Risks in Project Management Practices - Essay Example

? Risks in Project Management Practice Risks in Project Management Practices A risk in the management of projects is an action takenor not taken to achieve a desired outcome. Many organizations take up risks, which either ends up making them realize great profits or unexpected losses. Risk management is the establishing and arranging of the established risks according to their priorities irrespective of their impact by carefully applying the resources involved to avoid business losses. Risks can occur from various sources, which may include stock markets, project designing process, legal aspects, and accidents. In reference to the given case study, this paper will dwell on the risks that the Emperor Phone Company stands a chance of facing during its product launch. Emperor is a renowned mobile handset manufacturing company, which competes on the global markets with key players like Samsung, Nokia among many others. It will also give a detailed approach to the necessary steps that it will need to undertake to ensure that the launch of its ‘myphone’ smart phone is a success. Lastly, it will highlight the impacts of its taken risks to ensure that it beats its bitter rival Apple in capturing the phones market before its rivals launch their ‘iPhone’. Risk identifier register As per the case study provided, the Company’s CEO acquired information that Emperor’s bitter rivals, Apple, were set to release a new phone product. With this kind of information at hand, Emperor decided that it was going to utilize it by developing a product that would correspond to what their rivals intend to roll out. The launch date of its products is set for February 1, 2013 just a month before Apple’s ‘iphone’ hits the market. Risk description In the project mandate issued, the first risk involved would be legal due the fact that the two products would seem as though one imitated the other. This is because ‘I’ and ‘my’ have almost the same meaning. Therefore, this would pose as a risk to Emperor if Apple decides to sue them for imitation and stealing product identity. This would prove highly detrimental to them, as a lawsuit would decrease their market potential. To counter this risk they should have proper legal arguments to back the naming of their product and argue that their name is original. Secondly, the Emperor ‘myPhone’ prior launch might also incur the threat risk of its secret leaking to its rivals. The management’s idea of having keynote addresses by relevant stakeholders is also a risky move. This would be because they do not know where their guest speaker’s loyalties lie. There in, the information at the speakers’ disposal might find its way to their rivals. In this regard, Apple might use the information acquired to their advantage by making final detail improvement on the ‘iPhone’ before its launch. which may overshadow the ‘myPhone’. Thirdly, the marketing department will be in charge of the complete marketing campaign process including the venue. The opportunistic risk here would involve the location of the conference set to engage the ‘myPhone’ target market. Probable date registered These risks were most probably likely to occur in the following sequence. The first and second risks were likely to occur after the ‘myPhone had been launched in to market. Their impact was to affect heavily their anticipated sales, as they will not be able to restore the image of their product in the event that its reputation is at stake. The third and most important risk that needed evaluation would be on the day of the product release. Therefore, its occurrence on the material day would translate to poor initial sale of the ‘myPhone’. This would set the bar in which the sales level would not be able to cross, as it the impact will be less. Probability, impact and expected value In trying to manage the risks above, the applications elaborated in Prince2 (OCG, 2009) would prove beneficial in eliminating the risks involved. This will involve critical understanding of what the consumer product expectations are in terms of quality. Therefore, this will engage the evaluation of the product into the market in order to avoid a replication of what is already available. Hence, a detailed market research through questionnaires or other modes to ascertain these facts would be essential. As a second counter approach, the team will need to revisit its program implementation strategies to ensure that they are effective in the project. The application of proper quality management processes would be appropriate at this point putting into consideration the customer needs and expectations. Thirdly, the marketing team will also have to apply lessons that were effective in past projects in the implementation of quality product management. This will be a great tool for risk management as their occurrence will not be a big obstacle to cover as per the already acquired knowledge. Lastly, a quality output register on the risks anticipated review would be essential, as it will affect quality assurance of their product to their targeted market (OCG, 2009). To counter risk number one, the team must ensure that the keynote speakers swear to secrecy and hold them accountable if any information leaks to its rivals. Another risk that the company will have to evaluate would be the fact that doing the launch of their product prior to that of their competitors would translate to lower sales. In the sense that the market might not purchase the product immediately but instead might decide to wait for the Apple device to hit the markets then compare the features. Therefore, the sales team would have an uphill task of ensuring that they convince its potential market to ensure that their stocks are not on the shelves before the ‘iphone’ penetrates the market. In this regard, a suitable or an appropriate venue that the team chooses a place where only a section of the target market can access then it will not have made an impact where it intended to dominate. To them the third party product that they will have introduced to the market should be able to make a lasting impact at the conference. The delegates will be ambassadors of the product other than being its initial consumers. Therefore, the intended venue should be at a central place in Sidney, which will not inhibit the company’s potential of taking over Apple’s share market by storm. Risk Author In conclusion, in order to ensure that Prince’s approach to successful product launch is effective a certain sequence of activities will be of high importance. On top of the marketing team’s list would be to request for a status account from the quality assurance department to ensure that it does not have any loopholes. If they find that it is not market worthy then they will have no choice but to send it back for improvement. After reviewing the product, the project management team’s next task will be to submit its findings to a Project Board whose main job description is to ascertain whether the product goes to the next stage. The team also incorporates its estimated risks into its submissions to the board and then indicating the risk management strategies (OGC, 2009). The risks documentation is proper through a risk register. Once the board is satisfied that all the shortcomings are sealable then the product will be set for introduction into the market. Finally, their impact would be one that will hit Apple by a great blow. References Office of Government Commerce (OGC). (2009). Managing successful projects with PRINCE2. 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