Risk Management Models for Use by the Project Manager
UNIVERSITY OF JOHANNESBURG
RISK MANAGEMENT MODELS FOR USE BY THE PROJECT MANAGER
A research paper submitted in partial fulfilment of the requirements for the subject
PJB4088 – Project Management
at the
UNIVERSITY OF JOHANNESBURG
Student Name: Lusanda Njenge Student Number: 201109115 Date: 15th October 2012
Table of Contents ABSTRACT 2 1. INTRODUCTION 2 2. LITERATURE REVIEW 2 2.1 What is a Risk 2 2.2 Risk Management 3 3. RISK MANAGEMENT MODELS 4 3.1 Risk Cube 4 3.2 Risk Burndown Chart 5 3.3 GANTT Chart and Milestone Chart 5 3.4 PERT or CPM 6 3.5 PRA 7 3.6 SWOT Analysis 7 3.7 GAP Analysis 7 3.8 Value Chain Analysis 8 3.9 FMEA or FMECA 8 3.10 Decision Tree Analysis 9 3.11 Sensitivity Analysis 9 3.12 Monte Carlo Simulation 9 3.13 Other Risk Management Models 9 4. FINDINGS AND RECOMMENDATIONS 10 5. CONCLUSION 10 BIBLIOGRAPHY 11
ABSTRACT
Risk management models are tools that are used to manage project risk, whether the risk is technical, organisational, schedule, cost, etc. Various models are available to the project manager, although most are generic in nature and require the project manager to have prior knowledge of past failure trends in order to make a more informed decision. In order to achieve more accurate results, a project manager can tailor-make a risk management model to suit his specific project. 1. INTRODUCTION
Projects, by their very nature, involve risks because they are unique. Risk has two components, namely probability and consequence. The aim of risk management is to reduce the probability of the risk occurring as well as putting safety measures in place so that the consequence of the risk can be minimal.
The aim of this paper is to investigate risk management models available to the project manager. Risk management models are tools that have been developed to manage project risks. They help the project manager to
RISK MANAGEMENT MODELS FOR USE BY THE PROJECT MANAGER
A research paper submitted in partial fulfilment of the requirements for the subject
PJB4088 – Project Management
at the
UNIVERSITY OF JOHANNESBURG
Student Name: Lusanda Njenge Student Number: 201109115 Date: 15th October 2012
Table of Contents ABSTRACT 2 1. INTRODUCTION 2 2. LITERATURE REVIEW 2 2.1 What is a Risk 2 2.2 Risk Management 3 3. RISK MANAGEMENT MODELS 4 3.1 Risk Cube 4 3.2 Risk Burndown Chart 5 3.3 GANTT Chart and Milestone Chart 5 3.4 PERT or CPM 6 3.5 PRA 7 3.6 SWOT Analysis 7 3.7 GAP Analysis 7 3.8 Value Chain Analysis 8 3.9 FMEA or FMECA 8 3.10 Decision Tree Analysis 9 3.11 Sensitivity Analysis 9 3.12 Monte Carlo Simulation 9 3.13 Other Risk Management Models 9 4. FINDINGS AND RECOMMENDATIONS 10 5. CONCLUSION 10 BIBLIOGRAPHY 11
ABSTRACT
Risk management models are tools that are used to manage project risk, whether the risk is technical, organisational, schedule, cost, etc. Various models are available to the project manager, although most are generic in nature and require the project manager to have prior knowledge of past failure trends in order to make a more informed decision. In order to achieve more accurate results, a project manager can tailor-make a risk management model to suit his specific project. 1. INTRODUCTION
Projects, by their very nature, involve risks because they are unique. Risk has two components, namely probability and consequence. The aim of risk management is to reduce the probability of the risk occurring as well as putting safety measures in place so that the consequence of the risk can be minimal.
The aim of this paper is to investigate risk management models available to the project manager. Risk management models are tools that have been developed to manage project risks. They help the project manager to
Bibliography: [2] | Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK Guide), 4th ed. Pennsylvania, United States of America: Project Management Institute, Inc., 2008. | [3] | Jack R [4] | John F. Rice, "Adaptation of Porter 's five forces model to risk management," Defense Acquisition University, 2010. | [5] | J [10] | (2012, October) Enterprise PM. [Online]. http://www.enterprise-pm.com/pmbasics/risk-management-models | x