Essay on The Risk Management Process

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Risk Management Process Identify Risk Risk identification, focuses on identifying which risks will affect a project, by looking at the project plan, the work breakdown structure, the project charter and other project related documents (PMBOK, 2008). Broad risk categories are human resources, technology changes, quality and performance issues, customers, vendors, management, funding, political, legal, market forces and environmental issues (PMBOK, 2008). Risk identification involves forward and creative thinking by project stakeholders (Hilson, 2003). Risk identification, should be done on a continuous basis and project team members and stakeholders should look for new issues that may affect the success of the project (Brewer & Dittman,…show more content…
Hilson (2003) indicated that opportunities are ignored in this process, however since he wrote this book in 2003 and based on the latest Project Management Body of Knowledge Book (2008) with regards to risk identification we see opportunity and treats are identified. Risks are both known and unknown and project managers need to minimize treats and maximize opportunities (PMBOK, 2008). Brewer & Dittman (2009), indicated that the Delphi technique uses experts to identify and resolve issues and when used many of these issues are resolved because members do not meet face-to-face. The process becomes anonymous reducing interference of egos and personal problems. As stated by Fleming (2005), the Delphi Technique is an option to aid the project team to brainstorm ideas anonymously, and participants are unknown to each other. Electronic communication, are used to communicate with the group with a facilitator, and questions are presented electronically to each participant who then generates ideas and sends them electronically to the facilitator. The responses accumulated into one list by the facilitator who redistributes it for team comments until a final agreement reached (PMBOK, 2008). Organizations and project managers can look at past project history with documented historical data, to identify risk pitfalls by learning from the mistakes of other projects (PMBOK,

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