RISK MANAGEMENT

RISK MANAGEMENT FOR AN IS/IT PROJECT

This paper reviews the application of risk management in planning form an IS/IT project. The review considers questions related to (1) the incorporation of risk management into planning, (2) risks other than project-related crises, (3) appropriate crisis management tools, and (4) structuring the project management plan to minimize adverse outcomes on the IT industry and technology.

A: How to Incorporate Risk management in Project Planning

The application of the project risk-management process to an IS/IT project concerns potential future events associated with such a project. Defining and establishing the risks associated with the project for incorporation into the project planning will involve a four-step procedure. These steps are (1) establishing the context of the project risks, (2) identifying the potential risks associated with the project, (3) analyzing the probability-consequence relationships of the risks, and (4) developing a risk treatment plan for the identified risks (Goldberg & Kraus, 1999).

The process of identifying potential risks and the implications for the project of the potential risks, it is necessary to consider (1) the characteristics of the organization responsible for the project, (2) project resource requirements and sources, (3) the external dimensions of the project, and (4) room for maneuver structured into the project's baseline plan (Meredith & Mantel, 2001). Finally, the incorporation

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ct if such events occur, and (3) coordinate the implementation of necessary revisions to the project plan and schedule (Goldberg & Kraus, 1999) C: Crisis Management Tools Appropriate for Use in an IS/IT Project Kurstedt, Mallak, & Patzak (1997) identify four types of crisis management tools, each type of which is appropriate for application in planning for IS/IT projects. The four types of tools are (1) risk analysis, (2) contingency plans, (3) logic charts, and (4) tabletop exercises. The risk analysis tool is essential for use in crisis management planning for an IS/IT project. The risk analysis tool facilitates (1) the identification of potential events that may become project crises, (2) the likely effects on the project of such events, and (3) the magnitude of the impact on the project of the effects of such events. Risk analysis is the tool that provides project management with the framework that will provide an early warning of events that may become project crises. Risk analysis also is the tool that facilitates the development of documentation that will direct responsible personnel to the elements of the project that will require immediate attention should a crisis develop. The implementation of the risk analysi

Category: Business - R