Quiz 10: Budgeting Projects
Risk: Once the project success measures and priorities are understood by the team, the attention is now turned towards identifying and understanding project risk. All the projects constitute some or the other kind of risk. It is not possible to remove all the risks. A risk is anything that may influence the project team's ability to achieve the project success measures. The risk may have either a positive or negative impact on one or more project objectives. A negative impact of risk is termed as a 'threat' as the presence of such risk could pose a problem in the successful completion of the project. A positive impact of risk on project objectives is termed as an 'opportunity' as identification of such risks could bring in a lot of other possible alternatives.
Plan risk management is the process of defining how to conduct risk management activities for a project. To plan for project risks, project manager needs to understand the project's objective. Project manager determines the success of a project. To measure the success of a project, categories of project success measures are given below: a. Meeting agreement : The first set of project success measures is meeting agreements. It includes meeting the technical requirement of the project without hampering the cost and schedule. b. Customer's success : The second set of project success measures focus on the project's customers. It is achieved when the project meets the requirement of the customers and enhances the satisfaction of the customers. c. Performing organization's success : The third set of project success is to measure the performance of the organization. Performing organization is an enterprise whose employees are involved directly in the execution of the project work. Success of organization is measured through its market share, new products and new technology. d. Project team's success : The fourth set of project success measures the project team success. It refers to development of loyalty and satisfaction among team members. As such, a project is said to be successful if it meets all the above requirements.
The below provided table shows some examples of the major risks which can be identified while planning a campus event. The table also shows the contingency plans which can be prepared for mitigating these risks: