Within the project management process, there are monetary values that stakeholders allot to manage the risks in order to enhance the successful completion of the project. Suppose, stakeholders allot $250,000 to manage the project risks and after completion of the project, a project manager will calculate all the costs used in the risk management. The total costs used to manage the risks will determine the risks management outcome of completed projects. If the planned costs to manage the risks are higher than the actual costs, the risk management carried out for the project is not effective. However, if the planned costs for the risk management are equal or less than the actual costs, there is an effectiveness procedure used in the risk management for the completed projects.
Moreover, overall project costs are another determinant to assess the risk management outcomes of completed projects. The planned costs of a project vs. The actual costs of a project determine the risks management outcome of completed projects. If the planned costs are higher than the actual costs used to complete a project, the risk management used to manage a project is not effective. However, if the planned costs is less than or equal to the actual costs used to complete a project, the risk management process is effective.
More importantly, the project schedule is another method to assess the risk management outcome of completed project. Project schedule is the actual date allotted for the completion of a project. The project schedule for the project must match the actual date to complete project to achieve a quality risk management outcome. If the actual date of project completion is more than the date schedule for the project completion, stakeholders are not being effective in carrying out the risk management procedure.
The quality and scope of a completed project are other criteria to assess the risk management outcomes of completed projects. Planned quality of a project must match the actual quality of project delivered to achieve a positive project outcome.
Recommendation needs to be done if the risk management outcome is not effective to enhance effective risk management in the future project.
2.1: Recommendations and Document Improvement
To enhance positive outcome from the risk management, project stakeholders should carry out risk management analysis before starting the project. The risk management analysis should involve identification of the risks that is likely to occur within the project lifecycle and develop effective strategies to manage the risks.
Moreover, a project manager should develop a risk register for the documentation of the identified risks. The risk register should divide the risks based on their level of importance. For example, the risk register should identify High Risk, Medium Risk, and Low Risk. Using the strategy, a project manager will be able to identify the risks that need immediate action.
More importantly, there is a need to design a document to list all the associated risks that have been identified within a completed project and the strategy used to manage the risks. The document should also include the costs, and time used to manage the risk and the impact of the risks on the completed project. The document could be used to improve the application of future projects.
Incorporation of the improvements for the application future projects
One of the effective methods to document improvement is to design a database to store all the risks identified within the completed project and effective method used to manage the project. The database will be an effective tool to integrate the risk management tools in the future project. The database will serve as source of information that project manager could use to manage the future project. The database will also assist project manager to source for information of the risks management technique, and project manager will incorporate the technique used to manage the past project in the future project.
List of References
Australian Bureau of Statistics (2010). Features Article: A Statistical Overview of the Construction Industry. Australia.
Barber, R.B. (2004). Systemic issues in risk management in projects; why the as/NZS 4360 approach is not enough. Australian Project Manager 24 (1), 24-27.
Project Management Institute (2004) a Guide to the Project Management Body of Knowledge (3rd Edition). PMBOK Guides.
Richard, a.U. (2009). Documentation and Monitoring of Construction Projects. A Research Project in Partial Fulfillment of…