18300038,14th, MGT 331, Assignment

Assignment
Project Risk Management
Course Code: MGT 331
Course Title: Project Management
Prepared By
Name: Md. Rifat Alam
ID No: 18300038
Batch: 14th
Prepared For
Name: SM Akber
Assistant Professor
Department of Business Administration
Date of Submission: 5-July-2021
RANADA PRASAD SHAHA UNIVERSITY

TABLE OF CONTENTS
Contents Page
number
From Book 1
From website 2
From journal 3
Summary 4
Reference 5
1
 Plan Risk Management
 Identify Risks
 Perform Qualitative Risk Analysis
 Perform Quantitative Risk Analysis
 Plan Risk Responses
 Monitor and Control Risks
Project risk management focuses on the planning, identification, analysis, response

planning, and monitoring and control of risk on a project. A key objective of performing project
risk management is to increase the probability of project success by minimizing or eliminating
negative risk events and increasing the probability of positive events.
The following processes and the primary goals of Project risk management are defined
below:
 Risk Management includes the processes of planning risk management,

identifying risks, performing qualitative and quantitative analysis of risks,
planning responses to risks, and finally monitoring and controlling risks
on the project
 Risk is always in the future
 Risk involves uncertainty - it may or may not occur
 Assess your organization's tolerance for risk: are they risk tolerant or risk
averse?
2
Project risk management is the process that project managers use to manage potential
risks that may affect a project in any way, both positively and negatively. The goal is to
minimize the impact of these risks.
A risk is any unexpected event that can affect people, technology, resources, or processes
(including projects). Unlike a regular problem that may arise, risks are incidents that may occur
suddenly, sometimes entirely unexpected. Project managers do not always know which risks the
project is exposed to, when they occur, and why. Due to this high degree of uncertainty, project
risk management requires a serious and in-depth approach. In short, the Project Risk
Management process consists of identifying risks, analyzing them, and subsequently responding
to any risks that may arise throughout the project life cycle. This is done to limit the
consequences of the risk as much as possible, so that objectives can be continued to be met.
Generally speaking, risk management is not a reactive activity. To find out which risks may
arise, risk management must be included in every planning process. Which risks are there that
may influence the project, and how can these risks be controlled?
What is a risk?
A risk is anything that may affect a project’s performance, budgets, or timeline when it
materializes. Risks are therefore possibilities; there is a possibility that a certain incident may
affect the project. “Individual” risk is defined as an uncertain event or condition that, if it occurs,
has a positive or negative effect on a project’s objectives. In practice, risks are often associated
with problems that need to be addressed. Risk management is therefore the process of
identifying, analyzing, and responding to risks before they actually become problems.
Who conducts Project Risk Management?
Although Project Risk Management works the same for every project, it can take
different forms. Different types and sizes of projects require a different approach to risk
management. In many large-scale projects, a relatively large amount of attention is paid to
comprehensive risk management and mitigation strategies for when problems arise.
3
The project risk management process, a preliminary study
A process of risk management in projects is a rational chain of practices by which

decision-agents plan and execute actions and control the results in order to keep the
implementation of the project under certain conditions (time, cost and quality parameters’ set).
With the purpose of providing guidelines for the selection of the best practices taking into
account the organizational maturity and project complexity, a theoretical framework to classify
and associate those practices to each phase of the project life cycle and to each project risk
management process is proposed. Future research efforts will be directed towards refining the
framework and testing it in multiple case studies.
Introduction
A process of risk management in projects is a rational chain of practices taken by decision-agents

in order to keep the implementation of the project under certain conditions. The decision-agents
need to identify, analyze and evaluate the risks in all project life cycle and use their
organizational structure and administrative practices in order to act on the risks in favor of the
project. Project complexity and the maturity of the organizations are viewed as important factors
that can affect the success of a project [1,2,3]. In literature, project complexity is characterized
by huge investments, long execution processes, many resources, stakeholders’ involvement, and
instable economic and political environments [4,5]. Maturity refers to an organization that is
completely aware of risk and proactively takes actions based on risk information (which is much
related with the knowledge/skills of the project personnel). The present work develops a
theoretical framework classifying practices based on the corporate maturity, the project
complexity for all the phases of the life cycle of a project. Therefore, this study addresses the
following research questions: what are the practices associated to project’s performance that the
project managers (PM) use in each phase of the risk management process? Is it possible to build
a generic framework to different kinds of project (dimensions, economic sectors, complexity)?
To develop this framework an extensive literature review is made, interviews were conducted
with selected PM to gain insights into the importance of the practices, PM skills, complexity’s
factors, constraints associated with projects, organization culture and stakeholders influence, and
a questionnaire is created.
4
Summary
After analyzing these three topics of project risk management, I can say that
project risk management is the process that project managers use to manage potential risks that
may affect a project. The goal is to minimize the impact of these risks. A risk is anything that
may affect a project’s performance, budgets, or timeline when it materializes. There is a
possibility that a certain incident may affect the project. So, project risk management requires a
serious and in-depth approach. In short, the Project Risk Management process consists of
identifying risks, analyzing them, and subsequently responding to any risks that may arise
throughout the project life cycle. A key objective of performing project risk management is to
increase the probability of project success by minimizing or eliminating negative risk events and
increasing the probability of positive events. We have also gone through an article where we
found that A process of risk management in projects is a rational chain of practices taken by
project managers in order to keep the implementation of the project under certain conditions.
This article addresses a research question: what are the practices associated to project’s
performance that the project managers (PM) use in each phase of the risk management process?
And interviews were conducted with selected project managers
5
Reference
1) Richard J Perrin PMP MBB CSM CSP ACP- PMP® Exam Prep Boot Camp 4th Edition
2) Janse, B. (2022, June 22). Project Risk Management. Toolshero.
https://www.toolshero.com/project-management/project-risk-management/
3) Rodrigues-da-Silva, L. H., & Crispim, J. A. (2014). The Project Risk Management Process, a
Preliminary Study. Procedia Technology, 16, 943–949.
https://doi.org/10.1016/j.protcy.2014.10.047

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Assignment

Project Risk Management

Course Code: MGT 331

Course Title: Project Management

Name: Md. Rifat Alam

Department of Business Administration

Date of Submission: 5-July-2021

RANADA PRASAD SHAHA UNIVERSITY

Project risk management focuses on the planning, identification, analysis, response

 Risk Management includes the processes of planning risk management,

Who conducts Project Risk Management?

A process of risk management in projects is a rational chain of practices by which

A process of risk management in projects is a rational chain of practices taken by decision-agents

2) Janse, B. (2022, June 22). Project Risk Management. Toolshero.

Preliminary Study. Procedia Technology, 16, 943–949.

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