Management Managerial Process Essay Example | Topics and Well Written Essays - 1500 words

Management Managerial Process - Essay Example In fact, there is no technique or method that could ensure that a risk would not occur during the project. In this scenario, every project manager is well aware of the fact that they have to deal with a variety of risk all the way through the project life cycle. In the context of a project, a risk can be an action or event that can have an effect on the project. However, the nature of this effect can be either positive or negative. Additionally, a risk can have a cause and it takes place in the result of an event. For example, a cause can be related to changes in scheduling which can affect other activities of the project. In addition, the majority of the project risks can affect project duration, budget, schedule, and quality. Moreover, project risks are managed through project risk management approach. In this scenario, risk management is the process of identifying and managing project risks. Figure 1Risk Management Process, Image Source: (Gray, Larson and Desai 209) (Gray, Larson and Desai 207) presented a risk management model to deal with project risks. Figure1 presents a graphical representation of this model. This model is divided into different phases and each phase performs specific tasks. The first phase is risk identification where a detailed analysis is carried out on the project in order to determine the sources of risks. At this phase, the project management team determines the holes that can cause any risk during the project. Once this phase is completed this process moves to the next phase that is known as risk assessment. At this stage, the project management team further analyzes the identified risks. In this scenario, they analyze these risks on the basis of their severity level, probability and so on. For instance, if a risk occurs then what impact it will have on the project. After the completion of this phase, this process moves to the next phase that is known as the risk response and development phase. At this stage, a project management team develops the strategy or plan to deal with identified risks. At this stage, the project team finds the solutions to minimize the impact of these risks on the overall project. The last stage of this process is known as risk response control. This phase involves monitoring and controlling the project risk strategy (Gray, Larson and Desai 209). A risk is anything that may potentially hinder with successful completion of the project or business task (CIO Archive; Kerzner). A project can involve a wide variety of risks. Some of the well-known kinds of risk can include: Time Risk This kind of risks is very common in projects. In this scenario, the time duration for the completion of a project can increase, which can create various problems for the project management team such as the need for additional resources and budget. Cost Risk The majority of projects has fixed budget and the project team needs to complete a project within this budget limitation. However, in some cases, the pr oject budget can increase which cause various problems for the project. Legal Risk International projects involve the execution of project tasks in various countries so it can require compliance with laws and regulations of these countries. In case of not following these rules and regulations can cause serious problems for the project and organization. Technological Risks Some projects involve the implementation of latest tools and technologies.