From the above equation, it can also be inferred that the overall impact of all risks associated with a project may be calculated by adding up all the ‘R’ values of all the risks associated with the project. As far as the probability (P) is concerned, being a variable, it varies with different stages of time in the life cycle of a project. For example, the probability of an accident occurring during a building construction project varies at different stages of the lifecycle. This might directly be related to various other factors in turn which themselves vary with the project cycle. For instance, the implementation stage of the project usually is more susceptible to this kind of risk in terms of the probability of occurring (Hillson and Hulett 2004) and thus it might be at different levels. Determination of probability is more a qualitative exercise than a quantitative one. There is no clear cut way or model of determining the probability though the probability might be estimated based on past data (Mind Tools, 2012). The way to do it is to arrive at mathematical models of probability distributions as close to the real probability as possible. It is also important to note that as many factors as can affect the probability of a given event need to be taken into account in order arrive at a realistic estimate of the probability of an event. A simple way to arrive at a probability level for an event is to assign a score on a scale of 1 to 10, wherein 1 represents the least probability and 10 represent the highest probability. The scores should be greater than zero because if its zero, it is not likely to occur and thus not a risk and if its 10 then it becomes a certainty and then too it is not a risk. The costs associated with an event also vary with various stages in the project lifecycle which means a snapshot sum total of all the factors that affect project cost associated with a certain event (Rochester 2012). Looking at the event based project cost in the above example, it might be seen that the cost of an accident might be more when the project is in progress, for instance the construction work is in full swing and the building as well as people working with project are more vulnerable to any mishap. The cost might be less when for example, the work is off on account of a holiday. On a longer time scale, in the above example, the costs associated with an accident just prior to the completion of the building project might be substantially high, since a lot of money and resources have been invested by then. As seen above, the difficulties in arriving at realistic values of ‘P’ and ‘C’ make it important to consider a qualitative mode of assessing the project risk (Wordpress 2009). The project risk matrix as shown below Consequences IV III I II As seen in the figure above, the project risk as expressed in terms of probability is classified as low and high on the vertical axis. The Consequences or costs associated are represented as low or high on the horizontal axis. This represents four typical situations represented by four quadrants, for the project risk situations. The four combinations are as follows: Quadrant 1: Low probability-Low Cost Risk impact Quadrant 2: Low probability- High Cost Risk impact Quadrant 3: High probability-High Cost Risk imp
Business Project management Answer 1. Risk in a project is a function of the following: The possibility of an event occurring, with which a particular project risk is associated The costs of the event or consequences and their seriousness over the project life cycle The above two factors are variables and the relationship of these variables with the project risk is denoted as per the following equation given by Pinto (2007)…
It is one of nine knowledge areas of the Project Management Body of Knowledge (PMBOK) (Creating the project charter, pg 45). The process of project risk management involves the identification, analysis, and planning of prospective risks that would have an impact on the project.
Technical initially, they turn strategic when time frame, involved labour, costs and also their association with the fulfilment of organizational objectives increase substantially. Though success dimensions of project are subjective and open to interpretation, yet the bottom line remains stuck to the fundamental tenets of cost, time and quality.
The importance behind risk management can hardly be overstated. For a company to be successful, the fundamental steps in laying out the way to follow in doing business must include how the risks involved must be managed. If well managed, the way of doing business is hardly affected by the risks involved in the business.
It is a discipline that employs skills, knowledge and experience of employees involved in a project to achieve goal of project. Main objective of project management is to control cost, meet estimated and proposed deadline and reduce risk associated with the project and maintain quality of work.
Projects are initiated by the organization in response to some requests that could not be executed in the normal operational limits of the organization (Woodward, 1997). Project management deals with application of talent, knowledge, procedure and equipments to the project activity to achieve the project goals.
It will change the way we work presently. One such change is being implemented in the judicial process where the courts are going digital to reduce the paper work and hence reduce the cost and make the judicial process more fast and efficient. Contents Introduction 4 Risk Identification 4 Theories that underpin project risk management techniques and their critics in relation to practice 6 Risk Analysis 7 Impact on project outcomes for Digital Courtrooms 8 Sources of risk in case of digital courtrooms 9 Uncertainty in the project environment for Digital Courtrooms 9 Conclusion and recommendation 10 References 12 Introduction Computers have been in existence since the late 1980s.
Any project can encounter uncertainties in the form of increased costs, schedule delays and diminished qualities. Unless tackled these uncertainties can lead to major project disasters. The uncertainties encountered during project execution are the potential project risks.
ODHS has the option of buying this software upgrade from Worldviewupgrades or from other vendors. All vendors including Worldviewupgrades offer several enhancements over the existing e-mail software that ODHS is currently using. The reliability of Worldviewupgrades is, however, perceived to be higher.
Usually businesses tend to use documentation review as a technique whereby the major inconsistencies within any project is analyzed by assessing the entire information gathered. This exercise helps in reducing the risk element that may occur for any business in
Projects equally have a define time-plan that specifies when to start and end to meet the financier’s requirements. In addition, the projects work on a budget required to produce the deliverables, and work under limited
15 pages (3750 words)Essay
Get a custom paper written by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Apply my DISCOUNT
Got a tricky question? Receive an answer from students like you!Try us!
Didn't find an essay?
Contact us via Live Chat, call us at +16312120006or send an email to firstname.lastname@example.org