Types of Poject Management

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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

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