Week 2

Risk management and project management of hand in hand.

Managing a project never been easy when it comes to risk management. All the team player as well as leaders need to have a clear understanding of the issue, and goal of the organization, which will further provides the guideline. Risk management team might found themselves always dealing with the uncertainty, and unexpected events throughout the Project life cycle, which have positive (“opportunities”), or a negative impact on a project’s objective.

Every organization usually has a comprehensive guidelines and detail procedure for risk management, which are stated during the strategic planning. As far as the managing the risk, the project management institute has provided a comprehensive process to managing project risk:

-       Plan risk management

-       Identify risks

-       Perform qualitative risk analysis

-       Perform quantitative risk analysis

-       Plan risk responses

-       Monitor and control risks.

I completely agree with the article, and his considerations for risk management:

-       Risk management does affect the budget, schedule, scope, quality, communications and stakeholder engagement, as well as the success of the project’s output is implemented.

-       Risks can be positive (could create opportunity) and negative (if issues or attack happens)

-       So careful strategic planning for risks will help team to avoid the issues and prevent from negative impact as well as maximize the positive impact or risk.

-       Risk management should be prioritize from the initial stage of the project and constantly discussed as well as monitored, and involved all the team members throughout the project life cycle.

-       Skill of risk management could influence stakeholder’s appetite for risk.

like in the article mentioned, “Risk management is project manager’s friend if done well”. There is always a case of encountering unknown risk from unknown source and could cause unknown trouble, so assessing reasonable risks from the initial stage of project and actively managed throughout the life cycle of project will certainly influence the project’s positive outcome and successful implementation of project.

Reference:

Hamilton, Gary. Byatt, Gareth. Hodgkinson, Jeff (03 May, 2011),  “Risk management and project management go hand in hand”. Published on CIO.com, Retrieved From: http://www.cio.com.au/article/print/385084/risk_management_project_management_go_hand_hand/