Solution Pages: 9
Files that you will download:
Structure of the Solution
Risk Management Response
Management of Residual Risk
Risk Management Office
Documentation and Learnings
Risk Management Infrastructure and Culture
Sample of Solution
Organizations work in a framework, where they are continuously exposed to the potential business risks that can be defined as the events which prevent the organizations from achieving their ultimate objectives and which need to be mitigated by implementing integrated controls. The risks can be scaled on the basis of their impact and likelihood of being materialized. The risks which are more likely to materialize and have greater impacts needs to be addressed at first. For the proper risk-control formations, efficient risk management system should be in place. Whereas, risk management system can be defined as a structured, consistent, and continuous process across the whole organization for identifying, assessing, deciding on responses to, and reporting on opportunities and threats that affect the achievement of its objectives (Auditors, 2016). The Risk Management process realized through four integrated steps like risk identification, risk assessment and risk prioritizing, risk management with a collection of preventive and then mitigating risks through contingent actions and execution assessment through monitoring. Organizations continuously update and improve their risk management systems effectively mitigate their potential risk threats.
The PCNet project was exposed to certain risks that were pertinent in the realm of IT integrations. These risks can be further categorized into operational, financial, compliance and strategic risks under the ultimate dimensions of inherent risks and residual risks. Risk identification is the most significant variant in formulating the project execution strategy, as the extent of risk appetite and controls depend on the initial identification of the risks. Risk identification assists the project organizations in formulating “ready-made solutions” which can be implemented rapidly in case of adverse events. Since the PCNet project had a substantial influence on the success of the whole merger, it has been planned with the comprehensive integration of risk management.
After the in-depth analysis of impact and likelihood of all the possible risks, the risks must be prioritized in a manner that most critical issues must be controlled at first. The parameter of expected impact (monetary impact times its possibility) can be used to prioritize the risks. Expected impact can’t be the only variable for prioritizing the risks; other factors must also be considered. There can be such risks which may have smaller expected impact or are less likely to happen, but such risks may trigger other risks to materialize and can cause a domino effect. Preventive and detective controls must be established to avert such threats (Ward & Chapman, 2007).
Documentation and Learnings:
The project execution plan must be properly documented and communicated throughout participating body so that every member may own the ultimate goals and avoid any unnecessary delay (Kendrick, 2015). In the PCNet project the synergy execution plan including schedules was not documented to compare the progression on the sub-project, hence till the end, the management team believed laggings. Though “Development Progress” monitoring tool was used to observe the extent of the merger realization and budget utilization, but it was so programed that with its delusive reporting it looked like the synergy is three months behind on the actual targets. Integrated controls, systematic resource allocation, and contingency plans ensured the essence of the synergy and brought pertinent learnings. For instance, planning, anticipation, and integrated resource allocation set the foundation of a successful project management. Moreover, communication and documentation of strategies along with delegation and accountability must be ingrained to every level of the project management. Since, transparency and clear communication of risks and progress status encourages team coordination and alignment of goals.
Project management is not a standardized tool which can be implemented on every project, no matter how novel and complex it may be. Rather, it is the integration of technical capabilities, accurate anticipations, eloquent communication and consistent philosophy. The ultimate success is the realization of goals which demands differentiating approaches. The PCNet project was a success and accurate depiction of integrated project management control.