the downfalls of project failures, project centric organizations should look into Risk Analysis products to minimize project risks. Oracle’s Primavera Risk Analysis is a full lifecycle risk analytics solution integrating cost and schedule risk management. Users will have an objective view of required contingency to account for cost and schedule uncertainty as well as analyzing the cost effectiveness of risk response plans.

Why Primavera Risk Analysis?

• Increase confidence in bids & project selection
• Help create more realistic schedule and identify schedule assumptions
• Identify common scheduling pitfalls that may result in misleading schedule or risk analysis results
• Improve awareness of project risk and uncertainty
• Integrate pre-developed risk registers and define new risk registers
• Address full lifecycle risk management through advanced Monte Carlo-based cost and schedule analytics
• Report confidence levels with regards to finish dates, costs, float, internal rate of return and net present value
• Increased project success by enabling better project management
• Methodology based risk analysis as identified in the PMBOK; Risk Planning, Risk Identification, Risk Assessment, Risk Response and Risk Reporting.

Integrate Schedule and Cost Risk Analysis with the following products

• Integration with Primavera 5x, 6x, Contractor, P3 and Suretrak.
• Integration with Microsoft Project Server 2003 or Desktop. Primavera Risk Analysis is not compatible with MSP Server 2007 but MSP 2007 files can still be imported using the File…Microsoft Project…Open Project option
• Integration with Deltek
• UN/CEFACT – United Nations Centre for Trade Facilitation and Electronic Business.

Users can build a Risk Register – Qualitative & Quantitative Assessment

Users can build both Qualitative and/or Quantitative risk assessments, and based on this data, different scenarios can be created.

Primavera Risk Analysis Risk Register

Users can build unlimited Risk Scenarios

• Project Schedule and Cost in planning/cost systems are just one scenario, and usually not the most realistic. Users can include risks into the scenario which can provide realistic assessment for project delivery.
• Users can compare different response strategies to determine the best ROI

Primavera Risk Analysis Risk Assessment

In conclusion, executives, program managers and project managers should use Risk Management tools to minimize their project risk and maximize opportunities.