Make a literature review based upon your research on a current topic/concept in project management.
The review should be:1.
Discuss both the theoretical aspects and the practical aspects of the topic2.
Critically examine the current literature (year 2000>).3.
Identify the themes, trends and perspectives.4.
Identify the strengths as well as the weaknesses of the literature5.
Identify gaps in knowledge, wherever possible6.
Prepare a concluding paragraph that addresses the major implications of your findings regarding Project Management and the selected topic.
Answer to Question: INFT3100 Project Management
This study has examined the topic of risk management and risk in Information Technology Projects.
In the paper, we have illustrated both the theoretical as well as the applied aspects of risk management by identifying the term “risk” and “risk management”.
Following the themes, trends and perspective, a review of the literature has been done to help understand the concept.
The study assesses the strengths as well as the weaknesses of the existing literature in order to evaluate the strategic idea of IT risk management. (Hydari, 2015).
A different set of strategies is used in modern project management’s risk management proceedings.
A literature review was also conducted to determine the best methods for identifying, assessing, and controlling risk factors that can affect IT projects.
To conclude, we have identified the overall effects of the risk management technique as well as some significant gaps in literature to determine the implications of these findings.
DiscussionDefinition Of Risk And Risk Management In IT Project
Project risk can be described as an inevitability or a situation that has the potential to have an adverse effect upon the project’s goals and deliverables.
Project risk, on the other hand, is the real possibility of losing or failing.
Smith and Merrit (2002) identify three key aspects that are related to risk.
There are three major aspects to risk, according to Smith and Merrit (2002): uncertainty, loss, time.
A project manager, according to the authors, has the responsibility of assessing all uncertainties that may be associated with an IT-related project.
It is important to understand that there are some potential losses associated with project risk.
Also, time must be taken into account when assessing risk. In some cases, there may not be enough risk (Sisco (2011)).
Pennock (2001), who are experts in risk management, suggested that the whole concept can be broken down into six stages, three each for risk assessment and management.
Risk assessment includes identifying the risks, the potential for risk and the consequences.
A risk management section will also discuss the available options and cost-benefit analyses of each option. Finally, it will be discussed how the options impact future decision-making.
The Objectives of risk management
The objective of risk management must be identified in order for the process to be effective.
Kendrick, 2003, has illustrated the benefits of risk management plans.
Modern day leaders can increase their chances for success in achieving the highest number of objectives by implementing project risk management.
Risk management helps reduce the cost of IT projects as well as control chaos during the project.
Involving stakeholders in the risk management process allows for high project priority.
The final step is risk management, which identifies and manages risks in project work. This allows for project objectives to be achieved with the support resources needed (Kerzner 2002).
The Strategy Of Risk Management
There are several strategic decisions that must be made in order to manage risk when IT Project management is being done.
Kendrick, (2003) emphasized that risk management should focus on project-related issues.
Failure of the project management plan may be due to poor risk management.
According to the author risk management must include a credible plan capable of consistently meeting the objectives of the project and minimizing the potential for negative outcomes.
Doernemann(2002) proposes six-step risk management and analytical strategies. They include risk identification, risk analysis, qualitative risk analysis and quantitative risk analyses, as well as risk response planning and monitoring and control.
Each step must be followed in order for a project manager to decide how to manage risk.
It will also be crucial to identify the risk.
It is evident that both the quantitative and qualitative risk analyses will be necessary to assess the risks associated to an IT project.
Additionally, risk response planning will allow you to identify ways to reduce threats and improve your chances.
Final, monitoring the progress and keeping track of the risks will ensure that the risk management plan is executed perfectly.
How to Identify Risks
The modern risk mitigation strategy can use a variety of methods to identify the risks.
First of all, information gathering techniques, such as brainstorming, Delphi, and SWOT analyses, can be used to determine the risk.
Lister analysis, on the other hand can be considered one of the most important methods in risk identification (Botchkarev-Finnigan, 2015).
An assumption analysis is essential to assess the risks of the IT project’s inaccuracy and incompleteness.
Additionally, risk diagramming techniques such a system flow chart and influence diagram can be used to identify the causes and risks. (Smith, Merritt. 2002).
How to Evaluate and Assess Risks
There are many different ways that you can assess and evaluate risks during a project. These techniques also allow you to measure the impact of those risks on the project’s performance.
Ennouri (2013) says there are two kinds of risk assessment/evaluation: quantitative and qualitative.
Monteiro de Carvalho (2013, Rabechini Jr.) state that qualitative risk analysis techniques are used to communicate risks in a descriptive fashion without using any type of economic variables.
The qualitative approach is based in the assumption of certain losses or threats that cannot easily be expressed in financial figures.
Szenario analysis, questionnaires, and fuzzy metrics are all examples of qualitative risk analysis methods.
Alternatively, several risks can be quantified by determining the frequency of occurrence and severity of the event.
Quantitative analysis involves the use of statistical data to analyze the past information regarding the likelihood of certain risks and losses (Ward (2014)).
However, quantitative risk analysis can have some drawbacks. Because it uses historical data, future uncertainties may differ in terms both of their impact and chance of occurrence.
Ennouri (2013) stated that it was necessary to accurately assess and evaluate identified risks using a mixed technique. This is useful in identifying the maximum uncertainty impact.
How to Reduce Your Risks
Wideman (2002) had previously identified seven primary ways to manage identified risks.
His methods of managing risks include taking no action, sharing, reducing and transferring, as well as retaining the risk. He also explains how to use a variety of techniques.
Dorfman explained later in 2007 that all risk management techniques fall under four categories (4 T’s), namely tolerate the risks, threaten the risk, terminate or transfer the risk.
Sisco (2011) presented five strategies for managing risk, which were risk avoidance, reduction, transfer, deferral, and retention.
The concept of reducing risk has remained almost the same regardless of the theories presented by different authors.
This is why risk reducing techniques are a strength in the literature on project management.
Due to a lack of research in the area of risk analysis, and management, it is difficult to determine the effect of risk management.
Based on historical data, risk management can be difficult for project managers to project the uncertainties and level of their impact on the project (Wysocki 2014).
The literature lacks sufficient theory to ensure that the data is valid and reliable.
It is therefore difficult for IT project managers to manage and analyse the risk effectively due to the inadequacy of information, trial and error techniques of risk mitigation, and the lack of proper theory.
It is evident that the review has provided different perspectives on risk analysis and management of IT projects.
A lot of literature supports the idea that communication is essential for a successful risk management plan.
However, the theories of Risk Management help project management teams to identify uncertainties using historical data and information. This can become a major problem in risk management literature.
In conclusion, the project management team should be able to grasp the theoretical concepts and their limitations when applying risk management techniques to real-world projects.
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