CMGT 411 Week 4 Risk Management
Risk Management
CMGT 411
Risk Management Working to understand the risks a project may endure along with the cost associated is critical in every project management plan. Understanding potential risks based on the project type, resources needed, timeline and budget still leaves gaps that creates uncertainty for actually predicating the outcome of the project. There is not a true way to predict when and where a project risk will occur but designing a plan to properly address and manage those risks will increase confidence while eliminating the element of surprise. Before developing a risk management plan an analysis of risk needs to be performed. This analysis should include all aspects of the project that may be part of an uncertain event or condition that may have a positive or negative effect on the project objectives and outcome. The overall goal is to work to address any type of risk before they become problematic. Analyzing and relaying the level and probability of the risk to the stakeholders, sponsors and project team can help in reducing mistakes that can be cause for project failures. Some common mistakes that can be overlooked when analyzing risk, is not understanding the benefits of a risk management plan, not allowing time for risk management, not properly identifying and assessing risk. Developing a risk management plan leans heavily on a bold commitment by all stakeholders. The stakeholders need also to understand the roles and responsibilities related to the determined risks. As with any project these risks will vary depending on the type of projects along with what the project is dealing with. The project manager must understand that all projects should be approached with a clear thought process and not bring previously used mind sets to a new project. Clear and fresh minds will help to discover new risks and bring immediate attention to unusual or unfamiliar elements and concerns. The PMBOK® guide identifies seven areas
CMGT 411
Risk Management Working to understand the risks a project may endure along with the cost associated is critical in every project management plan. Understanding potential risks based on the project type, resources needed, timeline and budget still leaves gaps that creates uncertainty for actually predicating the outcome of the project. There is not a true way to predict when and where a project risk will occur but designing a plan to properly address and manage those risks will increase confidence while eliminating the element of surprise. Before developing a risk management plan an analysis of risk needs to be performed. This analysis should include all aspects of the project that may be part of an uncertain event or condition that may have a positive or negative effect on the project objectives and outcome. The overall goal is to work to address any type of risk before they become problematic. Analyzing and relaying the level and probability of the risk to the stakeholders, sponsors and project team can help in reducing mistakes that can be cause for project failures. Some common mistakes that can be overlooked when analyzing risk, is not understanding the benefits of a risk management plan, not allowing time for risk management, not properly identifying and assessing risk. Developing a risk management plan leans heavily on a bold commitment by all stakeholders. The stakeholders need also to understand the roles and responsibilities related to the determined risks. As with any project these risks will vary depending on the type of projects along with what the project is dealing with. The project manager must understand that all projects should be approached with a clear thought process and not bring previously used mind sets to a new project. Clear and fresh minds will help to discover new risks and bring immediate attention to unusual or unfamiliar elements and concerns. The PMBOK® guide identifies seven areas
References: Marchewka, J. T. (2009). Information Technology Project Management. Providing Measurable Organizational Value (3rd ed.). Hoboken, NJ: John Wiley & Sons.