...Project Risk and Risk Management Ryan Hawker AMGT440-E1WW (F14) Susan Craver 9/18/2014 For this assignment we will be discussing the project risks and how to appropriately manage those risks. We will specifically identify three possible risks to my team project and how this risk will impact the quality of my product. After this is accomplished we will take these individual risks and discuss how to manage them and possibly prevent the risk from becoming a reality. For every project there is some amount of risk but minimizing these risks is a job to which everyone should focus. The project that I am working one is project 2. My company provides web hosting services. A startup company has approached us asking for an online store offering the apps it is developing. There are a few major tasks to be accomplished in this scenario. The first one is to procure and configure web server. The next step involves developing the website and configuring a payment processing solution. Lastly we need to launch a promotional campaign for the website. During this project a lot of small things can go wrong so we need to predict the risks that are associated. The first and possibly one of the worst risks that would be associated with this project is procuring the web server. When ordering this web server we need to obtain it in less than a week so we can configure it by weeks end. If this shipment is late we would need either a backup web server that has already been configured or our...
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...identifying project risks are equally important to the success of a project. Develop at least three risks that could potentially cause the scope, cost, or schedule of the project to slip. How can Janet plan for and avoid these risks? Does the likelihood of these risks affect Janet’s actions? How? For this project I see three risk events that Janet would need to manage and mitigate. These are very likely risk occurrences that can cause the project scope cost and or schedule to slip. Risk Event 1 The project being completed in a timely manner. The time line is very small and has several major holidays to consider with respect to the calendar year.Would need to monitor and crash the schedule through out the process in order to meet the expectations of the stakeholders. Risk Event 2 Human resources issues as related to conflict between team members as well as HR issues as related to availability of staff member and fact that this would be the first time some of the team members would be working together. Additionally manging a team that is spread between two cities can be an issues with respect to HR. Risk Event 3 Issues related to general contractor and construction permitting process. Since this would be an expansion in a new market, this could be a potential area for risk if the contractors associated with these task aren’t up for the task. Based on the probability and impact of each event I would prioritize the risk as : Risk Event 3 Risk Event ...
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..."Project Risk Management" Please respond to the following: * Describe some of the tools and techniques that you can use as a project manager to mitigate risk in your projects. Support your response. * Provide realistic examples of each of the risk response strategies for both negative and positive risks. According to Schwalbe, risks can be assessed qualitatively or quantitatively. Tools for qualitative risk analysis include a probability/impact matrix and the Top Ten Risk Item Tracking Technique. Tools for quantitative risk analysis include decision trees and Monte Carlo simulation. Expected monetary value (EVM) uses decision trees to evaluate potential projects based on their expected values. Simulations are a more sophisticated method for creating estimates to help you determine the likelihood of meeting specific project schedule or cost goals. Sensitivity analysis is used to show the effects of changing one or more variables on an outcome. The four basic response strategies for negative risks are avoidance, acceptance, transference, and mitigation. Risk avoidance involves eliminating a specific threat or risk. A project team may decide to continue using a specific piece of hardware because they know it will work. Risk acceptance means accepting the consequences of a risk, should it occur. A project team can take an active approach to risk by having a backup plan if they cannot get approval for a specific site for a meeting. Risk transference is shifting the consequences...
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...Project Risk In (Gido & Clements, 2009) risk management involves identifying, assessing and responding to project risks in order to minimize the likelihood and impact of the consequences of adverse events on the achievement of the project objective. (p.88) Risk Factors that Janis did not fully address at the start of the project are as follows: • Project Performance Evaluation o Planning and scheduling of activities o Forecasting or resource requirements o Evaluating the projects performance at key milestones Janis moved the finish date up 6 months without all of the information or input from all parties involved in the project. In addition after reviewing project schedule it is clear that Janis’s finish date set at the end of 2009 was unrealistic. • Communication: tracking performance of a project goes hand in hand with effective communication. o Communication Plan o Conflict Resolution Plan Janis did not include key players in the communication chain. • Technical o Equipment required o Equipment installation o Input from facility staff Again Janis did not ask for input from technical support. • Cost – can be effected by o Material Shortage or Labor Problems Lack of proper scheduling, communication and technical information leads to cost problems in one form or another. Janis could have improved the project’s success with proper planning and performing qualitative risk analysis. As stated in (Kerzner, 2003) the risk level of the project must be...
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...Payam Banikarimi Course Project Risk Plan As we know there are some uncertain events that can impact to the project objective that called Risk. Therefore, I consider the following set of process that Risk Management must do these. Overall, Risk management should involve identifying, assessing, and responding to project risks in order to minimize the likelihood of the potential impact of the events on the accomplishment the project out comes. Managing risk includes taking action to prevent or minimize the impacts. Risk management should try to plan the risk levels during the initial phase of the project life cycle to make sure. However, I believe that whole of Risk subjects depend on a project size because impact measurement and type of risk might be differ in various project sizes. So, the project manager should perform various steps of the process of risk management and decide how to control them that consist of: * Identifying risks and their potential impact, * Assessing the likelihood of occurrence and degree of impact of risks, * Risk response planning, * Risk monitoring, Roles and Responsibilities Risk identification includes determining that risks may affect the project objective and each risk would impact on portions of the project. In order to, the project manager should involve key project team members in identifying the sources of risk. Each member of the team can deliver its report and the result...
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...Preparing Project Budgets for Business Cases Technical guide The Secretary Department of Treasury and Finance 1 Treasury Place Melbourne Victoria 3002 Australia Telephone: +61 3 9651 5111 Facsimile: +61 3 9651 5298 www.dtf.vic.gov.au Authorised by the Victorian Government 1 Treasury Place, Melbourne, 3002 © Copyright State of Victoria 2012 This book is copyright. No part may be reproduced by any process except in accordance with the provisions of the Copyright Act 1968. ISBN 978-1-922045-92-8 Published August 2012. If you would like to receive this publication in an accessible format please telephone 9651 0909 or email mailto:information@dtf.vic.gov.au Contents 1. Background 1 1.1 Context 1 1.2 Purpose – developing and managing project budgets 2 1.3 Scope of application 2 1.4 Structure of this guide 3 1.5 Related guides and frameworks 3 1.6 The need for an accurate project budget 4 2. Elements of a project budget 5 2.1 The headline elements of a project budget 5 2.2 Successful financial planning 9 2.3 The need for a whole-of-life approach 10 2.4 ‘Poor project planning’ risks are not project risks! 10 2.5 Delivering to budget 11 3. Foundations for good project budgets 12 3.1 Better business cases and better project budgets 12 ...
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...PM 595-Project Risk Management November 2010-Section A Project Part I Grayson Cash TCO A Identifying Project Risks The process for risk identification for a second Oresund Bridge would involve plan for risk management. This would involve first the secure risk management plan in place. This would involve meetings to clearly define the scope of the project. A second bridge and its usefulness, cost, and scheduling will be primary factors of interest. But another area would be in the enterprise environmental factors. These factors specifically are organizational structure, government/industry standards, infrastructure*, existing human resources, company work authorizations, stakeholder risks, and project information systems. The meetings would be to ensure that the risk management plan was consistent with the scope and in alignment with the desired results. It would also allow for brainstorming, document reviews, the Delphi technique, interviewing of key stakeholders, SWOT analysis, risks checklists, assumption analysis, diagramming techniques, cause and effect, and influence diagrams. Next, would be the process to meet to discuss the risks attributed with the management areas. The risks to scope, schedule, and cost. Considering the past project as a lessons learned, there were benefits that could be utilized that can limit the risks. The risks particularly associated with the second Oresund Bridge project is in its infrastructure. There are presently...
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...Eric Bani Professor James Young “Politics, Institutions, and Project Finance: The Dabhol Power Project. Strayer University 2011 Project risk management has been identified as the number one cause of project failure by most if not all organizations. In view of that project risk management is given prominent place in any project undertaken by businesses. Project managers are therefore are under immersed pressure to practice the best risk analysis methods in order to complete projects in time and within budget for the organization to be profitable. Project risk management is a science if you will, that uses several methods in identifying and accessing the risk factors and opportunities associated with a particular project and devising an effective response plan to avoid, mitigate, transfer or accept the risk. The project manager should assemble a professional team of different technical skills needed to complete the project making sure the project specifications are met. As a leader the project manager has to possess leadership qualities and most importantly communications skills to be effective in managing his/her team. The Dabhol power project was a good idea designed to generate additional electricity to India’s growing population but there were several problems including political, institutional and financial from the onset. Politically, India was a communist country aligned with the former Soviet Union thus the country was run by the central Government...
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...2. Project Management 3 2.1 Definition of Project Management 3 2.2 Advantages and Disadvantages in Project Management 5 2.3 Success Factors in Projects 6 2.4 Control Project Progress 7 3. Project Risk Management 8 3.1 The Risk Management Process 8 3.2 Definition of Risk 10 3.3 Managing Risk 10 3.4 Identify Risks 11 3.5 Risk Quantification 14 3.6 Plan Risk Response / Methods 14 3.7 Risk Monitoring 18 4. The Organization of an International Conference in Paris, France 19 4.1 Project Identification 19 4.2 Classified the Project 20 4.3 Identification of Risks and measures to minimize the risk 21 5. Conclusion 23 6. List of Illustrations 24 1. Introduction The planned International Conference – “Launching Strategy of a new product”, reported to our management and sales persons is a new Project and has to be well organized and effectively realized. To ensure that the project leads to a suitable performance and to improve project success, a Risk Management Plan needs to be developed very early in the planning stage. For the project success, it is essential that potential risks are identified, categorized and evaluated. This seminar paper focuses on the relationship between the project organization and the application of risk management and the importance of implementing a Risk Management system to achieve the project objectives. This paper is subdivided into three parts, Project Management, Project Risk...
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...Project Selection and Risks Miguel Rodriguez Project Management Integration Framework BA647 Grantham University Project Selection and Risks Project selection and project risks go hand in hand. Choosing or even not choosing a project, can create risks. Projects are designed to allow organizations to either develop something new or to improve on something already in place. Any given organization can have many good projects that can improve its products, but if the organization is lacking a good project management program and/or has a meager project portfolio, then project risks becomes an even bigger issue. The process for selecting projects can create several project risks; such as having too many projects with limited funds/resources, unforeseen external risks, inadequately trained staff, and multiple of unforeseen problems, causing changes and delays to the project. Some of these examples I just mentioned, can be avoided or minimize with a good project management program. This paper will discuss some of the things a good project management program would include. The overall purpose of a project management program is to help in identifying the unknown risks and to help minimize the known risks. “Without adequate analysis of projects, no one has much idea of what “going right” looks like, so it is not possible to identify and manage the risks – the things that may go wrong” (Kendrick page 20). Even with this knowledge, some organizations at different levels...
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...Project Risk Management "Project Risk Management" Please respond to the following: * Describe some of the tools and techniques that you can use as a project manager to mitigate risk in your projects. Support your response. * Provide realistic examples of each of the risk response strategies for both negative and positive risks. According to Schwalbe, risks can be assessed qualitatively or quantitatively. Tools for qualitative risk analysis include a probability/impact matrix and the Top Ten Risk Item Tracking Technique. Tools for quantitative risk analysis include decision trees and Monte Carlo simulation. Expected monetary value (EVM) uses decision trees to evaluate potential projects based on their expected values. Simulations are a more sophisticated method for creating estimates to help you determine the likelihood of meeting specific project schedule or cost goals. Sensitivity analysis is used to show the effects of changing one or more variables on an outcome. The four basic response strategies for negative risks are avoidance, acceptance, transference, and mitigation. Risk avoidance involves eliminating a specific threat or risk. A project team may decide to continue using a specific piece of hardware because they know it will work. Risk acceptance means accepting the consequences of a risk, should it occur. A project team can take an active approach to risk by having a backup plan if they cannot get approval for a specific site for a meeting. Risk transference...
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...COB Project Risk Report June 2014 |COB Project | Revision History |Change Log | |Revision # |Date of Revision |Owner |Summary of Changes | |01 |06/08/2014 | |DRAFT Released | | | | | | Table of Contents 1. Introduction 2 1.1 Purpose 2 1.2 Scope 2 1.3 Document Maintenance 2 2. Top 10 Risk 3 Appendix A - Project Risk Report A-1 Project Information A-1 Risks (Top 4) from Risk Register A-1 Corrective Action A-2 Introduction 1 Purpose The purpose of Project Status Summary Report is to provide a consistent approach of reporting the status of project activities across all major capital projects. 2 Scope The Project Status Report will identify the process (es) used to create, update, and publish the report. 3 Document Maintenance This document will be reviewed quarterly and updated...
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...A Review of Risks Associated With Estimating a Home Building Project Michael T Bell PMAN 637 Originality Score 6% A Review of Risks Associated With Estimating a Home Building Project Introduction In building and construction, there are risks associated with estimating a home building project. These risks in construction are all the same across the board regardless the construction. Therefore, a home building projects is confronted with the same risks as any other project in the construction industry. The risks involved are such as; project management risks. The project management risks are mainly because of improper schedule. The improper schedule may be caused by poor allocation of time in various projects that may be involved in a home building project. Poor resource planning is another management risk. This is because due to poor allocation of resources often lead to misuse and many unaccounted losses. In addition, improper and poor management of disciplines or methodologies result into management risks in a home building project. Disciplines and methodologies are tricky and need a lot of experience to manage. Therefore, a minor mistake in management of discipline and methodology is a risk that can cause a huge negative impact in a home building project. Such risks are better identified with scheduled risks. Organizational risk is a major risk that most building and construction projects have to face, Most organizational...
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...1st draft Do Thi Ha Phuong 18249037 RISK MANAGEMENT 641 - ASSIGNMENT NO 1 TOPIC: PROJECT RISK MANAGEMENT PROCESS PART A – APPLICATION About the company and its functions. Joint Stock Company BT20 is established in 28/03/2012. The company operates in road construction areas. The company is implementing a restoration, renovation National Highway 20 project in Vietnam, Required main tasks of company are: clearance and compensation, the basic construction work, mine clearance, leveling, construction of roads, drainage and wastewater treatment systems, trees, power supply system. As well as any other investment, construction investment is likely to encounter risks to be inefficient investment as originally planned. Type of risks | Sub risk | Sub-Sub risk | Financial | Cost increases | Unreasonable Estimated costs.Weak Project Management | Natural | Unfavorable weather | - Raining- Storm | | Disaster | - Blood- Earthquake- Flooding | Safety | Accident in construction site | - Delay the construction- Reducing on reputant of company. | Time | Project duration is extended | - Cost for material increase- Lack of employee’s skills- Wrong estimate on cost- Lack of skill on project management. | 1. RISK IDENTIFICATION The effectiveness of the project is determined by three factors that are quality, cost and time (Saladis and Kerzner 2011). For the before and during the construction of NH20, the cost is considered to be one of the serious issues because...
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...Course Project Project Risk Management Contents Introduction 4 Statement of work 5 Statement of Work—Project Description and 6 WBS 8 Risk Analysis and Probability Matrix – Qualitative Analysis 10 Risk Register 11 Decision Tree 11 Decision Tree Analysis 11 Fault Analysis Tree 12 Fault Tree Analysis Summary 12 Conclusions 13 Works Cited 13 Introduction Sherdon and Anissa Webb have been working parents for over 18 years. Both individuals understand the hardship of starting out and making yourself marketable in the corporate world. Now that their eldest son is in college, and they have seen how hard it was for him to get summer jobs and student work studies, they want to make the path a bit easier for their younger children. Their hope is to start a small business that will eventually become a family affair. This business will help the community as well as allow their children to have summer work growing up and instill in them the entrepreneurial spirit. As part of working class America, Sherdon and Anissa do not have a lot of income at their disposal. They will be investing all of their savings into this business, therefore, proper planning is a must. The business that they have decided to open is an employment agency. After researching the industry, both feel as though there is a market for this service and that the time it will take to open the business is reasonable...
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