Risk Assessment
Risk Assessment
Risks can damage projects. They can also increase project costs by setting projects back. By having risk management plans in place, project management teams can be prepared to deal with risks if they occur and attempt to mitigate the risks before they can damage the project (Kyra Sheahan, 2014). Looking at this case, The project risk with the highest impact is putting the project on pause in order to review the project scope, which might in turn lead to cancelling the project. Going over budget, over time, design and technological constraints are also risks to the project but with lesser severity and will on the long run lead to cancelling the project if not mitigated. From the case the project already has a cost estimate of $1,250,000 over the planned budget making the risk of going over budget very likely to occur. It is essential that the top management put all into consideration while giving either time or cost preference over the other risks in order to avoid the cancellation of the project. See appendix for contingency plans that have been put in place to help with any issues encountered through the cause of this project. Reference
Bottom up Estimating, Meaning and Definition. by Project Management Lexicon. (n.d.). Project Management Lexicon. Retrieved October 10, 2014, from http://www.projectmanagementlexicon.com/bottom-up-estimating/
Sheahan, K. (2014, February 4). The Importance of Risk in Project Management. Small Business. Retrieved October 10, 2014, from http://smallbusiness.chron.com/importance-risk-project-management-43247.html
Risks can damage projects. They can also increase project costs by setting projects back. By having risk management plans in place, project management teams can be prepared to deal with risks if they occur and attempt to mitigate the risks before they can damage the project (Kyra Sheahan, 2014). Looking at this case, The project risk with the highest impact is putting the project on pause in order to review the project scope, which might in turn lead to cancelling the project. Going over budget, over time, design and technological constraints are also risks to the project but with lesser severity and will on the long run lead to cancelling the project if not mitigated. From the case the project already has a cost estimate of $1,250,000 over the planned budget making the risk of going over budget very likely to occur. It is essential that the top management put all into consideration while giving either time or cost preference over the other risks in order to avoid the cancellation of the project. See appendix for contingency plans that have been put in place to help with any issues encountered through the cause of this project. Reference
Bottom up Estimating, Meaning and Definition. by Project Management Lexicon. (n.d.). Project Management Lexicon. Retrieved October 10, 2014, from http://www.projectmanagementlexicon.com/bottom-up-estimating/
Sheahan, K. (2014, February 4). The Importance of Risk in Project Management. Small Business. Retrieved October 10, 2014, from http://smallbusiness.chron.com/importance-risk-project-management-43247.html