Project Techniques and Risk Management

Topics: Risk management, Risk, Project management Pages: 6 (1882 words) Published: October 13, 2011

Project Techniques and Risk  Management    
A practical and effective approach 


    Eng. Hayder Issa   
Engineering Contracts Management Engineering Arbitration Rule in Solving Disputes Post Graduate Certificate in Project Management - UK  


Project Techniques and Risk Management 
A practical and effective approach 
Managing business risk means managing the protection of your employees, customers, property, information and the environment. Risk management is attempting to identify and then manage threats that could severely impact or bring down the organization. Risk management is all about keeping your risk under control. The more controlled your risk is, the more flexible you can be when you need to be. Traditionally, risk management was thought of as mostly a matter of getting the right insurance. However, this impression of risk management has changed dramatically. With the recent increase in rules and regulations, employee-related lawsuits and reliance on key resources, risk management is becoming a management practice that is every bit as important as financial or facilities management. In Projects, risk management is the art and science of identifying, analyzing, and responding to risk throughout the life of a project and in the best interests of meeting project objectives. The project risk management process should not have to be complicated or time consuming to be effective. As a result of following a simple and proven approach that implicates seven steps taken at the beginning of each project, the project team can prepare itself for whatever may occur. Notwithstanding, there will always be changes and there may still be surprises, but the end result is that they are fewer. The first step of the project risk management process is to have each person involved in the planning process individually list at least ten potential risk items, step two, it is required to collect the lists of project risks and compile them into a single list. Coming to step three that needs assessing the probability (or likelihood), the impact (or consequence) and the detectability of each item on the list. Reaching to step four, it is necessary to divide the planning team into subgroups and to give a portion of the master list to each subgroup. Each subgroup can then identify the warning signs for its assigned list of project risks. Step five deals with the same subgroups to identify possible preventive actions for the threats. On the other hand, step six is for the same subgroups to create a plan that includes the actions one would take if a warning signs or a risk were to occur. Finally, step seven in planning the project risk management process is to determine the owner of each risk on the list. With a tough economic forecast front and center, the following are risk management resolutions which can help to improve the bottom line. • • • • • • Tie risk management to corporate solvency. Evaluate the indirect loss costs associated with each injury or accident. Take the rifle approach to safety. Buy employment practices coverage. Prepare now for the hard insurance market. Eliminate dead weight and Rely on your broker or agent.

Risk Management Strategy On focusing to formal risk management efforts on operational risk exposures, it is essential to consider the Analyze ways to control any data-security risks, develop management strategies to minimize the frequency and severity of these risks and to identify the operational risks in everyday business activities further to take steps to minimize them. For instance, financial companies, restaurants and other businesses that handle large volumes of cash should be aware of the likelihood of crime and take steps to prevent operational loss. For risk management methodology we have to consider the following: 1. Define the risk management methodology to be used: A. Risk Identification B. Categorize Risks C. Risk Impact Assessment D. Prioritize Risks E. Risk Response...
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