Risk management is a critical undertaking that must be addressed within every endeavor. Without a thorough risk assessment, a project can suffer major setbacks, increased costs, and the potential project failure. Along with evaluating each project for potential risks, each organization must also determine the type of risks that the organization will tolerate, mitigate or avoid. By identifying potential risks, a project management office (PMO) can develop an effective risk management plan that will protect the interests of the business and ensure project success.
Background
Risk management plans are a critical function of every project and must be continually performed within the project lifecycle. Risk is defined as “an uncertain event or …show more content…
Project managers must realize that internal risks can occur at any phase within a project and can impact the performance, budget, scope, time, and resources of an endeavor (Vaidyanathan, 2013). A PMO should adopt a proactive and integrative approach within the organization’s risk management process. The purpose of implementing the risk management process is to prioritize hazards in order to enable the organization to adapt quickly to variation, elevate the capability to identify risks, correct safety and quality issues, and identify problematic policies and processes (Beauchamp-Akatova & Curran, 2013). Along with correctly assessing potential risks, a PMO should also distinguish the risk attitudes of the organization, as well as the stakeholders of the project (Project Management Institute, 2013). The risk tolerance and threshold of an organization or stakeholder will determine the best course of action if to accept, mitigate, transfer, or avoid the risk (Project Management Institute, 2013). A PMO must create an effective risk management process that addresses the common risk factors with the majority of the project, while identifying and assessing project specific …show more content…
A PMO must fully integrate a risk management process that is able to identify potential risks, with a proactive approach, in order to promptly address each issue and minimize the effects on the project and organization. Along with completing a full risk analysis for every project, common risk factors and the risk tolerances of the organization and stakeholders should be included in the risk management assessment. By considering all of these attributes within the risk management process, a PMO can effectively implement a mitigation plan that will minimize the impacts on projects and present a competitive advantage for the organization
Background
Risk management plans are a critical function of every project and must be continually performed within the project lifecycle. Risk is defined as “an uncertain event or …show more content…
Project managers must realize that internal risks can occur at any phase within a project and can impact the performance, budget, scope, time, and resources of an endeavor (Vaidyanathan, 2013). A PMO should adopt a proactive and integrative approach within the organization’s risk management process. The purpose of implementing the risk management process is to prioritize hazards in order to enable the organization to adapt quickly to variation, elevate the capability to identify risks, correct safety and quality issues, and identify problematic policies and processes (Beauchamp-Akatova & Curran, 2013). Along with correctly assessing potential risks, a PMO should also distinguish the risk attitudes of the organization, as well as the stakeholders of the project (Project Management Institute, 2013). The risk tolerance and threshold of an organization or stakeholder will determine the best course of action if to accept, mitigate, transfer, or avoid the risk (Project Management Institute, 2013). A PMO must create an effective risk management process that addresses the common risk factors with the majority of the project, while identifying and assessing project specific …show more content…
A PMO must fully integrate a risk management process that is able to identify potential risks, with a proactive approach, in order to promptly address each issue and minimize the effects on the project and organization. Along with completing a full risk analysis for every project, common risk factors and the risk tolerances of the organization and stakeholders should be included in the risk management assessment. By considering all of these attributes within the risk management process, a PMO can effectively implement a mitigation plan that will minimize the impacts on projects and present a competitive advantage for the organization