Sample Essay On Project Risks Review

Introduction

According to Burke, (2013), all projects are exposed to varying lengths and types of risks since the time they are planned their implementation. Failure of the projects can be attributed to the first minutes of the project lifecycle. In the process of the implementation of the project, risks are eminent. Example is, the financial resources may get drained away, facing stiff competition and others. In the initialization process of the project, if thoughtful preparation is not done, it may result in an ineffective work breakdown structure and inaccurate estimations. Control of the project implementation must be carried out to ensure that the design of the project does not go off course. All these occurrences can be detrimental to the lifecycle of a project. Project risk review is a function of the project manager, and it is carried out while involving the entire organization. It is done with an aim of exposing the far the project have been implemented and devise a way of successful implementation. It is a strategic practice carried out by an organization with an aim of designing an access of the group progress as far as risks are concerned. It is also a way of coming up with the mitigation process for the risks affecting the organization projects.
Traditionally, the review used to be carried out in a manual way, looking at the organization projects and the current set of work products for evaluation. And lastly coming up with a report at a senior level (Burke, 2013). However, this did not provide reliable resolution tools or guide to a mitigation of the risks. Today project risks review is done in a modernized way. There are risk analysis specialists who collaborate with the project manager on the ground and come up with risks avoidance tools and techniques with the help of team members to help come up with the solutions tom the risks.

Impacts of the events in the project

Top two threats have occurred
The top risks that were facing the Siwa project were a shift from traditional practices to modernity. The next high risk was the resources becoming limited. As explained by Hillson, (2014), project managers are usually faced with an uphill task to ensure that they come up with alternatives to help the organization curb the effects of the risks. One of the positive impacts of the threats occurring is boosting the ability of the organization to identify the risks early through methods linked to the projects strategic decision lifecycle. In addition, it will help in modifying the information contained in the risk register to ensure that any other future expected risk is controlled by taking place. Improved understanding of the risk and managers putting more attention on the risks will be enhanced. The measures shall be a strategy to mitigate the risks. The changes will have a negative to the project implementation, the threats occurring means that the project will shift their methods of its implementation.

Top opportunity realized

The top opportunity was as a result of the shift from the traditional ways of life to modernization. The shift equipped the workers with new skills that are technology based. The expertise and experiences obtained have been helpful to the Siwa project since the project has employed the locals. Risk management practices affect the entire processes of the project. It includes; budget, human resources, risks and opportunities (Hillson, 2014). In order for the project to maximize the probability of a chance occurring, it is necessary for the organization to carry out an extensive risk management practice. Considerably, risks can be either positive or negative. Positive risks are the opportunities whereas adverse risks are threats. Therefore, the realization of the opportunity by the Project means that it has been successful in project risk management.

The project resources have been exhausted

Exhaustion of funds in any project entails that the Project managers were not accurate when setting up the contingency budget. In addition, to the project, it means that it will not proceed to completion as explained by Hillson, & Simon, (2012). Unless new sources of getting resources are identified, the project will not succeed. During the speculation of risks, project managers tend to be optimistic. Similarly, they overlook the obstacles and wait to account for them. Exhaustion of the resources will create a positive impact to some extent on people involved in decision-making will be sensitized to the importance of being accurate while projecting the risks.

Risk management schedule shortened by two months

The project leader should be proactive; therefore, a contingency plan will be formed instantly to avoid any delays towards the deadline of the project implementation. Consequently, solutions to the problems shall be developed before the project due date. In case the manager is reactive, the management and the team will do little until the deadline approaches. The practice impacts negatively on the project (Hillson, & Simon, 2012).

Mitigation process required

Mitigation methods are practices that are carried out in a project lifecycle with an aim of increasing the probability of an opportunity occurring rather than threats (Kerzner, 2013). The process of mitigation includes; tracking the possibility of the identified risks, identifying new possible risks and lastly a practice to evaluate risk process effectiveness as the project implementation progresses. The best mitigation process is assuming or accepting the existence of a particular risk. The project managers must acknowledge the fact that a particular risk is eminent in the process of project implementation. The risks that have already occurred in the project lifecycle cannot be controlled by the organization. The only risk that can be prevented from occurring is getting enough resources before rolling out the project. Hence, the mitigation process applied will be a deliberate action to accept the existence of the risk without engaging in extraordinary efforts to control it. Example is a shift to modernization by the community; the risk cannot be prevented from occurring, but the impacts can be regulated. However, this mitigation process needs an approval of the project or the program leaders. The option selected requires an elaborate plan that has to be implemented and regular monitoring to ensure its effectiveness.

Budget/ schedule changes are a necessity and an explanation

According to Kerzner, (2013), there is a need to change the budget or the calendar of a project. In any project that has a scope of objectives, scheduling and budgeting are crucial since both defines the direction to be taken by such as organization. The schedule helps to show what have been done successfully, what is yet to be done. In case there is a lot to be done, the program must be altered. Similarly, budget elucidates every expenditure used in the course of the project. However, the processes are filled with uncertainties since they are not stable and hence a need for regular reviews. They are discussed while the project is still in progress both continues to develop as the project processes intensifies.' In our project, the project schedule includes all the possible risks likely to face the project and the changes that may arise, new risks that had not been identified in the planning process.
The main purpose of the schedule is to transform the project from vision based project to a time –based plan (Kerzner, 2013). However, any budgetary changes must be widely assessed before any decision is made and how to manage it. The fiscal changes may be accepted, refused or altered by the sponsors or the project steering committees. Our project was anticipated to take approximately six months, but due to the delays caused by the risks it may be delayed by two months. Therefore, the project schedule shall be altered to cope up with the time lost while mitigating the risks.

Update of the risk register and highlight the changes made and why they are necessary

There is a necessity to update the risk register constantly. The regular updating is crucial since it help the project managers to ensure a continuous management of the risks. The record needs to evolve and change as the project is underway. In addition, it helps in ensuring that all the project stakeholders are continually updated on all the happenings within the organization (Larson & Gray, 2014).
The risks that have already occurred dates were changed and the status of the risk changed from being in progress to having been achieved. Due to this, the only changes made are on the project schedule. Additionally, on the status of the risk section, it has been indicated that the risks have already occurred.

References

Burke, R. (2013). Project management: planning and control techniques. New York City Publishers ISBN 0989808 pg 190-336
Hillson, D. (2014). Managing Risk in Projects: What’s New?. Advance in Project Management: Narrated Journey in Unchartered Territories, 27.
Hillson, D., & Simon, P. (2012). Practical project risk management: The ATOM Methodology. Management Concepts Inc..
Kerzner, H. R. (2013). Project management: system approach to planning, scheduling, and controlling. John Wiley & Sons.
Larson, E. W., & Gray, C. F. (2014). Project Management: The Managerial Processes with MS Projects.