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Risk Management Essay

3866 words - 16 pages

CHAPTER ONE

1.0 INTRODUCTION

Project management is the application of knowledge, skills, tools, and techniques to project activities in order to meet or exceed stakeholder needs and expectations from a project. Project risk management includes the processes concerned with identifying, analyzing, and responding to project risk. It includes maximizing the results of positive events and minimizing the consequences of adverse events.

Managing risk therefore, is an integral part of good project management, and fundamental to achieving good business and project outcomes and the effective procurement of goods and services. Risk management provides a structured way of assessing and ...view middle of the document...

* The Project Manager is also the main focal point for liaison with other departments, projects and initiatives within the organisation, taking into account the needs and contributions of other internal groups.
* The Project Manager is equally the main point of contact for aspects requiring co-operation and co-ordination with external parties such as the project's suppliers and contractors, customers, suppliers, regulatory bodies, and other third parties - making sure everything is in place to guarantee success.
* The Project Manager has direct responsibility for the activities of all project participants, all project tasks and all deliverables.

Figure 1 below illustrates the responsibilities of a Project Manager.

Figure 1 - Responsibilities of a Project Manager
(Source: http://www.epmbook.com/resources 360pm.ppt)
1.3 THE PROJECT MANAGEMENT PROCESS

According to Simon Wallace, Project management is a complex undertaking, with many stages and processes. It should follow the full business lifecycle, from definition and justification of the project, through to delivering demonstrable benefits for the business.

The project manager's skills are essential from the beginning. The defined approach and its business case will rely on a good understanding of the project process along with reliable estimating and carefully considered planning. Although it is the project manager's prime objective to deliver the results, there are many supporting disciplines and processes. These should ensure that the project will deliver a valuable result without surprises. The foremost need is to monitor the anticipated level of benefits and make adjustments to deliver optimum results. The leadership team should also actively identify and manage risks, issues, changed requirements, quality standards, and a host of other side issues.

Not all of these processes follow the traditional development lifecycle. In particular, it is wrong to consider the project has finished when the new system goes live. This way, you will never know whether it delivered the planned benefits and you will probably not achieve them. Management attention must be retained to deliver the benefits - through to the Post-Implementation Review (PIR) and beyond. Some of the project management processes will migrate into continuing line management processes to be used throughout the life of the solution.

The Project Management Processes is as shown in Figure 2.

Figure 2 – Project Management Processes
(Source: http.//www.epmbook.com/projectmanagementoverview.htm)

1.4.1 Summary of Project Management Processes

* The concept, objectives, approach and justification of the project are properly defined, agreed and communicated.
* Management-level planning maps out an overall management plan from which resources, acquisitions and sub-contracts can be identified, assessed and put in place. The business...

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