Individual Risk Management
Individual Risk Management
Craig Foster
CPMGT/303
March 17, 2014
Dr. Daryoush Tehranchi
Individual Risk Management The objective of risk management is to develop response actions to minimize the impact of possible negative events during every phase of a project. The process also works to increase the impact of the positive events and mitigate the problems associated with making changes (Project Management Institute, © 2013). The risks in many projects are multifaceted in nature because the positive impact created at one stage of a project, could have dire consequences at another. For example, occasionally in construction projects, floor slabs will have design defects that will not properly drain and eliminate the migration of water breaching the inside of the structure. A minor re-design of the slab configuration will eliminate the drainage problem but cause a significant structural issue with roof trussing and its ability to hold the house together during a minimal shift. The changes made to correct the slab issue are great, but the problems it will create down the line are greater unless the initial solution is analyzed all the way through the project. Identifying the risk and plausible solutions is done through a series of procedures, techniques, and analysis to meet the objectives of risk management. Another dimension of the risk management kaleidoscope understands the definition of risk from various viewpoints and positions with stake in the project.
The risk management operation requires a planning process describing how to conduct the risk management based on the activities and tasks necessary to complete the work. There is an intangible element with assessing the risk of defining the tolerances and attitudes of the organizational leaders and stakeholders. A project manager with experience will have a more complete understanding of this component performing an internal analysis of risk appetite and risk tolerance levels
Craig Foster
CPMGT/303
March 17, 2014
Dr. Daryoush Tehranchi
Individual Risk Management The objective of risk management is to develop response actions to minimize the impact of possible negative events during every phase of a project. The process also works to increase the impact of the positive events and mitigate the problems associated with making changes (Project Management Institute, © 2013). The risks in many projects are multifaceted in nature because the positive impact created at one stage of a project, could have dire consequences at another. For example, occasionally in construction projects, floor slabs will have design defects that will not properly drain and eliminate the migration of water breaching the inside of the structure. A minor re-design of the slab configuration will eliminate the drainage problem but cause a significant structural issue with roof trussing and its ability to hold the house together during a minimal shift. The changes made to correct the slab issue are great, but the problems it will create down the line are greater unless the initial solution is analyzed all the way through the project. Identifying the risk and plausible solutions is done through a series of procedures, techniques, and analysis to meet the objectives of risk management. Another dimension of the risk management kaleidoscope understands the definition of risk from various viewpoints and positions with stake in the project.
The risk management operation requires a planning process describing how to conduct the risk management based on the activities and tasks necessary to complete the work. There is an intangible element with assessing the risk of defining the tolerances and attitudes of the organizational leaders and stakeholders. A project manager with experience will have a more complete understanding of this component performing an internal analysis of risk appetite and risk tolerance levels
References: Cooper, D. F., Raymond, G. S., & Walker, P. (2005). Project Risk Guidelines: Managing risk in large projects and complex procurements. Hoboken, NJ: John Wiley & Sons.. Kerzner, H. (2009). Project Management: A systems approach to planning, scheduling, and controlling (10th ed.). Hoboken, NJ: John Wiley & Sons. Project Management Institute. (© 2013). A Guide to the Project Management body of knowledge. (PMBOK® Guide), Fifth Edition. Retrieved 02 17, 2014, from http://common.books24x7.com/toc.aspx?bookid=51356. Sollish, F., & Semanik, J. (2007). The procurement and supply manager’s desk reference. Hoboken, NJ: John Wiley & Sons. The Apollo Group Inc®. (2010). Syllabus CPMGT/302 Procurement and Risk Management. School of Business. Pheonix, AZ: University of Phoenix.