Your task for this part of the assessment item is to answer the following two questions. Each question will carry equal (20 marks) and your answer for each question should be around 1000 words:
Question1: Identify five common project risk strategies employed to address threats that your project may face. Give an example of each.
Question 2: Projects are often completed late. Describe the techniques you would use as a project manager to improve the accuracy and reliability of your project schedule. In responding to the above points, be sure to: Critique project theory based on your experience and understanding. This is important –don’t just “regurgitate” the theory Provide examples, data or other relevant information to support your discussion. Examples can be from work experience, research, study group experience, for example. They should demonstrate the theoretical points you are asserting in the questions.
1. Risk management strategy includes identification, assessment and controlling risks that may arise during the implementation and execution of a given project. In this context, the five common project risk strategies employed to address threats that a project may face can be described as follows:
Financial risk management strategy:- Financial risk management strategy includes the plans and actions that are taken to address the financial risk associated with a project. For example, the uncertainty of funds generated from the execution of a project, availability of funds for completing the project etc (Meredith & Mantel, 2011). Financial risk management strategy includes reviewing the similar project available for evaluating the financial risk during the execution of a project and the steps taken to address them. It also includes carrying out a sensitivity analysis to evaluate the cost and benefits associated with a project before its execution. Thus, financial risk management strategy helps to control and monitor the financial risk of a project (Meredith & Mantel, 2011).
Strategic risk management strategy:- Strategic risk management strategy includes the steps that are taken in order to mitigate the failure of any strategies that are developed for executing a project. For example, inappropriate use of funds, improper direction for achieving the goals of an organization etc. Poor management of project can result in complete failure of the project. The aims and objectives of the project cannot be achieved due to improper management of project by project manager. Hence the project manager should evaluate the present status of the project at regular intervals of time to ensure its successful implementation. The steps that are taken for overcoming the strategic risks associated with a project are demonstrating the linking of projects to existing policies and strategies and following an appropriate direction for executing any process of the project (Schwalbe, 2006).
Operational-technical risk management strategy:- This includes the possibility of occurrence of technical failure that may lead to stoppage of project in between or may take longer time for completion of a project. For example, loss of equipment, failure of technological devices needed to complete a project etc. Technical risk associated with a project can be minimized by taking advice from the experts and specialists in advance for identifying the potential technical risk of a project and the measures to be taken in advance for overcoming the risk (Schwalbe, 2006).
Operational-safety risk management strategy:- There are many safety risks associated with a project for example, health risk, improper working conditions, hygiene issues etc. Safety risk includes all the measures that are taken in order to ensure complete safety employees during the work. Organization can establish a safety risk assessment protocol for controlling all types of safety risks associated with a project (Schwalbe, 2006).
Data safety:- The loss of data at any stage of project execution is one of the most prominent project risk faced during its implementation. The project may face a temporary stoppage due to loss of data at any stage of the project. The project manager will not be able to plan future strategies for the project growth due to lack of past data on which further planning can be done (Schwalbe, 2006).
2. Techniques to use as a project manager to improve the accuracy and reliability of project schedule can be described as follows:
Sensitivity analysis:- Sensitivity analysis can be carried out by a project manager to determine the risk that has the most significant impact on the successful completion of a project. Sensitivity analysis examines and evaluates the uncertainly of each project element for evaluating all the risk that needs to be addressed properly for ensuring the timely and safely completion of a project (Andler, 2008). Expected monetary value analysis: Expected Monetary value (EMV) Analysis is used for calculating the average outcome of a project and is evaluated by multiplying the value of each possible outcome by its probability of occurrence (Andler, 2008).
Decision tree analysis:- Decision tree analysis is carried out by constricting a decision tree diagram that is used for evaluating the risks of a particular project and the implications of each of the possible choices for monitoring the risk associated with a project. It is usually done by estimating the cost of each available choice and the probabilities of occurrence of each possible scenario (Andler, 2008).
Modeling and simulation technique: Modeling and simulation technique is used for translating the uncertainties associated with a given project and their potential impact on project objectives (Andler, 2008).
Calculating realistic project timelines:- Evaluating the realistic time for completing project is essential for the timely completion of a project. The steps that are involved in estimating the time needed for completing a project includes understanding the project outcome, estimating time and monitoring the project at different intervals to ensure the completion of its different phases on time. Time estimates are essential for planning the deadlines for delivery and planning of projects and thus ensuring the reliability of project. In addition to this, time estimates are also essential for determining the pricing and profitability of projects (Meredith & Mantel, 2011). Thus, in the context of this, project management theory states that project management involves all the procedures and processes that are involved for achieving the specific goals and monitor a given project. The main constraints for the successful completion of a project are time, quality and budget.
Project management techniques emphasis on overcoming all these constraints associated for completing project (Andler, 2008). Software project usually consist of to main activities i.e. engineering activity and project management. Engineering activity is usually concerned with building the system i.e. designing of software, coding and testing. On the other hand, project management activities emphasis on controlling the risk, cost and quality of a project for ensuring its successful completion. Project management techniques helps in controlling the technical risks associated with a project by applying the right people and methodologies for successful completion of a project. Thus, as a project manger a project management framework is developed to assist the successful completion of project by taking proper steps (Andler, 2008). In this context, a project management framework developed for mitigating the risk associated with the software project implementation on the basis of the past research can be illustrated as follows:
Meredith, J. R. & Mantel, S. J. (2011). Project Management: A Managerial Approach. John Wiley & Sons.
Andler, N. (2008). Tools for Project Management, Workshops and Consulting. John Wiley & Sons.
Schwalbe, K. (2006). Introduction to Project Management. Cengage Learning.