IT Project Management: Disaster Recovery & Risk MitigationFriday, October 17th, 2003Philip K. Kuruvilla & Rachna JunejaECMM6000: CEP

Agenda What is PM?

ApproachManagement Planning Cycle

What is PRM? Why is it important?

1. Business sense2. Operations3. Risk Mitigation

Case: Blackout in the Northeast Summary: Case in point References

What is Project Management (PM)?

ApproachSystemsTheories

Management Planning Cycle

Plan Execute Measure

Analyze Adjust

Planning

What is Project Risk Management (PRM)?

Risk: The possibility of loss or injuryRisk Management is an investment

Costs < Benefits

Processes

Quantitative Qualitative

Response Planning

Identification AnalysisMonitoring & Control

Communication…

Understand Visible to all project members Apply attention Ongoing dialog between manager and project team

How are PM & PRM related?

Part of Project Management PlanIdentifies & quantifies

Mitigation toolAnticipate therefore avoid or be ready

CMMKPA - Level 3 CMM Levels

Emerging risks of e-Business Increasing need for knowledge of local laws Evolution of trading markets Pervasive nature of IT Higher accountability standards Complexity of regulatory environments Shortage of skilled personnel

Managing Risk today is not what it used to be…Why not?

SWOT Analysis

Strengths Protection Proactive

Contingency planningBetter prepared

WeaknessesCost of Quality

overheads

Benefits not tangible

ROI?

Opportunities & Threats• Regulatory

Case: Blackout in the Northeast

What happenedBlackout

Why did it happen?TBD: remains largely a case of cause unknown Computing infrastructure

Could it have been avoided?

Yes!

Blackout… Could it have been avoided?

Murphy’s law - “if everything seems to be going well, you obviously don’t know what’s going on …..”

PRM!!1998 San Francisco blackout

Lack of IT infrastructureCommunication

Industry lagInformation flow & sharing

Case in Point

Aug. 14th blackout launched transmission reliability & investment to the top of the agenda throughout N.A. First Energy Corp. Aggregation of data from legacy apps Harmonizing standards among transmission operators N.A. companies may increase IT spending

Summary

Companies need to better integrate their risk & value management processes at all levels of management Hope for the best, prepare for the worst

Thank you!

For more information:http://www.sei.cmu.edu/pub/documents/97.reports/pdf/97hb002.pdfhttp://www.pwcglobal.com/extweb/NewCoLth.nsf/0/4D2082813872E04285256D4E00720AB8?OpenDocumenthttp://itmanagement.earthweb.com/it_res/print.php/3085471http://www.canadianinstitute.com/pdf/165B04-TOR.pdfhttp://www.itworldcanada.com/index.cfm?highlight_keywords=blackout&ci_id=47014http://www.pwcglobal.com/Extweb/service.nsf/docid/015130A8529BBB3C85256A7A00462BAChttp://www.deloitte.com/dtt/section_node/0,2332,sid%253D3489,00.html