Since the risk management have that importance , and roads construction projects are huge and expensive, then conducting risk management planning, identification ,analysis, response planning, and controlling risk ,on a road construction project is vital , for all parties of such project .Even the awareness of risk management is important to them. The project risk management primary goal ,is either to develop a credible foundation for each project, showing its possibility, or to demonstrate that the project is not feasible so that its avoidance, abortion, or transformation is a
However, the onus of responsibility should be controlled by the project manager himself as being the leader. Moreover, each one has a responsibility, to a greater or lesser degree in managing the risks associated with the project. 6. In order to justify how to approach, plan and execute risk management activities for a project. The two step concepts have been proposed which can proactively identify, analyze and plan for anticipated risks, before risks can derail or destroy a project.
In fact the project risk management can be used to achieve following: 1. Arriving at a balanced approach to managing the capital 2. Prioritizing the work in a fast paced corporate culture prevalent at the high transaction based oil & gas industry. 3. Project risk Management helps to identify the knowledge gaps and assist in plugging those gaps 4.
It is not uncommon for projects to lead to serious and costly (technical, financial or commercial) failures, to a degradation or questioning of their main objectives (costs, deadlines and performance), or even to their pure and simple abandonment. Managing Project Risks is so important that Governments and businesses take it seriously so they can reduce the cost of their infrastructure investments by more than $5 trillion by 2030 if they improve how they manage the risks inherent in large projects (Wyman, 2012). That is why Managing Project Risks has become important, even a major concern for many project managers in recent years. To carry out the project according to the forecasts, it is essential to set up a risk management in order to look for the weak points in order to think and consider the solutions to the actions to prevent the risks. Risk management attempts to recognize and manage potential and unforeseen trouble spots that may occur when the project is implemented (Erik W. Larson).
Some of the projects don’t work as they are planned, some don’t achieve their targets or some don’t even finish ever, risk management helps in managing the risk properly and on time to for making the project run smoothly, finish on time and to achieve the desired results in Information system projects. It is very important to assess the risk, to identify it and then to prioritize it in a project. By using different methods according to the probability of risk and by assessing its impact on the project the risks can be managed. It is very important to make a risk management plan which can come handy from the starting stage of the project to finishing stage. Risk monitoring should be done in all stages of project to supervise the carrying out of the information system projects to examine new and old risks and for checking that which risks can cause negative impact on the information system
Any and all projects can be supported with the project management life cycle. It helps to keep objectives clear, and also to help manage time and budget for the project. According to (Picariello, 2016), project management life cycle consists of five steps that are vital for every part of the project. They are Initiation, Planning, Execution, Monitoring/Control and
from the inception to the completion of the project. The project sponsors, project manager and the project team members together develops a risk register that helps them to identify, assess, quantify, prepare a response to, monitor, and control project risks. The extent to which project risk management is done depends to an extent on the total cost of the project. The project risk management helps the project team in several ways like it gives ability to the project team to focus time and effort on highest priority risks. It ensures that there is enhanced coordination and transparency with functional units, which facilitates early identification of critical risks.
It then becomes the responsibility of the project manager and the project team to balance all tasks. We may not even be aware of it but, we all use project management in our lives on a daily basis. All of us plan and organise our tasks, career, and work responsibilities. In the corporate world, project management is a demanding career choice. Project managers are crucial employees in every industry and all types of companies, globally.
Lower costs can occur due to a project management perspective as this ensures that the road ahead is laid out in advance. This in turn helps to cut the workers working time and has them working less hours which saves money. Improved Productivity- A project management perspective ensures the road is scanned well ahead in order to see potential risks but also to give timelines for certain tasks to be completed by. If people who are working on your project have deadlines they tend to work more efficiently in order to meet the
Among the management techniques, risk identification and control is being one of the most vital procedures and capability areas in the field of project management. According to the Project Management Institute's PMBOK, Risk management is one of the ten knowledge areas in which a project manager must be competent. The PMI (Project management Institute) defines risk management as the process of identifying, evaluating, and responding to risks in the different types of project in order to control the consequences that may arise in any of project’s stages. Project risk is defined by PMI also as, "an uncertain event or condition that, if it occurs, has a positive or negative effect on a project's objectives." Therefore, the goal of risk management was defined as the process of increasing the impact and probability of positive risks and decreasing them for negative risks.