This website uses cookies to ensure you have the best experience. Learn more

Risk Management: Integral Part Of Project Management

2584 words - 11 pages


Project Management Plan Paper
Risk management is an integral part of project management. In the current economic scenario, companies have had to deal with numerous uncertainties dealing with unemployment, credit crunch, deflation, devaluation of assets, and political uncertainty. As a result, many of the projects within these companies inherit these uncertainties. A successful project manager should identify these uncertainties or otherwise “risks” and prepare an action plan for readiness to mitigate such risks. Companies like P&G have mastered the art of managing uncertainty through strategies like Environmental Risk Assessment (ERA). “Conducting ...view middle of the document...

However, from the scenario; during the planning of the project, database specialists are assigned on a part-time basis working 20 hours a week. As per the schedule of the specialists, they are to work on development of an information interchange for ABI and FAFS. This strategy on focusing specialist resources on two priority projects will lose the focus of the specialists and perhaps increase the period across both projects. The preferred approach would be to create a project priority committee consisting of members from both FAFS and ABI. This committee should consider the priorities of these two projects and allocate resources accordingly.
The second event is the change in management priorities that takes place and the information interchange projects secures a higher-priority from FAFS management. The first issue is that change in management priority was never a risk item in the scenario. However, a brief look at the historical data provides evidence to the contrary. The risk item of change in management preferences is a high point of 0.8 in terms of impact and 0.60 as probability. This risk needs consideration by the project management of Integra with an accurate response. In the event of the occurrence, the project manager should be in a position to refer the issue to the priority management board suggested earlier for approval and acceptance of the action plan to manage the risk. It may very well be that the committee may consider the suggestion of the project manager to do the project in-house, but reduction of the risk because of ad-hoc nature of the project prioritization can take place. The probability that the priority committee may refer the change back to the FAFS management and seek clarifications on the need for re-prioritization is high. This may end up in a high-level review meeting that can take data driven decisions on the future of the projects. The point of my suggestion is need for the project management to be part of this decision evaluation process rather than mere execution. Because of this involvement, the engagement of the project manager will increase to achieve the objectives of FAFS management.

Project Schedule
The schedule for project Integra can follow the below phases,
1. Design Phase
This phase consists of the network, database, and application programmers constructing the design of the end solution. The team provides due considerations to performance, compliance to FAFS protocols, downtimes, maintenance, and support of Integra. Application teams, networking specialists, and database specialists can start working in parallel and base schedule for a finish-to-finish relationship. Milestones can be signoff on the design documents for network, application, and database from project review committee and FAFS concurrence. The other significant milestone will be order placement of equipment and third party software.
2. Prototyping Phase
Delivery of a proof of concept prototype with wireframes can be part of...

Other Essays Like Risk Management: Integral Part of Project Management

Risk Management Essay

2422 words - 10 pages companies, etc.), that they will take poorly informed * decisions that make the risk environment worse; * to all parties, in that a lack of understanding of risk leads to inefficiency where each pays more and makes less out of the venture. 2.2. Risk Management Risk management is the process by which the likelihood of risk occurring or its impact on a project is reduced. It has five steps: 1 Identify the potential sources

Risk Management Essay

5016 words - 21 pages number of risk management standards, including those developed by the Project Management Institute, the International Organization for Standardization. Some may ask what does that mean, what is the purpose of risk management. The purpose for risk management was to protected people, and companies for example health care organization from losses that was associated with accident. There were many different type of risks for example, unexpected death, a

Risk Management


Risk Management - 526 words

526 words - 3 pages Public trust is a major concern when it comes to managing risk policies. The base of risk management is necessary for the company to grow and move into its full potential. Weak policies can lead to vulnerabilities in our infrastructure and network allowing potential threats to the integrity of the company. Credit card information, confidential information, wireless connections and other assets can all be taken without proper management. What

Risk Management - 1633 words

1633 words - 7 pages Chapter 2 Objective of Risk Management I. Multiple Choice 1. The fundamental objective of risk management is: a. diversification b. minimize the cost of risk c. hedging d. loss control Answer: b Type: K 2. If unexpected increases in losses from price risk are not offset by cash inflows from insurance contracts, hedging arrangements or other contractual risk transfers, they will result in: a. an increased stock price b

Risk Management - 1416 words

1416 words - 6 pages losses are privately insured (e.g. Katrina event with US$ 45 billion privately insured vs. US$ 28 billion from federal flood program). 7. How can risk aversion explain the willingness to invest in risk management by individuals? Risk aversion is the reluctance of a person to accept a bargain with an uncertain payoff rather than another bargain with a more certain, but possibly lower, expected payoff. A risk averse person will be willing to

Risk management

681 words - 3 pages tuning their ERM function. In 2002, the Committee of Chief Risk Officers (CCRO) was formed to study and report on best practices and emerging best practices for risk management within the energy industry. Conferences specifically headlining ERM are prevalent. ERM books and case studies also are on the rise. Even insurance firms are addressing the management of insurable risks from an enterprise perspective. In summary, the resources for developing

Risk Management - 611 words

611 words - 3 pages Loss depends on the goals and success of attacks 2. Determine which of the six risk management techniques is appropriate for each risk explained in Task 1. • Loss of confidentiality – Someone sees your password or a company’s “secret formula.” Answer: Stolen Data, Social Engineer, Users • Loss of integrity – An e-mail message is modified in transit, a virus infects a file, or someone makes unauthorized changes to a Web site. Answer

Risk Management - 2514 words

2514 words - 11 pages risk if financial crisis arises. There is no need for them to have large number of working capital even though general principle says so. When it comes to working capital management, there are two dimensions: “time and money”. The faster company can generate funds; the more money business able to make. Different firms need to adopt different strategy on the decision of working capital policy. Further Reading Case study of Kmart and Wal-Mart

International Risk Management: an Analysis of 3m's Foreign Risk Management

5283 words - 22 pages 08 Fall 08 Fall ABSTRACT This paper is written with a purpose to give a strategic advice to 3M’s current CFO D.W. Meline how to manage 3M’s future exposure of the foreign exchange rate risk. In doing so, the overall profile of the company is discussed; the current foreign exchange risk management

Project Management

2795 words - 12 pages uncomfortable with each other. In order to follow this “golden” rule it is necessary to have employees that are all at an excellent level of performance and competence. Only under the condition of considering this factor senior can be sure to obtain well-adjusted performance. The proper work of the project teams, being an integral part of project management, starts being one of the primary milestone tasks. Cleland considers alternative teams to be

Related Papers

Project Risk Management Plan Essay

2871 words - 12 pages improved for the future. A project manager has to be able to weigh risk, and establish contingencies to resolve risks of the project for the present and future outcome of the Project Integra. Management ResponsesThe first issue for the project manager is to deal with is the weak commitment of the database personnel, and evaluate how to handle the loss of resources since management has requested the assistants from the Database Specialists. The

Effects Of Risk Management Essay

537 words - 3 pages Effects of Risk Management in Oil & Gas Industry Presented By: Sandeep Kumar R020209061 MBA OG IIIrd Sem Introduction Risk management is:- The ability of responding to unexpected environmental and market changes. The ability of recognizing the potential occurrence of extreme conditions. The ability of understanding the nature of unfortunate events. The ability of recovering from the disasters efficiently. Contd…. In 2007-2008

Risk Management Essay 1616 Words

1616 words - 7 pages Defense Logistics Information Service RISK MANAGEMENT PLAN IS3110 FINAL PROJECT PART 1 TABLE OF CONTENTS 1.0 INTRODUCTION 3 1.1 Purpose Of The Risk Management Plan 3 2.0 risk management Procedure 3 2.1 Process 3 2.2 ROLES AND RESPONSIBILITIES 3 2.3 Risk Identification 4 2.3.1 Methods for Risk Identification 4 2.4 Risk

Risk Management Essay 4131 Words

4131 words - 17 pages and risk management results were considered of more importance than their policies and intentions. 9 1.5 Contribution of study Risk management has become an integral part of international business strategy and accountants are using a variety of quantitative tools to measure and analyse risk. Among the tasks of the CFO lies the responsibility for identifying and addressing all types of risk, establishing support and control mechanisms