PROJECT OPPORTUNITY ASSESSMENT

As defined earlier, the project opportunity assessment examines the high-level requirements of the project opportunity to define risks, as opposed to opportunities, in order to make a decision to proceed or not to proceed with the endeavor. While particularly important to consulting organizations and subcontractors, this process is finding more and more applicability within enterprises that conduct their own projects. No one’s resources are inexhaustible; therefore, it is critical to apply them to the “right” project. In addition to feasibility studies, return on investment analyses, and other strategies, the opportunity assessment provides additional insight to the decision-making process.

Process

The five steps in the opportunity assessment process are:

1. Assign opportunity assessor

2. Identify risks and opportunities

3. Evaluate risks and opportunities

4. Distribute opportunity assessment

5. Make go/no no decision.

FIGURE 1-2 Risk Management Processes

Risk Categories

The opportunity assessment process looks at nine assessment categories:

• Customer-associated

• Contract

• Project requirements

• Business practice expertise

• Project management

• Work estimates

• Project constraints

• Complexity and scale of deliverables

• Contractors.

Deliverable

The output from the opportunity assessment is a report that contains decision-making insight for management. A risk assessment of each category documents potential risks and assigns a risk rating on a simple low-medium-high scale. Likewise, the assessment documents potential opportunities (benefits) for each category.