Connecting with the business level 

using key risk economics capabilities: 

     Reporting risk exposure in monetary values

     Guidance on ideal risk mitigation spending 

report_problem     Connecting project risks to business goals

    Presenting ROI calculation of new tasks

Projects are a means to achieve some sort of benefit to the organisation, be it a one-off or recurring benefit. It is important to understand the risks so appropriate actions can be taken to secure that future benefit. In light of this, how do you present the risk picture to the project owners, sponsors and other business
leadership members? And how do you best position your proposed actions to mitigate that risk?

Indeed, good project managers have control over their risks by effective monitoring and appropriate follow-up. They earn kudos from their sponsor and business leadership by:

1.     Demonstrating business acumen through understanding the risk impact on the project itself AND the outcome it promises to deliver on a form that resonates with them

2.     Presenting the identified risks and how they will hit the bottom line, ideally before and after any proposed mitigating
activity, enabling informed decisions to be made by the decision-makers

With bossanalytics projectrisk you can provide the business leadership with a precise and current picture of the ongoing
programmes’ and projects’ risk exposure, and give them the input necessary to make informed decisions. In their language. Money.

The Risk Cost principle 

Consider an asset, something of value the organisation has or will acquire. Unprotected, the potential loss equals the value of the asset. Once you start protecting it the potential loss will first drop dramatically. Putting more defence mechanisms in place will reduce the loss probability further, but to a lesser and lesser degree. Actually, it has been shown that at some point the utility of a mitigating action is smaller than the utility of the letting the risk materialise.

Risk cost is the combination of cost of protection and the most likely losses anticipated at this defence level in a given time period, usually a month or a year.

From a project's perspective, it is based on the rest value of the project, that is, budget minus earned value (Investment-at-Risk) and the portion of the benefit that is exposed (Benefit-at-Risk) plus the cost and effect of tasks.

In bossanalytics projectrisk, predictive analytics is used to compute the risk cost, serving as a good indicator on how to prioritise the mitigation effort to distribute the funding where it reaps the most benefit. The higher the risk cost, the more attention it needs.

Risk cost is also in play for evaluating new mitigating tasks to render its financial utility. Based on the nature of the proposed new mitigating task and all other tasks in process, an investment advice is determined whether you should invest or not.

Project Benefits

The risk management functionality in bossanalytics projectrisk is designed to underpin your risk assessments and the management of risks throughout their lifecycle. Take advantage of the built-in security economics capability to link open risks to the benefits the project is set out to deliver, document strategy selection and treatment, and monitor and report to make project risk management an integral part of your business leadership dialogue. 



All risks are presented in a classical risk matrix. The matrix is task-aware meaning that upon adding a mitigating task, the risk is automatically adjusted according to the task effect. Accepted risks will appear as green bullets, otherwise blue. 

To execute the selected risk strategy, you need tasks. Tasks are concrete actions that you assign to someone and set a finish date to ensure timely execution. The task flow in bossanalytics projectrisk is designed to support you and all the assignees in the execution of the various strategies set forth to manage the projects' risks. You get status of all assigned tasks in an instant, putting you in complete control of the project risk management.