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 that endeavor. Therefore, managers of project need to do a problem analysis, stakeholder analysis, environment analysis to know if the project is sustainable (Cleland & King, 1988). On the risk of time, managers need skills on time management. Management of projects requires one to be well versed in developing schedules. Time management involves developing systems that has a specific time of completion and start time.
Scheduling of projects includes hiring of individuals for the accomplishment of projects. There is a need to have a human resource department that caters for the needs of workers. The human resource department is responsible for selecting employees, remuneration and in the award and punishment allocation. In scheduling activities, project managers need to have competency in time management. Time or schedule management requires managers with scheduling and management skills. Managers must know how to use scheduling charts and in developing network diagrams. Network diagrams and scheduling charts are necessary in allocating resources and activities. Management of time involves developing work breakdown structures. Work break down structures is essential in the allocation of projects task and resource distribution (Kwak & Anbari, 2009). Each employee in the organization understands their roles, and records of their performance assist in the allocation of salary.
On the risk of budget, managers need training on cost management. Various tools need consideration in budget management. Management of budgets is critical to project completion. Money can be of high risk to the accomplishment of the project. Budget is a necessity at every stage of the project management cycle. There is always a cost to incur when developing and implementing projects. There is the cost of developing the scope; there is the cost of scheduling, the cost of implementing the project and the cost of evaluation. Cost management involves the use of a variety of tools. Chief finance officers of projects need to have budget management skills.
Chief finance officers in any project helps in the formulation of strategies that affect project activities. Another risk that affect project all over is the risk of not meeting quality standards. Quality is a constraint to project completion. It is a fact that, stakeholder satisfaction is the essence of undertaking a project and their satisfaction is crucial to project accomplishment. Customers of a project define quality. There are policies relating to standards of projects set by the state or governing bodies. ISO standards are truly essential in managing the quality of projects in the market. Since quality is an essential component of any project, management of the same is necessary. Stakeholders of projects include project owners, management, and community. Projects have positive and negative impacts on stakeholders and management teams need to ensure it is of a positive influence.
Identification of need of a project is the first step to completing projects. A problem affecting a society or a certain section of an organization can be the starting point of a project. At this stage in project management stakeholders, need analysis, analysis of the problem are another aspect to consider and one need to analyze the possible outcome of the project. The next steps to the accomplishment of project involve the designing of the project. Design stage of projects involves conceptual analysis of a project. Models representing the project need to be in paper in the form of a logical framework or project cycle. A basic logical framework has the work break down structure, the output needs of a project, the assumptions and possible. Logic frameworks are hugely essential in the management of the project lifecycle.
At the appraisal stage, in the project the chief finance officer analyzes costs of every activity. At this stage, strategy about implementing the project and the amount of the fund, to use comes into perspective. Analysis of strategies at this stage is important since, it show whether the project is technically or financially feasible. Financial resources need consideration in order to fund project activities. In order to fund and manage projects' activities effectively, the project owner and the management team need to answer specific questions. These questions are essential in managing project activities, minimizing risk and analyzing the overall possible benefit of a project. Project team members should understand their current situation, how to meet future situation and should have a clear definition of their future (Pritchard, 2010).
The next step in the management of risks of the project and meeting project goal is the implementation stage. Implementation stage of a project...
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