Improving Objectivity in Project Risk Management

2017 ◽  
pp. 248-265
Author(s):  
Kailan Shang
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Expert Knowledge ◽  
Process Mining ◽  
Critical Role ◽  
Project Risk Management ◽  
Project Risk ◽  
Resource Misallocation ◽  
Back Testing ◽  
Subject Matter Expertise

Project risk management requires subject matter expertise to identify and assess relevant and sometimes unique risks. Insufficient experience data and fast evolvement of emerging risks in the field of project risk management make qualitative analysis more prevalent in project risk assessment. Therefore, expert knowledge and experience play a critical role in project risk management. On the other hand, the resulting subjectivity often leads to inconsistent risk assessment. Undesired consequences include cost underestimation, risk underestimation and resource misallocation. This chapter discusses the causes and adverse impact of subjectivity in project risk management and methods to improve objectivity. It covers common human biases in project risk management and introduces measures to improve objectivity in project risk management using expert diversification, risk culture, process mining, fuzzy logic models, and back testing.

Improving Objectivity in Project Risk Management

2018 ◽  
pp. 1241-1258
Author(s):  
Kailan Shang
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Expert Knowledge ◽  
Process Mining ◽  
Critical Role ◽  
Project Risk Management ◽  
Project Risk ◽  
Resource Misallocation ◽  
Back Testing ◽  
Subject Matter Expertise

Project risk management requires subject matter expertise to identify and assess relevant and sometimes unique risks. Insufficient experience data and fast evolvement of emerging risks in the field of project risk management make qualitative analysis more prevalent in project risk assessment. Therefore, expert knowledge and experience play a critical role in project risk management. On the other hand, the resulting subjectivity often leads to inconsistent risk assessment. Undesired consequences include cost underestimation, risk underestimation and resource misallocation. This chapter discusses the causes and adverse impact of subjectivity in project risk management and methods to improve objectivity. It covers common human biases in project risk management and introduces measures to improve objectivity in project risk management using expert diversification, risk culture, process mining, fuzzy logic models, and back testing.

scholarly journals THE CURRENT STATE OF PROJECT RISK ASSESSMENT AND EDUCATION NEEDS IN PROJECT RISK MANAGEMENT

2019 ◽  
Vol 7 ◽  
Author(s):  
Matej Masár ◽  
Mária Hudáková
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Project Managers ◽  
Project Risk Management ◽  
Project Risk ◽  
Qualitative And Quantitative ◽  
Current State ◽  
The World ◽  
Project Risks ◽  
Project Risk Assessment

Current trends show that education in the field of project risk management is a very actual topic. Long - term projects, which was realized in 2018, was mainly focused on R&D across the world. Short - term projects, was focused on innovation and improve manufacturing processes. Many projects failed because project managers did not manage project risks. Project managers have less knowledge and skills on how to effectively manage project risks, especially risks in the planning phase of projects. The main aim of this article is to analyze the current state of usage project risk assessment across the world, based on own empirical research, which was provided, by authors in 2018 and 2019 (mainly level of usage project risk management methods, experience and level of education). The research focused on analyzing the current state of project risk assessment among continents. The authors focused on the average level of use qualitative and quantitative project risk analysis by project managers, level of project risk management experience by project managers and complexity of learning in using of qualitative and quantitative project risk management methods and tools.  Some recommendation were established to educate project managers in the field of project risk management.

Conventional Project Risk Management (PRM) Methodologies

2020 ◽  
pp. 35-52
Author(s):  
Yuri G. Raydugin
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Systematic Error ◽  
Project Risk Management ◽  
Project Risk ◽  
Assessment Matrix ◽  
Project Objectives ◽  
Risk Breakdown Structure

Overview of the conventional PRM methodology is based on the introduction of a PRM system that comprises a PRM context, a PRM process, and PRM tools. Typical PRM process steps to identify, address, assess, monitor, etc risks are reviewed to comply with PRM context (i.e. features and challenges of a project). Main sorts of uncertainties related to risks as possible impacts on project objectives—uncertainties of identification, manageability, assessments of impacts and probabilities, and favourability—are discussed. Key PRM tools to support the PRM context and the process—a PRM plan, a bowtie diagram, a risk breakdown structure (RBS), a risk assessment matrix (RAM), and a risk register—are introduced. A role of psychological and organizational bias as a systematic error in the PRM process is elaborated.

Information Technology Project Risk Management: Bridging the Gap between Research and Practice

2012 ◽  
Vol 27 (1) ◽  
pp. 17-34 ◽  
Author(s):  
Hazel Taylor ◽  
Edward Artman ◽  
Jill Palzkill Woelfer
Keyword(s):  
Risk Assessment ◽  
Information Technology ◽  
Risk Management ◽  
Assessment Process ◽  
Project Risk Management ◽  
It Projects ◽  
Project Risk ◽  
Research And Practice ◽  
Risk Assessment Process ◽  
It Project

The gap between research and practice is strikingly evident in the area of information technology (IT) project risk management. In spite of extensive research for over 30 years into IT project risk factors resulting in normative guidance on IT project risk management, adoption of these risk management methods in practice is inconsistent. Managing risk in IT projects remains a key challenge for many organizations. We discuss barriers to the application of normative prescriptions, such as assessments of probability and impact of risk, and suggest a contingency approach, which addresses the uncertainties, complexities, and ambiguities of IT projects and enables early identification of high-risk projects. Specifically, in a case study, we examine how the project management office (PMO) at one organization has bridged the gap between research and practice, developing a contingency-based risk assessment process well founded on research knowledge of project dimensions related to project performance, while also being practical in its implementation. The PMO's risk assessment process, and the risk spider chart that is the primary tool in this assessment, has proven to be effective for surfacing inherent risk at the early stages of IT projects, thereby enabling the recommendation of appropriate management strategies. The PMO's project risk assessment process is a model for other organizations striving to engage in effective and collaborative practices in order to improve project outcomes. The case illustrates the importance of considering the practical constraints of the context of application in order to transform research findings into practices that promote attainment of desired outcomes.

scholarly journals Project risk assessment of higher education online learning project during the Covid-19 crisis

2021 ◽  
Vol 13 (4) ◽  
pp. 602-616
Author(s):  
Putra Endi Catyanadika ◽  
Dessy Isfianadewi Isfianadewi
Keyword(s):  
Higher Education ◽  
Risk Assessment ◽  
Risk Management ◽  
Online Learning ◽  
Online Teaching ◽  
Management Approach ◽  
Project Risk Management ◽  
Project Risk ◽  
Severity Scores ◽  
Risk Breakdown Structure

This research aims to identify and assess the project risks of online teaching in Indonesian higher education institutions during the COVID-19 crisis. Two analyses have been conducted using the project risk management approach. First, a triangulation analysis based on interviews with 35 online teaching stakeholders was implemented in order to construct a risk breakdown structure to identify major registered risks. Second, a risk assessment calculating the severity score of each registered risk was conducted using an online survey with 125 online teaching participants. The results of these analyses concluded that there were 11 registered risks, with the highest risk exposure in the technological area. In terms of risk criticality, inadequate Internet connection and an inconducive learning environment were selected as the most critical risks with the highest severity scores. These results imply the importance of focussing on the technological risk mitigation and strategy policies to prepare for future online learning projects after the COVID-19 crisis in Indonesia. Keywords: distance learning, online teaching, project risk management, risk breakdown, structure.  

Risk Assessment of Large-Scale Public Utility Projects on Base of Entropy Law

2014 ◽  
Vol 651-653 ◽  
pp. 1711-1716
Author(s):  
Yao Yu Jin
Keyword(s):  
Risk Assessment ◽  
Risk Management ◽  
Large Scale ◽  
Public Utility ◽  
Public Utilities ◽  
Public Welfare ◽  
Theoretical Research ◽  
Project Risk Management ◽  
Engineering Project ◽  
Project Risk

Due to the risk of large-scale public welfare project and a wide variety of intricate link between various risks, the success of its projects is a great significance for the development of China's construction industry, many issues still need further research, particularly research project risk assessment. the theoretical research evaluation of large-scale public welfare project risks are becoming a core of project risk management, this paper presents a comprehensive evaluation of large-scale public utilities engineering project risk based on entropy method, and through case studies, large public utilities project risk management provides a simple, more objective methods of analysis for policy-makers to play the role of the project.

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