Issue 9 – Changes in the environment
If there are changes in the environment, then your business case and solution will become obsolete before you’ve actually finished the project. You may have to review your original requirements and goals at some point in the project to decide how to proceed. This may result in tremendously changing the scope of your project or canceling the project. This is probably the trickiest area resulting in project failure There are many more types of impacts as well and you can look to your industry to come up with typical examples. Health and Safety and environmental impact are two popular categories. However you categorise risks your team doesn’t have to restrict themselves to the list. Just because my table doesn’t address environmental risks doesn’t mean we shouldn’t consider the risk unexpected disposal costs as a result of the type of batteries e install into our computers we manufacture. n cases where the risk is considered unworthy of effort to manage it can be accepted. This may occur in instances where the risk is so unlikely to occur as to not warrant attention, or where the impact is insignificant in the content of the business and project’s environment. Whichever option you pick for your risks you should have a detailed action plan against the risk which includes Who is responsible for managing the risk What is going to be done to manage the risk When are the major work activities to manage the risk going to start and end How the risk will be managed as a result of this management plan – that is the planned outcomes of the risk management plan For risks that require major bodies of work to be managed appropriately you should consider raising a change request and revising the project management plan to include new or modified work packages including this new work. Historically, businesses have viewed risk as a necessary evil that should be minimized or mitigated whenever possible. In recent years, increased regulatory requirements have forced businesses to expend signifi cant resources to address risk, and shareholders in turn have begun to scrutinize whether businesses had the right controls in place. The increased demand for transparency around risk has not always been met or met in a timely manner, however—as evidenced by the fi nancial market crisis, where the poor quality of underlying assets signifi cantly impacted the value of investments. In the current global economic environment, identifying, managing, and exploiting risk across an organization has become increasingly important to the success and longevity of any business Organizations that vigorously interpret the results of their risk assessment process set a foundation for establishing an effective enterprise risk management (ERM) program and are better positioned to capitalize on opportunities as they arise. In the long run, this capability will help steer a business toward measurable, lasting success in today’s ever-changing business environment. Risk...
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