Importance Of Implementing Risk Management

Implementing Risk Management
As is common place with any activity and process contained in the product development life-cycle, there is overhead, cost, and drawbacks involved in a risk management program. These additional considerations can increase the likelihood of project failure if the processes are performed when the project team cannot handle any more responsibility. Additionally, in a rushed project where there is extremely little time to develop and delivery as scheduled, there is no time available to be learning new techniques and activities. Therefore, if risk management has never been performed, then learning during a rushed project is not the appropriate time to begin. The overhead involved would be drastically increased for a …show more content…
Thus, the likelihood of obtaining the decision makers’ buy-in is reduced, and any valid risks that are identified that should be mitigated would likely be met with resistance from the people who would be the ones to enable the actions that are needed to keep the risk from turning into a problem. Also, by performing any activities that do not have senior management buy-in could cause tension and conflict that hinders many other aspects of the project. Finally, when there is time to properly set up a risk management program, senior management could have reduced confidence in the stakeholders initiating the program. As with customer expectations, there are senior management expectations. If they refused to buy-in once, their initial impression could hinder any chances of them buying in when it comes to new attempts to obtain their …show more content…
When rushing risk management, however, it may be necessary to decrease the process even further to ensure that the risk management activities can be completed in time so that mitigation activities can occur in the reduced timeframe. Modifications to the mini-SRE process would be to use an internal evaluation team. This would cut down on the timeframe it would take for the evaluators to get up to speed on the project. Also, it would cut down on the overhead involved finding the people who will facilitate the evaluation. This evaluation team could consist of key decision makers, project champions, or any stakeholders who have extensive knowledge and insight surrounding the