As organizations move away from functional structures, where
individual specialist skills are grouped together into single depart-
ments, to project organizations, where the focus is on integrated
project teams that include all the functional expertise necessary
for the project, there is a requirement to adopt new management
models. The project teams are responsible for introducing change
in the organization, both organizational and technical, and are
brought together for the duration of the project. A project can be
the development and implementation of a small local system that
only affects an individual or a small group or a co-ordinated set
of enterprise wide activities that fundamentally change the orga-
nizational culture and mindset. Project management is an impor-
tant function within the organization and is a key activity in
managing operational risk within a ﬁnancial institution.
The introduction of an enterprise-wide risk management system
can affect the whole structure of the organization and is likely to
impact all the major functional areas of the ﬁnancial institution
including trading, operations, information technology, communi-
cations, compliance, regulatory reporting and risk management.
In order to effectively manage a project of this type and scope it is
imperative that project management procedures are in place that
cover the complete project life cycle including project planning,
progress measurement, reporting, managing the ﬁnancial aspects
of the project and implementation and operation of the system.
These procedures are designed to ensure that the change is deliv-
ered on time, within budget and that it meets the business needs.
Project management for
an enterprise-wide risk