RISK MANAGEMENT: ARTICLE REVIEW

This research has two objectives. The first objective is to review an article dealing with project risk management. The second objective is to review the application of risk management in a real organization.

The article reviewed deals with risk factor analysis. Kindlinger and Darby (1-5) presented this article at the Project Management Institute Annual Seminars & Symposium in September 2000.

Kindlinger and Darby (1) describe a six-step risk factor analysis process. The six steps in the risk factor analysis process are as follows:

List all activities and tasks involved in the project

Develop a risk-ranking scale for each risk factor identified in relation to each activity or task

Rank the risk for each activity or task for each risk factor

Sum the risk rankings for each activity or task

Identify possible risk reduction actions for each activity or project task

The development of the list of project activities and task s begins with a review of the project work-breakdown structure and the baseline schedule for the project. This review leads to the development of a project activity flow chart. The flow chart facilitates the identification of schedule risks and cost risks associated with the project Kindlinger and Darby (1).

Kindlinger and Darby (1) define a risk factor as an issue with a potential to "dr

. . .
ralia, conducts major operations in Asia, the Pacific area, and North America. The diversified firm functions in several industries; the principal industries being (1) construction materials, (2) building materials, (3) timber products, (4) sugar production and refining, and (5) aluminum mining and smelting. The firm's major project activities involve the manufacture and delivery of construction materials to major construction projects in Asia, the Pacific area, and North America (CSR, Limited 3-5). This review of the application of risk management by CSR involves the conduct of projects to provide construction materials to major highway construction projects in Asian countries from the firm's manufacturing operations in Australia. The elements of the review are as follows: How the organization responds to risk The identification of five risks associated with projects to provide construction materials to major highway construction projects in Asia from the firm's Australian production operations Assessment of the five identified risks The calculation of expected values associated with each of the five identified risks Determination of responses to each of the five identified risks Creation of contingency plans for the tw
. . .

Some common words found in the essay are:
Kindlinger Darby, Legend Extreme, CSR Limited, Cash Flow, Risk Management, Australia Japan, Consequence Insignificant, North America, ORGANIZATION Introduction, risk management, kindlinger darby, Retrieved Internet, * outcomes legend, * outcomes, risk factors, outcomes legend, risk factor, five identified, routine procedures, immediate action, l m, major management attention, outcomes legend extreme, major 4 catastrophic, 4 catastrophic 5,
Approximate Word count = 1620
Approximate Pages = 6 (250 words per page)

More Essays on RISK MANAGEMENT: ARTICLE REVIEW