Project Risk Management: Strategies for Manager Investment

This report delves into the critical importance of project risk management and provides actionable strategies for convincing managers to invest in it. The paper synthesizes insights from various scholarly articles and research papers to highlight the benefits of project risk management, including improved decision-making, enhanced resource allocation, and increased project success rates. The report emphasizes the need to demonstrate how risk management saves resources, costs, and time by creating a secure project environment. It details steps such as showcasing the significance of risk management, addressing project concerns, and presenting regulatory guidance to influence managers' investment decisions. The report concludes that investing in project risk management is advantageous, leading to improved planning, prioritizing, and overall project outcomes. By implementing the strategies discussed in this report, project managers can effectively communicate the value of risk management and secure the necessary investments to mitigate risks and achieve project goals.

Running head: PROJECT MANAGEMENT
Project: Convincing manager for investing in project risk management
Name of the Student
Name of the University
Author’s Note

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1. Introduction
The paper mainly reflects on a number of articles and scholarly papers in order to identify
ways that are helpful in convincing the managers to invest in project risk management.
According to Paquin, Gauthier and Morin (2016), a project risk management is one of the
procedure that helps in identifying, analyzing as well as responding to any risks that generally
arises within the life cycle of the project for helping the project to remain on the track in order to
meet the goals and objectives of the project. It is found that the risks that are associated with
project risk management can be managed and the project can easily progress for accomplishing
success if the managers of the company take proper initiative to make investment on the project
risk management.
2. Discussion
The project managers must invest on project risk management so that all the elements of
the project get managed by jeopardizing the goals as well as objectives of the business
effectively. According to Cagliano, Grimaldi and Rafele (2015), in order to get better risk
analysis and reports, it is quite necessary to invest on project risk management as it helps in
predicting the future risks that assists in proactive stance instead of reacting when it is too late.
Moreover, the analysis as well as report will generally help the management to take proper
proactive measures for avoiding potential crisis. On the other hand, it is stated by Paquin,
Gauthier and Morin (2016) that managing risks is considered as one of the organizational efforts
that helps in transforming the corporate culture and therefore it is quite necessary for the
managers to invest money as well as time for proper risk management. In addition to this, the
stakeholders must adopt proper philosophy as well as language around the project risk.

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It is opined by Muriana and Vizzini (2017) that strong risk management generally helps
in improving strategies and helps in making proper decisions within the project. It is found that
investment by the managers in order to determine the key risks of the organization generally
helps in making the entire planning procedures very much efficient. In addition to this, it helps in
assessing the tolerable the level of risk exposure that further helps in evaluating the project in
context to the cumulative organization spanning risk exposure. It is stated by Kerzner and
Kerzner (2017) that quality risk management for the business will generally be helpful in giving
proper understanding about the entire organization so that the risks that are associated with the
project can be managed very much effectively.
The project managers are mainly convinced for making investment on the procedure of
risk management by following a number of steps as well as procedures. In the initial step, it is
important to reflect the significance of risk management that is undertaken in the project in order
to showcase that proper risk management helps in saving resources, costs as well as time by
creating a safe and secure project environment. In the second step, it is quite necessary to explore
the concerns that are associated with the project. It is stated by Khameneh, Taheri and Ershadi
(2016) that the concerns that generally occur within the project are required to be reflected
before the managers so that they can be able to understand the significance of risk management
and how risk management is playing an important role in accomplishing the project objectives.
According to Tomanek and Juricek (2015), it is necessary to show regulatory guidance as
well as articles to the senior managers so that they can be able to understand the pressure related
with regulatory scrutiny such that they can be able to make proper investment on the project risk
management. On the other hand, it is stated by Olechowski et al. (2016) that if the managers are
not familiar with the potential risks as well as repercussions of noncompliance by reflecting them

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proper enforcement actions, fines as well as settlements that generally create proper impact on
the organization so that they can take appropriate investment on the risk management plan.
Moreover, proper risk management plan assists in planning success as well as helps in evaluation
in order to maximize the results of the project in order to accomplish success. Furthermore,
proper investment within the risk management by the managers of the organization also helps in
improving the quality of the project.
According to Zou, Kiviniemi and Jones (2017), if the managers of the organizations are
convinced to invest within the project risk management then it will be quite easy to improve the
decision making, planning as well as prioritizing the skills. In addition to this proper investment
in project risk management helps in properly organizing the resource allocation as well as capital
by allowing one to properly anticipating the issues by utilizing proper strategies as well as
methods (Cagliano, Grimaldi and Rafele 2015). In addition to this, it is analyzed that investment
within the risk management generally helps in improving the probability of business plan
delivery within the assumed time as well as budget. Moreover, proper risk management reduces
the legal issues and helps in enhancing the stability of various operations of the organization by
protecting people as well as assets from harm.
3. Conclusion
It can be concluded from the entire report that convincing the managers to make
investment within the project management procedure is considered to be very much
advantageous. It is found that proper investment within project risk management not only helps
in managing the project risks but also assists in improving the decision making procedure as well
as planning and prioritizing the project risks. In addition to this, it also helps in properly
prioritizing the problems by utilizing the best practices for managing the project quite

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effectively. In addition to this, the paper also elaborates different ways that are generally helpful
in convincing the managers for making investment within the project risk management so that
the risks and challenges associated with the project get resolved and the project can be able to
achieve success.

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References
Cagliano, A.C., Grimaldi, S. and Rafele, C., 2015. Choosing project risk management
techniques. A theoretical framework. Journal of Risk Research, 18(2), pp.232-248.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Khameneh, A.H., Taheri, A. and Ershadi, M., 2016. Offering a framework for evaluating the
performance of project risk management system. Procedia-Social and Behavioral Sciences, 226,
pp.82-90.
Muriana, C. and Vizzini, G., 2017. Project risk management: A deterministic quantitative
technique for assessment and mitigation. International Journal of Project Management, 35(3),
pp.320-340.
Olechowski, A., Oehmen, J., Seering, W. and Ben-Daya, M., 2016. The professionalization of
risk management: What role can the ISO 31000 risk management principles play?. International
Journal of Project Management, 34(8), pp.1568-1578.
Paquin, J.P., Gauthier, C. and Morin, P.P., 2016. The downside risk of project portfolios: The
impact of capital investment projects and the value of project efficiency and project risk
management programmes. International Journal of Project Management, 34(8), pp.1460-1470.
Tomanek, M. and Juricek, J., 2015. Project risk management model based on PRINCE2 and
SCRUM frameworks. arXiv preprint arXiv:1502.03595.
Zou, Y., Kiviniemi, A. and Jones, S.W., 2017. A review of risk management through BIM and
BIM-related technologies. Safety science, 97, pp.88-98.