Risk Management PCNet Project - Free Sample Assignment

Question: Discuss about theRisk Management for PCNet Project. Answer: Introduction The PCNet Project A PCNet project refers to a low-cost connection of computers which have been designed to support and manage a project centrally using network applications in an industrial set-up. Also known as a thin client, the PCNet lack a diskette drive and is designed in a manner that supports specific business tasks and application (Loch, 2005, 1). The project usually comprises of four main areas encompassing infrastructure migration. The PCNet project encompasses one of the several IT integration projects. The case study focuses on the role of PCNet and integration of the IT systems in the acquisition of RBD Inc., by the Metal Resources and how the latter would have managed the risks that threatened to cripple the firm. The Four Steps of Risk Management Hazard Identification/Risk Identification Undoubtedly, risk identification serves as an indispensable step in project planning. In this step, the concern of the risk manager is to recognize all the factors that may hinder the progress of the plan. That is all the factors that may serve to make a project suboptimal. Risk identification involves a thorough exercise before the preparation of the project organization to identify all the factors that may pose a threat to the project and identify the team that will best respond to such a risk. After the identification of the risks, the risk manager should organize/classify the risks into the four basic risk categories (financial risks, operational risks, financial risks, and hazards). While financial risks relate to the impact of market forces on the financial position of the firm, operational risks relate to any failure in systems, controls, and processes (CIOB Institute, 2016, 3). On the other hand, societal and economic forces give rise to strategic risks while hazards refer to risks arising from loss exposures due to the nature of the property. Risk Assessment and Prioritization Once the risk management team identifies the risk, it is important to understand the nature of the risk fully before commencing treatment. Faizul (2015, 1) argues that depending on the risks nature; a risk manager may adopt quantitative or qualitative analysis or a combination of the two techniques (notwithstanding several other specific techniques) to assess the risk. While qualitative analysis serves to establish the significance of the consequences of a specific risk, quantitative analysis assists in assigning specific values to the consequence of each risk and the probability of such a risk occurring to establish the level of the risk. After risk assessment, the risk manager should proceed to prioritize the risks based on the impact assessment to allow the project team to focus on the most significant risks. Risk Response Management It involves reducing the threat and exploitation of opportunities. After risk identification and assessment, the project team should proceed to modify the risks in a manner that serves to promote the companys objectives. It is worth noting that most risk may require multiple treatments. Some of the treatment techniques a company may adopt include avoiding the risk, transferring the risk, retaining the risk, exploiting the risk, and modifying the likelihood of the risk occurring and its impact. Risk Response Control Undeniably, workplaces often change as a result of the company purchasing new equipment and securing new employees. Consequently, the risk facing the project often change. As such, regular assessment and monitoring enable the project team in evaluating their current plan and adjusting the plan to suit the companys goals. Risk monitoring further enables a firm in identifying emerging risks and other risks not previously identified while they are still manageable (Crain, 2014, 4). The step further serves to provide quality assurance to the project team and the management of the company of the effectiveness and efficiency of the treatment techniques adopted by the project team. Works Cited CIOB Institute. Risk Management [Online] September 9, 2016. Available at https://www.designingbuildings.co.uk/wiki/Risk_management [Accessed on September 25, 2016] Crain, J. 4 Key Steps to a Risk Management Plan. [Online] April 10, 2014. Available at https://gibraltarrisk.com/content/4-key-steps-risk-management-plan [Accessed on September 25, 2016] Faizul, K. 5 Steps of Risk Management Process. [Online] February 11, 2015. Available at https://www.gotabout.info/5-steps-of-risk-management-process/ [Accessed on September 25, 2016] Loch, C. The PCNet Project (B): Dynamically Managing Residual Risk [Online] February 5, Available at https://cases.insead.edu/publishing/case?code=22187 [Accessed on September 25, 2016]