Project Managment, Strategies for Negative Risks

1. change location (in the case of the wind turbine)
2. News of President of Maldives being ousted (supposed to be stable!)
1. holiday resorts investment in risk
3. What is considered to be safe?
4. Transfer (subcontracting)
1. although you subcontract, ultimate responsibility comes back to you
2. This is called "residual risk" (aka secondary risk)
3. what if the sub-contractor goes bankrupt?
4. Insurance can be used here - large risk premiums involved
5. Risk reduction
1. reduce either the probability or impact (fire sprinklers reduce the impact)
2. provide guards around rotating machinery, mandate uniforms strictly
6. Crisis management training
1. evacuation procedures
7. Exploit opportunities
1. when weather is good, you need to work more hours
2. allocate ownership to subcontractors
8. More On Risks:
1. RISK MANAGEMENT DEFINED
   
   
   Per PMI’s PMBOK, “Project risk management is the systematic process of identifying, analyzing, and responding to project risk. It includes maximizing the probability and consequences of positive events and minimizing the probability and consequences of events adverse to project objectives. It includes the processes of risk management planning, risk identification, qualitative risk analysis, quantitative risk analysis, risk response planning, and risk monitoring and control.”
   
   
   The Implementation and Execution section of the Risk Management Plan describes the procedures for dealing with risk for Information Technology projects.  It follows the Project Management Institute[i] Project Management Book of Knowledge[ii] (PMBOK), recognized as an industry standard for Project Management.   
   
   

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   [i]Project Management Institute, Newtown Square, PA, USA

   [ii]Project Management Book of Knowledge, 2000 Edition , Project Management Institute Standards committee

   
   

    

   James A. Ward is an independent consultant specializing in systems development project management and implementation of quality improvement initiatives. He can be reached at (904) 273-8777, via e-mail at soozward@earthlink.net or on the web at www.JamesAWard.com.