The Pros And Cons Of Risk Management

It is not uncommon in an organization to view project risk management as a negative aspect of a project. Risk Management is often view as the “traffic” police of a project and they are there to penalize project members for poor performance or project that struggle with difficulties. The CIO group cites some very specific considerations that organizations should contemplate when managing a project. The CIO group indicates that a well-managed project also has a well disciplined approach to risk mitigation both positive and negative (Hamilton, Byatt, & Hodgkinson, 2011, para. 1). The article in the CIO group (2011) goes on to indicate some points to consider for Risk Management:
• Risk management affects all aspects of your project
• Risks

Anytime you are collecting personal and private information in a system that is accessible via an internet or an intranet, there are considerable points for potential exposure which introduces negative risks to the project.
Negative Risks (Threat)
I. Compromise of personal information
With the implementation of an electronic HR system that will capture or house personal information such as financial information, address information, social security and tax related information. There is significant risk of both internal and external exposure of this data to un-authorized sources.
II. Inaccurate or mis-entered data
Allowing customers to participate in a self-help oriented system where users are allowed to enter their own personal information, introduces a different level of risk into the completeness or accuracy of data.
III. System Acceptance
With the introduction of any new system there is always a risk of the system being wholly and widely accepted. Without the acceptance of a new system is it very difficult to leverage the return on investment for the expense and resource allocation that was make to develop and implement the system from the outset.
Positive Risks (Opportunities)
I. Timely data

The process
Mitigating Risk is all about a repeatable process. To effectively manage both the treats and opportunities that you encounter in a project, the project manager must be well aware of the differences and have the necessary skillset to mitigate them. The process for responding to these challenges is to Identify, Access, Control, and Respond to the Risk ("Risk, Issue and Change Management," n.d., para. 7).
i) Identity – Identify and record the situation for any tasks or issues which my negatively or positively affect the project. ii) Access – Communicate the issue to the project members and stakeholders once the impact to the project has been assessed so that decision can be made. iii) Control – Once the risk has been assessed and the impact has been identified, measures and actions must be put into place to control the outcome of the risk. iv) Respond – Proactive or Reactive responses need to be devised and assess in their own right to determine if the response is the correct measure.
The strategy and