1.2.3 Challenges Based Risk Management

Abstract

AbstractEvery systems engineer encounters challenges to plan and execute effective systems engineering activities during system design and development and throughout the project management. Most organizations provide standards, processes and procedures for applying systems engineering. We claim that each project is different, and project management policy & style should varies from one project to the other‐ “one size does not fit all”. We conducted a research that was based on the NTCP‐ Diamond approach for adaptive project management (Shenhar & Dvir 2004). The model claims that project management needs to be based on the strategic goals and the dimensions of the systems design including Novelty (How new the product is to its markets/customers/users?), Complexity (What is the scope of the project/product design?), Technology Uncertainty (How new the technology applied for the system is for the developers?) and Pace (How critical is your time frame?). We studied 18 projects & how the projects managers dealt with the above challenges. We found that the adaptive project management approach contributes to project success.Each project includes risks which are managed during the project life cycle. The traditional risks management process focus on technological, economical, marketing and organizational risks. We offer a Challenges Based Risk Management approach which is complement to the traditional approach. This approach is based on two risks elements: Project challenge level‐ calculated by summing up the project challenges levels in each dimension (Novelty, Technology Uncertainty, Pace, Complexity). Deviation from the adaptive management model. This approach can be useful in managing project portfolio, and managing the project risk through its challenges.We offer a methodology of managing projects according to its challenges, and offer a way to minimize the project risks by minimizing the deviation from the adaptive model.