Final - Project and Program 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.

Indeed, Project Risk Management includes the processes of conducting risk management planning, identification, analysis, response planning, and controlling risk on a project. (PMBOK Guide - Fifth Edition, 2013).

For example if a service user wants to go swimming then you must assess how you’re going to get the service user into the water this could be by a hoist, you must then assess if there are any hazards or risks of doing this task, then if you do find a hazard then you must think of different ways of how you can reduce the risk of it.

Hillson, D & Simon, P. (2007). _Practical Project Risk Management: The ATOM Methodology_, Vienna, VA: Management Concepts, Inc.

Make risk management an integral part of your organization’s management approach. Emphasize the need to communicate and consult with both external and internal stakeholders, Continuously monitor and review your organization’s risk management process (including SOC playbooks and CSIRT response scenarios).

Definition: A Risk is an unwanted situation which might arise in an organization which might lead to negative impact on the desired result. Risk management plans involves the analyzing, managing and evaluating the projects risk and threats. It involves layout of the entire project i.e from the beginning during and after results of the project.

What information sources have you used to conduct the assessment of your organisations risk management processes?

Project Risk Management – identifies potential risks (good and bad) that can affect the objectives of the project.

In order to perform project risk management effectively, the organization or the department must know the meaning of the risk clearly. With regards to a project, the management must focus on the potential effects on the objectives of the project, for example, cost and time (Loosemore, Raftery and Reilly, 2006). Risk is a vulnerability that really matters; it can influence the objectives of the project

Risk management is the term applied to a logical and systematic method of establishing the context, identifying, analyzing, evaluating, treating, monitoring and communicating risks associated with any activity, function or process in a way that will enable organizations to minimize losses and maximize opportunities. (Lecture notes)Risk Management is also described as 'all the things you need to do to make the future sufficiently certain'. (The NZ Society for Risk Management, 2001)

The motivation behind CM is to deal with the dangers and as well as take advantage of opportunities that may increase value. CM methods for dealing with risks can be generally categorized into the following four classes:

Thisticated fashion. These methods help in fully understanding the nature of the risk. Figure 5 below shows the bow-tie risk analysis method which takes a form of a cause and consequence analysis. The causes and the consequences which are two dimensions of a risk event are analysed and treatment actions are tied against each dimension. (Supply Chain Risk Management Council, 2011)

The completion of any project depends on the execution of various parameters mostly set at the beginning of the project. In order to complete the project to satisfactory levels, the project must be completed within the stipulated timelines, fall within the approximate budget and be of the required quality standards. However, most of the projects are affected by adverse changes and unforeseen events that occur during the execution period. Research shows that the magnitude of change is dependent on the size of the project, with large projects experiencing more uncertainties due to several factors including; planning and design complexity, interest groups having deferring opinions, resource availability, Economic and political climate and statutory regulations, which may necessitate change of plan. Most of the uncertainties are known to occur in the concept phase and if not intervened, they may affect the entire project. The burden falls on the management of such risk as some managers choose to ignore the uncertainties since they call for additional costs. Other inherent risks may go unnoticed and therefore remain unsolved,

As per the words of Larson and Gray (2011), Project risk management process refers to a mechanism which pre- supposes application of policies, procedures and tools for

Almost a decade old risk management strategy which not only allows the organization to identify, assess and prepare for danger but also to identify on which risk they need to work actively and for which they need to devise a strategy. It aims to bring more clarity to all stakeholders and investors as a part of their annual report. All the