Risk

By Shakila Khan Malik s173780

Abstract

Risk is associated with everything, even when we talk about projects. It is important to keep risk in mind when working on a project, program and portfolio and identify them, as risk can lead to large costs, losses and project failures. The purpose of the article is to identify potential risks and put them into perspectives using risk management tools.

In order to identify and prevent risks in a project, it is necessary to have risk management. Risk management is a process for identifying risks in a project. Multiple tools can be used to reduce and prevent risks and uncertainties during a process or project. The aim is to ensure successful projects without major risks and unexpected events leading to high costs.

One of the risk management tools is “Failure mode and effects analysis” (FMEA). The FMEA is a process that identifies how and where the project might fail and assesses the different failures to identify which parts are most in need of change . In addition, another management tool, the “fishbone diagram” can be used to track the causes of deficiencies or failures in the project. Some other risk management tools are “Post-project review” (PPR) and “Potential problem analysis” (PPA). The PPR analysis identifies potential failures and successes in a project where the PPA determines what may go wrong in a process or development phase.

Tools

As mentioned earlier, this wiki article contains several risk management tools, that can be used to manage a project. These tools can be adopted by the managers in any organization as the tools are guidance how to tackle and prevent risks and uncertainties in a project or program.

Failure Mode and Effects analysis (FMEA)

The FMEA was developed in 1940s when the U.S. military systems became too complex. The FMEA tool identifies where the project might fail, and which parts are most in need of change to prevent risks and uncertainties. The FMEA tool can solve several risks in a manageable way. The failures are prioritized by their consequences and frequency, starting with the highest priorities .