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Lev Justin E.

Saclayan BSIT 4-1 PART III Analysis and Findings

Because of unexpected events occurs in projects, project managers should be concern in the risk and it should be manage properly for the avoidance of failures. The risk is a big threat to a project because it can be lead to project to a failure. Risk should not only be analyzed, but also need to manage well. On this chapter of the research, it shows some findings on how the risk should be handled by project managers. Risk appears in every kind of investment. If a company wants to change technology, it has to count with the risk of failure and other possible hazards. Identifying, monitoring and mitigating the risks are necessary. Risk Management in Project Before knowing on how to handle risk in a project, this section will discuss on what risk management in a certain project, based on the discussed studies on the last chapter. Project must undergo in the risk management. As stated above, risk is great threat on the project because as soon as this risk occurs and didnt m anage properly, the chance or the probability of the project that will fail is much higher. Risks should assess and analyze before the project start. It should be the priority in the project. The project experiences different type of risk: Technology, External, Cost, Schedule, and Operational. The risk that is very common to a project is the cost risk. As said in other studies, measuring the cost risk is unclear. Some problem is foreseeing wrong estimating in cost and the budget for the project. Second common risk is Technology and External Risk. Technology failure is unexpected. Some of failure occurs by how the user of the tool used the technology or by wrong integration apply to the

Lev Justin E. Saclayan BSIT 4-1 project. External risk is occurs mainly outside the project team, so this risk is difficult to control. Steps on Dealing with Risks Proper Management of projects is crucial for organizations. But still failure of software projects is quite high as per studies done by various research agencies. Therefore it is important while planning to identify risk factors and find ways to mitigate the risk if possible. The factors that may impact the successful execution of a project can be operational or technical. Below are some suggested steps on how the risk should be managed: Identifying the risk In a project, there are different risk can be occur. The team should be discovered on what are these risks for them to be able to analyze it. Analyzing the risk Even the risk occurred in other projects, it doesnt mean the risk has the same effect on the current project. So, project team must understand the effect of this risk on the project and to its environment. In analyzing the risk, it should also be pass for evaluation. Evaluating the risk can be done by defining if it is a threat or vulnerabilities and on what circumstances it may occur. These identified risks can be transformed to be decision-making information. And this information can be used to plan on what should be done with those risks Plan for action Planning for an action is the important part on dealing with a risk. In this step, project managers decide on how would the risk to be approach on the project.

Lev Justin E. Saclayan BSIT 4-1 Project Managers can set up a chain of actions regarding each of the risks and mitigation plans. Tracking the action In this step, project managers should monitor properly the indicators and the mitigation of the risk. Controlling the risk If the plan of action is out on the environment of the risk in the project, project managers should control the environment of the project together with the risk These suggested steps can be used by the project managers, for them to deal with the risk properly. These steps are based on the discussed studies on the last chapter. Importance of Risk Management All project must be manage the risk properly. If not, the project will have a high possibility of failing. For this reason, project managers should plan ahead to prevent the risk in every projects they are handling. It is important to be aware on what may happen in a certain project when you started it, to ensure the success of that project. The main reason of the risk management is for the companies, business or project managers will able to handle the risk or uncertainty that they will may face in the future. The risk identification, assessment and management are parts of strategic development. It must be planned and designed at the highest level by the project managers. The lack of a measurement and monitoring system for assessing and managing project risk can lead to cost and time overruns.

Lev Justin E. Saclayan BSIT 4-1 Risk management itself has benefits for a project. It is a better understanding of the risks the possible impact that can lead higher awareness and consequently to a team that is able to handle them, according to Czirner.