Project Management Has Numerous Areas That Present

¶ … Project management has numerous areas that present great importance to managers and their teams. Project risk is one of the most important issues that must be taken into consideration by the stakeholders involved in developing certain projects. Therefore, the risk management plan follows several steps: risk identification, quantification, response, and monitoring and control of established risks.

The risk identification step consists in identifying the risks that are likely to affect the activity of the project. In order to reach this objective, managers and their teams organize sessions and meetings with different departments within the company (Turbit, 2011). The most important types of risks taken into consideration by companies refer to risks that determine certain situations that can influence the development of the project, and risks that refer to the impact of the project in case.

The risk quantification step is represented by the assessment of the risks' impact. Based on this assessment, managers and their teams can prioritize these risks and establish the strategies that must be developed and implemented in order to counteract their effects. This step is followed by the risk response activity. The mostly used strategies in such cases refer to avoiding, transferring, mitigating, and accepting the risks. The actions that are established in this step must refer to the evolution of the project. The risk control step consists in monitoring identified risks and observing the impact of the strategies and actions developed in order to reduce them.

There are several strategies used in quantifying risks. Questionnaires and surveys are some of the most frequently used methods in assessing project risks. They can be simple or multi-response surveys that require the use of computerized spreadsheets and other types of tools. Specialists in the field recommend that these risks assessment questionnaires and surveys should be developed in order to be in accordance with the activity, objectives, and needs of each project.

It is also recommended to develop questionnaires and surveys based on reduced numbers of questions. This is intended to increase the relevancy of the technique. In addition to this, the responses must be simple. This allows the project team to better identify and evaluate the risks of the project. The questionnaires and surveys are then subjected to the team members. Based on their answers, the team manager collects the useful information (Cooper et al., 2005).

These questionnaires and surveys reveal several aspects. They allow the project team to assess the risks identified regarding the project in case. In addition to this, the information is used by the company in comparing different projects, establishing objectives, and establishing the resources that can be allocated in order to manage these risks.

The objectives of questionnaires and surveys in risk management vary in accordance with the activity of the project and the issues it must address. Most of these objectives refer to establishing different risk management practices. They must be evaluated in comparison with similar practices of the business sector addressed by the project in case. This allows the project team and the company to establish the strategies that are the most efficient for their project.

The necessity of using questionnaires and surveys in assessing project risks is revealed by the importance of these risks' impact on the development of the project. The fact that numerous companies successfully use this technique reveals its usefulness. Therefore, smaller companies should also develop and implement risk assessment strategies that include questionnaires and surveys.

The success of using questionnaires and surveys in evaluating project risks also depend on the participants in this step of project risk management. It is recommended that these sessions include the project manager and his team, the project sponsors, different engineers that work on developing the project, experts in several fields that the project addresses, marketing experts, environmental safety experts, and other stakeholders interested in the project. The different expertise of these specialists is able to help the company identify risks from several points-of-view.

The advantage of using questionnaires and surveys is that this technique allows the project team to identify a series of project risks that the company was unable to identify in previous stages of the project. This is also because certain risks do not exist in these project stages, or are difficult to identify because of reduced resources associated with the project in case. Therefore, it is important that companies use this technique in addition to other risk identification and evaluation methods designed for different types of projects.

Another advantage of questionnaires and surveys is represented by the fact that it allows the project management team to evaluate the impact of various risks and their level of influence on the project's development. This refers to low, medium, and high levels of risks. The respondents evaluate different risks associated with the project in accordance with these ratings.

However, this does not mean that the company should limit to the aspects discussed in the questionnaire. These issues can be developed in order to include other aspects that might influence the project's activity. Therefore, it is recommended to adapt the questionnaire to the requirements of the project. Based on the questionnaire responses, the project team must establish a list of general risks that can be developed in accordance with the evolution of the project. This is because different risks can develop in different stages of the project.

In the case of large projects, the risks and their impact are significantly higher. Therefore, it is important that companies develop strategies intended to identify, evaluate, and reduced these risks. In such cases, the questionnaires and surveys used in risk assessment must include numerous sections that address the activities of the project. This requires complex questionnaires that are developed with the use of computerized assistance. Although some companies might consider this activity as an investment that is not necessary, its benefits are able to provide value for the company in case. In other words, important projects require significant investments in risk assessment. This is intended to reduce costs that might be determined by the inaccurate identification and evaluation of project risks.