Types of Poject Management

817 Words2 Pages
bulb-icon

Recommended: The role of risk management in project execution

Project Risk Management (PRM) is one of the properties in management that a project manager must take account into for a proper planning and help smoothing of the project. PRM contains of identification, analysis, response plan, monitoring, and controlling plan. ‘Risk’ often measured against the three basic properties such as scope, time and cost. It is better for a project to manage the risk at early stage such from conception stage until the support stage (Ward and Chapman, 2003).
The word ‘risk’ can be defined as ‘the relevant uncertainty’. A more refined definition will be ‘the uncertainty that will affect one or more objectives which is in other words are relevant uncertainty’. It is common for the word ‘risk’ to be confused with uncertainty since it brings ambiguous meaning and feeling.
Although it may sounds easy to define the word risk, Dowie (1999) does not think it so. He finds that it is hard to define the word risk as stated above, it brings an ambiguous meaning and often confused with ‘uncertainty’ and he supported the way Kaplan (1997) viewed the word ‘risk’. Both of them try to claims that the meaning of word ‘risk’ is dependent with a person perspective. For example, according to US Project Management Institute (PMI), risk is defined as ‘an uncertain event or condition that if it occurs, it has a positive or negative effect on a project objective’ and UK Association of Project Managers (APM) defined that risk is ‘an uncertain event or set of circumstances that should it occur will have an effect on the achievement of the project’s objectives’. Although the definition between PMI and APM are similar, it might be differ from another profession perspective. Kaplan (1997) viewed was justified when according to Permi...

... middle of paper ...

...of Uncertainty Management.
For the same example stated above of manager X and Y, it is simpler for them to identify the uncertainties at the same time rather than weigh it out directly without doing a full investigation on the uncertainties. Uncertainty might affect a project manager better in viewing a project and way of them to understands, plan and controlling it.

Works Cited

Dowie, J. (1999) Against risk, Risk Decision and Policy, 4(1), 57-73, Routledge

Perminova, O et. al (2008) Defining uncertainty in projects – a new perspective, International Journal of Project Management, Volume 26, Issue 1, pp 73-79

Ward, S. and Chapman, C. (2003) Transforming project risk management into project uncertainty management, International Journal of Project Management 21, pp97–105, Elsevier

Kaplan, S. (1997) The word of risk analysis. Risk Analysis, 17(4), pp 407 – 417

Show More
Related

  • Operations Management Metrics

    917 Words  | 2 Pages

    Gray, C., Larson, E. (2008). Project Management: The managerial Process. New York, NY: The McGraw-Hill Companies Inc.

    Read More

  • Kenneth Arrows Response Paper

    466 Words  | 1 Pages

    Product uncertainty is relevant with what we see often in medicine today; for example an individual can be diagnosed with cancer a team needs to consider the appropriate treatment for this individual. Another example is when a patient needs a organ transplant many time to the progression of the individuals

    Read More

  • Optimism Bias in Project Management

    3404 Words  | 7 Pages

    Projects are widely used by many organizations and government institutions in the course of conducting their business. One of the reasons for this is because they have been proven to be effective in initiating change and translating strategic programs into daily activities. However, it has been established that most projects fail to deliver on time, budget, and customer specifications. In most cases, this failure is caused by over-optimism by the project management team. This over-optimism commonly referred to as optimism bias can simply be defined as overestimating the projects benefits and conversely underestimating its cost and duration time. Research have portrayed that this is often caused by failure to properly identify, understand, and manage effectively the risk associated with the project therefore putting its success at jeopardy(Mott McDonald, 2002). Fortunately, this biasness can be detected and minimized during the project gateway process.

    Read More

  • The Challenges Of Earned Value Management And Risk Management

    1345 Words  | 3 Pages

    In today’s uncertain economical business environment there is an understandable pressure to improve the quality of decision making at all stages of the project. A number of techniques have been developed to address this concern, two of the leading approaches used in the construction industry are Earned Value Management and Risk Management (Hillson, 2004), those two approaches share a common aim of providing decision makers with the best information available when setting objectives and considering management strategies. However, they take differing approaches, Earned Value Management establishes project performance status and extrapolates that information to gain an understanding of future trends and the allocation of resources needed to successfully

    Read More

  • Leadership

    1238 Words  | 3 Pages

    Gray, Clifford F.; Larson, Erik W., Project Management – The Managerial Process, Copyright © 2001 by The McGraw-Hill Companies, Inc.

    Read More

  • Flayton Electronics Case Study

    929 Words  | 2 Pages

    The project management plan will help the organization to manage all the foreseeable risks in a timely, proactive, effective, and appropriate manner. The aim of the project management process is to maximize the chances of the project achieving its objectives, while minimizing the risks and keeping them at an acceptable level. The scope and objective of the risk management plan are as follows:

    Read More

  • Assessing Task 2: Determining The Risk Factors

    878 Words  | 2 Pages

    In the majority of all project activity, it entails some kind of risk of which may overall impact the successful project completion. Upon the completion of the project with its scope, tasks, budget and timeline, it is imperative to make an overall risk assessment to access any risk that may be considered impactful in the project (Lock, 2007). Any associated risk assessment is well-thought-out

    Read More

  • The Sydney Opera House

    3125 Words  | 7 Pages

    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...

    Read More

  • Risk Management Framework Essay

    1318 Words  | 3 Pages

    The risk management process needs to be flexible. Given that, we operate in the challenging environment, the companies require the meaning for managing risk as well as continuous improvement in identifying new risks that will evolve and make allowances for those risks that are no longer existing.

    Read More

  • Thesis Statement For Risk Management

    2180 Words  | 5 Pages

    Risk Management is the process of identifying, analyzing and responding to risk factors throughout the life of a project and in the best interests of its objectives (Stanleigh, 2015). This paper is focused on the trends and methods of managing risks in a project. It also analyzes different ways of mitigating risks in a project and why risk management is important in an information technology (IT) environment.

    Read More

  • Reflection On Project Risk Management

    1157 Words  | 3 Pages

    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

    Read More

  • Managerial Economics Analysis

    1554 Words  | 4 Pages

    These types of uncertain circumstances arise when the individual does not know the precise trade-off, such as purchasing stocks and bonds. Key concepts used to mitigate risk are titled Expected Value, Variability, Risk Aversion, Certainty Equivalent and Risk Premium, and Risk Aversion and Compensation. The first concept, Expected Value, is defined as the weighted average of all the possible outcomes, where the probability of each outcome is used as the weights. The expected value is used to soften risk by measuring the average payoff that will occur. An example of this would be turning a paper with three questions on it. The concept of expected value is calculated by multiplying the probability of each outcome (1/4) by each possibility (0, 33, 66, and 100), then adding them all together, to find the average (50), or expected value. Once Expected Value is calculated, it is important to follow up with the next concept, Variability, because the expected value is not certain. Variance, meaning the measure of variability, can be found by multiplying the probability of each outcome (1/4) by the difference between each possible payoff and the expected value (0-50, 33-50, 66-50, and 100-50), squaring each individual calculation, then adding each calculation together (619). However, the

    Read More

  • Risk Management Strategies

    1713 Words  | 4 Pages

    Risk is the potential loss resulting from the balance of threat, vulnerabilities, countermeasures, and value. ...

    Read More

  • uncertainty

    893 Words  | 2 Pages

    Every business today deals with uncertainty in the future and every firm tries to reduce it as much as possible in order to prevent itself from the effects of uncertainty. Uncertainty in a way is the lack of certainty. In other words having limited knowledge about the present state and future outcome. This limited knowledge for companies becomes dangerous when they do not know what is going to happen in the future. Firms mostly used traditional approach all their life but since all the uncertainties cannot be forecasted by it other approaches are used as well.

    Read More

  • Essay On Importance Of Risk Management

    709 Words  | 2 Pages

    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.

    Read More

More about Types of Poject Management

Open Document