Monitoring Risk in Project Management
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Published: Mon, 11 Sep 2017
Risk identification and analysis lies in the hands of the owner who is the first participant in any type of project. When they are identified earlier, then there is a plan on how to manage them. If this task is to be given to any other personnel, then he/she should have the skills to interpret those risks. Although the owner may fail to identify all the risks, then there should be an integrated project team who will assisting this. Any plan that is designed for the project should have the risk identification part.
In a certain flower farm, the owner saw it appropriate to test a certain variety of flower and see how it would perform in the ecological zone he was in. Before doing anything else, he contacted each and every employee to tell them about his idea. Most of them were very willing to help in anything they could. One of the ways he started doing is to group we as employees into groups that would work as a team to achieve this. He could also call upon some of us in a face-to-face interaction and this improved on trust of all of us. He could also contact specialists in the sector in question, not because we could not do it by ourselves but because he wanted a variable number if ideas.
Team members also needed to play their roles effectively. They needed to actively involve themselves by giving ideas and nobody was permitted to criticize. On the same note, each of the identified risk would be recorded whether relevant or not. All this would help to identify all the risks possible with the help of missions, strategies and goals of the project, cost estimate, procurement, and execution and financing plan, project’s Environmental Impact Assessment among others. This process was repeated several times before the outcomes were realized.
We as teams then took the challenge to rank these identified risks in the order in which they could be severe. The lowest rank held those risks that were less severe and we categorized them as negligible. Marginal, critical and catastrophic were among the more severe. This ranking was based on value in other words number of dollars and indicated that there will be minimal environment damage. On top of this was the marginal risks where we indicated that there will be imitable environmental damage and that there will be restoration activities that will take place. On and on until we got to the catastrophic ones where we showed that there would be irreversible environmental damage and that the business would be closed. We went ahead and ranked them on the basis of likelihood where we ranked them as certain, likely, possible, unlikely or rare. The rare ones were those that were unlikely to occur although they were possible. The unlikely are those that could reasonably expected to occur. Those that are possible are those that will occur severally while the likely will occur frequently. The certain ones are those that will continually be experienced.
Monitoring the risks was also the mandate of the teams. We had identify all new risks and take action in managing them. We also examined and documented the effectiveness of risks responses. We also could measure the technical performance of the risks. Before all this, we could first evaluate the risks whether all our assumptions were still valid, whether the risks have changed from the prior state, whether the proper measures for are being followed or whether they needed to be modified in line with the aim of the project.
On top of all this, the owner had an idea of purchasing a new car that he would use to convey the flowers when they will be ready to the market. What motivated him was that he had enough money to purchase it cash. He would get the car of his choice as well as the one that will be suitable to carry out the function. He was sure enough that the value of this expected car will be covered by the expected sales of the flowers.
Wardlaw, C. & Wardlaw, C. (2017). 8 Important Decisions to Make Before Buying a New Car. NY Daily News. Retrieved 13 March 2017, from http://www.nydailynews.com/autos/street-smarts/8-important-decisions-buying-new-car-article-1.2558671
Reincke, K. (2017). Monitor & Control Project Work – myPmps. Mypmps.net. Retrieved 13 March 2017, from http://www.mypmps.net/en/mypmps/knowledgeareas/integration/monitor-control-project-work.html
Ranking Risks: Rare to Certain, Negligible to Catastrophic. (2017). Project Smart. Retrieved 13 March 2017, from https://www.projectsmart.co.uk/ranking-risks-rare-to-certain-negligible-to-catastrophic.php
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