Project Risk Management - In the light of different organizational entities

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Table of Contents

Introduction3

Strategic relevance of project risk management5

Project Risk management challenges6

The challenge of changing environments7

Project risk management in the bigger picture7

The challenge posed by conventional project risk management approaches8

Issues to consider during the management of risks in ERP9

Relevance of active communication in ERP management10

Sources of complexity in project risk management in implementing ERP10

Relevance of risk assessment in ERP management12

ERP and project risk management14

Role of uncertainty in project risk management15

Risk measurement approaches in ERP implementation15

A process based approach to project risk management18

Conclusion20

CHAPTER 02: LITERATURE REVIEW

Introduction

Changes in the project risk management plan that result from the Project risk management process may require decisions at the appropriate level of management to reassign personnel, establish or modify budgets, make commitments to others outside the project, interact with regulators, and comply with the rules of accounting and law. Project risk management should be conducted in compliance with these internal and external requirements. Project risk management should be conducted in a manner consistent with existing organizational practices and policies. It is a valuable component for any project risk management step and it adds value to all project risk management processes and provides benefits when it is implemented according to good practice principles and with organizational commitment to taking the decisions and performing actions in an open and unbiased manner. The authors will present project controls and management strategies to address the risks inherent in transit projects that distinguish them from other large capital improvement efforts (Adam, 2009). Transit projects typically run either through city streets or in existing railroad corridors, are usually quite large, and involve coordination with a number of agencies and localities. The sheer size of the projects offers challenges and opportunities to achieve economies of scale. Numerous underground utilities are likely present, but often not well identified ahead of time. A large right- of-way acquisition effort is typically required to secure needed land from many small owners and a large railroad. The need for community support and regulatory approvals presents its own set of difficulties.

Since records were kept, construction has played a major role in the economy of the United States. Construction has been a bellwether economic indicator because it generally leads economic recession and lags economic recovery. However, the specific emphasis here is the relationship between the parties of a construction effort. Namely, those parties are architect, engineer, constructor, and owner. The fundamental question posed is, "Why is the owner, the party least knowledgeable of the A/E/C process, ultimately held responsible for the actions of architects and constructors?" This question is at the core of the issues discussed here (Aramo-Immonen & Vanharanta, 2009). Project risk management professionals who find themselves involved in transit projects must be ready to run a gauntlet of multiple priorities such as: obtaining/managing a diverse funding stream, acquiring right-of-way, relocating utilities, and constructing the civil/systems infrastructure, while at the same time satisfying a large number of private and public stakeholder. With so many variables and unknowns, it is not ...