Assess Risk in Planning a Project

Question: How might you assess risk in planning a project? Answer: The progression of risk management starts through trying a list of every expected risk that might impact the project (Royer 2001). Whenever the new project begins, it actually starts with the risk and at the level of uncertainty that might create deadlocks in the completion of the projects (The Owner's Role in Project Risk Management 2005). Its evident that management of risk usually ensures if the risk is evaluated and decreased when the assessment is undertaken, then it might reduce the available opportunities (The Owner's Role in Project Risk Management 2005). This is for ensuring that the management of risk cannot reduce the risk associated with the project but through conducting the proper planning, risk could be minimize at certain level and the same will be acceptable for making the project (The Owner's Role in Project Risk Management 2005).There are certain risks that go beyond the range of control and impact the budget and length of the project, for example planning need to be carried out before the risk impacts the project and either before the unexpected events get occurs (The Owner's Role in Project Risk Management 2005). Its noted that planning and analysis is the factor required for the project management success (The Owner's Role in Project Risk Management 2005). In the beginning of the project, key decisions are required to be taken that effect the various stages of the project that base the incomplete or either inaccurate information (The Owner's Role in Project Risk Management 2005). In order to ensure about the best policy of decisions, it is required to conduct risk assessment of the project in early stages in order to take effective decision (The Owner's Role in Project Risk Management 2005). Risk might occur at any project stage that is related to the specific task and some risk is different and might originate outside the project management boundaries (The Owner's Role in Project Risk Management 2005). Below are some methods of risk asses sment: Exploring and Risk Prioritization The most unique and ideal way of dealing with the risk is to explore as well as conduct the systematic research in different phases of the project that might get wrong (Benjamin and Belluck 2001). The process of risk identification for the projects might be conducted in three ways that are discussed below (Benjamin and Belluck 2001). Usually in most of the cases, the project manager tries to pulls, at the time of planning stage, core member team that squad the risk management task, and appropriate stakeholders (Bainey 2004). Participants in the project are usually encouraged to keep the point and try to produce the probable risk related to the project (Schwalbe 2009). Risk Mitigation There are many authors who ahs wrote about the two core strategies related to mitigation of risk such as reducing the adverse conditions that might impact the project and the other one is reducing the event that might occur during the project (Benjamin and Belluck 2001). Its evident that project team usually take care of these events that might halt the expected situations of the project (Benjamin and Belluck 2001). If the expected events minimizes it might reduce the expected cost for other strategy (Benjamin and Belluck 2001). Probability related to avoiding the risk at the time of projects is required; its the responsibility of the entire team to undertake the research for assessing the risk and work towards eliminating it (Benjamin and Belluck 2001). In order to avoid the risk there are certain procedures that need to be adopted in making the project successful, these are: transferring the risk, avoiding the risk, retaining the risk, as well as sharing the risk (Benjamin and Bell uck 2001). These similar terminologies are actually capable of avoiding the risk at the time of project length and eventually occur for the objective of the project (Benjamin and Belluck 2001). Risk analysis Contingency plans Project managers should form the alternative plan if the expected risk arises in the projects, which is mainly known as contingency plan (Brewer and Dittman 2013). In the contingency plan, proceedings are symbolized for mitigating the risk (Menken 2013). Every contingency plan in the project is prepared in the beginning, then it is documented and then this plan includes the funding, cost and estimation for avoiding the risk (Brewer and Dittman 2013). In the starting of the projects, there are many different risks that are explored in the contingency plan that include the possible risk list (Royer 2001). The project nature differ the process of risk identification along with its costing and scheduling (Brewer and Dittman 2013). Management of Change control For effective project completion, risk should be minimized and for minimizing the risk, there is management of change control (Committee for Oversight and Assessment of U.S Department of Energy Project Management 2004). Its the project manager responsibility to explore the changes required for reducing the negative effects for successfully completing the project (Committee for Oversight and Assessment of U.S Department of Energy Project Management 2004). In the process of change control, its not actually possible that every strategy needs to be materialized (Committee for Oversight and Assessment of U.S Department of Energy Project Management 2004). In the management of project change control different priorities should be set that is capable in cope the project as the change is applied on it (Committee for Oversight and Assessment of U.S Department of Energy Project Management 2004). Identification of Risk The process of risk identification need not be limited to the core team. Inputs taken from the sponsors, customers, stakeholders, vendors, as well as subcontractors need to be solicited (Ang, Yang and Sum 1994). Identification of risk establishes the level of uncertainty of exposure for every company (Ang, Yang and Sum 1994). There are many literatures that have written about the same (Ang, Yang and Sum 1994). It is decided that most of the professionals are involved in the huge projects (Wiegers 1998). Identification of risk is quite critical as well as time consuming work. In the realistic approach, its not quite easy to finish the command on the project risk but the exact planning with the core team members are included to bringing out the actual outcomes with both practice and experience (Boehm 1991). Mainly its a right outcome when the members of the team work in coordination and try to focus on explicit areas by focusing on external risk and types of physical relation; dividing the projects in various work pieces, and considers every entity with the project viewpoint in order to anticipate the source of the claim (Lucas, Walton and Ginzberg 1988). Analysis of Risk Analysis includes the exploration of the explanation and estimation ways as well as techniques that is required t deal with the specific risks (Lucas, Walton and Ginzberg 1988). The tenure of project enhances whenever there is a loop in the planning process and in managing the risk (Lucas, Walton and Ginzberg 1988). Every project making includes the identification of risk that is undertaken separately along with complete work team over its judgment and support professionals in carrying out the work (Keil, Cule, Lyytinen and Schmidt 1998). Every task is related to its own possible risk and explores the structure format (Keil, Cule, Lyytinen and Schmidt 1998). Risk table is often allocated for every risk along with threats and opportunities. It also includes how to sort the same and certain individual risk level for attaining the priority of risk (Lucas, Walton and Ginzberg 1988). Identification of risk along with its description is mainly due to the various projects like planning, ope ration as well as testing (Keil, Cule, Lyytinen and Schmidt 1998). Treatment of Risk Treatment of risk is the cycle to explore the measures of risk and to implement the same in modifying the risk (Keil, Cule, Lyytinen and Schmidt 1998). The treatment of risk covers up risk avoidance and risk control (Keil, Cule, Lyytinen and Schmidt 1998). This entire process includes that risk that is serious and that require to be solved through the management bodies (The Benefits of Risk Assessment for Projects, Portfolios, and Businesses 2009). This kind of management performs certain priorities for handling the actions of risk control (Block 1983). Risk evaluation Risk could be explored through the research for the project that are underdeveloped, and explored risk starts in the beginning of the project then the risk explores the post planning (Barki, Rivard and Talbot 1993). Risk could also be identified through personal experiences, and there are ten rules for its evaluation that supports in identifying the risk in planning the project, these are: risk identification in starting of project; management of risk is part of risk; risk discussion with the members of team; opportunities and threat to be considered, limits of ownership issues; prioritization of risk; risk analysis; project agreed, implementation and planning of risk, along with exploring risk with related task (Barki, Rivard and Talbot 1993). These rules are actually indicated through the lifeline of the project on which the entire project is effectively run and help in generating the results as per the plan (Barki, Rivard and Talbot 1993). All these rules explore the management of risks that needs to be embedded while making the project through which fault might encounter (Barki, Rivard and Talbot 1993). While at the other side of the project there is no approach focused towards risk management, either the same belief there planning will have no risk or either they assume the level of over confident in both the case, and sometimes its noted that the projects have to face the deadlocks or either changes in time schedule happen in entire project that need to be avoided sometime (Barki, Rivard and Talbot 1993). Planning need to cover up assessment of risks in the beginning of the project that yield the project, risk assessment achievable with the help of two sources are the documentation and the other one is team members (Bancroft, Seip and Sprengel 1998). Team members hold the experience as well as expertise that help in making the project successful that could be completed on time (Bancroft, Seip and Sprengel 1998). In case of documentation, it is required at every step in making the project (Bancroft, Seip and Sprengel 1998). It is quite easy to explore the risk in broad cases, and every project includes various risks through which managers or either team member are made aware, but in certain cases it might get opposite for the risk handler to deal with the occurring risk (Ginzberg 1981). In case if the risk is not properly communicated to the members of the team or either project leader then project might face sufficient issues that are not required (Ginzberg 1981). Once the risk explores and there are certain threats and opportunities, then in that case, opportunities are mainly in the projects but hidden to be carried out and in those cases assessment is required and opportunities support the project in making it strong and successful (Ginzberg 1981). Below is risk assessment and mitigation ways in the IT projects: Huge IT projects needs the commitment of the sufficient time as well as resources from the side of both customers and suppliers and could leave crucial impacts on the business (Willcocks and Margetts 1994). Therefore, before starting any project, its required that detailed assessment about the important risks should be undertaken with the perception of implementing the relevant strategies of risk mitigation (Willcocks and Margetts 1994). Budget The project price could be escalated or either increases the budget amount of the customers if the project manager didnt take proper care in order to ensure that the scope of the project is properly understood as well as documented or the changes are managed in proper way (IT Projects Risk Assessment and Mitigation 2011). Expected mitigation The customers should try to determine the important needs well in advance and should not change them unless and until its really urgent (The Benefits of Risk Assessment for Projects, Portfolios, and Businesses 2009). The suppliers should offer the fixed cost and should be clear about the expected consequences of the variations (The Benefits of Risk Assessment for Projects, Portfolios, and Businesses 2009). Failure of System Important issues could occur if on commissioning or either after commission the new information Technology system failed in performing as per the set specifications (IT Projects Risk Assessment and Mitigation 2011). Expected Mitigation The party should need to be assured that there should be transparency in needed acceptance over the process of testing and testing needs and full acceptance testing should be undertaken (The Benefits of Risk Assessment for Projects, Portfolios, and Businesses 2009). The needs for remedying the failure should be made clear, and need to cover up relevant allowances, which are made as per the timeframe and the results of these remedies are not properly executed in the set timeframe (McFarlan 1981). Delays Delays often occur in implementing the system that arises due to many reasons (Keil and Montealegre 2000). There are certain delays that are usually unavoidable, but there are some that could be avoided through conducting relevant planning (Keil and Montealegre 2000). Its noted that comprehensive projects plans of project addressing might get delayed that could move the project from the track (IT Projects Risk Assessment and Mitigation 2011). Expected mitigation A project plan which is delayed should include the contract, by setting up the proper milestone as well as timetable (The Benefits of Risk Assessment for Projects, Portfolios, and Businesses 2009). It should be made clear that every party should be made responsible, especially when exist interdependence (The Benefits of Risk Assessment for Projects, Portfolios, and Businesses 2009). Its important that the contract should also easily address what all is happening if the project is delayed and the steps that could be required in reducing the effect of delay (The Benefits of Risk Assessment for Projects, Portfolios, and Businesses 2009). Below is the discussion on the risk assessment before project planning: In the areas of the ambiguity as well as indistinctness lies the political environment in the projects (Parr, Shanks and Darke 1999). It is quite similar people nature that provides the impression of good with the officers or they might be interested to relaxing the life without any kind of hassle, and along with it there will be other intention that might wish the project tactics restrictions (Parr, Shanks and Darke 1999). It might be because there are many project managers that might be interested in moving beyond the deadline of the work, and its in their own interest to keep it continue instead of experiencing the distress and then try to follow of project back from it (Parr, Shanks and Darke 1999). Its seen that there are certain projects that go fail, due to the completion culture of the project, which are taken by the users, and this project deliverable is done on time, but there wouldnt be any standards, needs, and quality (Parr, Shanks and Darke 1999). In order to explore and analyze the user needs of the projects, along with scheduling of project, contingency project planning, avoiding risk, along with collecting resources are important part of the project (Parr, Shanks and Darke 1999). These are referred as the objectives that are carried out in starting of the project (The Benefits of Risk Assessment for Projects, Portfolios, and Businesses 2009). In order to explore the risk of the project, its importance and nature of project should be explored along with budgeting, extra risk related to user needs, and control of response change (The Benefits of Risk Assessment for Projects, Portfolios, and Businesses 2009). Its suggested that in order to complete the assessment of risks, its important to perform the identification of every task along with its level of uncertainty (The Benefits of Risk Assessment for Projects, Portfolios, and Businesses 2009). Every task needs to be on priority in the project plan and simultaneously its contingency table should also be prepared. If its not done, then project could get late as it is planned (The Benefits of Risk Assessment for Projects, Portfolios, and Businesses 2009). Late projects are not a risk as it might impact whats going at the time of project; therefore, its important to consider every task of the project that might get delay in the length (The Benefits of Risk Assessment for Projects, Portfolios, and Businesses 2009). The risk that are identified above that are mainly related to the IT projects, basically, these risks might not be appropriate to the specific project and other major risks might get apply to the project (The Benefits of Risk Assessment for Projects, Portfolios, and Businesses 2009). Basically, both the supplier as well as customer might get benefit through preparing the risk analysis before starting of any project, as this might help in determining the ways through which risk related to the project could get mitigated both in the contract and through relevant management of projects, and these risks could be analyzed (The Benefits of Risk Assessment for Projects, Portfolios, and Businesses 2009). In these kinds of sessions, shared solving of project in which team members could give their contribution through ideas, and the people from various perspective as well as different functional scenario will hold sophisticated manner to reduce the risk impacts (The Benefits of Risk Assessment for Projects, Portfolios, and Businesses 2009). It is quite obvious that one person could never able to easily evaluate the things that might go wrong. Its the responsibility of every member to easily generate the risk from their own perspective and try to underline the issues. Along with this, they should try to develop the list of risks and try to unify them with the help of manageable groups. These groups should try to explore the base of risk along with all the expected results in order to resolve it. In each project things might get changed by time; therefore, it is important to ensure the area where risk could get arise and the same should be avoided. References Royer, P. S. 2001. 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