Risk Management and Tqm

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Course: PM104 – Strategic context of Project Management

Final Exam

Date Submitted: 10th December 2012

Course leaders: Prof. Vasileios Paliktzoglou and Mr Alin Stefaniu

Table of Content

Risk Management……….………………………………………………...…….…….3 * Case study analysis……………………………………………………….…....3 * Risk Management planning………………………………………………..….4 * Risk identification.……………………………………………………….…..…4 * Qualitative Risk Analysis…………………………………………………...….4 * Quantitative Risk Analysis………………………………………………...…..5 * Risk Response Planning………………………………………………………..5 * Risk monitoring and control…………………………………………..………6 Total Quality Management……………………………………………….…………….6 * Customer Focus………………………………………………………………....6 * Leadership……………………………………………………………..………...6 * Involvement of people……………………..…………………………………….6 * Process approach………………………………………………………………..6 * System approach to management……………………………………….……..7 * Continual improvement…………………………………….…………………...7 * Factual approach to decision making…………………………………………7 * Mutually beneficial supplier relationships…………………………………...7 * Barriers to TQM implementation…….………………………………………..7 References ………………….…………………………………………………..…….8

What are the processes of Risk Management? Explain your answer using a case study.

Risk Management

According to the guide to the project management body of knowledge (PMBOK guide) a risk is defined as an uncertain event or condition that, if occurs, has an effect on at least one project objective. Objectives can include scope, schedule, cost and quality. A risk may have one or more causes and if occurs may have one or more impacts. (Project management institute, 2008, p.275)

Risks can be further classified as known and unknown risks and the processes involved in identifying these risks and their impacts and how to avoid or minimize them is critical to the success of a project and thus can be termed as project risk management. It involves the process of conducting risk management planning, risk identification, qualitative and quantitative risk analysis, risk response planning and risk monitoring and control on a project. The main objectives of project risk management are to minimize risks and increase the probability and impact of positive events and decrease the probability and impact of negative events in a project.

Risk management planning is very important because it involves deciding how to approach and plan the risk management activities for the project and this should begin as a project is conceived and should be completed early during the project planning. This process should also take into account of cost management, schedule management, communications management, environmental factors and organizational process assets like roles and responsibilities and authority levels for decision-making. The risk management plan consisting of methodologies, roles and responsibilities, budget, timing and risk categories is the main output of this process.

The risk identification process involves determining the various risks which are likely to affect a project and documenting their characteristics. Identifying known risks and anticipate other risks is important for risk management so funds, human resources and other logistics can be included when planning to minimize those risks. Tools such as SWOT analysis can be used to help determine risks. A risk register consisting of a list of identified risks and potential responses is the main output of this process.

The qualitative risk analysis process assesses the priority that should be given to known risks using their relative probability or likelihood of occurrence and assesses the corresponding impact on the project objectives if the risk occurs. It also take into account other factors such as time frame for response and the organization’s risk tolerance associated with the project’s constraints of cost, schedule, scope and quality. The main output of this...
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