Impact of Risks Management Process in Determining the Project Success

Question: Discuss about theImpact of Risks Management Process in Determining the Project Success. Answer: Introduction The success of the project management is analyzed based on the criteria based on completion time, budget, and quality and project performance. In this, we have provided the impact of the risk management that is based on the IT project success. Two major criteria for determining the success of the project management were introduced by the Kerzner (2001). Primarily, the success of the project would efficiently and effectively utilizes the project resources. Secondly, the project should get accepted by the client. For the professionals and executives that are involved in todays project has the main concern as the risk management. This will clearly stated that these evidences have become very much intense. In 2000, Kwak and Ibbs was developed the first article that pointed towards significance of the risk management. They pointed importance towards project management four sectors: construction engineering, information technology, manufacturing products with high technology and telecommunication. In this, we have explained the IT project for literature review. There are four steps that are used for managing the risks: Understand and recognize the risks involved in IT project Analysis of the associated risks Regulation of the risk to reduce the negative impact on the occurrence of the event Monitoring the risk associated with IT project Below diagram will show the various risks that are associated with the IT project: Research Questions for IT Project Does risk management impact the success of the IT project? In literature review, explain the above term with some academic references What are the various risks that are involved in IT project? How the evaluation done for risk management? Literature Review In 2003 as per Ward and Chap-man, they argue that the risk management that involved for whole project should focus on administering the uncertainties, because risk always connected with opportunities or threats to projects from uncertain events. For coping up with the substantial risk that is there in the project, risk management is the crucial tool. With this tool we can: alleviate risk with proper planning, control and analyze the risks so that loss can be minimized and project viability can be ascertain and assess. (Lam, 2007) Shenhar and Dvir (2010) refer risk as the one in project that comes from an uncertainty, but some other factors also contribute towards project risks. They are competencies, inadequate abilities, resources scarcity, costs, deadlines and time-frames for the project. Management of risk supports the improvement quality and enhances the estimation of the cost by mitigating and recognizing for projects the potential risks. This put various processes in place for ensuring management receive risk information in organized way. They also apply corrective actions which permit realistic estimates of costs and schedule and make sure project get successful within timeframe. (Tinnirello, 2000) Keeling (2006) have presented various articles on risk management and state that this is the series of interconnected processes that involve specific tools and techniques. Principles of risk management increase the involvement of team by giving some mechanism for reporting the potential issues and increase stake of the team in overall project success. (Hodge, 2002) In 2002, Elkington and Smallman recognized that a strong link among project success level and risk management amount undertaken in project. Management of project assumes that procedures and processes application lead automatically to the result of the good project. If project get fail, the procedures and processes of the project have to better improved or executed. (Chen, 2009) Cicmil (2006) clearly present the literature review investigation on the success of the project and the management of the risk. In this view, all events or situation risks are defined which will cause some disruption in plan, and make sure delivery of the project should be done in timely manner that was agreed on starting and within defined budgets. The project success is measured traditionally by the criteria of requirements, budget and time. This type is critics widely but still used for the publications on the success on the projects. (RAE, 2004) Two major criteria for determining the success of the project management were introduced by the Kerzner (2001). Primarily, the success of the project would efficiently and effectively utilizes the project resources. Secondly, the project should get accepted by the client. Turner (2002) states that the traditional view of success of the project is based mainly on quality, cost and time objectives as they are the perspective view point for the team of the project. As per APM (2006), all the project risks are inherited due to performance by the people, assumptions that are used, complex, constrain and unique features. As result, project management of risk must build into project management and should used throughout the life cycle of the project. Evaluation The method of the evaluation, thus, tries so that they can learn from the previous projects, by just evaluation all the risks that are associated and occurred during implementation of the project. This type of evaluation can outcome as the adjustment to the usage of the technique, or even is the methodology adjustment itself. The approach of management towards management of the risk, which are based on the process on making some of the rational decisions, that will fit well in view of the IT on the management of the project. It is gone for distinguishing the solid occasions or, on the other hand circumstances inside a particular venture which upset the plan, and creating measures to keep the venture on track. Below we have provided some of the hypothesis that can considered in this case: (H1) The risk management for the project does not authority the success of the project perception. This is the hypothesis that is intended for verifying the relationship among evaluating the outcomes and adopting practices that are used in the project risk management. (H2) Revenue of the organization does not authority the success of the project perception. In this hypothesis, it was stated that the revenue of the organization can considered as the major success factors in the defined project. This attempt is used for verifying the relationship among the various variables. (H3) The project type does not authority the success of the project perception. The literature review that is done on the management of project does mention some of the significance for establishing the typology in the project and adapting the project management as per the project type. (H4) Risk manager presence doe not authority the success of the project perceptions. In this attempt it is verified that the significance on the importance of the manager of risk. The formulation strategy for the null hypothesis is directly connected with the understanding on what always includes the evidence and equality for rejecting it will get recognized. Thus, this is based on analyzing the information for hypothesis to get capable for concluding the study that was obtained on information, cost and time and thus reject the success project opinion. This is done by considering that the indicators of quality conformance, satisfaction for the project team, satisfaction of the client and scope of the project. Here, we have used risk management as the evaluation method. The objective of this is to quantify and list all the associated risks and then find the solution or mitigation for the failure of the project. Below figure is used for presenting graphically these processes: The input for the project are the known factors of risk The project process for risk management collects data about the project failure and associated risks, which follow with the new factors of risk New factors added to the lists of the risk factors that are known and thus all together creating the inputs for the future projects. The main objective of this approach is not answer the query on what are the causes that make the project fails. This approach accepts that by understanding the dangers and their causes can and will be overseen, which is probably going to prompt a beneficial outcome on the venture results. The point is to make extend consistency in another venture by utilizing the data with respect to the risks and reasons for venture disappointment assembled in past tasks. The supporting supposition is that undertakings are practically identical as in data about dangers can be summed up and is utilized as a part of future ventures. Conclusion The applied methods have some influence on the failure and success of the IT project and it varies. The major variations are based on the project type, followed by the recognition of the success enablers group. Lastly, the greater parts of productions that relate to the risk administration to venture achievement allude to the customary requirements-budget-time meaning of venture achievement. In any case, this approach is not in accordance with the view displayed by other writing that venture achievement involves more than simply meeting time and spending imperatives and prerequisites. Extend partners may utilize different venture achievement definitions. Manager of the project do execute the higher risk management methods and uncertainty and procedures on the project they see as more intricate than on activities that they see as less perplexing. Most venture administrators, on undertakings they seem to have abnormal amounts of intricacy, actualize vulnerability and risk administration methodologies and procedures at lower then "ideal" levels of general recommended industry risk administration models. There is a positive connection amongst instability and risk administration approach and process levels executed and saw extend accomplishment by venture administrators on undertakings that they seem to be of high unpredictability. This affirms comparable exact discoveries in the writing. The literature review for the success of the project and management of the risk has been discussed. It has found that traditional view for the success of the project based on the quality, time and cost and this is not sufficient. The success of the proje ct has seen to be based relatively on the pre-agreed and pre-determined criteria for the success by all the involved stakeholders. References Ibbs and Kwak,2000: C.W. Ibbs, Y.H. KwakAssessing project management maturity.Project Management Journal, 31 (1) (2000), pp. 32-43 Shenhar, A.J., Dvir, D., Levy, O., Maltz, A.C., 2001. Project success: a multidimensional strategic concept. Long Range Planning 34, 699725 Kerzner, H (2001) Project Management: A Systems Approach to Planning, Scheduling and Controlling. 7ed. New York: John Wiley Sons. Lam, K C, WANG, D, Lee, P T K and Tsang, Y T (2007) Modelling risk allocation decision in construction contracts. International Journal of Project Management, 25(5), 485- 493 Tinnirello, P C (ed.) (2000) Best Practices Series- Project Management. USA: Auerbach Chapman CB, Ward S. Estimation and evaluation of uncertainty: a minimalist, first pass approach. International Journal of Project Management 2000;18:36983. Keil, M., Cule, P.E., Lyytinen, K., Schmidt, R.C., 2006. A framework for identifying software project risks. Communications of the ACM 41 (11), 7683 Hodge, N (2002) Power to the people. Internal Auditing and Business Risk, 18-22 Elkington, P and Smallman, C (2002). Managing project risks: a case study from the utilities sector. International Journal of Project Management, 20(1), 49-57. Chen, C.C., Law, C.C.H., Yang, S.C., 2009. Managing ERP implementation failure: a project management perspective. IEEE Transactions on Engineering Management 56 (1), 157170. Cicmil, S., Williams, T., Thomas, J., Hodgson, D., 2006. Rethinking project management: researching the actuality of projects. International Journal of Project Management 24, 675686 Royal Academy of Engineering, 2004. The Challenges of Complex IT Projects. Retrieved from https://www.raeng.org.uk/news/publications/list Turner, R (2002) Project success criteria, In: Stevens, M (ed.) Project management pathways. GB: APM. ISBN 1-903494-01-X