Assignment task:
This assignment is designed to help you improve your communication, critical thinking, and research skills. Your deliverable should answer the following questions:
- What did you learn this week?
- Was the material valuable and/or applicable? Please elaborate.
- If yes, how are you planning to use this material in the future?
- If no, what changes would you recommend?
Risk Analysis:
Risk management is one of the core project knowledge areas, an essential and ongoing process that includes all the risk related information. Regardless of the project methodology, risk management processes generally include risk identification, analysis, risk response planning, risk monitoring, and control.
The process of evaluating project risk begins in the planning stages, but it must continue through every stage of the project. While qualitative risk analysis is the process of prioritizing risks for further analysis or action, quantitative risk analysis is a statistical analysis of the effect of those identified risks on the overall project.
Objectives:
- Explain the difference between qualitative and quantitative risk analysis.
- Discuss why the process of analyzing risk is included in the risk management plan.
- Generate a list of components that should be documented in the risk management plan.
Readings and Resources:
Textbook or eBook:
Wilson, R. (2015). Mastering risk and procurement in project management. Upper Saddle River, NJ: Pearson FT Press.
The Project Management Body of Knowledge (PMBOK) Guide, created by the Project Management Institute (PMI), consists of widely accepted standards, frameworks, techniques, processes, and terminology for the project management profession.
- Project Management Institute. (2021). A guide to the project management body of knowledge (PMBOK Guide) (7th ed.). Project Management Institute, Inc.
Articles, Websites, and Videos:
This article highlights the importance of risk management by citing several companies and the massive impact they had to incur after taking on massive IT projects.
- Flyvbjerg, B. &Budzier, A. (2011, September). Why your IT project may be riskier than you think. Harvard Business Review.
This article presents the structured Risk Management process followed at Nokia Siemens Networks that help avoid crisis situations and incorporate learning from past mistakes. It highlights that effective and early risk identification and management secures the achievement of project objectives, leading to reduced rework costs.
- Lavanya, N. & Malarvizhi, T. (2008). Risk analysis and management: a vital key to effective project management. Paper presented at PMI® Global Congress 2008-Asia Pacific, Sydney, New South Wales, Australia. Newtown Square, PA: Project Management Institute.