Managing Risks
Risk mitigation is a critical function of every project manager. A well-developed risk management process “attempts to recognize and manage potential and unforeseen trouble spots that may occur when the project is implemented” (Gray & Larson, 2006, p. 1). Risk mitigation begins with project planning. Based on previous experiences, lessons learned, schedule and budget constraints of the assigned project, the project team can identify all the risks, analyze each risk in terms of the severity of the impact, the likelihood of the occurrence, and the degree to which the risk can be controlled. Although a direct relationship between the amount of risk in a project and the opportunity for increased rewards exists, successful businesses take every advantage to minimize the risk in order to maximize the reward. The plan’s impact to cost and schedule must be reflected within the appropriate elements of the integrated cost and schedule control system.
Describe the Situation
Issue and Opportunity Identification
American Bank of Indiana (ABI) generates $280 million in revenue through personal and industrial banking services, card services, loans and mortgages. A regional bank, ABI and its 1,800 employees have been acquired by First American Financial Services (FAFS). As part of the acquisition, ABI is to integrate its service delivery network with that of FAFS (FAFS/ABI, 2008). All components of the two companies are to be integrated, including ATMs, databases, and related software and hardware. Based on lessons learned on past information technology (IT) projects and the recommendations and observations of the Chief Executive Officer (CEO) and the steering committee, the project manager has identified critical risks that must be mitigated in order to implement the project. The project manager can use risk management, project cost and schedule control processes to complete the project on time and within budget.
Best practices for implementing an IT project indicate that
Describe the Situation
Issue and Opportunity Identification
American Bank of Indiana (ABI) generates $280 million in revenue through personal and industrial banking services, card services, loans and mortgages. A regional bank, ABI and its 1,800 employees have been acquired by First American Financial Services (FAFS). As part of the acquisition, ABI is to integrate its service delivery network with that of FAFS (FAFS/ABI, 2008). All components of the two companies are to be integrated, including ATMs, databases, and related software and hardware. Based on lessons learned on past information technology (IT) projects and the recommendations and observations of the Chief Executive Officer (CEO) and the steering committee, the project manager has identified critical risks that must be mitigated in order to implement the project. The project manager can use risk management, project cost and schedule control processes to complete the project on time and within budget.
Best practices for implementing an IT project indicate that