i have been so bz with work.. maybe should have thought about project management to handle the projects.. below is something about project management
Risk Management is a good management practice. Project Risk Management consists of multiple processes in establishing the risk factor, analyzing the risk levels and responding to the project risks. The Risk Management Plan will be created before and after you create the Project Schedule, as you will be looking at the tasks in the Project Schedule and other factors in the Project Management Plan for potential risk items. Continuous assessments, monitoring, and managing risks actively until the risks are resolved or turned into problems to be handled.
A strong risk management process can decrease problems on a project by as much as 80 or 90 percent. There are different types of Risk Management and different uses that include calculating credit-worthiness, planning for events (i.e. disasters), determining period of warranty, calculating insurance rates, and many more.
Before embarking on a risk management process, one must have an understanding of some key definitions. Project risks as defined from a PMI perspective are unknown events. These events can be positive or negative. Most of the time and focus is spent handling negative project risks, rather than positive project risks.
Often, organizations that perform a risk management process on a fairly typical multi-month project will identify and manage possibly five to ten easily recognized project risks. However, that number should in fact be much higher. With a high number of project risks identified early on, a team's awareness of what to look for is increased, so that potential problems are recognized earlier and opportunities are seen more readily.
The Risk Management Life Cycle is comprised of the following:
Risk Planning Life Cycle
• Preliminary Risk Management Plan is implemented in the Project Initiating Phase
• Approved Risk Management Plan is implemented in the Project Planning Phase
• Updating the Risk Management Plan is implemented through the rest of the Project Life Cycle
Risk Identification and Response Planning
• Done at regular intervals, throughout the entire project life cycle
• When changes are made to the deliverables, project plan, or the baseline(s)
• Upon completion of major milestones or schedule check points
Risk Monitoring and Control
• Done at regular intervals, throughout the entire project life cycle
• In Reports, Status Meetings, Executive Briefings
• In Quality Control Reviews
It may seem that project risks cannot be managed without taking away from the actual work of the project. However, this can effectively be accomplished with the four major risk management processes that can be utilized and modified with each project.
1. Risk identification allows individuals to determine risks which may affect the project so that the team becomes aware of any potential problems and documents each problem characteristics.
2. Risk quantification to assess the evaluated risks and risk interactions estimates for a possible project outcome.
3. Risk response development uses the information obtained from risk analysis to formulate strategies, plans, and actions.
4. Risk response control monitors the status of specific risks and documents and executes the progress in their respective action plans.
Different application areas often use different names for the processes. Risk identification and risk quantification are sometimes considered as a single process and called risk assessment or risk analysis. Risk response development is sometimes called risk planning or risk mitigation. Risk response development and risk response control are sometimes considered as a single process and called risk management.
Risk identification determines which risks are likely to affect the project and documenting each problem characteristics. Risk identification is performed throughout the project on a regular basis. Internal and external risk should be addressed in risk identification. Internal risks are things that can be controlled or influenced where as external risks are things beyond the control or influence of the project team.
Risk identification may be accomplished by identifying causes and effect or effect and causes.
Risk quantification evaluates risks and risk interactions to assess the range of possible project outcome. It is complicated by a number of factors not limited to:
• Opportunities and threats can interact in unanticipated ways
• A single risk event can cause multiple effects
• Opportunities for one stakeholder can be a threat to another
• The mathematical techniques used can create a false impression of precision and reliability.
Risk response development involves defining enhancement steps for opportunities and responses to threats. Response to threats:
• Avoidance
• Acceptance
• Mitigation
Risk response control executes the risk management plan in order to respond to risks over the duration of the project. When risks changes, the process to identify, quantify, and respond is repeated. Even the most thorough and comprehensive analysis cannot identify all risk and probabilities correctly; control and iteration are required.
