Project Management At Al ( 2012 )

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As the world is chaotic (Djavanshir and Khorramshahgol, 2006) it is impossible to always predict the future accurately. Teller at al (2012) describes project management as balancing the “iron triangle”, where changes to any one of the planned costs, quality or scope will change the others elements. Risk management allows contingency to be put into project plans. (APM, 2012) Minimising negative effects and maximising the benefits of uncertainty.
This, in theory, is how project risk management aids in ensuring successful project delivery.
The Association of Project Management (APM) defines a project risk management in the following statement: “All projects, programmes and portfolios are inherently risky because they are unique, constrained, based on assumptions, performed by people and subject to external influences.” (APM, 2012) The factors which affect these risks can be split into three areas (Thamhain, 2013): processes, environment and the people. This essay shall address each of these areas and how they interlink
The APM’s (2012) risk management method contains 5 stages: initiation, identify, assess, plan and implement responses. The risk process is integral to project management (Hillson, 2012). It should be applied continuously, with monitoring, controlling and identifying integrated into everyday activities. When using the APM’s method, a project risk manager can go from any phase of this process to another. Although this creates an adaptable process, it leaves the
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