Key Risk Indicator A Complete Guide - 2020 Edition

Key Risk Indicator

Complete Self-Assessment Guide

The guidance in this Self-Assessment is based on Key Risk Indicator best practices and standards in business process architecture, design and quality management. The guidance is also based on the professional judgment of the individual collaborators listed in the Acknowledgments.

Notice of rights

You are licensed to use the Self-Assessment contents in your presentations and materials for internal use and customers without asking us - we are here to help.

All rights reserved for the book itself: this book may not be reproduced or transmitted in any form by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher.

The information in this book is distributed on an As Is basis without warranty. While every precaution has been taken in the preparation of he book, neither the author nor the publisher shall have any liability to any person or entity with respect to any loss or damage caused or alleged to be caused directly or indirectly by the instructions contained in this book or by the products described in it.

Trademarks

Many of the designations used by manufacturers and sellers to distinguish their products are claimed as trademarks. Where those designations appear in this book, and the publisher was aware of a trademark claim, the designations appear as requested by the owner of the trademark. All other product names and services identified throughout this book are used in editorial fashion only and for the benefit of such companies with no intention of infringement of the trademark. No such use, or the use of any trade name, is intended to convey endorsement or other affiliation with this book.

Copyright © by The Art of Service

http://theartofservice.com

[email protected]

About The Art of Service

The Art of Service, Business Process Architects since 2000, is dedicated to helping stakeholders achieve excellence.

Defining, designing, creating, and implementing a process to solve a stakeholders challenge or meet an objective is the most valuable role… In EVERY group, company, organization and department.

Unless you’re talking a one-time, single-use project, there should be a process. Whether that process is managed and implemented by humans, AI, or a combination of the two, it needs to be designed by someone with a complex enough perspective to ask the right questions.

Someone capable of asking the right questions and step back and say, ‘What are we really trying to accomplish here? And is there a different way to look at it?’

With The Art of Service’s Standard Requirements Self-Assessments, we empower people who can do just that — whether their title is marketer, entrepreneur, manager, salesperson, consultant, Business Process Manager, executive assistant, IT Manager, CIO etc... —they are the people who rule the future. They are people who watch the process as it happens, and ask the right questions to make the process work better.

Contact us when you need any support with this Self-Assessment and any help with templates, blue-prints and examples of standard documents you might need:

http://theartofservice.com

[email protected]

Included Resources - how to access

Included with your purchase of the book is the Key Risk Indicator Self-Assessment Spreadsheet Dashboard which contains all questions and Self-Assessment areas and auto-generates insights, graphs, and project RACI planning - all with examples to get you started right away.

How? Simply send an email to

[email protected]

with this books’ title in the subject to get the Key Risk Indicator Self Assessment Tool right away.

You will receive the following contents with New and Updated specific criteria:

•The latest quick edition of the book in PDF

•The latest complete edition of the book in PDF, which criteria correspond to the criteria in...

•The Self-Assessment Excel Dashboard, and...

•Example pre-filled Self-Assessment Excel Dashboard to get familiar with results generation

•In-depth specific Checklists covering the topic

•Project management checklists and templates to assist with implementation

INCLUDES LIFETIME SELF ASSESSMENT UPDATES

Every self assessment comes with Lifetime Updates and Lifetime Free Updated Books. Lifetime Updates is an industry-first feature which allows you to receive verified self assessment updates, ensuring you always have the most accurate information at your fingertips.

Get it now- you will be glad you did - do it now, before you forget.

Send an email to [email protected] with this books’ title in the subject to get the Key Risk Indicator Self Assessment Tool right away.

Purpose of this Self-Assessment

This Self-Assessment has been developed to improve understanding of the requirements and elements of Key Risk Indicator, based on best practices and standards in business process architecture, design and quality management.

It is designed to allow for a rapid Self-Assessment to determine how closely existing management practices and procedures correspond to the elements of the Self-Assessment.

The criteria of requirements and elements of Key Risk Indicator have been rephrased in the format of a Self-Assessment questionnaire, with a seven-criterion scoring system, as explained in this document.

In this format, even with limited background knowledge of Key Risk Indicator, a manager can quickly review existing operations to determine how they measure up to the standards. This in turn can serve as the starting point of a ‘gap analysis’ to identify management tools or system elements that might usefully be implemented in the organization to help improve overall performance.

How to use the Self-Assessment

On the following pages are a series of questions to identify to what extent your Key Risk Indicator initiative is complete in comparison to the requirements set in standards.

To facilitate answering the questions, there is a space in front of each question to enter a score on a scale of ‘1’ to ‘5’.

1 Strongly Disagree

2 Disagree

3 Neutral

4 Agree

5 Strongly Agree

Read the question and rate it with the following in front of mind:

‘In my belief,

the answer to this question is clearly defined’.

There are two ways in which you can choose to interpret this statement;

1.how aware are you that the answer to the question is clearly defined

2.for more in-depth analysis you can choose to gather evidence and confirm the answer to the question. This obviously will take more time, most Self-Assessment users opt for the first way to interpret the question and dig deeper later on based on the outcome of the overall Self-Assessment.

A score of ‘1’ would mean that the answer is not clear at all, where a ‘5’ would mean the answer is crystal clear and defined. Leave emtpy when the question is not applicable or you don’t want to answer it, you can skip it without affecting your score. Write your score in the space provided.

After you have responded to all the appropriate statements in each section, compute your average score for that section, using the formula provided, and round to the nearest tenth. Then transfer to the corresponding spoke in the Key Risk Indicator Scorecard on the second next page of the Self-Assessment.

Your completed Key Risk Indicator Scorecard will give you a clear presentation of which Key Risk Indicator areas need attention.

Key Risk Indicator

Scorecard Example

Example of how the finalized Scorecard can look like:

Key Risk Indicator

Scorecard

Your Scores:

BEGINNING OF THE

SELF-ASSESSMENT:

Table of Contents

About The Art of Service11

Included Resources - how to access11

Purpose of this Self-Assessment13

How to use the Self-Assessment14

Key Risk Indicator

Scorecard Example16

Key Risk Indicator

Scorecard17

BEGINNING OF THE

SELF-ASSESSMENT:18

CRITERION #1: RECOGNIZE19

CRITERION #2: DEFINE:23

CRITERION #3: MEASURE:32

CRITERION #4: ANALYZE:46

CRITERION #5: IMPROVE:57

CRITERION #6: CONTROL:74

CRITERION #7: SUSTAIN:90

Key Risk Indicator and Managing Projects, Criteria for Project Managers:139

1.0 Initiating Process Group: Key Risk Indicator140

1.1 Project Charter: Key Risk Indicator142

1.2 Stakeholder Register: Key Risk Indicator144

1.3 Stakeholder Analysis Matrix: Key Risk Indicator145

2.0 Planning Process Group: Key Risk Indicator147

2.1 Project Management Plan: Key Risk Indicator149

2.2 Scope Management Plan: Key Risk Indicator151

2.3 Requirements Management Plan: Key Risk Indicator153

2.4 Requirements Documentation: Key Risk Indicator155

2.5 Requirements Traceability Matrix: Key Risk Indicator157

2.6 Project Scope Statement: Key Risk Indicator159

2.7 Assumption and Constraint Log: Key Risk Indicator161

2.8 Work Breakdown Structure: Key Risk Indicator163

2.9 WBS Dictionary: Key Risk Indicator165

2.10 Schedule Management Plan: Key Risk Indicator168

2.11 Activity List: Key Risk Indicator170

2.12 Activity Attributes: Key Risk Indicator172

2.13 Milestone List: Key Risk Indicator174

2.14 Network Diagram: Key Risk Indicator176

2.15 Activity Resource Requirements: Key Risk Indicator178

2.16 Resource Breakdown Structure: Key Risk Indicator179

2.17 Activity Duration Estimates: Key Risk Indicator181

2.18 Duration Estimating Worksheet: Key Risk Indicator183

2.19 Project Schedule: Key Risk Indicator185

2.20 Cost Management Plan: Key Risk Indicator187

2.21 Activity Cost Estimates: Key Risk Indicator189

2.22 Cost Estimating Worksheet: Key Risk Indicator191

2.23 Cost Baseline: Key Risk Indicator193

2.24 Quality Management Plan: Key Risk Indicator195

2.25 Quality Metrics: Key Risk Indicator197

2.26 Process Improvement Plan: Key Risk Indicator199

2.27 Responsibility Assignment Matrix: Key Risk Indicator201

2.28 Roles and Responsibilities: Key Risk Indicator203

2.29 Human Resource Management Plan: Key Risk Indicator205

2.30 Communications Management Plan: Key Risk Indicator207

2.31 Risk Management Plan: Key Risk Indicator209

2.32 Risk Register: Key Risk Indicator211

2.33 Probability and Impact Assessment: Key Risk Indicator213

2.34 Probability and Impact Matrix: Key Risk Indicator215

2.35 Risk Data Sheet: Key Risk Indicator217

2.36 Procurement Management Plan: Key Risk Indicator219

2.37 Source Selection Criteria: Key Risk Indicator221

2.38 Stakeholder Management Plan: Key Risk Indicator223

2.39 Change Management Plan: Key Risk Indicator225

3.0 Executing Process Group: Key Risk Indicator227

3.1 Team Member Status Report: Key Risk Indicator229

3.2 Change Request: Key Risk Indicator231

3.3 Change Log: Key Risk Indicator233

3.4 Decision Log: Key Risk Indicator235

3.5 Quality Audit: Key Risk Indicator237

3.6 Team Directory: Key Risk Indicator240

3.7 Team Operating Agreement: Key Risk Indicator242

3.8 Team Performance Assessment: Key Risk Indicator244

3.9 Team Member Performance Assessment: Key Risk Indicator246

3.10 Issue Log: Key Risk Indicator248

4.0 Monitoring and Controlling Process Group: Key Risk Indicator250

4.1 Project Performance Report: Key Risk Indicator252

4.2 Variance Analysis: Key Risk Indicator254

4.3 Earned Value Status: Key Risk Indicator256

4.4 Risk Audit: Key Risk Indicator258

4.5 Contractor Status Report: Key Risk Indicator260

4.6 Formal Acceptance: Key Risk Indicator262

5.0 Closing Process Group: Key Risk Indicator264

5.1 Procurement Audit: Key Risk Indicator266

5.2 Contract Close-Out: Key Risk Indicator269

5.3 Project or Phase Close-Out: Key Risk Indicator271

5.4 Lessons Learned: Key Risk Indicator273

Key Risk Indicator and Managing Projects, Criteria for Project Managers:275

1.0 Initiating Process Group: Key Risk Indicator276

1.1 Project Charter: Key Risk Indicator278

1.2 Stakeholder Register: Key Risk Indicator280

1.3 Stakeholder Analysis Matrix: Key Risk Indicator281

2.0 Planning Process Group: Key Risk Indicator283

2.1 Project Management Plan: Key Risk Indicator285

2.2 Scope Management Plan: Key Risk Indicator287

2.3 Requirements Management Plan: Key Risk Indicator289

2.4 Requirements Documentation: Key Risk Indicator291

2.5 Requirements Traceability Matrix: Key Risk Indicator293

2.6 Project Scope Statement: Key Risk Indicator295

2.7 Assumption and Constraint Log: Key Risk Indicator297

2.8 Work Breakdown Structure: Key Risk Indicator299

2.9 WBS Dictionary: Key Risk Indicator301

2.10 Schedule Management Plan: Key Risk Indicator304

2.11 Activity List: Key Risk Indicator306

2.12 Activity Attributes: Key Risk Indicator308

2.13 Milestone List: Key Risk Indicator310

2.14 Network Diagram: Key Risk Indicator312

2.15 Activity Resource Requirements: Key Risk Indicator314

2.16 Resource Breakdown Structure: Key Risk Indicator315

2.17 Activity Duration Estimates: Key Risk Indicator317

2.18 Duration Estimating Worksheet: Key Risk Indicator319

2.19 Project Schedule: Key Risk Indicator321

2.20 Cost Management Plan: Key Risk Indicator323

2.21 Activity Cost Estimates: Key Risk Indicator325

2.22 Cost Estimating Worksheet: Key Risk Indicator327

2.23 Cost Baseline: Key Risk Indicator329

2.24 Quality Management Plan: Key Risk Indicator331

2.25 Quality Metrics: Key Risk Indicator333

2.26 Process Improvement Plan: Key Risk Indicator335

2.27 Responsibility Assignment Matrix: Key Risk Indicator337

2.28 Roles and Responsibilities: Key Risk Indicator339

2.29 Human Resource Management Plan: Key Risk Indicator341

2.30 Communications Management Plan: Key Risk Indicator343

2.31 Risk Management Plan: Key Risk Indicator345

2.32 Risk Register: Key Risk Indicator347

2.33 Probability and Impact Assessment: Key Risk Indicator349

2.34 Probability and Impact Matrix: Key Risk Indicator351

2.35 Risk Data Sheet: Key Risk Indicator353

2.36 Procurement Management Plan: Key Risk Indicator355

2.37 Source Selection Criteria: Key Risk Indicator357

2.38 Stakeholder Management Plan: Key Risk Indicator359

2.39 Change Management Plan: Key Risk Indicator361

3.0 Executing Process Group: Key Risk Indicator363

3.1 Team Member Status Report: Key Risk Indicator365

3.2 Change Request: Key Risk Indicator367

3.3 Change Log: Key Risk Indicator369

3.4 Decision Log: Key Risk Indicator371

3.5 Quality Audit: Key Risk Indicator373

3.6 Team Directory: Key Risk Indicator375

3.7 Team Operating Agreement: Key Risk Indicator377

3.8 Team Performance Assessment: Key Risk Indicator379

3.9 Team Member Performance Assessment: Key Risk Indicator382

3.10 Issue Log: Key Risk Indicator384

4.0 Monitoring and Controlling Process Group: Key Risk Indicator386

4.1 Project Performance Report: Key Risk Indicator388

4.2 Variance Analysis: Key Risk Indicator390

4.3 Earned Value Status: Key Risk Indicator392

4.4 Risk Audit: Key Risk Indicator394

4.5 Contractor Status Report: Key Risk Indicator396

4.6 Formal Acceptance: Key Risk Indicator398

5.0 Closing Process Group: Key Risk Indicator400

5.1 Procurement Audit: Key Risk Indicator402

5.2 Contract Close-Out: Key Risk Indicator404

5.3 Project or Phase Close-Out: Key Risk Indicator406

5.4 Lessons Learned: Key Risk Indicator408

Index410

CRITERION #1: RECOGNIZE

INTENT: Be aware of the need for change. Recognize that there is an unfavorable variation, problem or symptom.

In my belief, the answer to this question is clearly defined:

5 Strongly Agree

4 Agree

3 Neutral

2 Disagree

1 Strongly Disagree

1. Are early warning indicators and triggers in place to cover the full range of stress scenarios?

<--- Score

2. What problems