Risk can be defined as, “a problem that has not yet happened but which could cause some loss or threaten the success of the project if it did” . Risk is the probability of something (hazard) happening. "Hazard" is in fact an event that could cause harm. Therefore, all future hazards that may appear during the project life cycle are required to be protected. It is for this reason that, it is not only important to know the risks but to find solution for each possible (most probable) scenario to cater any chances of failure.
Risk management is basically the practice of recognizing potential risks in advance, analyzing them and taking preventive steps to lessen or control the risk. It refers to the process in which the project manager and project team identify project risks, analyze and rank them, and decide what actions, if any, need to be taken to avoid these threats. Related to these processes are the concern about costs, time, and quality of the project brought about by the solutions to those risks. In addition, the responses to risks are examined for any secondary risks the solutions may
As a result, counterfeit products may be inadvertently produced. It is very crucial that all of the possible risks must be identified, evaluated, and prioritized so that appropriate actions for alleviation adverse effects will be set. One of the systematic procedures for the analysis of a system is the Failure Modes and Effect Analysis (FMEA). The purpose of this system is to identify failure modes and effects on hardware, software, and/or process performance. FMEA is therefore used to determine the severity of potential failure modes and subsequently to provide the mitigating measures to reduce risk.
Facility and supplier locations play a crucial role in safety. Potential risk related to the geographical regions should be considered, since some places have a high frequency of disaster compared to others. As with its suppliers, companies should collaborate with its buyers as well. Under better coordination, products can be designed and changed easily which provides better solutions for solving demand mismatches . Information based strategies- The essential element in any supply chain mitigation strategies is to provide transparent information sharing among supply chain members.
It is used to develop features and goals for product and process, in identifying critical of product/process factor, designing customaries the potential problems, establishing the control to prevent the errors and prioritizing the process submit to ensure reliability. FMEA most commonly applied but not limit to design (DFMEA) and manufacturing process (PFMEA). Design failure mode and effect analysis (DFMEA) identify the potential failure of design before they occur.DFMEA then goes to establish a potential effects of the failures, there causes, how often and when they might occur and their potential seriousness. Process failure mode and effect analysis (PFMEA) is systemized group of activities intended to recognized and evaluated the potential failure of a product/process and its effect .indentify action which could eliminate or reduce the occurrence or improve the defect ability, document the process and track change to avoid the potential failure cause. 2.2 FMEA approach FMEA is carried out by a cross-functional team of experts from various departments.
It ensures that there is enhanced coordination and transparency with functional units, which facilitates early identification of critical risks. Risk management should not be regarded as non-essential cost to be cut in the difficult times. Instead, organizations should use the insights offered by the risk process to ensure that they can handle the inevitable circumstances & uncertainties and emerge with a best possible solution in the
He/She will be responsible to review the plan from beginning to ending and analyse how and what the change can influence the original plan. Aspects of cost, benefits, timeliness, resources, influence on other new or existing projects, normal operation and risk have to be taken into account. In project management, changes in projects can cause substantial adjustment to the contract duration time, total direct and indirect cost, or both (Tiong 1990; Ibbs 1997; Ibbs et al. 1998). Common project planning tools such as risk analysis can be used to reduce the destructive consequences of change, because they give insights and predictions to identify possible conflicts (Mallak et al.
Assessing risks means understanding the nature of the harm that could be caused by the hazard, how serious the harm could be and the likelihood of it happening. A risk assessment should be done when there is uncertainty about how a hazard may result in injury or illness. A risk assessment should also be done when the work activity involves a number of different hazards and there is a lack of understanding about how the hazards may interact with each other to produce new or greater risks. Next, we should also carry out
4.2.1. Risk Management Planning After the risks are identified and prioritized project manager know which risk to manage. To manage the risks the project manager plans the actions after identifying the risks to mitigate them, different phases of risk mitigating are used by the project manager to eliminate the risks in information system projects. Different phases of risk reduction is used for different risk categories. For example if there is shortage of skilled staff the project manager will carry out the sessions of training.
This provides evidence which informs the decision to move to the next phase of the project or to attempt to rectify the problem. The purpose of testing is to reduce risk. The unknown factors within the development and design of new software can derail a project and minor risks can delay it. By using a cycle of testing and resolution the level of risk can be identified which ultimately reduce uncertainty and eliminate errors.