PROBLEM 1: INTRODUCTION:
The project is described as a single definite action; logically sequence of activites along with
controlled and synchronized components are included in project. Project has specific time frame
and cost. Any project face numerous challenges due to influence of External and internal factors.
These influences enable the Risk defined as any uncertain event, or condition that has positive or
negative affect on project objectives.
RISK MANAGEMENT AT PROJECTS:
Project Risk Management includes the follwing processes for the purpose of conducting risk
managment: Plan risk Management, Risk identification, Qualitative and Quantitative analysis of
risk, Risk Response Planning, Response Implementation and Monitoring the risk on a project.
The purpose of risk managmenet is to identify and evaluate risks occured in projects thus
diminishing its chances to have impact on the project. Risk management enhances the probability
of positive events and reduce the probability of negative events to occur. It is not possible to say
that there are no projects with risk because projects has number of activities and infinite number
of events in projects can have negative impact on project. Risk management does not eliminate
the risk, but identify, evaluate and manage it. There are many benefits of the risk management on
projects. A huge amount of money can be saved if proactive apaproach is used to deal with risks
or uncertainities. By minmizing the risk involves in project, delivery of the project is possible in
time frame, on budget and with quality as the demand of project sponsor.
ITERATIVE NATURE OF PROCESS:
One of the global standard for effective risk managmenet is that it shoulde be Dynamic, iterative
and responsive to change. Risk management conducted iteratively as new risks and uncertainties
continue to emerge during processing. Iterative define as number of processes used to identify,
evaluate, monitor and manage risks. When managemenet formulate any decisions based on risk
information, these proven processes are used and it is seen that information is reliable. Iterative
risk management firstly identifies high-level risk in processes and manages them. After this, low
level risks are managed. With the development of this iterative approach for risk management
time can be saved.The iterative process of project risk managmenet plans that how the risks will
be identified, analyzed, and managed during product life cycle. Main aspect of iterative risk
management is repetition.
PROBLEM 2: TAILORING RISK MANAGEMENT
Tailoring is mandatory due to uniqueness of every project. PMBok does not identified every
process, tool & techniques and output required on every project. The competing constraints of
scope, time, cost, schedule, resources, quality and risk should be addressed in tailoring. Along
with this, project management tailoring decisions may be affected by the consideration of
customers whether they are internal or external to the organization. Tailoring risk management is
used to tailor or adopt the processes of project according to the definite project characteristics.
SALIENT CONSIDERATIONS IN PLAN RISK MANAGEMENT:
A part of the plan risk management is to meet the consideration by tailoring risk management
processes, and outcomes as the result of processes are noted in risk management plan. Plan risk
management is process used to define the risk management activities that are conducted in the
lifecycle of project. It ensure that degree, visibility and type of risk management are comparable
to risk and importance of project to organization and stakeholders. Project charter, project
documents are used as inputs in this process. By the usage of expert judgment, data analysis and
meetings as tools and techniques, output of risk management plan is generated.
There are several things needed for consideration while tailoring a risk management process area
of project:
Size of the project determined in terms of scope, duration and time by analyzing the risk
processes as whether there is need of detailed or simplified approach.
Complexity of the project as project requires high level of technology, external
dependencies which makes the project complex Or is it simple enough to tackle risks
easily.
Overall importance of the project for the organization in terms of opportunity or product
innovation.
Development approach used for the project, for example trends in IT projects with usage
of Agile based approach and waterfall approach for construction projects are general
examples of tailoring.
REFERENCES:
DOVAL, E. (2019). RISK MANAGEMENT PROCESS IN PROJECTS. Review of
General Management, 29(2).
Larsson, M. (2013). MANAGING RISKS IN PROJECTS-A case study in successive
calculation
