PROJECT MANAGEMENT 4
Riskassessment is crucial in order to be in a position to evaluate thepossibilities and consequences of risk events as they happen. Riskmust first be established, evaluated, prioritized, planned, andexecuted and monitored for progress (Parker & Mobey, 2004). Inthe identification process, risk events and their interactions shouldbe described. In the process of risk evaluation, the possibility andconsequences of a risk event should be assessed. These can encompasscosts, schedule and performance the risk may have on the project.After assessment, risks ought to be prioritized such that the mostcritical risk is given precedence. Finally, risks events should becontinuously monitored so that the apt action is taken accordingly(Parker & Mobey, 2004).
Thereare many risk events that can affect the execution of a project. Someof the most salient risk relate to technical baseline risk, schedulerisk and risk events relating to cost. Technical baseline is a termthat denotes the ability of the system configuration to attain theproject’s engineering goals based on the available technicalknowhow and technology, design instruments and maturity (Smith &Merritt, 2002). Project uncertainties and the processes connected tothe supportability, dependability and maintainability should beconsidered. System configuration is an agreed and released documentof the features of the product, at a given point in time thatprovides the background for defining change. Due to changes intechnology a give set of system configuration may become moribund,throwing the whole project into limbo. Schedule defines the amount oftime allocated for conducting specific task in the project life-cycle(Smith & Merritt, 2002). Schedule affects the programmaticdecisions and as such intrinsic errors in schedule approximation canhave first-order performance effect on the project (Parker &Mobey, 2004). The third risk may relate to the cost of the project.The ability of the system to attain the project‘s life-cyclesupport goals is quite paramount. Unpredictable costs and errors incost estimation due to unknown system information may causesignificant changes in budget.
Projectmanager can militate against the three risks using existing andproven technology instead of employing an untested or new technique.Project managers can also get the help of experts to review the costestimates and schedule of a project to lower project risk related tocosts and errors in scheduling (Parker & Mobey, 2004).
Parker,D. and Mobey, A. (2004). “Action Research to Explore Perceptions ofRisk in ,” InternationalJournal of Productivity and Performance Management 53, no. 1: 18–32.Availableat :http://pm4id.org/11/2/
SmithP.G. and Merritt, G. (2002). ProactiveRisk Management.Portland Press.