Project Management - Contingency & Exception Reporting (PowerPoint PPTX)

This document reaches into some of the key disciplines of Project Management and explores the relationship between Risk, Contingency, Tolerance and Exception. It provides methods and matrices by which to identify and assess Risks, then take than assessment into another model by which to estimate various forms of Contingency, beginning with Cost, then onto Timeline (or Duration), then finally into Financial Benefit while acknowledging that other types of Tolerance measures are also commonly used across various types of organizations (e.g. Scope, Quality, etc.). Contingency, what it is, why it's needed, how it might be calculated and tracked is all covered in the document.

Established techniques for identifying Risks are covered, along with the Risk attributes of Probability, Proximity and Impact. A modified form of RAG (Red, Amber, Green) rating is used to illustrate how each matrices work. These colors can of course be adapted to suit organizational preference.

The second part of the document then moves on to explore what happens there is deviation from these Tolerances, explain what an Exception is, now it's capture and relayed up the chain of authority, and how it the deviation might have an impact beyond the project itself. Here, the roles of the Project Manager, the Project Board, and the Funding Body are explained in the context managing Exceptions.

All of the scales used in the matrices and models can be adjusted to suit any size or type of organization.

Throughout the document, a sample project has been used in order to provide some context and illustrate how the models and processes actually work in practice.

Having defined what an Exception is, how it is formalized within an Exception Report, and how it is managed within the confines of the project, the document then goes on to explore the wider impact when a project is just one part of a bigger picture (e.g. part of a large Portfolio).