Risk Management Software and PRINCE2

PRINCE2 - A brief overview

The Office of Government Commerce in the UK developed a project management methodology called PRINCE2 (Projects IN Controlled Environments). PRINCE2 is a structured method for effective project management. It is widely recognised both in the UK and internationally.

PRINCE2 is a process-based approach for project management. Each of its eight processes is defined in terms of input, process, output together with the specific objectives:

Starting up a Project: This process is about team building and setting up a project framework.
Directing a Project: The project manager will control the project which is supervised by the project board.
Initiating a Project: The process results in a project initiation document which includes details on cost estimation, schedule and resources. The project initiation document needs approval by the project board.
Planning: The planning process which is essentially about cost, schedule, time, resources and risks.
Controlling a Stage: Projects are broken down into stages of which each single project stage must be completed before starting the next one. Stages are manageable units of a project.
Managing Stage Boundaries: The process manages the boundaries between two stages. The current stage is reviewed and the subsequent stage is planned.
Managing Product Delivery: Product means the outcome of a project. This process is to ensure that the product is completed and that completion is approved.
Closing a Project: This is the post project review.

The risk methodology employed by PRINCE2 is a risk register or risk log system. It is based on three principles:

PRINCE2 and Enterprise Risk Register®

Enterprise Risk Register® is a valuable tools to improve the risk management in a cost efficient way - whether your project management follows the PRINCE2 approach or any other.

Enterprise Risk Register® assists you to collect all risks identified in its risk log or risk register. It helps you to provide consistency across a project and even the entire organisation.

Enterprise Risk Register® supports qualitative risk assessments and provides the ability to record, sort and filter data by all its characteristics.

And Enterprise Risk Register® allows you to collect treatments against the risks and analyse the effect of implementing the treatments. This way it demonstrates successful risk management leading to cost reduction.