As a project manager I am always managing Risk as it pertains to the triple constraint of scope, time, and cost. As Jim Taylor explains, “The concept of the triple constraint is used early in the planning stages of a project to understand the customer’s needs and to consider how each factor interacts with the others and how together they contribute to the whole project”(Taylor, 2007 pg. 5). I am only starting to understand this broader notion of enterprise risk Management by relating it to project management concepts. As I see it implementing ERM is the project, and before ERM can be implemented a fair amount of planning must be done. The plan is critical in determining whether or not ERM will be accepted and ultimately successful. Defining the critical success factors that an Organization possesses seems to be the foundation for creating a plan to implement ERM.
Support by leadership and the senior management of the organization is a critical success factor that I can say without doubt exists within my organization. This support must be directed at the program or organization and include the necessary resources for the effort to be successful (Banasiewicz, 2015). Without this support, the initiative is just another efficiency exercise that does not go to the root of consolidating and addressing overall enterprise risk (Banasiewicz, 2015). I feel extremely lucky to work for an organization with a culture that promotes just about anything that accomplishes the mission and vision for the company. Organizational culture is shaped by the common experiences of members of the organization and most organizations have developed unique cultures over time by practice and common usage (Project Management Institute, 2013, pg. 20).
As the Director of Health Information Management I was brought into my organization to implement a hospital-wide computer system known as an electronic medical record, or EMR. Shortly after implementation the board of directors made a strong push to control the data that was being stored within the EMR. In the last 2 years I have taken on several business analytic projects that harness data, produce information, and ultimately produce knowledge. In my organization data is a valuable asset. In his book, Risk Profiling of Organizations, Andrew Banasiewicz says, “Data is an asset to organizations that are able to systematically extract competitive edge producing insights out of it” (Banasiewicz, 2014, pg 33). Managing risk and implementing a system to manage risk starts with senior support, a commitment towards technology, and a desire to interpret valuable data about the business. Within the first few months of my first business analytic project I was able to determine that a certain wound dressing used by several surgeons produced a slower recovery, kept patients in the hospital longer, and significantly increased the cost of surgery. Since these three findings went against the risk tolerance of the company several changes were made and these results changed in a short amount of time.
Banasiewicz, A. (2015). Lecture 2 Notes – Critical ERM Success Factors. [Boston University Online Campus.
Banasiewicz, A. (2014). Risk Profiling of organizations (Second ed.). Boston, MA, USA: Erudite Analytics
Project Management Institute. (2013) A Guide to the Project Management Body of Knowledge (5th edition) Newton Square, PA, USA: PMI, 2013.
Taylor, J. (2007). Project Scheduling and Cost Control: Planning, Monitoring and Controlling the Baseline. Ft. Lauderdale, FL, USA: J. Ross Publishing Inc.. Retrieved from http://www.ebrary.com