Comprehensive Project Risk Management Methodology

2021 ◽  
Vol 8 (1) ◽  
pp. 94-115
Author(s):  
Luis F. Copertari
Keyword(s):  
Risk Management ◽  
Project Management ◽  
Critical Path ◽  
Three Dimensions ◽  
Project Risk Management ◽  
Time Cost ◽  
Due Date ◽  
Project Risk ◽  
Computer Screen ◽  
Optimal Cost

The objective of this paper is to introduce and discuss the basics of a methodology called the Probabilistic Critical Path Method (PCPM) for managing the previously identified risks (uncertainty) of the three project management dimensions: time, cost and return (performance). An interactive Graphic User Interface (GUI) has been designed for visualizing the tradeoffs among these three dimensions as well as their uncertainties on a flat computer screen. The user can choose to visualize the probability of failure (exceeding some user given due date, budget or not exceeding a given Minimally Attractive Rate of Return – MARR) or the probability of success (not exceeding the due date and the budget and exceeding the MARR). PCPM allows for comprehensive project risk management and it constitutes a new integrative project risk management framework. This paper shows that it is possible to integrate all three project management dimensions (time, cost and return) and show their known risks as well as determining the optimal cost and the associated time and return for such optimal cost. Finally, it is possible to interactively show all this multidimensional information on a flat computer screen.

scholarly journals PROJECT RISK MANAGEMENT BASED ON A SET OF BEST PRACTICES

2021 ◽  
Vol 26 (3) ◽  
pp. 79-86
Author(s):  
Agnieszka JĘDRUSIK
Keyword(s):  
Risk Management ◽  
Life Cycle ◽  
Project Management ◽  
Best Practices ◽  
Project Manager ◽  
Project Risk Management ◽  
Project Risk ◽  
Golden Triangle ◽  
Project Life Cycle ◽  
Project Life

The purpose of this article is to present the process of risk management in project management. The analysis was based on a comparison of two best practices of IPMA and PRINCE. Risk management differs significantly between the two approaches, but it is up to the organization to choose its own management, monitoring and methodology tailored to the specific industry or sector. Risk management is an important aspect of the entire project life cycle and must be monitored throughout the project life cycle to protect not only the budget but all areas of the so-called "golden triangle". A very important aspect is the organization's awareness that risk management is everyone's responsibility, not just the project manager. This paper presents two different approaches to project risk management in two different methodologies.

Educating Project Managers to Deal With Project Risks

2018 ◽  
pp. 1606-1632
Author(s):  
Radu-Ioan Mogos ◽  
Constanta-Nicoleta Bodea ◽  
Stelian Stancu ◽  
Augustin Purnus ◽  
Maria-Iuliana Dascalu
Keyword(s):  
Risk Management ◽  
Project Management ◽  
Education And Training ◽  
Project Managers ◽  
Project Risk Management ◽  
Curriculum Management ◽  
Management Competencies ◽  
Project Risk ◽  
Project Risks ◽  
And Training

During the last years, the development of the project risk management competencies became a ubiquitous objective for education and training in project management due to the increasing constraints which companies face on the implementation of their projects. Alignment to the professional standards and usage of innovative methods in designing and delivery of instruction represent common requirements that education and training providers should consider and fulfill. The authors examine the main challenges in addressing project risk management subject in the education programmes and identify how these challenges could be dealt by using curriculum management systems. In order to implement the identified improvements, the authors propose an innovative architecture for a curriculum management system, which can be adopted by those universities interested in developing competencies-based programmes in project management. Some preliminary results are presented and discussed.

scholarly journals An Assistance to Project Risk Management Based on Complex Systems Theory and Agile Project Management

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-20
Author(s):  
Franck Marle
Keyword(s):  
Risk Management ◽  
Project Management ◽  
Complex Systems ◽  
Systems Theory ◽  
Project Risk Management ◽  
Project Risk ◽  
Complex Systems Theory ◽  
Agile Project Management ◽  
First Results ◽  
Complex Project

Project Risk Management is crucial in determining the future performance of a complex project. Increasing project complexity makes it more and more difficult to anticipate potential events that could affect the project and to make effective decisions to reduce project risk exposure. To tackle these conceptual and managerial issues, the proposed approach introduces Complex Systems Theory-based improvements into some PRM subprocesses and runs the global PRM process using Agile Project Management principles. We argue that these advanced techniques for managing project risk complexity, notably risk interdependencies, are coherent with the distributed, self-organized nature of agile teams. This new way of structuring and executing Project Risk Management offers the possibility to make decisions more frequently, when needed, with a more distributed authority, and with richer information about anticipation of events and consequences of actions. First results show an appropriation of this combined approach by project members due to agile principles that allows for getting the more reliable information promised by Complex Systems Theory.

An Interface-Based Integrated System for Project Risk Management

2014 ◽  
Vol 912-914 ◽  
pp. 1567-1570
Author(s):  
Xue Lian Tian ◽  
Yao Wu Wang
Keyword(s):  
Risk Management ◽  
Integrated Management ◽  
Integrated System ◽  
Three Dimensions ◽  
Management Model ◽  
Project Risk Management ◽  
Time Dimension ◽  
Project Risk ◽  
Risk Management System ◽  
Tissue Interface

According to the project interface risk classification including the physical interface risk, the contract interface risk, the tissue interface risk and the information interface risk, the integrated management model of project interface risk was put forward, which focused on the three dimensions: time dimension, relational dimension and information dimension. The project interface risk management system was developed, which consists of information subsystem, organizational subsystem, resources and support subsystem, and dynamic management subsystem. The system implements integration of project risk management from the perspective of the interface, and by using the system managers can foresee the exact location of the risk occurring or may occur.

Amadubi Rural Tourism Project in Jharkhand: Development of Project Risk Management (B)

2015 ◽  
pp. 1-15
Author(s):  
Goutam Dutta
Keyword(s):  
Risk Management ◽  
Critical Path ◽  
Rural Tourism ◽  
Project Risk Management ◽  
Project Risk ◽  
Network Diagram ◽  
Likelihood Rating ◽  
Risk Sources ◽  
The Impact

This case should be taught after (A) case. This case study discusses how the stakeholders of the (A) can sit together can discuss prepare first the activities of the project, draw the network diagram, develop a critical path. The discussion further proceeds when these stakeholders through the discussion develop risk sources, assigns probabilities and computes the impact and likelihood rating.

A Project Risk Management Methodology Developed for an Electrical Portuguese Organization

2016 ◽  
pp. 845-864
Author(s):  
Joana Peixoto ◽  
Anabela Tereso ◽  
Gabriela Fernandes ◽  
Rui Almeida
Keyword(s):  
Risk Management ◽  
Project Management ◽  
Action Research ◽  
Management Practices ◽  
Electric Energy ◽  
Project Risk Management ◽  
Process Standardization ◽  
Project Risk ◽  
Risk Management Methodology ◽  
Ongoing Project

This chapter resulted from an action-research undertaken on a Portuguese electric energy organization – EDP Distribution. The research aimed to develop, propose and implement a risk management methodology to integrate in the project management (PM) practices of an ongoing project. The methodology implemented allowed the project team to initiate systematized risk management practices through a simple structure, easy to apply, and with a degree of complexity compatible with the effort that the PM team could initially engage. It is expected that the proposed methodology signaled the initiation of the project risk management (PRM) process standardization in the EDP Distribution organization.

The Rational Choice of Not Applying Project Risk Management in Information Technology Projects

2009 ◽  
Vol 40 (3) ◽  
pp. 72-81 ◽  
Author(s):  
Elmar Kutsch ◽  
Mark Hall
Keyword(s):  
Information Technology ◽  
Risk Management ◽  
Project Management ◽  
Project Managers ◽  
Project Risk Management ◽  
Management Process ◽  
Information Technology Projects ◽  
Project Risk ◽  
Risk Management Process ◽  
Project Management Institute

The management of risk is considered a key discipline by the Project Management Institute and the Association for Project Management. However, knowledge of what needs to be done frequently fails to result in action consistent with that knowledge. The reasons for this seem to have received little attention. This study researched the degree of use of project risk management and barriers that prevent IT project managers from using risk management. Interviews and a survey were carried out. The results show that, in one-third of cases, because of the problem of cost justification, no formal project risk management process was applied.

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