"found yourself into 3 parts:when u read His words,when u pray,when u look into death."

Sunday, October 18, 2009

Chapter 11- Project Risk Management

It is important to an organization to identify and analyze the risks of the projects in order to increase the performance of the project from time to time. When we are heard the word risks we are only imagine about negative risk (problem) but actually there is also positive risk (good things). There are six processes in risk management which are Risk management planningrisk identificationQualitative risk analysis, Quantitative risk analysis, Risk response planning and Risk monitoring and control. We need to define any risks that will occur later in our projects that we want to develop with using some techniques such as brainstorming, The Delphi Technique, interviewing and SWOT analysis. By construct risk register we can define risk, what are the causes of the risks happen, the probability and impact of the risk low, medium or high and what is our plan to overcome the risks. There are four response strategies for negative risk which are Risk avoidance, Risk acceptance, Risk transference and Risk mitigation and also four responses strategies for positive risks which are Risk exploitation, Risk sharing, Risk enhancement and Risk acceptance. As conclusion it is very important for us to define the risks especially negative risks and provide some suggestions to overcome the problems so that if one day the risk really happen so we already have the backup to handle it, if not we will have problem in the future such as the project will be delay or the cost of the project will be increase because of our weak plan. Risk management is important to minimizing the negative risks and maximizing the positive risks.