Risk management case - Essay Example

Risk management Place The success of projects implemented by Information Technologies depends on the risk and risk management, which offers significant benefits to not only a particular project, but to the entire organization and its stakeholders (Didraga, 2013). a. Identify four significant and distinct risks, from the perspective of XYZ Ltd., associated with the project described above. These risks should be specific to this project and not just general risks like the project being late or over budget.

Outline an appropriate strategy to manage each of these four risks and identify the type of risk management strategy you have suggested. A table would be a suitable way to present your answers, with columns for the risks, the strategy and the type of strategyFor such company as XYZ Ltd that specializes in technological devices for customers with visual impairment, risks in project implementation can be associated with its planning, cooperation with the provider of services, TECHNO Company in particular, the quality of components chosen by TECHNO and risk of losing potential customers due to the high competition in this sphere.

Raz, Shenhar and Dvir (2002) consider that project risks are characterized by undesired events such as delays, excessive spending or unsatisfactory project results. Hence, for XYZ Ltd if the project planning in terms of developing of new watch would contain difficulties in using a new specific feature of voice recognition by the customers with certain disabilities, that will create the risk of usefulness of the entire project. For that purpose an advantage will be in arranging the watch the way to be easy in use by people with visual impairment.

Despite the fact that in the present many techniques and suggestions were introduced for project execution, there are still gaps from various perspectives, which require managers to be responsible for making a progress of project (Razaque, Bach, Salama & Alotaibi, 2012). For XYZ Ltd, such approach is given to the third company-provider, TECHNO, which is responsible for developing of innovative speech recognition component using cheaper technology. The risk here is that while cooperating with TECHNO, XYZ can lose customers in other products if the new watch technology will be developed by TECHNO in the wrong way and the needs of customers will not be expected.

As the main strategy of managing such risk can be tracking and combining of efforts of both companies in order to develop a good product. The other risk from XYZ Ltd perspective can be associated with the quality of components that TECHNO will use for developing cheaper variant of the product. As the solution to this risk, YZ Ltd can make numerous tests and a careful assessment of specific risks in order to form better offer of the product. While the company expects to launch the product within twelve months, it risks losing potential clients if the development stage will be postponed or will not meet the deadline.

As the strategy of managing such risk, XYZ Ltd can examine possible force majors and hire more specialists for launching the product.RiskType of risk management strategyStrategy to eliminate riskPoor project planningEstablish the background of work;Undertake the preliminary work;Maintain an awareness of the importance of delivering high-standard servicesArranging easy way of usage Failure of cooperating with company-developerAgree the set of skills of the consultants;Identify their roles and responsibilities;Search for the explanation of how they should deliver servicesTracking and combining of efforts of both companies Poor quality of components Clarify the quality assurance policies;Determine the need for certification obligations;Determine responsibilities for quality controlMaking tests and assessment Missed deadlineEstablish clear and reasonable timeliness and deadlines;Maintain an awareness of progressExamination of force majors and involvement of more specialists b.

Identify one significant opportunity associated with the project described above. Outline an appropriate strategy to respond to the opportunity and identify the type of strategy you have suggested Risk is also characterized as that it encompasses threat and opportunities during the certain project (Kutsch, Murray-Webster & May lor, 2008). Thus, for XYZ Ltd a positive risk is the new technology as a key feature of the new watch developed by TECHCO, a well-established supplier of technology solutions.

During the cooperation with the developer, XYZ Ltd can use such opportunity as the way to expose and investigate the variability of own strengths and possibilities. There is an opportunity to become the leading company that developed useful feature cheaper and more affordable for customer. c. Apart from the initial risk planning, what other activities will be required during the project associated with risk management Beside the risk planning, a Risk Breakdown Structure or RBS can be used to manage project risks (Hillson, Grimaldi & Carlo, 2006).

It ensures the list of risks of the project and enables to identify the gaps and blind spots in risk identification. It also helps to identify the risks and categorize them by source, it also enable the responsible person to make a risk report and effectively manage risks within the future projects. The Risk Management Plan can be also developed in order to identify the early and potential project problems (Iacob, 2014). Depending on the complexity of the project, there can be RMP of different content.

It summarizes the steps necessary for responding to project risks, the approach used to identify the risks, analysis of risk, both qualitative and quantitative, techniques taken to respond risks and monitoring and controlling data.References Didraga, O. 2013. The role and the effects of risk management in IT projects success, Informatica Ecnomica, Vol.17, No.1, [online] Available at: http://revistaie.ase.ro/content/65/08%20-%20didraga.pdf [Accessed on May 20, 2015].Hillson, D., Grimaldi, S. and Carlo, R. 2006. Managing project risks using a cross risk breakdown matrix, Risk Management, 8, 61-76Kutsch, E.

, Murray-Webster, R. and Maylor, H. 2008. Risk and opportunities management for programmes and projects, International Center for Programme Management, [pdf] Available at: https://dspace.lib.cranfield.ac.uk/bitstream/1826/4138/1/Risk_and_opportunities_management_for_programmes_and_projects.pdf[Accessed on May 20, 2015].Raz, T., Shenhar, A. and Dvir, D. 2002. Risk management, project success and technological uncertainty, R&D Management, 32, 2, Blackwell Publishers, [pdf] Available at: http://www.

researchgate.net/profile/Aaron_Shenhar/publication/227644860_Risk_management_project_success_and_technological_uncertainty/links/02e7e5168e1cb8e394000000.pdf [Accessed on May 20, 2015].Razaque, A., Bach, C., Salama, N. and Alotaibi, A. 2012. Fostering project scheduling and controlling risk management, International Journal of Business and Social Science, Vol.3, No.14, [pdf] Available at: http://arxiv.org/ftp/arxiv/papers/1210/1210.2021.pdf [Accessed on May 20, 2015].Iacob, V. 2014. Risk managemenet and evaluation and qualitative method withi the projects, Ecoforum, Vol.3, Is.1