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Risk management in IT Start-up projects

A case study of Inkubera at Örebro Science Park, Sweden

Written by Anonymous

Paper category

Term Paper

Subject

Business Administration>Management

Year

2015

Abstract

Thesis:The risk identification project management process first attempts to generate a list of all possible risks that may affect the project. (Larson and Gray, 2011). PMBOK points out that risks can include threats and opportunities that IT project managers need to assess. "Using unproven productivity-enhancing software is a risk because it is expected that the work will be completed faster and with fewer resources" Project Management Association. (2004, P.11) The above situation can be considered as a risk opportunity. Therefore, the risk identification process must be able to consider all risks, not just negative risks. The Project Management Institute (2004) developed a risk breakdown structure (RBS) that can be a useful tool for identifying risks in IT projects. RBS is used to identify project areas that may generate risks. Different project backgrounds may have different RBSs, as the stakeholders of each project may agree. But one of the main importance of RBS is that it reminds the project team of possible risk areas, rather than identifying risks based on perception through brainstorming meetings, which may increase personal bias in the risk identification process. (Mohamedand Shahid, 2009). Other scholars suggest risk analysis as another useful tool for risk identification. Risk analysis consists of solving problems in the traditional uncertain areas of the project. A good risk profile, such as RBS, is tailored to the specific project (Larson and Gray, 2011). Although formal methods and tools are important in the risk identification process, stakeholder participation is the key to effective risk identification. A lot of time and energy must be spent on managing the relationship with stakeholders and getting them to accept unplanned situations. (A. De Meyer et al., 2012) Not all risks deserve the same attention. Some risks are more likely to occur and have a great impact on the risks. Item, just in case. These types of risks deserve attention from managers (Lar​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​ Risk assessment can be defined as the process of stratifying risks according to the degree of influence and probability of risk in the project. Risk assessment methods are divided into two areas. That is, qualitative risk assessment and quantitative risk assessment. "Quantitative methods produce digital exposure estimates of risks. Using quantitative techniques, the interval between the result numbers and the ratio of the result numbers are used to explain or rank different risk items." (Maarten and Robbert, 2012, p.11). For qualitative and quantitative risk assessment, various techniques are designed to help assess the likelihood and impact of risks on IT projects. Some commonly used techniques in the literature include. For the purpose of impact and probability Thesis analysis, different tools are used. These include traditional statistical analysis methods, such as assessing the net present value of project cash flow risks, project evaluation and review techniques (PERT), S-curves, etc. However, Maarten and Robbert (2012), P.12) believes that "given that most projects are unique..., it is unusual to find relevant statistics that can quantify probability or probability distribution", which is in line with Marcelo et al. The school of thought (2014) agrees that certain types of uncertainty cannot be solved simply by analytical methods. Such as: multiple events, random combination, may lead to unexpected results. After the risk assessment process, risk events are classified according to their severity (low, medium, and high). The criteria for these categories are defined by the requirements of the specific project (Maarten and Robbert, 2012). (Ennouri, W.2013, P.291). Sébastien (2009) believes that good risk management needs to be rooted in appropriate mitigation control. Different studies have proposed several risk mitigation strategies. A popular risk mitigation The strategy is a contingency plan. According to the Project Management Institute (2004), the contingency plan is an alternative plan that will be used if a possible foreseeable risk event becomes a reality. The contingency plan consists of a series that can reduce or mitigate risks The action composition of the negative consequences of the event. Level” (Maarten and Robbert, 2012, p. 14). Contingency funds are usually reserved to deal with risk events that occur. Having good risk mitigation strategies and analysis is one thing, and implementing them is another. As the literature shows, many managers often fail to implement these strategies correctly, leading to poor project performance or even failure (Elmar et al., 2013). The overall core risk management process is a manager who knows what to do and when to do it. Risk response control means that the project manager takes appropriate measures to ensure the success of the risk management process. Marcelo et al. (2014) identified some key principles for managers in the risk response control process. These include: facilitating communication with all stakeholders on risks, facilitating self-organization and adaptability of risk teams, combining the uncertainty investigation in the project with flexibility and responsiveness when changes occur. But the overall manager should be meaningful. Read Less