Risk Matrix Pm586
Week 5 Project
RISK MATRIX 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 project would be the best to undertake. Risk is one of the important factors that must be considered. With the Huntsville, Alabama plant I identified a few areas that may be an issue. The first one was rain. With any construction project rain will be an issue. For some areas rain is a major issue but I felt as though 35% was a pretty good estimate. Not too high or low. This is why it is important for the project manager to monitor the weather forecast days in advance. If a torrential down pore is expected an action plan needs to be in place. Another area identified was road construction. This is a bit easier as road construction is planned years in advance. It would be beneficial for the project manager to have the detour information or alternative routes planned out in advance. These routes would need to have adequate signage displayed so there is no risk of getting lost and possibly delaying the project. Another risk identified that could cause problems and was put in the medium range is design problems in building construction. This risk could be decreased by examining design flaws before construction when the task is being evaluated. Discovering a design flaw during construction after it causes a problem can
RISK MATRIX 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 project would be the best to undertake. Risk is one of the important factors that must be considered. With the Huntsville, Alabama plant I identified a few areas that may be an issue. The first one was rain. With any construction project rain will be an issue. For some areas rain is a major issue but I felt as though 35% was a pretty good estimate. Not too high or low. This is why it is important for the project manager to monitor the weather forecast days in advance. If a torrential down pore is expected an action plan needs to be in place. Another area identified was road construction. This is a bit easier as road construction is planned years in advance. It would be beneficial for the project manager to have the detour information or alternative routes planned out in advance. These routes would need to have adequate signage displayed so there is no risk of getting lost and possibly delaying the project. Another risk identified that could cause problems and was put in the medium range is design problems in building construction. This risk could be decreased by examining design flaws before construction when the task is being evaluated. Discovering a design flaw during construction after it causes a problem can
References: 1) http://www.managing-innovation.com/tools/Risk%20Assessment%20Matrix.pdf 2) http://www.websukat.com/SMU-Books/Business-Communication/8.Internal-Business-communication-Guidelines-for-meetings.pdf 3) A guide to the project management body of knowledge (PMBOK® Guide) (4th ed.). (2008). Newtown Square, Pa.: Project Management Institute. 4) A guide to the project management body of knowledge (PMBOK® Guide) (4th ed.). (2008). Newtown Square, Pa.: Project Management Institute.