About Recommended Practice 122R-22
This recommended practice (RP) of AACE International (AACE) defines a quantitative risk analysis (QRA) maturity model (QRAMM) for assessing the level of capability for quantifying the uncertainty and risks associated with projects, programs, and portfolios within the risk management (RM) function of a capital investment or project management organization. Maturity models for general risk management are widely published, but less common for the QRA step of RM processes such as presented in Chapter 7.6 of the AACE Total Cost Management (TCM) Framework. This RP is intended to fill that gap.
The QRAMM is not prescriptive to specific QRA methods; to the contrary, it highlights that many options exist and provides examples of how various methods may be considered at various maturity levels as appropriate. There are many AACE quantitative risk analysis RPs to consider; these are outlined in AACE Professional Guidance Document No. 02 (PGD-02).
The QRAMM is also not a maturity model for assessing the depth of capability for any particular QRA method selected by an organization. Instead, the QRAMM offers a road map to facilitate continuous improvement. Each QRAMM capability level can be applied with various degrees of rigor or maturity depending on the organizational needs. The QRAMM assumes that to achieve a high level of QRA maturity, an organization must clearly understand its RM needs and apply a QRA method to the degree that is fit-for-purpose for those needs.
NOTE: The webinar is free, but registration is required. CEUs will be available for both members and nonmembers. You will need to create an AACE International account prior to registering if you do not already have one.
Presenter: James E. Arrow, DRMP
Host: David Emanuel
AACE International would like to thank Riskonnect for sponsoring this RP webinar.