Project Risk Management Analysis
Added on 2020-01-07
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RISKMANAGEMENT
Project management is an application of tools, skills, knowledge and techniques beingundertaken for accomplishing the project. According to Burke (2013), it is a well known fact thatproject is specific and has to be carried out in the overall time allocated. Apart from this, variousrisks are associated with the project which project manager or other type of individualsassociated with the project has to undertake (Burke, 2013). Identifying the major risks isregarded as very important and in case if corrective actions are not taken for dealing with risk itcan be lead to decline in overall efficiency of the business. As per view of Young (2007) Further,proper plan is developed for managing all the risks and this supports in conducting the entireproject in effective manner within the time frame and cost. Moreover, identifying the major riskis one of the key stages and success of entire project depends on the same (MAJEED, 2012).Apart from this, development of proper plan is must and all the stages present have to befollowed in proper sequence for the growth of business carrying out project. Risk generallyrefers to possibility of loss or some other type of injury and is regarded as uncertain event whichis not in control of any individual. According to Olsson (2008) risk management as a techniques focuses on identifying andassessing the risk linked with the project and main focus is on minimizing the overall impact. Inproject management different type of planning along with control techniques are present whichcompany has to undertake for operating efficiently (Fischer and et.al., 2010). However Kutsch(2008) argued that Proper plan is prepared before undertaking any project where all the activitieshave to be carried out in proper sequence. For instance if any hotel is expanding its range ofservices and for this project key elements of plan are services, activities, resources, schedule,budget, risks and assumptions (Turner, 2014). Services are one of the main elements wheremanagement of hotel has to identify what kind of new services will be delivered to its targetmarket. Apart from this quality requirement along with pricing strategies have to be undertaken. As per view of Maylor (2003) next key element is activities in which the responsibleauthorities have to decide what are the crucial activities which have to be carried for effectiveimplementation of the project. Further, resources required have to be estimated such as financial,human, technological etc and this is also one of the most important stages linked with successand growth of entire project (Wang and Yuan, 2011). However, Turner (2014) argued thatauthorities have to prepare budget on the basis of which financial resources will be distributed ineach and every project. This can lead to effective utilization of financial resources and can be
fruitful for the entire project also (Arena, Arnaboldi and Azzone, 2010). Apart from this, one ofthe most crucial elements is risk where responsible authorities have to identify what are the keyrisks associated with the project and by identifying them in advance it is possible to takecorrective actions for managing them. Last element is assumptions linked with the plan which isalso important. Therefore, with the help of all these stages planning can take place for the projectassociated with hotel (Hoyt and Liebenberg, 2011). Considering the present project of hotel expansion services various risks are associatedwith this project which is resource, scheduling, technology etc which are necessarily required tobe undertaken. According to De Bakker, Boonstra and Wortmann (2010) resource is one of themajor risk where it might be possible that individuals associated with project are not be identifythe key resources required in expansion of services (Jin and Zhang, 2011). Apart from this, dueto presence of ineffective resources it is not possible to carry out the entire project in effectivemanner. Moreover, technology is also one of the main risks where it may be possible thatappropriate technology or other tools may not be present in development of services. So, this riskcan reduce the overall efficiency of the project. However Wang, Lin and Huang (2010) arguedthat, scheduling risk is also one where unexpected deal, errors in estimation along with naturalfactors can adversely influence the entire project. Therefore, these are some of the major risksassociated with the present project (Sodhi, Son and Tang, 2012).As per view of Kutsch and Hall (2010) risk management is regarded as an integral part ofproject management as through this it becomes possible to identify, analyze and mitigate risks.Further, it directly leads to success of the project (Ebrahimnejad, Mousavi and Seyrafianpour,2010). But on the other hand, most important tasks is to determine the overall risk on the basis ofwhich plans are prepared so as to deal with the same. According to Turskis, Gajzler andDziadosz (2012), absence of risk management technique along with other type of tools can leadto delay in project where all the aims along with objectives cannot be accomplished (Turskis,Gajzler and Dziadosz, 2012). Apart from this, it can provide large number of benefits such as incase if hotel management adopts effective risk management plans during expansion of itsservices then it provides large number of benefits to business. Some key benefits are it ensuressuccessful completion of project, avoid big disasters, provides mental satisfaction as well ashelps in obtaining new opportunities (Purdy, 2010). As per view of Hwang, Zhao and Toh(2014), it is well known fact that implementation of any project requires large investment and
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