Project risk management is vital part of achievement of project general goal or objectives, thus, in order to save the project environment and prevent any related risks this tool is good for project doing organizations.

1. PPM8212 : Project Risk Assessment and
Management Lecture Four,
Enterprise environmental factors
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2. Enterprise environmental factors in
correlation To Risk Management
Enterprise Environmental Factors.
• Environment is defined as something related to the natural world and the impact
of human activity on its condition, or the culture that an individual lives in, and the
people and institutions with whom they interact (Wikipedia).
• EEF refers to internal and external environmental factors that can
influence a project’s success (PMP).
• They include :-
i. Organizational culture
ii. Organizational structure
iii. Internal and external political climate
iv. Existing human resources
v. Available capital resources
vi. Regulatory environment
vii. Financial and market conditions

3. • The environment is a condition in which we have
lived with and it influences our behavior in certain
ways.
• For example, in cold weather we need to wear
woolen clothes to keep ourselves warm. Here, the
cold weather is the “environment” which forces us to
cover ourselves with woolen clothes.

4. • Likewise, the enterprise environmental factors influences the
organization, the project and its outcome. Every organization
has to live and work within the EEF.
• Examples of external enterprise environmental factors are
as follows:
• Government regulation
• Market conditions
• Infrastructure
• External political conditions

5. Examples of internal enterprise environmental factors:
• Organizational culture
• Type of organizational structure
• Internal political conditions
• Available resources

6. Enterprise risk management
• In enterprise risk management, a risk is defined as a possible event or
circumstance that can have negative influences on the enterprise in
question.
• Its impact can be seen in the , the resources (human and capital), the
products and services, or the customers of the enterprise, as well as
external impacts on society, markets, or the environment.
• In a financial institution, enterprise risk management is normally thought
of as the combination of credit risk, interest rate risk or
asset liability management, market risk, and operational risk.

7. (OPA)
Organizational Process Assets,
Definitions of Assets:-
• It is a useful or valuable thing or property owned by a person or company,
having value and available to meet debts and commitment.
• In simple terms, assets are things that you can own, keep and use.
• For example, you can have a car which helps you move around, you can
have a house to live in, a computer to work on, etc.

8. • Organizations also have assets which help them in achieving
their objectives.
• In our study assets are called organizational process assets
(OPA).
• These organizational process assets are kept in some central
place so that they can be used whenever required by
anyone.
• Organizational process assets include the organization’s
process assets that may be used to ensure project success.

9. Organization process assets can be divided into two
categories,
The first category is for processes and procedures for conducting
work, which includes the following:-
 Policies - The basic principles/ways by which an organization is guided,
 Procedures-an established or official way of doing something
 Standard template - format or software used for doing something
 General guidelines – something that show the way to do things,

10. The second category
The second category includes corporate knowledge base for
storing and retrieving information.
For example:
• Risk register
• Lessons learned
• Stakeholder register
• Past project files
• Historical information.

11. • Organizational process assets influence the project success,
• They keep growing as the organization gets larger,
For example, you a identify risks process in the process of
identifying the risks and you decide to start identifying risks by
using the check list.
• Are you going to create this check list from scratch or will you
look in any similar past project records to find it out?
• you will go for the second option and find the risk check list
from the previous records and customize it as per your project
requirements. This will save you a lot of time

12. • In project management, a saying “why re-invent the wheel”,
which means if you have something available to you, you
don’t have to remake it again or buy it again,
• Organizational process assets are used extensively in project
management.
• It is the responsibility of the project management team to
look for any relevant documents in historical records before
starting to build something from the beginning.

13. The Difference between Organizational Process Assets
and Enterprise Environmental Factors:
• Organizational process assets help organizations to
continuously improve their process, and help project
management teams to learn and share the best practices by
using a collective knowledge base.
• enterprise environmental factors may or may not help your
organizations. It implies to the conditions in which your
organization has to work. They don’t fall under the control of
the project management team.
• E.g.if the government increases taxes, it will hurt your profit;
however, if they decrease taxes, it will increase your profit.

14. • The second difference is that it is not easy to change the
enterprise environmental factors; you have to live with them.
While OPA can be customized according to the suitability, and
they make the project management team’s life much easier,
• The key point here is that organizational process assets
always support the project team, while enterprise
environmental factors can sometimes help the project and
other times may hurt it as well.

15. Summary
• Enterprise environmental factors are the internal and
external influences on our project, such as the
corporate culture or the financial environment.
• Organizational process assets are the procedures,
guidelines, templates that we can use on our project as
well as the corporate knowledge base, such as past
project reports and lessons learned.

16. The Project scope statement and the project
management plan
The Project Scope Statement,
• Defining the Project Scope : -
• Defining the project scope sets the stage for developing a
project plan.
• Project Scope is a definition of the end result or mission of
your project- product or service for your client/customer.
• The Primary purpose is to define as clearly as possible the
deliverable(s ) for the end user and to focus project plans.

17. Project Scope Checklist ,
1. Project Objective,- needs customers want achieved,
2. Deliverables - expected outputs over the life of a project, i.
e a list of specifications
3. Milestones - shows major segments of work ,rough
estimates of times ,cost, and resources for the project.
4. Technical requirements - project require it to ensure proper
performance,
5. Limitations and Exclusions - should defined .Failure to do so
can lead to false expectations, use of resources and time on
wrong problem,

18. 6. Reviews with Client /Customer ,Completion of scope check
list ends with a review with your client/customer.
It is about meeting customer/client need/expectations. Is the
customer or client getting what he or she desires in
deliverables? Does the Project definition identify key
accomplishments ,budgets, timing, and performance
requirements.

19. The project management plan,
• The Project Management Plan -
• (PMP) is a formal, approved document used
to manage project execution.
• The PMP documents the actions necessary to define,
prepare, integrate and coordinate the
various planning activities.
• The PMP defines how the project is executed,
monitored and controlled, and closed.

20. Project plan
A project plan,
• The definition of a project plan ,according to the Project
Management Body of Knowledge (PMBOK), is a formal
approved document used to guide both project
execution and project control.
• The primary uses of the project plan are to document
planning assumptions and decisions, facilitate communication
among project stakeholders besides documenting
approved scope, cost, and schedule baselines.