Project Risk management is the process in which the project manager ,project team and other key stakeholders identify project risks, analyze and rank them, and determine what actions, if any, need to be taken to avert these threats. Associated with this process are the costs, time, and quality concerns of the project brought about by the solutions to those risks. In addition, the reactions to risks are analyzed for any secondary risks the solutions may have created.Risk Analysis examines and prioritizes the risks based on their probability of occurring and the impact on the project if the risks did occur.Project risks are rated according to their probability and impact. Risk probability is the likelihood that a risk event may happen, while risk impact is the consequence that the result of the event will have on the project objectives.
Risk response planning focuses on how to decrease the possibility of risks from adversely affecting the project’s objectives, and on how to increase the likelihood of positive risks that can aid the project.The responses to identified risks must be in balance with the risk itself. The cost and time invested in a risk must be met with the gains from reducing the risk’s impact and probability. In other words, a million-dollar solution for a hundred-dollar problem is unacceptable. The people or individuals that are assigned to the risk must have the authority to react to the project risk as planned.
Avoidance strategies: the probability of the risk will be diminished, e.g.The project plan is altered to avoid the identified risk.Minimization strategies/ MitigationEffort : the effect of the risk will be reduced; i.e. reduce the probability, impact, or both of an identified risk in the project before the risk event occurs.Transference:the risk is assigned to a third party, usually for a fee. The risk still exists, but the responsibility is deflected to the third party. e.g. InsuranceContingencystrategies/Acceptance: plans for the worst case scenarios;the risks are seen as nominal so they are accepted. Risks, regardless of size, that have no other alternative may also be accepted.
If it’s raining outside and you don’t want to get wet, you can avoidthe rain by staying indoors.If it’s raining outside and you don’t want to get wet at lunch, you can use transferenceby sending someone else out for lunch. Your co-worker may agree to go out in the rain if you’ll pay for their lunch, too. Transferring a risk doesn’t make the risk go away; the project still has the risk, but the ownership of the risk has been assigned to some other party.To mitigatethe risk of getting wet at lunch? Bring an umbrella. The rain is still falling, but you won’t get soaked with an umbrella.-Completing more tests on the project work before implementation.Acceptancethe rainy lunch analogy can work a couple of different ways. You can use passive acceptance and get wet at lunch. Or you can use a contingency plan: order a pizza.
Risk monitoring and control is the process of monitoring identified risks for signs that they may be occurring, controlling identified risks with the agreed responses, and looking for new risks that may creep into the project.If you don’t attack risks, they will attack youDegree and cause of risk must never be hidden but shared to the decision makers
0 Komentar untuk "ADVICE ON PROPER PROJECT MANAGEMENT "