Risk Management in Enterprise Projects Research 2022

Running head: RISK MANAGEMENT IN ENTERPRISE PROJECTS
RISK MANAGEMENT IN ENTERPRISE PROJECTS
Name of the student
Name of the university
Author note

1RISK MANAGEMENT IN ENTERPRISE PROJECTS
Abstract
The research will aim at developing a view on the differences between the risk management
approaches of the federal and the private enterprises on the basis of the nature of the risks and the
resource based capabilities of the organizations. The risk management activities of an
organization are directed towards minimizing the impact of the uncertain events on the overall
activities of the organization. In this connection, the systematic application of the risk
management framework would allow the organization in increasing the efficiency of the business
processes as per the common goals of the business. Therefore, the purpose of the research will be
to demonstrate an effective understanding of the need for risk management and the differences
between the approaches of risk mitigation that are considered by the federal and the private
concerns.

2RISK MANAGEMENT IN ENTERPRISE PROJECTS
Literature review
Introduction
Risk management plays an integral role in projects while contributing towards different
developments in the enterprises. Risk management includes different systematic activities that
are facilitated by the organizations with the purpose of identifying, analyzing and mitigating the
uncertainties that are encountered by projects. In this connection almost every enterprise, both
public and private, takes the initiative of developing effective risk management programs with
the purpose of improving the capabilities of the venture. According to Force (2018), risk
management processes that are implemented for projects are different for public and private
enterprises. Project managers take an initiative of identifying different uncertainties with the
purpose of maintaining continuity of their operations of the project. Bullock, Greer and O’Toole
(2019) observed that the risks pose a disruptive value to the projects while interrupting the flow
of operations. In this connection, the project managers take the initiative of developing effective
risk management activities with the purpose of minimizing the impact of the risks that are being
faced by the project while empowering the uninterrupted flow of operations.
Approach of risk management among the federal and private enterprises
The nature of the projects and the capability of the management teams in identifying
analysing and mitigating the risks specifically define the risk management procedures that might
be undertaken by the organizations. da Silva Etges et al., (2018) opined that there are different
standards and procedures for defining the risk management practices in organizations depending
on the type of risks. In most cases, the organizations take the initiative of holding consultation
with external experts with the objective of improving their performance as per the risk

3RISK MANAGEMENT IN ENTERPRISE PROJECTS
management practices. Friday et al. (2018) observed that the consultation related activities play
an important role in the project risk management and mitigation activities. However, Tupa,
Simota and Steiner (2017) observed that most of the private sector organizations take support
from the external consultancies with the purpose of identifying and prioritizing the complex
risks. Therefore, the identification, reporting, analysis, consultation, mitigation and controlling
activities are the major activities that are undertaken by the organizations while mitigating a risk
as per the project objectives.
On the other hand, Bodnar et al. (2019) stated that the public or federal organizations take
the initiative of adhering to the Entrepreneurial risk management activities or the standard
ISO31000:2018 with the purpose of developing an effective framework for mitigating the risks.
The major point of difference between the risks management activities of the federal and the
private organizations are reliant on funding and the chronology of the activities. According to
Muriana and Vizzini (2017), all the risk management processes that are initiated by the
organizations are specifically based on three steps of risk identification, analysis and mitigation.
The identification phase specifically aims towards recognizing the risk event in the projects and
are reported by the stakeholders that are experiencing the same to the organization’s operational
head (Bodnar et al. 2019). In this connection, the different risks that are reported in a private
organization are specifically done through the active involvement of the supervisors from the
different departments in identifying and reporting the risks. According to Callahan, C and
Soileau (2017), the active engagement of the supervisors from the different departments of a
project in identifying the risks supports an organization in increasing the efficiency of the risk
identification process. Therefore, the expertise, skills and experience of the supervisors in the