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Five risk management straegies
Principals of risk management
Five risk management straegies
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Executive Summary Risk management is a major success key of project management in business world. With major budget overruns in parallel with significant delays, Sydney Opera House is a real example of poor risk management. Risk management requires effective planning, budgeting, and scheduling. First of all, the highest risks should be identified and evaluated in order to find methods to reduce their impact and exposure. Then, factors that cause risk should be addressed while factors that only correlate with the negative impact but do not affect it may be omitted. At this stage, interrelation between various risks should be accounted for to spot the core factors that should be treated in order to ensure effectively and stability of the project's functioning. This report clearly shows the importance of the role of ‘Risk Management’ for the project of Sydney Opera House and way the risk is supposed to be managed in the areas such as planning, budgeting, cost control, quality and scheduling of the project. Moreover, it demonstrates that risk has to be identified before it could be effectively managed. With the proper identification, the projects go into a blind mode and potential threats are ignored which can easily lead a successful project into a failed project. A poorly designed risk management plan will bring in further risks and uncertainties and this will only result in a more complex and out of control situation in terms of effective project management. Introduction Risk management is among the most important practices in the field of project management. A successful project completion and risk management often go side by side. An interesting aspect of project management is that a project can sti... ... middle of paper ... ...nt Institute, Sylva, NC, USA. (16) Ramroth, Jr., William G., 2006, Project Management for Design Professionals, . Chicago, Illinois : AEC Education. (17) Sydney Opera House, 2009, “House History Proudly Sponsored by Baulderstone Hornibrook.” ,10-5-10, http://www.sydneyoperahouse.com/about/house_history_landing.aspx. (18) Söderlund, Jonas, Christian Berggren, and Christian Anderson, 2001, “Clients, Contractors, and Consultants: The Consequences of Organizational Fragmentation in Contemporary Project Enviroments.” Project Management Journal, 32.3, pp.39-48. (19) UNESCO, 2009, Sydney Opera House , accessed 10-5-10, World Heritage, http://whc.unesco.org/en/list/166. (20) Weaver, P. and L. Bourne ,2002, Projects - Fact or Fiction? PMI Conference - Maximising Project Value, Melbourne. (21) Winch, G. M., 2003, Managing Construction Projects. Oxford, Blackwell Pub
Kerzner, H. (2013). Project Management: A Systems Approach to Planning, Scheduling and Controlling. Hoboken, NJ: Wiley.
Project Management Institute, 2008. A Guide to the Project Management Body of Knowledge. 4th ed. Newton Square, Pa.
Graham, R. J. & Randall, L., Creating an Environment for Successful Projects: The Quests to Manage Project Management, second ed. San Francisco: Jossey-Bass, 65-113, 2003.
Quality standard for project 5 14. Project resources 5 15. Risk management 5 16. Timeline 6 17. Conclusion 6 Part 2 6 1.
Kezner, H. Project Management: A Systems Approach to Planning, Scheduling, and Controlling. 6th. New York: John Wiley and Sons, Inc, 1998. Print.
Project Management Institute . (2008). A Guide to the Project Management body Of Knowledge. Newton Square, PA: Project Management Institute, Inc.
Project Finance involves not only major capital investments, covered most of the time by different lenders or syndicate groups, but also intense and extensive risk management which definitely have to be managed by a well formulated plan from day one in order to prevent any type of delays on projects of such enormous importance.
17} For any event or any project “risks” are the essential part. So as a project manager you should be able to deal with any kind of the risks that will occur.
Patanakul, P., & Milosevic, D. Z. (2010). They are business leaders at Spotlight Corporation. In D. Z. Milosevic, P. Patanakul, & S. Srivannaboon, (Eds.), Case studies in project, program, and organizational project management (pp.409-416), Hoboken, NJ: John Wiley &
Works Cited Dobson, M., & Leemann, T. (2010). Creative project management. Retrieved from http://books.google.com/books?id=YIxQ57bB0bAC&pg=PA130&dq=ISBN9780071739 337&source=gbs_toc_r&cad=4#v =onepage&q&f= false Fleming, Q. W. (2003).
These are the specific risks involved to a particular project or program. The organisations continuously undertakes specific projects, which should be managed with consistency with the legal obligations to be kept in mind. There are significant program management methodology which spell out the requirement and clear risk management approach within the project environment and align by the whole of the AS/NZS ISO 31000:2009 Risk management – Principles and guidelines.
This paper will reflect on the different uses of Project Risk Management and ways in which it can benefit organizations to have the ability to identify potential problems prior to the problem occurring. Risk, this is not something to be taken lightly whilst dealing with matters that include high end projects meeting specific details, deadlines and expectations for the end client. Project risk management teaches one to be aggressive early on in the phases of planning and implementing the tools for a project. This is usually easier as costs are less and the turnaround time to solve the issues at that present moment is beneficial rather than later. The result in a successful project for one’s self and other key people involved in the process is also another requirement. Stakeholder satisfaction is important because the
Project schedule and risk management are some of the most important components of project management. These components play a crucial role in project planning, which is a process used to organize various areas of a project such as workloads and management of the project team. Project schedule basically refers to a listing of the activities or tasks, milestones, and deliverables of a project that includes the expected start and finish dates. In essence, a project schedule is a tool that provides information about the tasks to be carried out, required resources to perform these tasks, and the timeframes in which each task will be completed (“Project Scheduling”, n.d.). Risk management is a process through which a project manager and team predicts risks, estimates impacts of these risks on the project, and describe reactions to these issues. This process usually involves the preparation of a risk management plan or outline in order to accomplish these goals. In attempts to avoid the evaluation becoming stale and failure to reflect actual probable risks of the project, risk management plans should be reviewed periodically by the project team.
When planning a new project, how the project will be managed is one of the most important factors. The importance of a managers will determine the success of the project. The success of the project will be determined by how well it is managed. Project management is referred to as the discipline that entails the processes of carefully planning, organizing, controlling, and motivating the organization resources so as to foster and facilitate the achievement of specific established and desired goals and meet the specific criteria of success required in the organization (Larson, 2014). Over the course of this paper I will be discussing and analyzing the importance of project management.
In this competitive world, companies have to deal with various types of risk all the time with there projects. Generally, it affects the budget and schedule of the project. So it is important to keep in mind the risk management strategies while creating an initial project plan.