Risk Management and Project Constraints, Essay Example

Risk in project management is the perceived implications of an uncertain event impacting the project or the organization as a result of the project’s deliverables. Within each of the risks there are varying degrees in which the impact, severity and likelihood will occur. Each of these factors plays a role into the risk mitigation plan of the organization. These risk mitigation actions incorporate the risk itself as well as the tolerance of the organization and the benefits of accepting certain risk models to achieve certain objectives (Cooper, Grey, Raymond, and Walker 2005). The risk adversity or risk acceptance of the organization is interdependent with the goals and objectives that the organization wants to achieve as well as the activities that are necessary to achieve those deliverables.

The risk management process according to the Project Management Book of Knowledge (PMBOK) includes six processes that encapsulate how risk is managed and mitigated within a project. This includes plan risk management, risk identification, qualitative analysis, quantitative analysis, risk responses and monitoring and controlling of the risks (PMBOK 2008). Each of these areas plays a critical role in identifying, understanding, mitigating and sustaining risk mitigation activities. Within every project there are many risk factors that can have a potential impact on the efficiency and effectiveness of completing the project within schedule, budget and achieving the quality of the deliverables outlined in the scope document.

Project risk is based on the uncertainty in projects and those risks come in the form of known risks and unknown risks. The known risks can be identified, analyzed and a risk mitigation plan can be formulated around these risks. The unknown risks do not have the same luxury regarding proactivity in mitigation and these types of risks are the basis for contingency plans that are built into the project by the project team.

Triple Constraints Management

A project is a temporary endeavor undertaken to create a unique product, service or result (PMBOK 2008). The project has a beginning and an end and when the end is reached there are deliverables that are provided to the stakeholders. Throughout the process of the project management the project manager has the task of managing the constraints placed on the project. Every project has the same three constraining factors which include schedule, cost and quality. These triple constraints impact how a project is completed and what can be accomplished within the allotted timeframe.

These constraints on time, resources and deliverables are constantly pulling at each other to receive the most resources or attention. When a project is undertaken the foundation regarding the project scope, project plan and estimated resources become the foundation on what requirements can be accomplished given the amount of resources allocated and the timeframe allotted. Scheduling a project is a balance between science and art. The project manager would utilize the estimation tools such as creating work breakdown structures to understand what level of effort will be required to accomplish specific tasks (Miller 2009). The project manager would also need to coordinate and integrate the dependent activities within the schedule to ensure they are lined up accordingly and in the correct process flow (Prencipe and Hobday 2007). Once the planning phase of the project is complete and the project plan is created, scope is define, estimations of resources is completed and the associated plans regarding communications and risk are initiated the project manage would utilize monitoring and controlling tools such as earned value management, EVM. EVM would measure the performance and progress of the project within the parameters of scope, schedule and cost. This provides the project manager with the information to know what has been accomplished, the amount of resources utilized and if the project is in line with the estimations (Fleming and Koffleman 2010).

References

Cooper, D. F., Grey, S., Raymond, G., & Walker, P. (2005). Project risk management guidelines, managing risk in large projects and complex procurements. John Wiley & Sons

Fleming, Q. W., & Koffleman, J. M. (2010). Earned value project management. Project Management Institute.

Highsmith, J. A., & Highsmith, J. (2010). Agile project management, creating innovative products. Addison-Wesley Professional.

Leach, L. P. (2005). Critical chain project management. Norwood, MA: Artech House, INC.

Miller, D. (2009). Building a project work breakdown structure: visualizing objectives, deliverables, activities, and schedules (esi international project management series). Boca Raton, Fl: Auerbach Publications.

Prencipe, A., Davies, A., & Hobday, M. (2007). The business of systems integration. Oxford University Press, USA.

Project Management Institute (PMI). (2008). A guide to the project management body of knowledge. (4th ed.). Newtown Square: Project Management Inst.

Stewart, R. (1995). Cost estimator’s reference manual. (2nd ed.). Wiley.