Reflection and Discussion Forum Week 1
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Dec 6, 2023
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Reflection and Discussion Forum Week 1
Chapter 1: In the Introduction, the authors discuss how to approach projects and the people
involved. They acknowledge that readers may have varying degrees of knowledge about projects
and risks, so they briefly introduce the book's contents. It is like a roadmap that helps you
navigate the process organizationally. Therefore, while the book can be read in any order, all the
chapters are essential for understanding project risk management.
Chapter 2: Overview of Risks This book emphasizes the importance of shared risk management
in project management. The chapter delves into risk's social and psychological aspects while
highlighting that different sources have different definitions. Interestingly, it points out that risk
often has a negative connotation, but it is essentially the impact of uncertainty on achieving
objectives. The author suggests that readers and risk managers should choose the definition of
risk that best fits their needs from various definitions provided by different standards and
organizations. The author also prefers the definition given by ISO 31000.
Chapter 3: Project and Project Stakeholder, of this book focuses on the explanation that projects
can take different forms, whether physical or soft. Projects are intentional efforts with a specific
goal in mind. The text emphasizes the importance of project objectives, as they help us
understand the project's essence and measure its success. Different organizations involved in a
project might have their objectives, leading to uncertainties and risks. The text also touches on
the hierarchy of project objectives, highlighting procurement objectives as one category. It
provides examples of procurement objectives, such as time, cost, quality, safety, and
environmental management. This chapter sets the stage for understanding projects and the
various aspects that come into play when different organizations collaborate on a project.
1. Project risks refer to various problems that may arise during a project. These issues could
include unexpected growth without a proper plan, inadequate financial or human resources, or
potential technological malfunctions. Communication problems among team members, changing
regulations, and unpredictable weather conditions can hinder the project's success. Late
deliveries or non-compliance with legal requirements can also cause significant challenges.
Money management can be complicated, and poor teamwork or unforeseen events such as floods
or computer problems can disrupt the project. The emergence of new leadership can also
introduce fresh issues and delays in receiving necessary resources. Maintaining sensitive
information confidentiality can be challenging, and external factors such as sudden changes in
the global environment can also affect the project's progress. Finally, disagreements over
agreements can be a significant impediment. It is crucial to be aware of these potential risks and
devise appropriate plans to address them.
2. We can consider various factors to find risks in any project.
Project Assessment: Thoroughly assessing project scope, objectives, and requirements;
understanding the size, location, and nature of work.
Regulatory and Environmental Review: Ensuring compliance with the project's legal,
regulatory, and environmental standards.
Resource and Technology Analysis: Evaluating available resources, technology, and team
communication.
Continuous Monitoring: Being prepared for changing circumstances by monitoring
market conditions, global events, weather, safety, and data security.
3. Risk Sharing: In this approach, the organization collaborates with external parties, like
partners or contractors, to distribute the risks. This strategy is most used in joint ventures or
partnerships where both parties agree to share a project's potential rewards and risks. Risk
Diversification: One effective strategy to minimize risks is diversification. This involves
spreading investments, projects, or other activities across different areas. By doing so, an
organization can reduce its exposure to specific risks. For instance, a financial institution might
diversify its investment portfolio to mitigate the risk of significant loss in any area. Risk
Retention: Organizations can either transfer or mitigate their risks but can also choose to retain
them. This involves a conscious decision to acknowledge the risk and prepare the necessary
resources to handle any adverse effects that may arise if the risk occurs. This approach is often
used for risks with a low probability of occurring or potentially resulting in relatively minor
consequences. Risk Monitoring and Review: This strategy focuses on continuous monitoring of
potential risks throughout a project's lifecycle. By staying alert and regularly reviewing risk
factors, an organization can respond promptly to any changes in existing risks or the emergence
of new ones. This strategy works with other strategies to ensure risk management is an ongoing
and consistent process.
Reference 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
Hall, H., & Hall, H. (2022, December 6). 7 Ways to Identify Risks. Project Risk Coach.
https://projectriskcoach.com/7-ways-to-identify-risks/
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Saraev, N. (2023, June 28). Risk Management: How To Identify, Analyze, And Mitigate
Project Risk - Day.io. Day.io.
https://day.io/blog/risk-management-how-to-identify-analyze-and-
mitigate-project-risk/