Risk - The Complete Tool Set

Benefits Realisation Risk

This category of risk is another that is completely ignored by the majority of "risk gurus". However, our group believes that this category of risk is vital in the processes of project approval, initiation and planning. Why would any organisation undertake a project with a high Benefits Realisation Risk unless the senior management were prepared to become totally involved in the pro-active management of these risks?

By applying Benefits Realisation Risk assessment to various projects, we have shown clients that even if the project was successful in delivering the new system, the process of benefits realisation was so High Risk that the project should not be approved.

Benefits Realisation Risk includes factors such as:

• the number of different stakeholders, clients and external partners involved in the benefits realisation process;
• the complexity of the business realisation process;
• the need for culture and other change required to realize benefits;
• the degree of executive buy-in for benefits realisation; and
• the time-frame for benefits realisation; and
• the size of the benefits to be realized.

As in Business Risk management, the key is for the team to undertake the impact analysis and ensure that the relevant senior management are aware of the impact and are prepared to invest in strategies to increase the probability of Benefits Realisation.

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