Abstract
This paper reflects meta-analysis of how vital risk management is to an association. Additionally distinguished are those events or issues that emerge during the course of an engagement that may affect the successful outcome of the project. This paper closes with showing new headings to highlight the steps included in diminishing the dangers that present themselves when arranging an IT anticipate.
Keywords: IT, management, organization, planning, project, risk, technology
2. Introduction
2.1 IT Project Management
IT project management is the methodology of planning, organizing and delineating responsibility for the completion of organizations ' specific information technology goals. As per the
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2.2 Definition of Risk
Project risk is defined by PMI as 'an uncertain event or condition that, if it occurs, has a positive or negative effect on a project 's objectives '. A Risk can be virtually anything. It can be the upcoming implementation of an activity that has never been performed before and therefore the outcome or duration is very uncertain. It can be the potential loss of a key project personnel resource to another project. It can be the unknown status of funding from the customer side for an upcoming phase of the project. It can be the use of a new technology for the overall solution or for accomplishing specific tasks on the project.
2.3 Risk Management
According to project Management Tips, “Risk management is the organized process of identifying, analyzing, and responding to project Risk. It includes maximizing the probability and consequences of positive events and minimizing the probability and consequences of adverse events to project objectives.” Essentially, risk management can occurs anytime, when an investor or a project manager analyzes to compute the possible reason for losses in an investment and then takes the appropriate action (or inaction) given their investment objectives and risk forbearance.
2.4 IT Project Risk Management
IT project risk management is therefore, the process of identifying, mitigating, and controlling these known risks, in order to increase the probability of meeting project objectives thus increasing the
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.
risks and determine the likelihood and consequence of that risk occurring during the project. The
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).
Risk refers to any potential problems that would threaten the likelihood of success for or any project. These potential problems might prevent a project from achieving some or all of its objectives by increasing time and cost. Risk factors can even
Risk management is a process for identifying, assessing and prioritizing risks of different kinds. Once the risks are identified, the risk manager will create a plan to minimize or eliminate the impact of negative events. A variety of strategies is available, depending on the type of risk and the type of business. There are a number of risk management standards including those developed by the Project Management Institute the International Organization for Standardization the National Institute of Science and Technology and actuarial societies. Organizations uses different strategies in proper management of future events such as risk assumption, risk avoidance,
Risks management is an important step during the process of a project. Failing to manage a risk may result in unforeseen event happening and a project’s failure. For example, with limited budget, an unforeseen event or an accident occurs in the middle of a project and this matter has not been considered and needs a big sum of expense, then the project may be stopped because of this unexpected event. We should know it is necessary to understand how to identify risks and assumptions based on the information. After identifying risks, it is important for project managers to set contingency plans to prevent and deal with these risks when they occur. Of course, several problems may happen during considering
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
Factors or levels that may influence project risk are size of the project, structure of the project and the level of technical expertise (SME – Subject Matter Experts) of the IT
Risk management is needed in a project to help guide the project manager in the right direction. What this particular management will do is summarize how risk management will performed on a project. The project manager will have the knowledge areas of risk probability/impact, budget schedule and roles/responsibility are some of the
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.
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
In addition to reading the course notes, I also looked at what APMBOK (Association for Project Management, Body of Knowledge 2009, 6th Edition, UK) said about this critical area of Project Management. Additionally, I researched what my Company does to maximize their effectiveness in this area by studying their attitude towards Risk Management throughout the complete life-cycle of a project, and finally I drew from my own knowledge and experiences in this critical area.
The project manager working with the project team and project client will ensure risks are actively identified, analyzed and managed throughout the life of the project. Risks will be identified as early as possible to minimize their impact. This can be done using several ways like
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.