Risk Management In Projects Essay

3771 words - 16 pages

Table of Content

1. Introduction 2

2. Project Management 3

2.1 Definition of Project Management 3

2.2 Advantages and Disadvantages in Project Management 5

2.3 Success Factors in Projects 6

2.4 Control Project Progress 7

3. Project Risk Management 8

3.1 The Risk Management Process 8

3.2 Definition of Risk 10

3.3 Managing Risk 10

3.4 Identify Risks 11

3.5 Risk Quantification 14

3.6 Plan Risk Response / Methods 14

3.7 Risk Monitoring 18

4. The Organization of an International Conference in Paris, France 19

4.1 Project Identification 19

4.2 Classified the Project 20

4.3 Identification of Risks and measures to minimize the risk 21

...view middle of the document...

2. Project Management

2.1 Definition of Project Management

Before we can define what Project Management is, we have to define a project.

It is a temporary group activity designed to produce a unique product, service or result. A project is temporary it has a defined beginning and end in time, and consequently defined scope and resources. Also a project is unique because it is not a routine operation, but a precise set of operations designed to accomplish a singular goal.

Project Management, then, according to PMBOK is “the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements. Project Management is accomplished through the application and integration of project management processes of initiating, planning, executing, monitoring and closing.”

It is a strategic competency for organizations, enabling them to the project results to business goals and thus, better competes in their markets.

Project Management knowledge concentrates on nine areas: Integration, Cost, Human resources, Scope, Quality, Communications, Time, Procurement, and Risk Management.

(Figure 1: Project Management Areas)

Within the nine knowledge areas, we can find the process groups, or the lifecycle of the project. These five PMBOK Process Groups outline and organize the project from start to finish.

The initiating phase is where the project is defined and approved by management. The inputs to this phase can be a declaration of the work to be done or a contract given by the project sponsor. The output of the initiating process is a Project Charter and a Preliminary Project Scope Statement.

The inputs during the planning process are the Project Charter and the Preliminary Project Scope Statement that were the outputs of the initiating process. In the planning process, the project team will refine the project objectives and then plan the steps to achieve those objectives. The output of the planning process is the Project Management Plan.

During the executing phase, the team will use the Project Management Plan as an input. The appropriate outputs of this process are the project deliverables, any changes, preventive actions, and performance information about the project.

The monitoring and controlling process group is responsible for checking the project in order to confirm that it is on time and within budget, while still producing the intended deliverable. Any updates to the Project Scope and Project Management Plan are reviewed and approved. This is the phase where the final deliverables of the project are confirmed.

After all the deliverables of the project are created, the closing process group will provide the deliverables to the customer. Administrative and contract closeout procedures are used in order to formulate the formal acceptance of the product or service.

2.2 Advantages and Disadvantages...

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