Review each of the following scenarios and identify the risk events, the probability of those risks, and the impact of the risk events. Some scenarios may have more risks than others.
A retail firm has a project that is focused on expansion into third-world countries to sell pharmaceutical products. The project timeline is, as always, aggressive. The scope is well documented and understood by the project team and key members of the firm. The firm is financially sound, with project funds secure; however, the stakeholders expect that the project will pay for itself within 2 years of deployment.
A construction company has been awarded the contract to build a pipeline in Alaska. The project timeline is of the highest priority because work can only be completed during summer months due to adverse weather conditions. One of the suppliers of a key component has longer lead time than is required to complete the pipeline, but may be able to deliver if the construction company will pay fees to expedite. There are other suppliers, but these suppliers are not on the construction company’s approved suppler list and it would take time to get them approved. There is a huge penalty in the contract if the project is not completed on time.
A telecommunications company has just assigned you to be project manager for a product improvement project. The scope statement of the project simply says, “Make this product better.” The engineering team believes that they know how to make the product better and have ignored ideas from the sales team. The project funds are secure, as the company believes that improving this product will give them strategic advantages.
There were two major topics that were covered during the week. The first topic revolved around the issue of risk management. Coverage of this topic began by first learning how to identify and categorize different types of risks. Similarly, the topic also covered how to identify various types of opportunities that could be utilized by a business. After covering the ways of identifying different types of risks as well as opportunities, ways of managing or reducing the occurrence of a risk were discussed. Some of the risk management methods discussed include: AS/NZS 4360, PRAM and M.o.R.
The second topic discussed during the week revolved around the topic of project management and strategic portfolio management. Coverage of this topic first began by analyzing the different processes carried out in the management of projects. Some of the processes learnt included the planning, organizing and controlling of a project’s activities. Coverage of the topic also entailed discussions on how to come up with work breakdown structures and discussing the roles of different people in the implementation of projects.
The knowledge gained from the study of the above two topics can be applied in a number of ways at the work place. For example, the knowledge obtained through the study of the topic on risk management could be can be used to improve one’s ability to identify the risks that are likely to affect his/her workplace negatively whenever they occur. The topic also improves the ability of an individual to be able to identify opportunities that can be utilized to benefit the work place. Coverage of the topic also improves an individual’s ability to come up with ways of reducing the occurrence of different risks facing his/her workplace. The second topic that covered issues surrounding project management could be used individuals to be able to implement any projects at their work place.
I can also be able to apply the knowledge I have learnt from my coverage of the topics on risk management and project management in my personal life. This is because I can use the knowledge I have learnt from the topic on risk management to identify the risks that I face in my life and, thereafter come up with ways of mitigating them. I can also use the knowledge I have gained from my coverage of the topic of project management to come up with organized ways of planning, organizing and controlling the activities of my personal projects.
Organizations can be classified into two groups i.e. project based organizations and non-project based organizations. Project based organizations refer to those type of organizations which carry out all their activities in the form of projects. These types of organizations, therefore, consist of structures meant to support the implementation of projects. Non project based organizations are those which do not conduct their activities in the form of projects. These organizations therefore have a limited structure to support the completion of projects. Project based organizations usually have to two activities that are very similar i.e. strategic portfolio management and project management.
In order to understand the relationship between strategic portfolio management and project management, it is important to first understand the difference between the two phrases. Project management can be described as the organized and structured method used to plan, monitor and control all the processes involved from the start to the end of a project in order to ensure that the project achieves its goals. Strategic portfolio management, on the other hand, refers to best the best way of managing the implementation of a number of projects.
The relationship between strategic portfolio management and project management lies in the fact that strategic portfolio management strives to come up with the most appropriate mix and schedule of planning and controlling the activities of different projects. In short, strategic portfolio management aims to come up with a program or guideline that will be most efficient in managing the implementation of more many projects.