Risk Management & Project Management Essay Example | Topics and Well Written Essays - 500 words

Risk Management & Project Management - Essay Example Threats are specific events that drive the project in the direction of outcomes viewed as unfavorable (for example, schedule delays, cost overruns, and inferior product performance (Heerkens, 2001). Risk management is an activity that occurs throughout the life of the project. It begins in the planning process and continues until the closing process is completed (Heldman, 2003). Many approaches can be used to address risk and the threats it produces. However, most processes for managing risk tend to follow some variation of a basic four-step approach. The first step is identification, that is, determining what threats exist. In this step, identify all significant uncertainties (sources of risk), including specific threats (also called potential problems or risk events) that could occur throughout the life of the project (Heerkens, 2001). In Project X, the areas of risk are scope, time, cost, and technology. The company would like the AMDS to be able to operate while it is being moved, while it was not included in the design accepted by the DoD. The risk is present in the project scope. Also, the project should take 5 years to complete at a cost of $1.5 billion. Is the team able to complete the project within 5 years within the budget of $1.5 billion There are also risks in the technology. The AMDS may be successful in a demonstration environment.