Project Management Risk Management - Essay Example

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Risk Management plays one of the most important roles in the overall project management. It is often argued that the project managers forget to include the risk element into the overall project management and often face situations for which they are unprepared to deal with…
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Project Management Risk Management
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Download file to see previous pages It is further argued that the project managers ignore the issues like risk management associated with the projects because they want them to kick start the process as soon as possible ignoring the issues of great importance which can have the powers to seriously hamper the progress of any project.
A good project manager would continue to assess what could go wrong with the project and exactly define which of the risks are important and which are not and based on that assessment, clearly identify the strategies to be implemented for guarding against those risks and then continuously monitor those strategies so that an effective control can be maintained over the project.
Our proposed risk template identified fifteen (15) risks associated with the project and based on their relative importance have assigned a definite probability or likelihood of occurrence of such risk. These risks are however, identified after taking into account certain assumptions which were based on our historical experience as well as theoretical knowledge. Further to that we have also outlined our response to each of the risk identified.
The overall structure of the risk template is simple however it attempted to identify clearly what are the risks that we may face and what will be their impact on the overall project and how project managers can devise their response to the overall risks associated with the project.
Following section will discuss the risks identified, their likelihood and a detail summarization of the scores.
Risk of vendor being taken over by other firm
This risk is important in the sense that a takeover may halt the progress of the project and the project may not be completed timely due to lack of synergy between the two firms. I have assigned a score of 2(May occur) to it because there is a remote possibility of the same. I have to this result because vendor firm, in order to be more competitive can go for the same. In order to safeguard against this risk, firm must improve upon its contract writing and should develop mutually agreed contract which covers the same.
Vendor does not have the requisite manpower to perform the tasks
This risk is important in the sense that at the procurement stage, project managers may overlook this aspect. Vendors apparently tend to camouflage facts about them and may prove useless for the project once the project actually goes into action. In order to safeguard against this risk, we need to develop our in-house capabilities also. An overall score of 3 (moderate chances of occurrence) has been allotted to this risk.
Vendor goes bankrupt
It is unlikely that a vendor goes bankrupt however considering this risk, we have assigned a risk rating of 1 ( least likely to occur) to this risk and attempt to meet the risk through our in-house personnel as project managers would be working hand in hand with vendor
Unlikely hood of the software being imported in the country
It may be possible that the software required for the completion of the project may not be available in the country and due to legal complications; same may not be ...Download file to see next pagesRead More
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