ch11 - Chapter 11: Project Risk Management Information...

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Unformatted text preview: Chapter 11: Project Risk Management Information Technology Project Management, Fourth Edition 2 Information Technology Project Management, Fourth Edition Learning Objectives Understand what risk is and the importance of good project risk management. Discuss the elements involved in risk management planning and the contents of a risk management plan. List common sources of risks in information technology projects. 3 Information Technology Project Management, Fourth Edition Learning Objectives (contd) Describe the risk identification process, tools, and techniques to help identify project risks, and the main output of risk identification, a risk register. Discuss the qualitative risk analysis process and explain how to calculate risk factors, create probability/ impact matrixes, apply the Top Ten Risk Item Tracking technique, and use expert judgment to rank risks. 4 Information Technology Project Management, Fourth Edition Learning Objectives (contd) Explain the quantitative risk analysis process and how to apply decision trees, simulation, and sensitivity analysis to quantify risks. Provide examples of using different risk response planning strategies to address both negative and positive risks. Discuss what is involved in risk monitoring and control. Describe how software can assist in project risk management. 5 Information Technology Project Management, Fourth Edition The Importance of Project Risk Management Project risk management is the art and science of identifying, analyzing, and responding to risk throughout the life of a project and in the best interests of meeting project objectives. Risk management is often overlooked in projects, but it can help improve project success by helping select good projects, determining project scope, and developing realistic estimates. 6 Information Technology Project Management, Fourth Edition Research Shows Need to Improve Project Risk Management Study by Ibbs and Kwak shows risk has the lowest maturity rating of all knowledge areas. KLCI study shows the benefits of following good software risk management practices. KPMG study found that 55 percent of runaway projects projects that have significant cost or schedule overrunsdid no risk management at all.* *Cole, Andy, Runaway ProjectsCause and Effects, Software World, Vol. 26, no. 3, pp. 35 (1995). 7 Information Technology Project Management, Fourth Edition Table 11-1. Project Management Maturity by Industry Group and Knowledge Area* KEY: 1 = LOWEST MATURITY RATING 5 = HIGHEST MATURITY RATING Knowledge Area Engineering/ Construction Telecommunications Information Systems Hi-Tech Manufacturing Scope 3.52 3.45 3.25 3.37 Time 3.55 3.41 3.03 3.50 Cost 3.74 3.22 3.20 3.97 Quality 2.91 3.22 2.88 3.26 Human Resources 3.18 3.20 2.93 3.18 Communications 3.53 3.53 3.21 3.48 Risk 2.93 2.87 2.75 2.76 Procurement 3.33 3.01 2.91 3.33 *Ibbs, C. William and Young Hoon Kwak. Assessing Project Management Maturity, Project Management Journal (March 2000). 8...
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This note was uploaded on 12/17/2010 for the course TECHNOLOGY CSC420 taught by Professor Na during the Spring '10 term at Sullivan.

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ch11 - Chapter 11: Project Risk Management Information...

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