Establish an approach for the Project and document this approach.Involve Stakeholders, Users, Suppliers, and Teams to help identify risks.First, understand the project context, which means understand the project environment.The MOR method is a generic approach to Risk and has the following approach: So how does the PRINCE2 system define the Management of Risk? Well one of the initial problems is that it is generic by nature and thus does not cater for the specific risk factors of product development in the aerospace and defence markets. As a result this further accentuates the optimism bias factors as I shall show below and which fall out of its standard question set. The latest and apparently best practice in Project Management is PRINCE2 (and those systems based on it like PRINSIX in Norway) developed by the UK Government and Capita and marketed under the AXELOS banner. This system provides a range of tools and processes for Project Managers to follow but the one which typically has the biggest impact on Performance, Cost and Time and thus is affected by optimism bias is its methods for the assessment of risk. The trouble with risk is no matter how it used, whether that is in safety management, monetary transactions or technical development is that it is, at best a judgement call. If there is a theme of my career in both the military and industry it is the perennial issue of Optimism Bias in the delivery of developmental projects, big or small, private or government, national or international. This inevitably has lead to the missing of deadlines, cost growth, political embarrassment and in the worst of all cases project or strategic failure. So bearing in mind I have being working in the aerospace and defence industries for over 30 years and that apparently better programme and project management systems have been put in place in that time, why aren’t we really getting any better?
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