Risks Faced By The Information Technology Projects

Risk monitoring and control is the next step and involves the owners of the risks to monitor various risk triggers. This works by scanning the project environment for both identified and unidentified threats and opportunities much like a radar screen (Marchewka, 2009). This approach directly relates to how to respond to the risk. Risk response allows the owner of the risk to commit resources and take actions once the risk is known or opportunity is available. This action usually follows the planned risk strategy.

Risk assessment is used to determine the extent of handling threats and the risks associated with an IT system throughout its life cycle.

The final stage of risk assessment is to determine the method in which to diminish, remove, regulate or manage the risk as to reduce financial loss or physical injury (Wolohan, 2013). Each of these three steps are ongoing for any organization as it is the duty of those in charge to reduce any and all risk for participants and spectators alike (Wolohan, 2013).

The following short case will give you a good idea of how risks surface in business and project planning and what companies do about it. Consider that you are the Risk Manager as you look at this case, as it will be a good exercise for the time when you will be that Risk Manager!

IT projects can have a lot of different components to them which creates the potential for more risks. These risks need to be identified, analyzed, and addressed as the project progresses (Schwalbe Ph.D., 2014). There are different types of risk that can affect the implementation of a system that will allow people to manage their own human resource information. A positive risks can produce a project under budget or ahead of schedule, while a negative risks can have adverse effects on a project such as going way over budget. There are also some risks that do not have a positive or negative impact on a project. Identifying risks and addressing them is mostly handled by the program manager.

Which of the following best describes how the composite risk management process should be reflected in your safety briefing?

3.4 Summarise the types of risks that may be involved in assessment in own area of responsibility

* Reduce the likelihood of failure by identifying risk events and dealing with them explicitly

However, when IT projects fall behind schedule, these efficiencies can quickly evaporate and lead to cost overruns, glitches and bugs. (3) Due to their inherently complex nature, IT projects are susceptible to many types of failures; mainly caused by a lack or risk management and flexibility. Many of the risks present in IT projects are unrealistic goals; inaccurate estimates of needed resources; badly defined system requirements; poor reporting of the project’s status; poor communication between developers and users; adoption of immature technology; inability to cope with project complexity; sloppy developed practices; mismanagement of the project; stakeholder politics; and commercial pressures. (4) With so many potential risks, it is not surprising that IT projects that are completed on time, and on budget, are more the exception rather than the rule. Additionally, before IT projects begin, clear objectives and the allocation of time and resources need to be defined; all of which are usually lacking for one reason or another. The result is a high failure rate associated with IT projects overall, which puts a spot light on the need for organizations to improve their risk management abilities and design processes that will allow them the flexibility to reallocate resources when unexpected problems when they

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

date, and that a new risk management plan must be developed. Because of the importance of risk

Background- In its most basic sense, risk management identifies, allows assessment, and prioritizes risks that are associated and central to an individual project or organization. Risk management allows the organization to be proactive in preventing or mitigating risks, for improving certain processes within the organization, and with the hope of preventing fiscal exposure. However, in almost every organization there are risks individuals are unique and do not always perform at a high level of safety; mechanical or design failures exist, construction projects have supply or labor issues, there are uncertainties in computer or data modification, of course natural disasters, and even deliberate attacks from competitors, etc. Because this is such a common occurrence, national and even international standards have been developed in conjunction with the insurance and regulatory institutions to at least provide basic guidelines to minimize risks risk (International Organization for Standardization, 2009).

3.2.3. Evaluate risks: During this step the team evaluate the risks and make decisions about whether the risk is tolerable or pose the biggest threat and make those risks a top priority hence they have a huge impact on the goals of

Proper survey and the complete scenario is taken into consideration about risks in the organization which enables the proper risk assessment. Potential of each threat or risk is evaluated and graded in order to reduce the impact of the risks or reduced the probability of its occurrence.

This assignment is included in the 2014 session of the Risk Management module of the MSc in Project Management course at University of Aberdeen. The main purpose of the assignment is to demonstrate my understanding of the issues involved in Risk Management and how they are applied in my current Project environment. The assignment is split in to two questions as detailed below.