Prof. Swati Oza (Asst. Profesor, JSPM’s Abacus Institute of Computer Application) Prof. Shital Deshmukh (Asst. Profesor, JSPM’s Abacus Institute of Computer Application) Prof. Neha Tejwani (Asst. Profesor, JSPM’s Abacus Institute of Computer Application)
The benefits of risk management in projects are huge. You can gain a lot of money if you deal with uncertain project events in a proactive manner. The result will be that you minimize the impact of project threats and seize the opportunities that occur. This allows you to deliver your project on time, on budget and with the quality results your project sponsor demands. Also your team members will be much happier if they do not enter a "fire fighting" mode needed to repair the failures that could have been prevented.
It is important to note that the roles and responsibilities must be documented and included in the original project plan. For all intents and purposes, project risk management can be seen as a project within a project or alternatively a sub-project of the project.
Five separate roles can be defined for performing project risk management. These are: • Project risk manager
• Project risk management team
• Project risk profile owners
• Project risk custodians
• Project team members
It is important that the project manager and team leaders show their support for the effort and motivate team members to contribute .On many projects, reporting a risk is rewarded by making the same person the risk profile owner. Doing this sends a message to other members that reporting a risk will lead to more work. If possible, team members should rather be incentivized to report risks.
Keyword:- Risk management procss, Risk management roles, Risk management responsibilities, Project Risk management culture.
There is no denying the importance of risk management on modern day projects . It has taught us that things do go wrong and that it is naïve to think that everything will go according to the project plan. Both the PMBoK and the APMBoK have sections dedicated to the field of project risk management. There is also a significant amount of literature available on how to perform risk management on various kinds of projects across different industries.
Different techniques have been developed over the years to address both macro-level project risks, for example project selection, as well as micro-level risks, such as scheduling risks. Different formulae with varying degrees of complexity have been developed, followed by a myriad of supporting tools and techniques.
Despite all this, research has shown that projects, specifically IT projects, still fail at an alarming rate . The question can, therefore, be asked why this is the case given the information, knowledge, tools and techniques available to perform risk management.
This paper addresses the human component of risk management, specifically focusing in on the roles and responsibilities of all parties involved. The first section looks at risk management and its well-defined processes and the roles and responsibilities as defined by the PMBoK. This is followed by a suggested, structured framework for roles and the associated responsibilities. The article concludes by looking at the required culture to ensure successful project risk management.
2. RISK MANAGEMENT
Risk management consists of five phases starting with planning and finishing off with monitoring. This process is repeated as cycles throughout the duration of the project. One such cycle isshown below:
FIGURE 1 – RISK MANAGEMENT PROCESS
Each of these processes is further sub-divided into sub-process with PMBoK clearly showing the inputs, tools and techniques and outputs for each . The one area that seems to be neglected is the roles and responsibilities for performing risk management....