Lean Risk Management 
Richard Bollinger
Consultant
Natural SPI, Inc.

Introduction:

As a project manager I had been dissatisfied and uneasy with risk management as performed in many organizations. I finally discovered that the methods I had been taught and using to calculate risk reserves were inadequate. I also saw other ways to improve risk management and make it more of a science and less of an art.

Learning Objectives:

Participants will learn the following:

• How to remove waste from risk management by properly calculating risk buffers and reserves that protect project objectives and provide confidence in success
• How to improve the quality of risk management by fully utilizing all the information available in projects
• How to optimize risk management by building a system with that as its objective
• How a system with specific aims is required to optimize just about anything

Outline:

• Waste in Risk Management
• CMMI Level 3 Risk Practices
• Establishing the Budget & Schedule
• Avoiding a Statistical Trap
• Common Risk Planning Buffer Calculation
• The Problem
• On the Average You Will Break Even
• A BIG Assumption That Almost Never Holds
• Central Limit Theorem to the Rescue
• How big should buffers be?
• Choosing the Buffer
• Choose your ‘z'
• Using the New Buffer
• Benefits
• Lean Risk Management
• A Risk Management System
• Elements of a System
• Risk Management System Components
• Projects Have Problems
• Learning About Risks
• Risk Management System Goals
• Goal Confirming Questions
• Goal Revealing Measures
• Using the System at Level 3
• Using the System in Higher Maturity Levels
• Level 4 & 5 Risk Practices
• Correcting Root Causes of Problems
• Stabilizing Sub-process Performance
• Quantitatively Managing the Process
• Ensuring Continual Process Improvement
• Going Forward
• Summary
• Conclusion
• Projects are Temporary
• Systems are Forever
• Adding to your System
• References/Reading
• Contact information

Biography:

Rick Bollinger is a Senior Consultant with Natural SPI, Inc., an innovative process improvement and management consulting firm, and an SEI Partner. Mr. Bollinger has more than 20 years software development, management, and consulting experience in the automotive, pharmaceutical, and medical device industries. He holds a Bachelor's Degree (cum laude) in Industrial Engineering and a Master's Degree in Computer Engineering from the University of Michigan .

Mr. Bollinger is certified as a Project Management Professional and a Six Sigma Green Belt. He is a member of the Dr. W. Edwards Deming Institute and has presented at its annual conferences.