Essay About Risk Management And Project Stakeholders

Diveristy
Case Introduction:The business is facing problems with managing risk by failing to sustain risk management after the project starts moving. The stakeholders is losing interest due to increased workload. If the business does not consider risks, this could lead to project failure.    Why do project stakeholders lose interest in project risk after the project is underway?Project stakeholders typically will shift priorities when executing the project once activities begin.  Time management does not always allow for active risk management during the projects.  If the cultural norm for a company is to shift focus away from potential risk to keep projects moving forward on schedule, then this problem could be more difficult to correct.  This is especially true if potential problems are often hidden, underestimated or written off as improbable or denying the risk altogether.What are the dangers of not keeping on top of risk management during implementation?        Risk management requires active surveillance throughout a project in order for it to be effective.  Hazards need to be identified and classified as they are encountered in order to apply proactive plans that are in place or develop a risk management plan on the fly.  The implementation portion of the project has the most opportunity for risks to be identified and encountered.  Should a negative outcome occur, this is the stage within the process that if actions are not carried out to mitigate the risk and prevent further damage then it can be detrimental to the entire project and potentially leaves the company exposed as well.What kind of business is Futuronics in?Futuronics is in the development of future electronics for developing products 7 years beyond anything that is on the market.  There are many risks encountered during this period and many adverse conditions to be prepared for and to look out for prior to and during this time.Improving the risk management process:The existing risk management process can be improved to address concerns during implementation by:Observing past failed experiences that relate to the current failure of risk managementIllustrating the dangers of overly optimistic observations of hazardsIncrease the amount of individuals to analyze the projects and risks.  This can be part of a companywide initiative to involve all involved in projects at every level to identify and capture risksDevelop a record keeping system that will track risks and near missesOrganization ActionsActions that can be taken within the organization to improve risk management during implementation include: