Risk management
Compare and contrast the advantages and disadvantages of pro-active & reactive management of IT risks based upon the reading assigned by Baccharini "The Risk Ranking of Projects". Let's discuss these, based upon your assigned readings, with the entire class! Upload your 3 paragraph response here and in your Assignment Folder for grading, and respond to other Graduate student postings in this whole-class Conference.
Proactive –
The biggest advantage of being proactive is that prioritizing the risk level of each project can be done well in advance. The project with highest risk level can be given more focus and resources. It not only helps an IT Project Manager to determine the potential risks, but also decide on time & cost associated with a project. The PM can rate the key IT systems by looking for potential risks, and therefore assign steps to be taken in case of an emergency. With the help of constant monitoring & reporting, a proactive system can determine the issue before it happens. Rather than waiting for a ticket or bug report to be opened by a user, preemptive steps can be taken to avoid further issues.
However since the paper does not discuss anything about the cost of the PRR software produced by CAMS, I did some research online. It appears that these softwares can run at an average of $2000 per user. And this might be a disadvantage to practice proactive management. The cost of maintenance & support are typically not included in the software. Along with that, these softwares also have a unique interface that requires some form of training for PMs to get used to using it. Thus, the company needs to invest time & money to get required resources to get the knowledge.
Reactive –
The only advantage of reactive management (I think) is that it makes the path for proactive management easy. The traditional reactive ‘break/fix’ model forces organizations to find workaround daily emergencies, system failures etc. These issues help them to be proactive
Proactive –
The biggest advantage of being proactive is that prioritizing the risk level of each project can be done well in advance. The project with highest risk level can be given more focus and resources. It not only helps an IT Project Manager to determine the potential risks, but also decide on time & cost associated with a project. The PM can rate the key IT systems by looking for potential risks, and therefore assign steps to be taken in case of an emergency. With the help of constant monitoring & reporting, a proactive system can determine the issue before it happens. Rather than waiting for a ticket or bug report to be opened by a user, preemptive steps can be taken to avoid further issues.
However since the paper does not discuss anything about the cost of the PRR software produced by CAMS, I did some research online. It appears that these softwares can run at an average of $2000 per user. And this might be a disadvantage to practice proactive management. The cost of maintenance & support are typically not included in the software. Along with that, these softwares also have a unique interface that requires some form of training for PMs to get used to using it. Thus, the company needs to invest time & money to get required resources to get the knowledge.
Reactive –
The only advantage of reactive management (I think) is that it makes the path for proactive management easy. The traditional reactive ‘break/fix’ model forces organizations to find workaround daily emergencies, system failures etc. These issues help them to be proactive