Analyzing The Root Causes Of Risk Mismanagement

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Analyzing the Root Causes of Risk Mismanagement Introduction According to Kendrick (2009, p. 17), roughly 75 percent of projects fail when project teams refuse to adopt some form of risk monitoring and control. Ken Black (1996), an associate professor of decision sciences, published an article listing twelve factors that contribute to the failure of projects. The article highlighted risks, as one of the factors that can negatively affect project constraints (Black, 1996). A risk, as defined by Kendrick (2009, p. 1), is an event or series of events that occur due to the level of uncertainty associated with the project outcome. If a risk occurs, it threatens the success of a project because it can halt or prolong the project’s constraints.…show more content…
Novice team members mistakenly assume that risks will not occur (Jutte, n.d.). Likewise, novice team members also associate the implementation of risk management with adding extra work to an already time poor schedule without any added benefits (Kendrick, 2009, p. 21). Too, novice team members have no frame of reference for estimating the probability of impact of risk occurrences and may adopt ineffective risk response strategies thereby increasing the impacts of risk occurrences. Unlike novice team members, veteran team members understand the benefits of risk management and draw upon their experience with past projects to mitigate risks (Awati, 2011). However, veteran team members assert their individual perception when proposing approaches to risk management based on their personal experiences (Awati, 2011). According to Awati (2009), subjective judgments such as of illusion of control give veteran team members a false sense of security with the respect to the degree of control they have over minimizing or avoiding a risk. Likewise, groupthink is an example of veteran team members intimidating less experienced colleagues into agreeing with an approach because they present evidence that contradicts their resolution (Awati, 2009). Thus, all cognitive biases contain some degree of error in perception and can lead to project failure. Project Changes During the course of a project, change is an inevitable certainty and
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