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Factors influencing project risk management
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Factors influencing project risk management
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Project 1
Kiran Yadav Bommanboine
University of the Cumberlands
Summary:
Risk is characterized as an occasion that has a probability of happening, and could have either a positive or negative effect to a project ought to that risk occur. A risk may have at least one causes and, on the off chance that it happens, at least one effects. For example, • Loss of company data due to hardware being removed from production systems
• Loss of company information on lost or stolen company-owned assets, such as mobile devices and laptops
• Loss of customers due to production outages caused by various events, such as natural disasters, change management, unstable software, and so on
• Internet threats due to company products being accessible
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On the off chance that both of these unverifiable events happens, there might be an effect on the project cost, and performance. All tasks take some component of risk, and it 's through risk management where tools and methods are connected to screen and track those events that can possibly affect the result of a project.
Risk management is a continuous procedure that proceeds through the term of a project. It incorporates forms for risk management planning, identification, analysis, observing and control. A considerable lot of these procedures are upgraded all through the project lifecycle as new dangers can be recognized whenever.
This arrangement archives the procedures, tools and methods that will be utilized to oversee and control those events that could negatively affect the Project. It 's the controlling record for overseeing and controlling all projects risks. This plan will address:
• Identification
• Assessment
•
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This is fundamentally a "circumstances and end results" examination. The "cause" is the occasion that may happen, while the "impact" is the potential effect to a project, ought to the occasion happen. For each distinguished risk, a reaction must be recognized. It is the obligation of the project group to choose a risk reaction for every risk. The project group will require the most ideal appraisal of the risk and portrayal of the reaction alternatives to choose the right reaction for every risk. The likelihood of the risk event happening and the effects will be the reason for deciding how much the activities to alleviate the risk ought to be taken. One method for assessing mitigation methodologies is to duplicate the risk cost times the likelihood of event.
Mitigation:
Risk mitigation has two steps:
• Recognizing the different activities to decrease the likelihood as well as effect of an unfavorable risks.
• Formation of a Contingency Plan to manage the risk should it happen.
Contingency Planning:
Contingency planning is the demonstration of setting up an arrangement, or a progression of activities, ought to an unfriendly risk happen. Having an alternate course of action set up powers the project group to think ahead of time as to a game-plan if a risk event
Contingency plan-A rapid response unit to evacuate all individual on board and the implementation of safety procedure e.g. life jackets for each individual.
First, I think that most companies have to stop looking at disaster recovery plan as a cost and view it as an investment with a positive return. Companies should analyze their return on investment, by figuring out the cost of an unprotected system downtime versus a protected system downtime and then divide that by the hourly\recovery. Plus, you have to figure in the total personal hours lost and the cost of lost
I asked Ms. Lyons: What parts of planning are most likely to require a back-up plan and explain why? Her belief is organizations may need to prioritize different areas more than others due to what field the business is in and also consider what processes or units might be used more. Think of total company equipment failure versus needing coverage for an employee that took a sick day. The SWOT analysis is a technique that could be used identify key steps to developing a contingency plan. Analysis recognizes strengths and weaknesses and examines potential opportunities and threats. A company can manage and eliminate threats better that they might otherwise be unaware of. Particularly it helps to unfold opportunities able to use to their advantage. The strategy can provide helpfull data coincides with resources and abilities of the environment in which the business operates. The situation in the SWOT consists of an internal environment which covers weaknesses and strengths. Whereas, the external analysis examines opportunities and threats. So, there is a four-step process you can use to prepare a contingency plan for your business Strength, Weakness, Opportunity and Threats. Strengths would be characteristics of the business or a team that give it an advantage over others in the industry. This can include attributes, internal to an organization. Beneficial aspects of the organization or the capabilities of an organization, process capabilities, financial resources, products and services, customer goodwill and brand loyalty. A weakness is an element that places the organization at a disadvantage compared to others. Detract the organization from its ability to attain the core goal and influence its growth. Weaknesses are the factors which do not meet the standards we feel they should meet.
Hazard mitigation planning is an approach aimed at ascertaining ways to reduce the effects, deaths and damage to property that might result in the occurrence of a natural of man-made hazard.
Contingency management (CM) is a treatment used for alcohol abuse. The treatment encourages positive behavior change by giving out positive reinforcement when treatment goals are achieved and refraining from rewarding or punishing behavior that is undesired (Higginsn & Petry, 1999). For example, if the goal is abstinence from alcohol, refraining from imbibing alcohol might result in a voucher to exchange for time off of work, while drinking alcohol would result in a lack of voucher or having to stay overtime at work.
Information technology relates contingency planning as synchronized strategy that involves tactics, processes and practical measures that ensure the retrieve of data after disturbance, information technology schemes and operation. Contingency planning comprises one or more methods to reinstate disrupted information technology facilities. Information technology (IT) and automated information systems are essential basics in most healthcare processes. The services provided by information technology system operates efficiently without extreme interruption. Contingency planning supports the necessary requirement by creating strategies, processes and practical measures enabling a system recover rapidly and efficiently following a service disaster. Temporary measures comprise the transfer of information technology systems and operations to a different site, the retrieval of Information technology functions using different equipment and the presentation of Information technology functions using physical methods (Moriarty, 2008).
There are three factors that affect contingency plans. The first of these key components is the environmental factor. The next factor is the organizational factor. The environment is bound to change and have an impact on how an organization is run. For example, when FedEx Express went through the September 11, 2001 situation, they boosted security throughout the hub and raised shipping prices to offset the security budget. The same can be said when the president created the new cabinet of Homeland Security to fight the 9/11 attacks. The Unit...
...mpany up and running through any kind of interruptions such as power failures, IT system crashes, natural or man-made disasters, supply chain/vendor problems and more.
A disaster recovery plan is a written contingency plan for responding to a disaster which has disrupted the data processing facilities. Its purpose is to provide a general guide based upon preplanned actions which will reduce decision making during the recovery process and enable resumption of normal operations in the most cost effective manner. The plan includes but is not limited to the following:
Within an organization, different types of planning are necessary to help establish the visions and goals a company has. Strategic and operational planning is essential for the success of a business. For example, Sports Authority has recently filed for bankruptcy, which is likely due to a lack of planning skills. With the addition of strategic and operational planning, the risk of going bankrupt could be significantly reduced. The many planning steps and strategies involved in these types of planning are what eventually produce the most success.
In order to fully understand the concept of a contingency plan, there are a few aspects which need to be explored. We must first define what a contingency plan is, followed by an explanation of why contingency plans are so valuable. Furthermore, an analysis of the implementation of contingency plans should be performed. Lastly, a comparison of such plans from other industries should be done, in order to comprehend the differences in both purpose and criteria.
Some include risks at the enterprise level, managing risks in complex projects and dealing with turnarounds and large capital projects. Liu, Zou, & Gong (2013) explore how enterprise risk management (ERM) may influence the ability and performance of project management risk (PRM) by considering the features of the construction industry, its businesses and projects. Managing risks within projects such as these has become an important process to achieve project objectives in terms of the scope, time and cost. The results show that enterprise risk management can positively influence the implementation of project risk management. This can be achieved through implementing a risk focused culture, setting up risk management departments and setting up risk procedures. This will help control the project risk and improve the performance of project risk management. Communicating the concerns with other team members can help identify the risks earlier on rather than later in the development of the project. If the Stakeholders and managers involved are satisfied then the project outline becomes a
Risk is defined as a possibility of an occurrence in a project, which might be a negative or positive impact on a project, even in decisions made by us in our everyday life there is a certain amount of risk involved in it. For instance, walking down the staircase of our homes an unexpected incident can occur like we stumbling on the stairs which wasn’t foreseen and there are some kinds of risk that you actually kno...
The company experienced a natural disaster that resulted in six production facilities and about 50 of its critical suppliers being impaired on March 11, 2011 (Schmidt, 2013). What helped maintain their value and success, was being prepared for this tragic 9.0 earthquake a year prior to the tragic event (Schmidt, 2013). The company had implemented an earthquake emergency response plan. This was implemented, so they would be able to rebuild, resume and provide the service, which customers had grown to know, while maintaining their competitive edge. They took a bottom-up approach to implement the necessary changes, by getting two employees from each facility to discuss daily operation, processes, warehouse, inventory and address any operational concerns that were present or may arise from all stakeholders.(William Schmidt, 2013). This allowed them to get all the information they would need to make an emergency response plan that ensured their survival through collaboration.
Risk Management allows us to identify the problems which are unknown during the start of the project but may occurs later. Implementing an efficient risk management plan will ensure the better outcome of the project in terms of cost and time.