How For Manage Project Management Risk Management

Risk management is the process where individual and overall risks are understood and managed, thus optimizing success by minimizing the threats and to maximize opportunities [APM Body of Knowledge, p. 179]. All projects are inherently risky, because it performed by people and subject to the external influences or environment. Risk is something that it cannot be predicted. That is why into the company’s organization, risk management has an essential and vital part in any project whether that is in the planning procedure or to project implementation. Risks are always exists and can be translated as an opportunity to gain benefits. In addition a risk may incur serious monetary losses. The first step of risk management begins when identifies risk. These are identified through several techniques that risk management can select and use. One of the most effective techniques is brainstorming where members are attending meetings in order to gain ideas of either to identify a risk or how to overcome the arising risk. However a document review technique is also applied which is also very helpful, in this technique, documents are reviewed from prior projects which leads to a better understanding of the risks that may do occur. If a company seeks risk management capabilities, is to gaining competitive advantage, riskier businesses seek potential and higher profits.

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

Risks are the potential events that may occur in the course of a project, and if they occur would adversely affect the project scope, schedule, quality and/or resources. Further, when risks occur they bring with them consequences. Conversely, risk management is the process with which risk management planning, identification, analysis, response and control is done on a project to mitigate its effects. The goal and objective of risk management is to reduce the chances and effects of adverse events to the project objectives.

In 2013, Cioloca, Cecilia; Georgescu, Mihai; Curteanu, Mihai, published a scholarly journal Academy of Economic Studies, in which he examined the downfall and requirements of software projects. The key elements of any project relates to the cost of the project, scheduling, quality assurance and project goals. When organizations have poor project managers in place it increases the failure rate of that project. All projects have risk associated with them, so it is important to review the requirements. The four risks linked to projects are requirements related, cost related risks, schedule related risks, and quality related risks (Cioloca; Georgescu; Curteanu, 2013). As a result, in order to address any risks that appear during a software development, risk management has to be in place.

Threats to profit margins due to disengagement with community members, emphasizes that project managers should create a risk response team to handle specific concerns and questions regarding improvement initiatives (Meyer & Peng, 2016). Each project and task within the project are subject to risks. A BID risk response team is needed to identify risks, plan mitigations, and create emergency response and contingency plans. Without the team, a business opportunity can be seriously compromised or completely shut down due to unplanned happenings. The risk response team is a first line of defense for emergencies and even smaller problems (Meyer & Peng, 2016).

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,

Key among the project manager’s obligations is the acknowledgment that hazard specifically affects the probability of achievement and this danger must be both formally and casually measured all through the lifetime of the project in question. Risks inherent to the project emerge from vulnerability of the project. As such, a successful project manager is the person who concentrates on this as their essential concern. The greater parts of the issues that affect a project result in somehow from another risk.

Certain tools or models have been developed to help the project manager to decide what to do for certain types of risks. Examples of risk management models are the risk cube, the Risk Burndown Chart, GANTT chart, Milestone chart, Program Evaluation and Review Technique (PERT) or Critical Path Method (CPM), Probabilistic Risk Assessment (PRA), SWOT (Strengths, Weaknesses, Opportunities and Threats ) analysis, GAP analysis, Value Chain analysis, Failure Mode and Effect Analysis (FMEA), Decision Tree Analysis, and Monte Carlo Simulation. Risk management software such as Active Risk Manager, Risk Matrix, and Risk+ is also used [ [1] ] [ [3] ] [ [4] ].

Risk Management Systems are designed to do more than just identify the risk. The system must also be able to quantify the risk and predict the impact of the risk on the project. The outcome is therefore a risk that is either acceptable or unacceptable. The acceptance or non-acceptance of a risk is usually dependent on the project manager’s tolerance level for risk.

Risks are intrinsic in all projects, and there is no way to eradicate the risk no matter how carefully an individual might plan a project. Some risk factors can be anticipated with plans to minimize their effect, such as, in the project itself; business; scheduling; and resources. Other risk factors can be unpredictable: such as, a loss of key project players, a publicized sentinel events, or a natural disaster in the area. Hall, Skipper, Hazen, and Hanna (2012) stated that an individual can take steps to decrease exposure to the risk and develop

Project risk is potential for any possible event to negatively affect the viability of a project. Typical project risks can include Financial, Technical, Commercial, Execution, and Contractual/Legal risk. Project risk can occur at any stage in the PM process, however it has a higher impact when it occurs in the latter phases of the process (Execution & Closing the

This week, we will look at the concept of risk assessment. Risk assessment is the process of analyzing project risks to quantify probabilities and to measure their impact on the project. Once we have measured risks, the process of assigning them to risk owners and preparing a plan on how to deal with them can begin. Our goal here is to be able to pass on to the options and actions step. Details will be needed about the risks and their possible impact on the project so that actions can be prepared and the stakeholders can be assured that risks have been analyzed.

A risk is an indefinite event or circumstance that, if or when it does occur it can have a positive or negative effect on the project and its outcome. Risk is an integral part of every project and every project manager should assess risks throughout the phase of the project and develop plans on how to tackle them.

While the methodology stream seems direct, the procedure itself is iterative and not so much sequential. The danger-arranging venture, for instance, is constant all through the undertaking life cycle, as is the requirement for risk correspondence and documentation. The process exhibits that certain steps for the most part go before others; on the other hand, as the undertaking returns, the survey methods don 't essentially advance in the same way (Carter).

The point that Kippenberger (2000) is making in his article titled ‘there’s no such thing as risk free project’ is that almost everything we do in a project involves a risk of some kind – by so saying, it is therefore essential that we are prepared or able to deal with risks. Most literature puts emphasis on the negative connotation that the word ‘risk’ carries. For instance, Chapman and Ward (2003) provide the meaning of risk as: hazard, chance of bad consequences, loss, and exposure to chance of injury or loss. Galway (2004) defines risk as an event which is uncertain and has negative impact, and similarly, Martin (2008: 38) defines risk as the ‘chance of something occurring that has an adverse effect on the project’. This negativity highlights the fact that problems can occur or things can go wrong and it is therefore important to have a systematic approach to managing them. Therefore in project management, risk management is necessary to increase the chances of the proposed project succeeding.