Proj 420 Coursework Guide Week 1 - 7

Risk Monitoring: Searching identified risks, monitoring residual risks, identifying new risks and evaluating throughout the project life cycle.

Risk management is the process where individual and overall risks are understood and managed, thus optimizing success by minimizing the threats and to maximize opportunities [APM Body of Knowledge, p. 179]. All projects are inherently risky, because it performed by people and subject to the external influences or environment. Risk is something that it cannot be predicted. That is why into the company’s organization, risk management has an essential and vital part in any project whether that is in the planning procedure or to project implementation. Risks are always exists and can be translated as an opportunity to gain benefits. In addition a risk may incur serious monetary losses. The first step of risk management begins when identifies risk. These are identified through several techniques that risk management can select and use. One of the most effective techniques is brainstorming where members are attending meetings in order to gain ideas of either to identify a risk or how to overcome the arising risk. However a document review technique is also applied which is also very helpful, in this technique, documents are reviewed from prior projects which leads to a better understanding of the risks that may do occur. If a company seeks risk management capabilities, is to gaining competitive advantage, riskier businesses seek potential and higher profits.

Therefore, the risk process places a high emphasis on risk workshops, initial risks, and how risks are identified throughout the course of the project. The next two sections describe different methods of identifying risks.

Hillson, D & Simon, P. (2007). _Practical Project Risk Management: The ATOM Methodology_, Vienna, VA: Management Concepts, Inc.

Risks are an inherent part of every project. Some are general risks that are associated with every project and some are project specific. Risks tend to increase with the size of the project. Some risks are foreseeable and can be incorporated into the project planning process. However, regardless of the planning that goes into a project, some risks simply cannot be foreseen or avoided. Project risks are assigned different weights according to the consequences involved. Project risk management involves three distinct steps. They are identification of risks, analysis of the consequences, proposed responses and the final action plan. This research will explore use of the ATOM methodology to explore the risks involved in a large IT project.

Risk management is an ongoing process that must continue through the life of a project. It includes processes for risk management planning, identification, analysis, monitoring, and control. These processes need to be reviewed throughout the project’s lifecycle as new risks arise throughout the implementation of the project. It is the objective of risk management to decrease the probability and impact of events adverse to the project. On the other hand, any event that could have a positive impact should be exploited.

Cooper, D.F., Grey, S., Raymond, G, & Walker, P. (2005). Project risk management guidelines. Retrieved from The University of Phoenix eBook Collection database.

Risk Management Procedure: Defining and summarizing the steps to respond to the risk during the project life.

Flyvbjerg, B (2006). From Nobel Prize to Project Management Getting Risks Right. Project Management Journal, 37(3), 5-15. Retrieved November 1, 2006, from ProQuest databaseJust, M.R., Murphy, J. P. (1994). T

Risk identification will involve the project team, appropriate stakeholders, and will include an evaluation of environmental factors, organizational culture and the project management plan including the project scope. Careful attention will be given to the project deliverables, assumptions, constraints, WBS, cost/effort estimates, resource plan, and other key project documents. A

A risk matrix is a simple way of ranking, different potential projects in terms of their potential benefit and the likely risks or costs in implementing them. Some projects may be very attractive in terms of potential benefits that they offer but have serious implementation difficulties. Others may be low value in impact terms but be easy to implement tomorrow. Ideally firms will want to choose a balanced portfolio of short and long-term, low-risk and high-risk projects (http://www.managing-innovation.com/tools/Risk%20Assessment%20Matrix.pdf). I chose this paragraph for my opener because it shows the delicate balancing act that all businesses must comply with. Every day a company has to decide between what

Each program IPT submits the information shown in Table 5 to the ROMC and the Risk and Opportunity Management Board for the prioritized risk items in each WBS work element. All risk items are input to the risk and opportunity management tool Likelihood and consequence values for technical, cost, schedule and other team impacts are validated by the ROMB.

British Petroleum will report on their risk management plan and will discuss the top two threats that have occurred, the top opportunity that has been realized, the project risk budget that we have exhausted and the risk management schedule that has been shortened by two months. In general, a risk is always seen negative, however, by assessing thoroughly and identify risk in the risk register can help identify the opportunities that could impact the project. The risk register will be updated and available for future prepared readiness options.

Advancing from level 2 to level 3 requires using a risk register. 'The Risk Register is a tool to assist Project Managers in identifying likely sources of risk and the impact they may have on achieving objective. ' (Government office from the North West,2008). The first step is a brainstorm session to identify risk that may affect the project. It is important that the risks are clearly defined so that the risk is understood clearly and can be tackled. Secondly, consequence and probability of risks need to be rated (e.g. 1-5) and define each rating by their impact or likelihood. Finally, multiply the ratings of consequence and impact, rank the risks from highest severity to lowest severity. (Government office from the North West,2008). Every risks should be assigned to a risk owner which is responsible for managing the risk, a risk response to minimise both the likelihood and impact of the risk and a target completion date for the mitigation. Regular risk reviews need to be done because risks might emerge or become no longer relevant constantly. However, the impact

This assignment is included in the 2014 session of the Risk Management module of the MSc in Project Management course at University of Aberdeen. The main purpose of the assignment is to demonstrate my understanding of the issues involved in Risk Management and how they are applied in my current Project environment. The assignment is split in to two questions as detailed below.