For the success of any business project, there must be well laid out plans to prevent all the misfortunes that might come on the way. The problems incurred during the development of the project might pull the developer's several steps backward. It is important to understand that a project’s risk may have positive or negative impacts on the desired objectives of the project (Baloi & Prince, 2003). It is, therefore, easy to perceive that Project Risk Management is meant to guard against the failure of a new project while maximizing on the possible future returns. An exquisite Project Risk Management Techniques bases its foundation on supporting the organizational factors. The management team must have clear roles and responsibilities.
In our project, the organization considers expanding the sales premise so as to accommodate more customers. Also, the business is considering equipping the premises with computers in a bid to cope up with the recent technologies in service delivery. There must be a select team of stakeholders who must be available to conduct the risk analysis. One there must be the System Design engineers. They must ascertain that the premise meets all the requirements before construction such that there are no possibilities of the building collapsing in the future. Two, the shareholders will act as noble risk analysts. They will come with their economists who will analyze the profitability of the expansion over a given period. It the analyst sees that the project will be unprofitable shortly.
Before the commencement of such a project, the local area residents ought to be consulted. Among the project team members that will be helpful in the identification of risks is a representative from the local community. He or she will give the likes and dislikes of the general public. A case example is whenever the building is built on a public land or an illegally acquired piece of land; the will be some disputes afterward. As a result of the poor image created by the business, it will attract few customers and, therefore, tremendously realize a loss.
There are several tools and aids used for qualitative risk analysis. For the proposed project, it will be important that the management team considers using the notion of Expert Judgment. Primarily, individuals who have experience with almost similar projects in the near past can present their review to facilitate successful implementation of the current project. They can also incorporate the concept of design thinking whereby they will point out unprecedented loopholes and also the possible paths of success. The risks to get encountered in our project can get categorized using impact analysis. The relationship between the probability of Risk Occurrence and the Impact of the risk will lead to three distinct classes of comparison (De Recky et al. 2005). One, there are the critical risks. Two, there are the medium level risks, and finally the low-level risks. The high-level risks will be whether the business premise will be in a position to attract all the potential customers. If it maintains the initial customer base for a long time, it only means that there will be minimal profits from the new investment.
If the project manages to expand, the medium level risks include competition from other similar firms. The low and very minimal risks may be as a result of the improper acquisition of land. Such cases are close to zero because a reputable company will ensure that all its transactions are legally certified. In a summary, the project risk analysis plans are profitable to a business empire. They give a clear overview success and failures that the business might incur. It is with the management team to capitalize of profits and minimize losses.
References
Baloi, D., & Price, A. D. (2003). Modelling global risk factors affecting construction cost performance. International journal of project management, 21(4), 261-269.
De Reyck, B., Grushka-Cockayne, Y., Lockett, M., Calderini, S. R., Moura, M., & Sloper, A. (2005). The impact of project portfolio management on information technology projects. International Journal of Project Management, 23(7), 524-537.
