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While identifying and mitigating risks will never be an exact science, Marsh’s Risk Consulting practice has found it beneficial to use several standard tools to develop customized risk solutions for our clients. One of these is our Continuous Risk Improvement (CRI) methodology, which provides a systematic and consistent process for addressing client needs. CRI is a rigorous approach that identifies opportunities, analyzes information, designs solutions, executes the best solution, and measures results. A best practice for client service, it helps optimize client risk management efforts.
Risk Consulting also uses project management methodology to deliver client services and products. It is a specialized process developed internally, following the Project Management Institute's best practices for project management. This methodology tracks each Risk Consulting project through its life-cycle phases: Initiate, Plan, Execute, and Close. The objective is to make the consulting engagement run smoothly and meet the expectations of each client.
Continuous Risk Improvement
CRI is our framework for consulting. Our consultants use it as a process guide to develop strategies for engagement. It provides a common language that allows consulting teams to work together to develop and implement solutions to our clients’ risk management challenges. This approach helps us understand and improve the systems and processes through which clients’ hazards and risks are treated in their organizations. The goal is to provide solutions that clients “own” — and implement.
Of course, risk isn’t just about threats and challenges; it’s also about taking advantage of opportunities. Our consultants use the CRI methodology to define and analyze key issues and future potential business opportunities, helping to ensure that an effective emerging technology or innovative way to launch new services or products is not overlooked. CRI also helps to identify previously unexplored areas or concerns — not just the obvious needs.
The CRI methodology consists of five steps:
Identify
The first step in the CRI process is to identify the opportunity, beginning with an examination of the client’s situation and the formation of initial hypotheses of the problem. We ask clients two questions: “Where are you today?” and “Where do you want to be tomorrow?” The answers help the client and our team to understand the organization’s current situation and possible improvement opportunities.
As we mutually explore the key issues with clients, the problem is defined by identifying its nature and impact, quantifying its costs, and determining improvement expectations. We seek to understand all aspects of the problem including how pervasive it is, and how the client perceives it.
Analyze
We evaluate the gaps between the present situation and the ideal model the client’s management team has in mind. We collect quantitative and qualitative data from internal and external sources, analyze the data and information, and learn about measurement systems, internal standards, and desired performance level. We typically present a gap analysis, which compares the client’s objectives to benchmarks, or industry best practices.
Design
Developing the optimum solution for a client’s problem is a systematic process. It must be customized to fit the organization’s needs and risk profile. We start by visualizing success — what the solution must accomplish, and establishing the essential and desired criteria the solution must meet. Typically, we propose several alternative solutions, and then evaluate each against the organization’s goals. Once the costs, the potential returns, and the risks associated with each solution are identified, we select the best solution. We then assess the organization’s commitment to the solution and the change that will result to create a successful implementation plan.
Execute
In this phase, we help clients implement our recommendations by acting in several capacities: as project leader, facilitator, trainer, team member, or other desired role. For success, client ownership and participation in the implementation is essential. We create an action plan for the implementation that establishes what will happen and when, and who will be responsible. Matching each key task with the desired performance level is a critical component of the process, as long-term objectives are set and intermediate milestones identified to help drive and manage change. We examine the potential problems along the implementation path, and develop actions to prevent or contain these pitfalls.
Measure
The final step involves measurement and monitoring of the change, which enables clients to evaluate their evolving risk mitigation effort. Throughout the CRI process, various measurements are used to determine the opportunity, analyze the problem, design the best solution, and implement change. We strive to build in measurements clients can use to capture the results. Once the solution has been implemented and performance data is collected, results are posted in an appropriate manner so it is clear how the solution benefits the company.
The Continuous Risk Improvement process is not a one-time task. It is an ongoing process. Once the cycle is complete, the process can begin again, with our consultants working to further enhance the solution, define new opportunities, analyze additional or resultant data, and develop and implement solutions for further improvement. Often, our clients, after making these five steps part of their risk improvement process, identify and eliminate potential issues before they become real risks.
Project Management
Our project managers develop a project schedule for all deliverables and sub-deliverables based upon client requirements. They develop a detailed project plan and other plans addressing communications, change management, project issues, and risk management, as well as the resource, timeline, and budget information. Our best practices allow us to manage each project effectively, whether it includes one or many Risk Consulting colleagues or practices.
The project manager utilizes our standard Risk Consulting Toolkit of project management tools and documents. This ensures that the project manager clearly and thoroughly documents client requirements, defines all team roles and responsibilities, and tracks and shares project status. It also helps to ensure that all team members follow the necessary design, build, test, and deploy steps for each deliverable. The toolkit facilitates communication, as well as sharing of expectations and tracking of issues across all Risk Consulting team members to our clients.
The Risk Consulting Project Management Best Practices and Toolkit ensure that each client gets a consistent product with a smooth delivery of service. And, to enable the continuous improvement of our services and processes, we track project metrics for each engagement, including the collection of client feedback.
The Four Phases of the Risk Consulting Project Lifecycle
Initiate
This phase is critical for a project’s success and we begin by determining the business need for the project. During project initiation the scope of the project is clearly defined along with all the assumptions and constraints, resource requirements, roles and responsibilities, key dependencies, project timing and project fees. In every conversation or interaction with a prospective client, each Marsh resource is setting client expectations on project outcomes, approach, and time commitments.
Plan
Important foundations of organization and structure are set to facilitate success during the rest of the project. During the planning phase, the project manager prepares detailed plans of the resources and activities required to successfully achieve the goals of a project. The project team is formed, and roles and responsibilities assigned to team members. The project plan includes a detailed schedule of project tasks, plans for responding to issues, risks, and change requests that may arise during the execution of the project, contact information for team members and stakeholders, and a communications plan for disseminating project information. All of these elements set the tone and expectations for how the project will progress.
Execute
The execution phase targets the accomplishment of the activities documented in the project plan using the resources and schedule specified. Plans that were developed in the planning phase are used to manage the day-to-day operations of designing, building, testing, and delivering the project. Proper project execution also includes the communication of progress and status, the setting of correct expectations, and the control of schedule, costs, and information communicated to clients. Successfully managing day-to-day operations is critical to the success of the project.
Close
The fourth and final phase of a project lifecycle provides the formal ending to the project and allows documentation of knowledge gained during the project. Authorized client and Risk Consulting representatives formally signoff that the contracted project deliverables have been completed. This phase is also an opportunity to gather feedback from both client and project team members of what went well, what could be improved, and in hindsight, what might be done differently in the future. Each organization benefits from the results of these knowledge management activities.
If you have any questions or would like additional information, please contact us.
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