In addition, while some would say that it is better to prepare for the worst and think of every possible problem, this in itself can be a waste of resources and can reduce the amount of focus on the most important potential problems. The next important issue is how to manage identified risk. This process is one that requires careful balance. Most importantly, the resources put into a project need to be balanced effectively. For example, consider a project where a potential major risk is identified, but it only has a 1% chance of occurring. Is it beneficial to invest a large amount of resources to reduce the impact of this risk? In most cases, the answer will be no. If something is not likely to happen, it is often not justified to spend large amounts of time and money to reduce its impact. A better approach would be to develop a plan that will recognize the problem early and take effective action early. This is generally referred to as the contingency plan. The Department of Information Resources (2003) notes that the work in a contingency plan is only completed if the contingency condition indicates it is needed. To put it more simply, the actions of the contingency plan are only carried out if the problems occurs and the plan is needed. This is an effective way to prepare for risk possibilities effectively, but without investing a large amount of resources into responding to problems that might never happen. In other cases where risks are more likely, or where they are reasonably likely and have significant effects, it can be justified to invest resources into preventing the problem. The actual solution for each potential risk will always differ and will depend on how likely the problem is, how significant its impact is likely to be, how difficult the problem is to prevent, how...
For example, if a problem will cost $1,000 to prevent, but would cost $20,000 to manage once it occurs, it will probably be justified to invest the $1,000 and prevent the problem. Each case though will differ and each decision can only be made by considering all of the factors involved. Risk management is certainly not a process where there is a clear and definite solution. Instead, it is a complicated process that involves balancing many factors and making the best decisions possible at the time.
Project Risk Management Risks associated with projects successful completion A project is an undertaking of human beings towards satisfying world needs. Projects are endeavors with a defined beginning and an end. Projects suffer from scope, time, cost and quality constraints. It is necessary for project managers to manage the risk of developing weak scope. Scope of a project incorporates the objectives of a project, the target population, the output and impact of
Some of the older employees will however retire in the near future and they will have to be replaced. This will not only generate financial investments with the recruitment and training of new staff members, but it could also materialize in a failure to integrate and attract newer employees. To better explain, the process is difficult and tedious and a young candidate may not feel at ease with working
Managing Risk Assessment and Litigation in UK Physical Education Departments This is a research proposal for a British university that aims to examine the rise of the litigation culture in the UK, as well as how schools' physical education (PE) departments are geared towards coping with it, particularly in light of professional training of physical education teachers for this purpose by management. Risk assessment training is a management-based programme; therefore, the
Project Team PitfallsA project manager�s job is to ensure that a project is completed on time, within budget, and to the required quality standards. To do this, they must identify and avoid potential pitfalls that could cause the project to fail. One way to find potential pitfalls is to carry out a risk assessment. This involves identifying all the possible risks that could affect the project, and then assessing their
5.4: Accept Bullring team accepted some risks; however, the company developed the effective cost and schedule strategies to manage these risks. For example, the company allotted sufficient fund to militate against risks associated with the project costs and schedule. Table 2 presents the compressive list all the risks deemed to affect the outcome of the Bullring project. Table 2: Associated Risks on the Project Cost Related Risks: Index Scores Tight project schedule 0.67 Design variations 0.49 Project variations from
Risk at Global Green Books Publishing Mini Case 1Key RisksKey risks for Global Green Books included not getting ebooks to the new college customer on time, operating without any project management tools�no project software or techniques for estimation, and operating without a budget; and operating without communicating to stakeholders, and without a process of managing risk. As a result of operating in this manner, these risks soon turned into real
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