Risk Assessment: BBC's Digital Media Initiative Project Analysis

This report provides a comprehensive risk assessment of the BBC's Digital Media Initiative (DMI) project, which ultimately failed. It begins with an introduction to the BBC and the DMI, followed by the aims and objectives of the assessment, which include addressing the ineffective integration of objectives, improving budget estimation, reducing implementation delays, and mitigating the negative impact of the failure. The report conducts retrospective research, detailing the negative effects of the DMI's complexity and its ultimate failure, resulting in significant financial losses. It then applies the PMBOK risk management methodology, outlining the planning, identification, analysis, evaluation, and monitoring of risks. Internal risk factors such as inappropriate leadership and incorrect cost estimation are examined, alongside external factors like legislative and financial risks. The risk assessment identifies key stakeholders and analyzes risks, using a risk register to evaluate severity and mitigation strategies. The conclusion emphasizes the importance of risk assessment in preventing project failures and developing mitigation strategies. References to relevant sources support the analysis.

BBC’S DIGITAL MEDIA
INITIATIVE
A Project Risk Assessment

TABLE OF CONTENTS
• Introduction
• Aims and Objectives
• Retrospective Research
• Risk Management Methodology
• Internal Risk Factors
• External Risk Factors
• Risk Assessment
• Risk Identification and Analysis
• Risk Register
• Risk Evaluation
• Conclusion
• References

INTRODUCTION
The BBC Corporation has been operating as a broadcasting company
since year 1920. With changing times, it has evolved itself in all
aspects i.e. technological as well as other trends. In this report,
evaluation of the implementation of Digital Media Initiative in the
company is being evaluated and the causes behind the failure of such
implementation has been identified and analyzed. The report will also
carry a risk assessment process where the system at BBC Corproation
will be evaluated and appropriate analysis will be presented using a
risk assessment methodology and different stages of it.

AIMS AND OBJECTIVES
The lack of implementation of the DMI led to the failure
of the project and conducting of a project risk
assessment. The objectives of this assessment will be:
• The impact of ineffective integration of objectives of the
company with the DMI project and the issues that have
arisen.
• Improve correct budget estimation and forecasting to
decrease over expenditure.

AIMS AND OBJECTIVES (cont.)
• Reduce delay in implementation time of the DMI project.
• Address the problem of negative impact of DMI failure on
the organization.

RETROSPECTIVE RESEARCH
Due to extreme complexity
of the DMI system that was
implemented in partnership
with Seimens, there were
various negative effects on
the organization such as
longer implementation time,
enormous expenditures that
were way more that the
budgeted costs etc. and
ultimately all these led to
the failure of the DMI
system that was
implemented in the
company

RETROSPECTIVE RESEARCH
(cont.)
The failure of the system led to an estimated overall loss
of gross £125.9 million with the DMI project ultimately
being called off in year 2013.

RISK MANAGEMENT METHODOLOGY
PMBOK risk management methodology has been adopted i.e. the Project Management Body of
Knowledge which will help in determining the causes of the failure and the risk that is associated with
it. The entire process is categorized into six broad categories i.e.
• Risk Management Planning
• Identifying the Associated Risk
• Analysis of the Risk
• Evaluation of the Risk
• Executing the risk Management
• Monitoring of the Risk
These steps point out the PMBOK associated risks and ultimately the organization or management can
work on these risks to stop them before they occur.

INTERNAL RISK FACTORS
These factors lie in the hand of internal management of
the organization and can be controlled by them very
easily:
• Inappropriate leadership which led to unclear business
goals and objectives
• Delaying the implementation time of DMI in organization.

INTERNAL RISK FACTORS
(cont.)
• Incorrect forecasting and cost estimation process.
• Lack of proper administration and monitoring of the
project that was being developed by Seimens.

EXTERNAL RISK FACTORS
These are beyond the
control of the
management and
nothing can be done to
avoid these except
formulating appropriate
risk mitigating
strategies:
• Legislative Risk
• Financial Risk
• Mismanagement of Time

RISK ASSESSMENT
• The entire process helps in correctly identifying the risk
and then developing appropriate mitigating strategy for
the risk identified.