Project Risk Management - Fluidity in Risk Planning Case Study

risks and determine the likelihood and consequence of that risk occurring during the project. The

The following short case will give you a good idea of how risks surface in business and project planning and what companies do about it. Consider that you are the Risk Manager as you look at this case, as it will be a good exercise for the time when you will be that Risk Manager!

Risks management is an important step during the process of a project. Failing to manage a risk may result in unforeseen event happening and a project’s failure. For example, with limited budget, an unforeseen event or an accident occurs in the middle of a project and this matter has not been considered and needs a big sum of expense, then the project may be stopped because of this unexpected event. We should know it is necessary to understand how to identify risks and assumptions based on the information. After identifying risks, it is important for project managers to set contingency plans to prevent and deal with these risks when they occur. Of course, several problems may happen during considering

Risk or threat is common and found in various fields of daily life and business. This concept of risk is found in various stages of development and execution of a project. Risks in a project can mean there is a chance that the project will result in total failure, increase of project costs, and an extension in project duration which means a great deal of setbacks for the company. The process of risk management is composed of identifying, assessing, mitigating, and managing the risks of the project. It

Risk identification will involve the project team, appropriate stakeholders, and will include an evaluation of environmental factors, organizational culture and the project management plan including the project scope. Careful attention will be given to the project deliverables, assumptions, constraints, WBS, cost/effort estimates, resource plan, and other key project documents. A

The inputs for this risk management process is quite simple, based on our textbook, it only needs the risk management plan and the risk register for applying the risk respond planning process (PMI, 2013, p. 342). Since identifying risk responsibilities is a crucial section within planning the risk responds; and the risk thresholds can help to identify specific risk responses of project risks, the Risk management plan is therefore the crucial element for the planning of risk response process. Moreover, the updated Risk register can provide required risks’ information for developing risk responses, so it becomes another main input for risk response planning process (PMI, 2013, p. 343).

Risk management is used in a project in order to identify potential risks that can somehow affect its objectives. Risks can occur at any time and at any stage during the project, and they may be associated with a particular task, person or it can also be from an element outside the project. Any risks that occur at a very late stage in the project are more likely to have a bigger impact than those that occur at the beginning, because valuable work that has already been done can be loss or damage. Risk management is also important in large projects as it can help to minimised the impact of a risk or totally avoid it, it also can determined what are the actions to take in order to reduce the impact of a particular risk (Lock, 2007, p.99).

When considering project management and the project life cycle, the process of identifying risks that could have a positive or negative effect on the outcome of a particular project should be considered. All project managers and project teams need to have a good understanding and knowledge of these possible risks in order to plan ahead and increase the chance of project success. This paper discusses the process of risk identification, evaluation, and management in a project and demonstrates why this process is needed to help ensure project success measures such as budget limits, deadlines, and stakeholder satisfaction are achieved.

Thus, risk management plans help minimize the impact of technical risks in a project. There are several risk management paradigms that project managers can use to manage these risks. In software risk management, Barry Boehm’s risk management paradigm consisted of two sub-processes—risk assessment and risk control (Wallmüller, pp. 5-6). When assessing the risk, project managers need to identify, analyze and prioritize their risks with quantitative measurements, i.e. probability percentages or 1-5 scale. After this sub-process, the manager implements the risk control process where the IT managers can create risk management plans specifying risk reduction measures. In addition to these measures, the plan should include risk resolution and monitoring controls to be used on the project. An example of this paradigm is found on this website,

Risk is not a problem; risk is an issue that could possibly develop and affect the outcome of a project (Risk Management Plan, 1997). The cost of the project, quality, scope, and schedule could all be affected if a risk surfaces. This does not necessarily mean that the risk is negative; risks can create a positive opportunity (Project Management Institute, 2013). For example the vendor informs us that the specified wood flooring is no longer available; as a result he will be substituting a better product for less cost. The sour lemons have now been turned into sweet lemonade. In this paper risk will be analyzed as it applies to project management. The project manager’s role in managing risks concerning

During the planning process, the project team needs to identify probable issues that may arise in the future of the project while, developing a response plan and dedicate needed resources to mitigate issues before the project fails. The team needs to review documents inputs such as the project charter, project plans, assets, and environmental factors. The project team then uses analytic techniques or tools, expert judgment and meetings to develop a risk management plan. “Risk is always present and spans all parts of the project both external as internal, and therefore it does affect other constraints.” (Wysocki, pps 13-14, 2014). It is also important to note to

Once you have an expected risk analysis, as a project manager you would need to enforce a mitigation plan to avoid, or mitigate these risks. As a project manager you have the choice to share, accept, or control the

A project risk is an event that has a positive and negative impact on project objectives. A Project risk management plan is critical in identifying, monitoring and reporting risks. This Risk Management Plan defines how risks associated with this ten story-building project will be identify, analyze, and manage. It presents the outlines for risk activities how to perform, record and control or manage throughout the project lifecycle.

This research is high standard but however comprehensive. This research will support project managers to decide whether they have all the elements of a risk management and an asset management system in place. This could be the matter even if the term risk management and asset management is not identified within the project. This research can be applied to review whether the project elements are combined and the interfaces between them optimised. Risk management successfully installed in the project offers the chance to gain a clear understanding of the goals, duties and contents of the service and the feasibility of the project. It provides an information basis for the quantitative data, sorted according to size, for the purpose of supporting decisions, such as e.g. the choice between costs and implementing goods or the comparison between several possible options. For this, however, it is necessary that a high quality of the status of information is always available in order to make determinations on the basis of useable and comprehensive information. Risk management can therefore only be implemented and enforced effectively if communication channels in the enterprise are created, which guarantee the direction of the information to the places concerned in each case. Through the risk management used, the overall risk of the project is broken down

Objective 5: Risk measures are defined, applied, and assessed to determine changes in the status of risk and the progress of the treatment activities.