Project Management For Project Managment

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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 other 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 for Project Managment (APM) defines a project risk management in the following statement: “All projects, programmes and portfolios are inherently risky because they are unique, constrained,…show more content…
Improvements are often possible, even when a project is to cost, quality and scope. (Shahu et al, 2012) This would be hard to prove, as repeated experimentation is rare due to the difficulty in creating exactly the same environment more than once. So a large-scale study would be needed. Until such a study has taken place, it is safe to assume that if project risk management brings benefits to projects, it would bring extra benefits to successful projects. (Shahu et al, 2012) This would be by being able to exploit and mitigate risks, issues and opportunities early, as well as increasing the accuracy of predictions which assist decision making. Even in these chaotic business environments, portfolios can still be managed effectively. In aggregate, having more projects and risks make a business’s forecasts more likely to include the actual project costs, (Djavanshir and Khorramshahgol, 2006) although the range of possibilities given will be wider. Statistically, when more projects are in a business’s portfolio, this means that the projects balance each other out, making the investments safer, as it is highly unlikely for them all to fail. (Djavanshir and Khorramshahgol, 2006) This can also be seen at a more detailed level in project risk management during Monte Carlo analysis (MCA). A risk
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