Risk Management In The Blue Spider ( BS )

Answer: It should been done after project. The reason is normally managers got the data after R&D projects before they make the decision of profit. The profit was not certain before and during R&D projects.

The owner hired some consultants prior to calling for tendering, and the consultant’s estimations for the cost of the project including enough profit was not far from the “mistaken” figure of the complainant.

After discovering the risks it may determine the risk tolerance. This is the level of tolerance that is about the risks that may occur (Heldman, 2011). Within a project refers to the level of risk tolerance that can be tolerated by putting in perspective the benefits that occur when taking that risk (Heldman, 2011). Project Manager depart a game of the budget as a contingency reserve. This is used so that in the event of any problems the project is not affected. It is a reserve that is intended to be used in case of emergencies, which can not be addressed through another type of risk (Heldman, 2011) management strategy. Manager can use several strategies to respond to the risks. Strategies to respond to negative risks are: acceptance, rejection, transfer, mitigation (Heldman, 2011). Acceptance is face the risk and accept the consequences of the risk already...Risks can have a positive impact, and for these the project manager uses

Risk management can be defined as the process of discovering, identifying, and assessing the risks facing an organization’s operations, as well as determining how said risks can be either controlled or mitigated (Whitman & Mattord, 2013).  Moreover, a significant component of risk management is risk analysis, which is the identification and assessment of the various levels of risk in the organization.  Due to this fact, risk management must remain an ongoing process, and the safeguards and controls that are devised and implemented cannot be viewed as “install and forget” devices.  Additionally, this comprehensive process requires an organization to frame risk, assess risk, respond to risk once determined, and most importantly, monitor risk on an ongoing basis through the use of active organizational communications and continuous improvement feedback loops. Furthermore, the fact that most businesses identify and implement new information technology systems in response to changes in the market on a regular basis justifies the need for an ongoing risk management process.

Risks management is an important step during the process of a project. Failing to manage a risk may result in unforeseen event happening and a project’s failure. For example, with limited budget, an unforeseen event or an accident occurs in the middle of a project and this matter has not been considered and needs a big sum of expense, then the project may be stopped because of this unexpected event. We should know it is necessary to understand how to identify risks and assumptions based on the information. After identifying risks, it is important for project managers to set contingency plans to prevent and deal with these risks when they occur. Of course, several problems may happen during considering

Hillson, D & Simon, P. (2007). _Practical Project Risk Management: The ATOM Methodology_, Vienna, VA: Management Concepts, Inc.

There are many risks for a company in the legal realm and it is important for them to minimize their tort and regulatory risks. A company should have a risk plan in place that can help them succeed. This plan can be a continuously changing plan depending on needed improvements on the plan. A risk plan can be developed easily when you look at the Alumina Inc. case as an example. A company such as Alumina can manage their risks through three basic measures which are preventative, detective, and corrective.

Within a project, the project’s success and budget belong to and are the responsibility of the customer. The Customer should have the final say in regards to what is acceptable and unacceptable in regards to risk and the quantification of risk. It is however, the contractor’s responsibility to be the primary source of expertise on a project or what they are being contracted to do. The contractor should offer their opinion and recommendations, and the customer should take their contractors opinions and recommendations seriously due to their expertise in the area. Overall, collaboration between the customer and the contractor should be the ultimate way to resolve a matter of dispute. Members from both the customer and contractor side should meet discuss historical events, modeling and simulation to arrive at the appropriate answer. Also, with quantifying risk, the customer and the contractor should be able to go back and look at the data. With risk quantification, there should be very little room for opinion and judgment which should make it easy to base a decision or a resolution based on hard core data. If a solution or an answer is not able to be decided upon, a third party consultation

Today’s society has become a world of disconnected, unpredictable happenings and challenging events. (Yoder, With this plan in hand, a Risk Plan can help foster a firm understanding of and methodology to risk, and how it affects the entire organization which can lead to more successful projects and business models when put into place. A Risk Management Plan will help provide a structure for identifying risks and can stop complications from occurring that can impend the accomplishments of the project.

A risk is event or occurrence upon which its materialising would disrupt the attainment of project objectives, therefore a risk management plan is that which is prepared to identify, assess, report, mitigate and monitor risks. It outlines clearly how risk management activities will be performed, recorded, and monitored and in some case mitigated throughout the lifespan of the project. It is prepared, monitored and updated by the project manager for the primarily the project sponsor and team officials, as it affords the opportunity to prioritize risks. Many experts refer to project managers as risk managers, Wysocki, (2009) and it is often assumed that anything bad that can happen to a project, will happen, hence the need for a project management plan, Olomolaiye, (2013).

Risk mitigation is a critical function of every project manager. A well-developed risk management process “attempts to recognize and manage potential and unforeseen trouble spots that may occur when the project is implemented” (Gray & Larson, 2006, p. 1). Risk mitigation begins with project planning. Based on previous experiences, lessons learned, schedule and budget constraints of the assigned project, the project team can identify all the risks, analyze each risk in terms of the severity of the impact, the likelihood of the occurrence, and the degree to which the risk can be controlled. Although a direct relationship between the amount of risk in a project and the opportunity for increased rewards exists, successful businesses take every

1. Discuss the project management organization on the project. Strengths? Weaknessess? Recommendations. Parks Corporation used a matrix project management organization on the Blue Spider Project. It was a multi-disciplinary team where the members came from different functional units such as Research and Development, Engineering, Manufacturing, Quality Control, Purchasing, and Finance. Gary Anderson, the Project Manager, was responsible for the project but his responsibility for performance of the individual phases of the work to be accomplished on the project remained with the functional managers. Anderson assigned, monitored, and coordinated work among the project team. But, the functional managers had

According to Gray and Larson (2006) a risk management process commences with identification of risk as shown in Figure 6 below. Shaw, Saayman, M. & Saayman, A. (2012) stress that in order to manage a risk, it must first be identified, before any type of risk management programme can be put into action. After risk identification risk assessment follows, which is followed by a risk response development stage which entails developing a strategy to deal with the situation. The final process is strategy implementation, which is executed in line with change management good practices. This part of the process should be considered as the most important function of the risk management programme and thus should be treated in a structured, systematic and well-managed fashion.

The APM’s (2012) risk management method contains 5 stages: initiation, identify, assess, plan and implement responses. The risk process is integral to project management (Hillson, 2012). It should be applied continuously, with monitoring, controlling and identifying integrated into everyday activities. When using the APM’s method, a project risk manager can go from any phase of this process to another. Although this creates an adaptable process, it leaves the

Risk is almost always certain in every human activity. Most of the decision-making carried out by businesses is based on expectations about the future. Risk is literally defined as an unforeseen or unexpected thing that comes along with an action or an event. It is difficult to analyze risk because it usually occurs in the future and the future is uncertain. According to Raedeke (2010), if there is no risk, there is no reward. Every individual or organization has to take a risk at some point in life, which sometimes leads to a good or bad outcome. In 1983 Britain’s Royal Society published a report, which stated that risk is scientifically defined as the probability that a specific adverse activity occurs during a specified period of time, or consequences from a certain challenge (Adams. J, 1995). Risk is neutral but it comes in various forms. There are social risks, organizational risk and physical risks, and so many other subdivisions of these categories. Some include; medical risk, artistic risks, legal risks, sexual risks, career risks and many more. Organizational risks are being classified into various types these are; strategic risk, project risk, financial risk, operational risk and so on (Nicholson. N, 2004). According to a research carried out by Power (2007), the level of risk has increased to the point that even hospitals, universities and other organizations now have risk committees. A project manager must consider time, scope and cost when taking a