Reflection and Discussion Forum Week 2
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Dec 6, 2023
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Reflection and Discussion Forum Week 2
Chapter 4 discusses risk management in projects, serving as a bridge between theory and
practice. They discuss a step-by-step cycle for managing project risks, which can be customized
for different projects and industries to learn from one project to the next. Before starting any
project, it is crucial to comprehend the project's environment, both internally and externally. This
lays the foundation for identifying potential risks and hazards that may arise. It is crucial to
analyze and assess these risks to make informed decisions regarding their management. Effective
risk managers keep track of potential risks throughout the project, learn from them, and take
appropriate action if necessary. The chapter illustrates effective risk management by using
project examples and emphasizing the importance of asking the right questions. In conclusion,
the Project Risk Register (PRR) template is introduced as a document that outlines the required
documentation for risk management. Subsequently, the following chapters will provide more
detailed information on each aspect of the risk management process, beginning with establishing
the project's context.
In Chapter 5, the crucial role of having a comprehensive understanding of the environment and
context of a project before addressing its risks is highlighted. This comprehension influences all
stages of risk management, including identifying potential risks, analyzing them, and
determining how to handle them effectively. It is advised to hold a workshop where stakeholders
can discuss and explore the project and its environment. This approach has significant
advantages as it provides a clearer understanding of the project and helps the project team and
organization comprehend the associated risks. Additionally, it assists them in making informed
decisions about those risks. Once we have a better understanding of the project, we can more
effectively identify its risks.
Chapter 6 talks about how to find the specific risks in a project. After we have set up the project's
context, we start looking for the things that might go wrong. The best way to do this is to have
workshops where people talk about the project and the decisions being made. This helps discover
the risks linked to those decisions. The timing of these workshops depends on how the project is
organized by the different organizations involved. There are different techniques to help find
these risks, like thinking about project activities, using numbers and data, making lists, and being
creative. All these techniques involve brainstorming. However, being too creative can lead the
process away from its goal, so it is essential to stay on track. The main idea is to find risks at the
right time in the project's progress.
1. Factors that contribute to a project being considered high risk:
Complexity: High-risk projects often involve intricate tasks, technologies, or processes.
Uncertainty: Projects with many unknowns or uncertainties, such as unpredictable market
conditions or evolving technology, are at greater risk.
Size and Scale: Larger projects with substantial budgets and extended timelines typically
have higher inherent risk.
Resource Constraints: A need for more essential resources, including skilled personnel,
funding, or equipment, can elevate project risk.
External Factors: Economic, political, and environmental factors beyond the project's
control can significantly impact risk.
Stakeholder Expectations: Differing expectations and demands from project stakeholders
can increase the risk of misalignment and project failure.
Technology and Innovation: Projects involving cutting-edge technologies or innovative
approaches may carry higher risks due to potential unanticipated issues.
2. Three primary types of project risk:
1.
Business Risk: These risks are linked to the project's impact on the organization's goals
and objectives and encompass market demand, competition, and financial risks.
2.
Technical Risk: Technical risk relates to challenges associated with technology, design,
development, and implementation, including software, hardware, and other technical
components.
3.
Project Management Risk: This category includes risks associated with the planning,
execution, and control of the project itself, such as scope changes, scheduling, budget
overruns, and resource allocation.
3. Steps to write an effective project risk:
1.
Risk Identification: Identify potential project risks involving relevant stakeholders,
utilizing techniques like brainstorming, and considering historical data.
2.
Risk Description: Provide clear, specific descriptions of each risk, including its nature,
potential consequences, and the likelihood of occurrence.
3.
Risk Assessment: Assess each risk's impact and likelihood using qualitative (e.g., low,
medium, high) or quantitative (e.g., numerical scales) methods.
4.
Risk Response: Develop strategies for each risk, which may involve mitigation,
acceptance, avoidance, or transfer (e.g., through insurance or outsourcing).
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5.
Risk Monitoring: Establish a continuous monitoring process to track identified risks
throughout the project's lifecycle, effectively managing risks and identifying new ones.
6.
Reporting and Communication: Communicate risk information clearly and regularly to
all relevant stakeholders, updating risk registers and reports as needed.
7.
Contingency Planning: Develop contingency plans for high-priority risks, outlining
actions to be taken if these risks materialize.
8.
Integration with Project Planning: Integrate risk management into the project plan,
budget, and schedule, allocating time and resources for risk management activities.
References and Citation
Edwards, P. J., Serra, P. V., & Edwards, M. (2019). Managing Project Risks. Wiley Professional,
Reference & Trade (Wiley K&L).
https://reader2.yuzu.com/books/9781119489733
Sadeh, Zwikael, O., & Meredith, J. (2022). Organizational support as an effective risk mitigation
approach. International Journal of Managing Projects in Business, 15(7), 1123–1143.
https://doi.org/10.1108/IJMPB-02-2022-0045