Risk Management Professional (PMBOK6 alligned): A Practical Guide

The projects you'll manage will face many different risks. First of all, let's define what we mean by risk. Project risks have two characteristics. They're events that might happen, and they have the potential to impact one or more of the project objectives. There are two types of project risks, namely, negative risks and positive risks. A negative risk is also called a threat. This type of risk has the potential to harm a project and its objectives. Positive risks are called opportunities. These can benefit a project's objectives.One type of situation that presents obvious threats and opportunities in a project is when innovation has been introduced. Innovation implies that you're trying a new way of doing things instead of following an old, well established principle or procedure. However, you don't know how the innovation is going to work out. So with innovation comes an increase in project risk.Let's use an example. You are managing a project to upgrade a gym so it features state of the art equipment and facilities. You've applied some innovative thinking to the technical regulatory and marketing areas of this project but you know there may be risks as a result. Technical] For technical innovation, you've decided to use a range of gym equipment that a new company has manufactured. You've researched the equipment and heard good reports so far, but this range hasn't been on the market for long. There is a possible threat that the equipment won't deliver on its promises. However, there is also a good opportunity. The gym is a forerunner in using what could become a popular and well respected brand of gym equipment. Regulatory] The current layout of the gym is outdated so you decide to completely redesign it. The new plans affect the regulatory area of this project because they must adhere strictly to new health and safety regulations. For example, the government has recently changed the rules about the number and location of fire escape routes. You have to ensure that the new layout complies. The threat is that if the new layout does not pass these regulations, the gym could face fines and have to spend time and money on redesign. The opportunity is that the gym will be safe for members and management won't have to worry about health and safety regulations for years to come. Marketing] As a marketing strategy you've decided to install touch screens on the new cardio vascular gym equipment which enables users to watch television, listen to music and program their workouts. The possible threat is that you could be excluding people who are not technologically minded from using the machines. The opportunity is that you'll attract members who enjoy using this type of technology.All projects face risks of some kind. Being able to spot risks means being able to spot a possible, unexpected event that may have an impact on the project objectives. But you should also be able to determine whether the risk is good or bad.Project risk management includes planning for risks and risk responses. It also means identifying, analyzing, and monitoring risks throughout your project to ensure they pose the least threat to your project as possible. All projects carry risk. So there's no avoiding it. Projects, no matter how small or simple, have some level of uncertainty and if you're using an Agile approach there is even more uncertainty due to the nature of the Agile methodology.But there are some best practices you can consider to reduce risk for adaptive project environments. First, you may want to introduce frequent reviews at incremental stages of the product development. This can help catch any issues before they cause more problems. You may also want to make use of cross-functional teams. This increases knowledge sharing and risk understanding.

Author: Sorin Dumitrascu
Publisher: Independently Published
Published: 07/01/2018
Pages: 226
Binding Type: Paperback
Weight: 0.74lbs
Size: 9.00h x 6.00w x 0.52d
ISBN13: 9781983300455
ISBN10: 1983300454
BISAC Categories:
- Business & Economics | Project Management

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