To Professor: Peter Wong
Student Name: Chiang Ting Hin
Student No.: 3012 4305
Project Management – Assignment 2
1. Managing Risk
There are four steps of risk management process.
First step is risk identification. Analyze the project to identify sources of risk Create a list of all possible risks via brainstorming, risk profiling and problem identification. Marco risks fist, then micro risks. Usually organization use risk breakdown structures in conjunction with work breakdown structures to help identify and analyze risks. A risk profile is a useful tool. A risk profile is a list of questions that address traditional areas of uncertainly on a project. Historical records can complement or be used when formal risk profiles are not available. Old record in past can be referred to identify potential risks. Risk identification process should inject inputs from customers sponsors, subcontractors, vendors.
Second step is risk assessment. Included risk assessment matrix, scenario analysis, probability analysis, semi quantitative scenario analysis, failure mode and effects analysis. Risk assessment form included risk event, likelihood, impact, detection difficulty, and when it will be started. Impact Scales included cost, time, scope, quality
Third step is risk response development. There is several risk response. Such as mitigating risk, avoiding risk, transferring risk, sharing risk and retaining risk. Mitigating risk can reduce the probability an adverse event will occur. Prototyping and testing are usually used to prevent problem from surfacing later in a project. Often identifying the origin causes of an event is useful. Avoiding risk can change the project plan to eliminate the risk or condition such as adopting proven technology instead of experimental technology can eliminate technical failure. Transferring risk can pay a premium to transfer the risk to another party. For example, fixed price contracts are example of pass risk from owner to subcontractor. Also, you can transfer risk in insurance. But insurance broker might be unfamiliar with the project. Sharing risk can allocate risk to another party. Also, sharing risk can encourage innovation and cut project costs. Retaining risk can develop a contingency plan if the risk materializes, making a conscious decision to accept the risk and more effort given to risk response before project begins, the better the chances are for minimizing project damages.
Last step is risk response control. Risk control involves executing the risk response strategy, monitoring triggering events, watching for new risks and initiating contingency plans.
There are four purpose of establishing a change management system. First, repeating risk assessment or identification exercises. Second, fostering an open organization environment. Third, assigning and documenting responsibility for managing risk. Fourth, monitoring, tracking and reporting the risk.
Change management control: project scope changes in form of additions or design represent big changes. E.g. redesign that will improve the product and customer requests for a new feature. Implementation of contingency plans, represent changes in baseline costs and schedules when risk events occur. Improvement changes suggested by project team members represent another category.
The change control process has the following eight steps.
First, identify the proposed changes.
Second, list all expected effects of proposed changes on schedule and budget. Third, review, evaluate and approve or disapprove of changes formally. Fourth, negotiate and resolve conflicts of condition, cost and change. Fifth, Communication changes to parties affected.
Sixth, assign responsibility for implementing change.
Seventh, adjust master schedule and budget.
Last, track all changes that are to be implemented.
How does this project stack up with the average project?