Assessing the level risk as related to the project management agreement between The Coleman Project L.L.C. (TCP) and J. Smith & Associates (JSA) is critical to meeting all project deadlines. The focus of this risk assessment is related to the office build out, furniture and equipment set up for JSA’s new regional office in Scottsdale AZ. The agreed upon start date of the project is February 28, 2013 with a completion date of May 25, 2013. What is risk as it is related to this project? Microsoft defines project management risk as “A risk is the possibility of an event or condition that would have a negative impact on a project. Risk management is the process of identifying, mitigating, and controlling the known risks in order to increase the probability of meeting your project objectives” (Microsoft, 2013). This definition of risk will stand as a point of clarification between JSA and TCP to establish a basic understanding of project management risk. The TCP project management risk tool used to identify, mitigate or control risk will focus on three areas; overall project risk, subcontractor risk, and risk specific to this project. Overall project risks are risks that are susceptible to any project. Kendrick, (2009) utilized information form the Peril Database and with that data TCP created a matrix representing delays from unmitigated risk see Appendix 1. The list quantifies actual project delays over a specific period of time and then averages those risks identifying the average potential delay per category of risk. This component of TCP risk tools gives a visual of how drastically a risk can delay a project. The impact of a “black swan” was not quantified within the matrix given their rarity but Kendrick, 2008 explains ... ... middle of paper ... ...hared with the TCP technical team in case the missing resources will impact their installation. On the ground the TCP project team primary function is ushering an orderly and efficient fully furnished opening of JSA new regional office. The TCP team will also handle the inventory of all the office equipment and furniture delivered to the site. TCP will have a two person team on the ground with the primary risk being if one or both became ill. The TCP team is confident the risk assessment provided for the J. Smith & Associates Scottsdale AZ regional office build out fully addresses potential risks for delay. Daily emails and weekly reports will be provided to all stakeholders addressing completion progress. Communication to all stakeholders with solutions and updates to the project schedule will be provided immediately if any risk causes or could cause a delay.
William, T., Klakegg, O.J., Walker, D.H.T., Anderson, B., and Magnussen, O.M. (2012): 'Identifying and Acting on Early Warning Sign in Complex Projects', Project Management Journal, 43(2): 37-53
Commonly, the level of control retained by the owner links with the level of risk, and those levels typically have an transposed relationship to the risk and control levels of the contractor (CMAA, 2012). Not all of these delivery methods is suited for every project. For each situation, there will be advantages and disadvantages in the use of any specific method. One needs to carefully assess the specific project requirements, goals, and potential challenges in order to establish the delivery method that offers the best opportunity for success (CMAA, 2012).
Hillson, D, & Simon, P. (2012). Practical project risk management: The ATOM methodology (2nd ed.). Vienna, VA.: Management Concepts.
Calculating Risk- There's always a chance something will go wrong and we can't predict the how, what, when or where in the project process. What we can do is prepare for the possibility when calculating the timeline and cost. Making sure not to inflate the time or cost, but instead put in place an option that clearly states the possibilities and the time/cost associated with the potential problem,
Risk mitigation is also the process of controlling actions, which are identified, and selecting the suitable ones to reduce risk according to project objectives (Pa, 2015). Risk mitigation is important in IT organizations in so many ways. According to Ahdieh, Hashemitaba, Ow (2012), mitigation of risk provides a mechanism for managers to handle risk effectively by providing the step wise execution of the risk handling (as cited in Pa, 2015, pg. 49). Some risks, once identified, can readily be eliminated or reduced. However, most risks are much more difficult to mitigate, particularly high-impact, low-probability risks. Therefore, risk mitigation and control need to be long-term efforts by IT project managers throughout the project lifecycle. There are three types of risk mitigation strategies that hold unique to Business Continuity and Disaster
... this Czopek project can be completed on time and within the allocated budget. SFC already has a comprehensive scope statement in place for this project but must now focus on actions which will ensure long-term project success. Actions such as resource smoothing, risk analysis, contingency planning, phase gating, time phased budgeting, and identifying value-added tools to use in order to measure project success should be completed before beginning the project. In addition, though not discussed herein, the PMBOK Guide recommends regular risk reassessment and control of the change request process (2013). Finally, SFC should determine a meaningful means of identifying, collecting and cataloging lessons learned for future projects. This will help them develop and enhance their project management maturity through the use of relevant data for use in future projects.
(3) Michael E. Thorn - Article Title: Applications of Technology and Risk Management. Journal Title: SAM Advanced Management Journal. Volume: 66. Issue: 4. Publication Year: 2001. Page Number: 4+.
APM (2006) shows that “the project risk management must be built into the management of projects, and should be used throughout the project life cycle”. Therefore, monitoring and controlling the multiple tasks of the...
I found out that as a project manager, I should not focus on dealing with problems but rather preventing them altogether. I can remember vividly some years back that even after a strong probability showed that an El Niño phenomena was about to hit our project area; our project manager went a head with a software installation project that we were working on as a team. Not withstanding, the floods were every where and our project that was to take a week came to a stand still and took four more weeks and also some of our work was damaged by the water. Technically, we had to start the project again, resulting in the decrease of the value of risk management. Consequently, if our project manager had an effective risk management in place, then it could have helped to increase the probability and impact of positive risks or opportunities. I also noticed that when we eliminate threats and increase opportunities, the estimate for work can decrease in terms of cost, time, scope and schedule/milestone. It is also necessary to determine at a high level the amount and areas of potential risk on the project. Nevertheless, the risk management efforts should be appropriate to the size and complexity of the project, as well as the experience and skill level of the project team. For example, in our organization, we use probability and impact matrix as a standard rating system to promote a common understanding of what each risk rating
I am also accredited by the Project Management Institute (PMI), as a Risk Management Professional (PMI-RMP), which proves my sound understanding of projects risk management. My in-depth knowledge of risk management assisted me to transform Atlas’ risk management process from Naïve to Natural maturity in order to address the entire risk management process including qualitative and quantitative risk management. I introduced, initiated, and developed the risk management system and provided training to other project controls team to ensure successful establishment and implementation of a comprehensive risk
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
In this competitive world, companies have to deal with various types of risk all the time with there projects. Generally, it affects the budget and schedule of the project. So it is important to keep in mind the risk management strategies while creating an initial project plan.
In addition, risk is a measure of the consequences of the occurrence of the unexpected, rather than the odds that it will happen (De Marco, 2011: 175). All projects comprise of a substantial amount of risks. Therefore, the project management is ought to manage uncertainty as well as variation. The risks associated with construction projects are various. Examples may include climates and commercial prices. Risks in construction projects are crucial because they affect the quality, time and cost of the project. . Risks are the most common reason for projects to finish late and cost more than they should. For this reason, the effectiveness of risk management can never be over-emphasized. Thus, risks must be identified when planning for the project. This entails figuring out the unexpected events with possible
Risk is a factor that may interfere potentially with successful completion of project. Project manager can handle some projec...
Software risk management concentrates on developing a product with better quality attributes such as security, reliability, performance, .. etc. and the uncertainty associated with the product development. It helps project managers in avoiding unpredicted catastrophic problems. Also, it prevents wrong allocation of resources and taking decisions without proper knowledge or adequate information on anticipated future consequences [48]. To manage software development projects, managers and developers should rely on processes, methods and tools to facilitate assessment, prioritization and mitigation of various risk aspects. Therefore, risk assessment is an essential part in the management of software