PROJECT MANAGEMENT

Project Management



SECTION 1: HOW RISK IS MANAGED IN THE FEASIBILITY AND PLANNING OF THE PROJECT?

Risk is something that can happen, and if it happens, will have a positive or negative impact on the project."It may happen" implies a probability of less than 100%. If he has a probability of 100% - in other words, it will happen - is the question (Wysocki88). The issue is managed differently to risk and we will handle the management issue at a later white paper. Risk should also have the probability of something above 0%. She should be able to happen or not a risk.Risk Management Plan

There are four stages to risk management planning (Laufer89). These include:

Risk identification

Risk quantification

Risk response

Monitoring and controlling risks

Risk identification

At this stage, we specify the name of the risks. Best seminar with business and IT people for identification (Kostner, 45). Use a combination of brainstorming and revision of the standard list of risk. There are different kinds of risk, and we must decide on a project to project, what to do with each type.

Business risks are ongoing risks that are best to do business. For example, if a project does not meet the end of the fiscal year, the business sector, we may need to retain their existing accounting systems for one year. The answer may be a contingency plan developed by a business to use the existing system for another year.

General risks for all projects. For example the risk that business users may not be available and the requirements may be incomplete. Each organization will develop standard responses to common risks.

Risks must be defined in two parts. The first reason is the situation (the seller does not meet the deadline, business users are not available, etc.). The second part of the impact of (the budget is exceeded; Milestone has been reached, etc.). Consequently, the risk can be defined as "the supplier does not meet the deadline will mean that the budget will be exceeded." If this format is used, it is easy to remove duplicates and to understand risk.Risk quantification

The risk must be quantified in two dimensions. The influence of risk should be assessed. Likelihood of risk must be assessed (Laufer 90). For simplicity, the speed of each from 1 to 4 scales should be marked. The higher the number, the greater the impact or likelihood of failure. Using the matrix, the priority can be established. Note that if the probability is high, and exposure to low, this risk is average. On the other hand, if the impact of high and low probability, this is a high priority. Remote chance of the disaster warrants more attention than the high chance of hiccup.Risk response

There are four things we can do with risk. Strategies are:

Avoid risk. Do something to remove it. The use of another supplier, for example.

The transfer of risk. Make someone else responsible. Perhaps the seller may be responsible for particularly risky part of the project.

Reduce risk. Take measures to reduce exposure to risk or chance ...