The Role of Risk Management in Project Management

THE ROLE OF RISK MANAGEMENT IN PROJECT MANAGEMENT Risk Risk is an uncertain event or a set of circumstances whose occurrence will have an impact on achievement of one or more of the expected project goal and objectives. Probability – A risk is an event that may occur. The probability of it occurring can range anywhere from just above 0 percent to just below 100 percent. Impact – A risk, by its very nature, always has a negative impact. However, the size of the impact varies in terms of cost, time, quality and other critical factor. Risk Management. Risk management is the process of dealing with risk. It includes planning for risk, assessing (identifying and analyzing) risk issues, developing risk handling strategies which†¦show more content†¦Stakeholder requirements can be varying, overlapping and sometimes conflicting, leading to risks in project execution and acceptance. * Change. Every project is a change agent, moving from the known present into an unknown future, with all the uncertainty associated with such movement. These risky characteristics are built into the nature of all projects and cannot be removed without changing the project. For example, a ‘project’ which was not unique, had no constraints, involved no people and did not introduce change would in fact not be a project at all. Environmental factors which pose risk into projects include: * Market volatility; * Competitor actions; * Emergent requirements; * Client organizational changes; * Internal organizational changes; * PESTLIED (political, Economic, Social, Technological, legal, International, Environmental, demographic) factors. Each of these environmental factors is subject to change at an increasing rate in the modern world. Projects essentially have a fixed scope which they are required to deliver within this ever-changing environment, which naturally poses risk to the project. It is not possible to isolate most projects from their environment, so this represents a common source of risk for projects. Effective Management of Risk in Projects Uncertainty, leading to threat or opportunity, is one of projectShow MoreRelatedProject Risk Management Roles and Responsibilities2508 Words   |  11 PagesPROJECT RISK MANAGEMENT ROLES AND RESPONSIBILITIES Prof. Swati Oza (Asst. Profesor, JSPM’s Abacus Institute of Computer Application) Prof. Shital Deshmukh (Asst. Profesor, JSPM’s Abacus Institute of Computer Application) Prof. Neha Tejwani (Asst. Profesor, JSPM’s Abacus Institute of Computer Application) __________________________________________________________ Abstract The benefits of risk management in projects are huge. You can gain a lot of money if you deal with uncertain project eventsRead MoreAnalysis : Mind Maps And Work Flow Diagrams985 Words   |  4 Pagesnavigation through the Work Processes and consist of sequential blocks of activities and milestones linked in a logical format. This provides a quick and easy reference. 2.4 Level 3- Single Page Description: Each element or deliverable listed in the Project Implementation Model Mind Maps is further defined on Single Pages. Single Pages include the following: †¢ Defines the element and the reason (objective) for developing the element †¢ Lists key assumptions †¢ Specifies the action to be taken to developRead MoreRisk Management Process1617 Words   |  7 PagesDESCRIPTION 4 RISK MANAGEMENT FLOW 5 ROLES AND RESPONSIBILITIES 6 RISK TRACKING PROCESS 7 Identify Risks 7 Assess and Prioritize Risks 7 Determine Course of Action 8 Review and Monitor Risks 8 RISK MANAGEMENT LOG ENTRY DEFINITIONS 9 PROCESS ASSISTANCE, QUESTIONS, OR RECOMMENDATIONS 10 APPENDIX A: RISK MANAGEMENT LOG 11 Document Overview Purpose The purpose of this Risk Management Process document is: †¢ To provide a framework to track and monitor project risks throughout the project lifecycle Read MoreAnalyze The Concept Of Risk. Risk Is Not A Problem Risk1374 Words   |  6 PagesAnalyze the Concept of Risk 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 resultRead MoreThe Responsibilities Involved With The Project Management1371 Words   |  6 Pagesdescribes in brief the responsibilities involved with the project management. It also states the minimum educational qualification, skills, certifications needed and the salaries given to people in this role in today’s world. Keywords: [Click here to add keywords.] University of Houston Clear Lake A project is basically an assignment which has a definitive start and end times. It is a task undertaken to create a product or a service. Every project usually performs a unique set of operations which is performedRead MoreProject Management Project Manager My Job1667 Words   |  7 PagesTask 1 Project Manager: Mr. Bibek Shrestha Organization: MultiSys Private Limited, Lazimpat, Kathmandu, Nepal 1) As a Project Manager my job is to see that a project under me runs smoothly without any hindrances. Initially, we as a team of stakeholders of the project have to prepare a project plan according to the budget and resources available and make schedule on how and when the tasks are going to be executed. Then, we have to manage the team members according to plan and budget. I have to seeRead MoreResponsibilities And Responsibilities Of A Project Manager1357 Words   |  6 PagesA project manager has many responsibilities and roles in a project. For a project manager to be successful, they must first guarantee that in the project all the responsibilities are clearly set and understood by all team members. By guaranteeing that the responsibilities and roles are assigned within the project team, this will help to ensure that the project will run smooth, with everyone knowing their roles and responsibilities. By having a successful project manager it will then offer the procurementRead MoreBusiness Strategy And Project Management1653 Words   |  7 Pages1. Srivannaboon.S, Milosevic.Z.D (2005). A two-way influence between business strategy and project management. According to the authors Srivannaboon.S, and Milosevic.Z.D (2005), the alignment of project management with the corporate strategy is critical to achieve the company’s short term and long term goals. The main objective of project management is to guide the company towards its goals within the set time frame and cost. In today’s globalization, business leaders are facing many challenges fromRead MoreEssay on Jet Propulsion Laboratory1701 Words   |  7 Pages(MBE) mission? Gentry Lee should recommend the launch for the MBE mission. As stated in the case study, Gentry Lee is introduced to the project with a significant amount of experience working with NASA and interplanetary exploration missions (Kaplan and Mikes, 2010). Multiple review boards took place to discuss in detail the consequences and likelihood of risks occurring. Tiger teams were established to find resolutions to existing problems weeks before the launch date. The case study eludes toRead MoreControlling Triple Constraints Of Scope, Time And Budget1425 Words   |  6 Pages controlling triple constraints of scope, time and budget. Project managers need measurements to manage a project’s outcome and in my view, we cannot manage anything if we cannot measure. The measurements like cost and time are easy to measure using quantitative technique. It is a challenge to measure intangible benefits and need qualitative method or mixed method. Project Management Methodologies There are many proven project management methodologies are available today for organizations to achieve