Question:
Create a literature review paper based on your research about a current project management topic/concept.
This review should:
Both the theoretical and the applied aspects of this topic will be covered.
Analyse critically the most recent literature (year 2000)
Identify the trends, themes, perspectives, and controversies
Identify the strengths/weaknesses of the literature
Wherever possible, identify any knowledge gaps
Write a conclusion that addresses the main implications of the findings for Project Management and the topic chosen.
Answer:
Introduction
This particular literature review has evaluated the concepts of risk and management in Information Technology Projects.
The paper illustrates both the theoretical and applied aspects of this topic by clearly identifying risk and risk management.
The paper also discusses the theme, trends, and perspective of the literature that is associated with the topic.
The study evaluates the strengths, weaknesses, and perspectives of previous literature that has been used to assess the strategic concept for risk management in IT projects (Hydari 2015).
The study also examines a new set of strategies that are used in modern project management risk management procedures.
The literature review has also highlighted the best ways to identify and assess IT project risk factors.
The findings are concluded by identifying the impact of the risk management strategy and the gaps in the literature.
Discussion
Project risk is defined as an unpredicted event or circumstance that could have an adverse impact on the project’s objectives and deliverables.
Project risk can also be defined as the possibility of loss or failure.
Smith and Merrit (2002, p.
Uncertainty, loss, or time are the three main aspects of risk.
According to the authors’ concept, project managers have the responsibility of evaluating as many uncertainties associated with an IT project as possible.
There are also losses that may be associated with the project’s risk. These losses must be assessed.
In assessing risk, it is important to consider the time factor as there might be a point when the risk can’t be met (Sisco 2011, 2011).
Pennock and Haimas (2001), a team that focuses on risk management, found that it can be broken down into six steps. Three for risk analysis, and three for risk management.
Risk assessment involves identifying risks and assessing the risk of exposure.
Alternately, in the risk management section, you will find cost-benefit analysis and the impact of these options on your future decision-making.
The Objectives of Risk Management
It is mandatory to identify the objectives of risk management in order to influence the overall risk management process.
Kendrick (2003, p. 3) has shown the many benefits of using a risk management plan.
Modern leaders can increase their chances of success by managing project risk.
Risk management also reduces costs and manages chaos during a project.
The stakeholder involvement in risk management allows for high priority projects.
Risk management also identifies the risks associated with project work and helps to determine the best backup resources to achieve project objectives (Kerzner 2003).
The Strategy of Risk Management
Different strategies
There are many strategic options to consider when managing risk during IT Project management.
Kendrick (2003) stated that project-related risks should be considered when assessing risk management.
Project management-related risk management can lead to the failure of the risk management plan.
The author states that risk management must be based on a plan that is credible and can meet project objectives while minimizing negative outcomes.
Doernemann (2002, p. 6) develops risk management and analysis strategies. These include a six-step model approach that includes risk management planning and planning, risk identification and quantitative risk analysis, risk response plan, risk monitoring and control, and risk management planning.
A project manager must follow each step to make the decision to plan risk management.
It is also crucial to determine the risk.
To evaluate the risks associated with the IT project, it is essential that both qualitative and quantitative risk analyses are done.
Risk response planning will include the possibility to increase the chances of reducing the risks.
The risk management plan will be perfectly executed if the risks are tracked and monitored.
How to identify risks
There are many ways to identify risk in a modern risk mitigation plan.
Information gathering techniques like brainstorming, Delphi technique, or SWOT analysis are all possible to identify the risk.
However, checklist analysis is one of the most effective methods for identifying risk (Botchkarev & Finnigan, 2015).
Assumptions analysis is also important to determine the risks associated with the IT project in terms of accuracy, incompleteness and changeability.
Risk diagramming techniques like influence diagrams and system flow charts can help to identify both the risks and the causes of risk (Smith and Merritt 2002).
How to Assess and Evaluate Risks
There are many ways to evaluate and assess the risks involved in a project’s progress and determine their impact on the project’s performance.
Ennouri (2013) states that there are two types of risk evaluation or assessment: qualitative and quantitative.
Monteiro de Carvalho and Rabechini Junior (2013) state that the qualitative risk analysis technique allows for the expression of risks in a descriptive manner, rather than using economic variables.
The qualitative approach assumes that certain losses or threats cannot be expressed in financial terms and that adequate information is impossible to obtain (Rose 2014).
There are three types of techniques used in qualitative risk analysis: scenario analysis, fuzzy metrics and questionnaires.
Alternately, you can measure the risk of an event in terms of its frequency and impact.
The quantitative analysis uses statistical data that is based on historical information about the likelihood of certain losses and threats (Ward, 2014.
Quantitative risk analysis is not without its limitations. It relies on historical data, which can lead to future uncertainties that could impact the likelihood of certain events.
Ennouri (2013) suggested that proper assessment and evaluation should be done for identified risks using a mixed analysis technique. This can help to determine the most likely impact of uncertainties.
How to Reduce Risk
Wideman (2002) previously identified seven primary solutions to identified risks.
Wideman (2002) outlined seven primary ways to manage risks. These included no action, sharing, reducing and transferring, retaining, and using a combination if different techniques.
In 2007, Dorfman explained that all methods to manage risk fall within four main categories (the 4 T’s), which are tolerate, threat, transfer, termination, and transfer.
Sisco (2011), on the other hand, presented five methods of managing risk: risk avoidance and reduction, risk transfer, loss deferral, risk transfer, and risk retention.
It is evident that there are many theories on how to reduce risks.
The strength of project management risk management literature is the risk-reducing techniques.
Literature Gap
Because there is not enough research and information in this area, it can be difficult to assess the impact of risk management and risk analysis (Sisco 2011, 2011).
The risk management process is complex because it relies on historical data. This makes it difficult for project managers to predict the uncertainty and extent of the impact.
Literature does not provide sufficient theory to verify the validity or reliability of the data.
The IT project team faces a significant challenge in managing and analysing the risk. This is because of the absence of sufficient information and the trial-and-error method of risk mitigation.
Conclusion
The above review clearly shows that there are different views on the topic of IT project risk management and analysis.
Communication is key to successful risk management planning, according to the literature.
The theories of risk management can be used to help project managers identify uncertainties based on historical data. This is a significant drawback in the risk management literature.
It is crucial for project managers to be able to comprehend the limitations and the theoretical concepts of risk management before applying them in real projects.
Refer to
Botchkarev A. and Finnigan P. (2015).
Complexity in the Context of Information Systems Project Management.
Organisational Project Management, 2(1) p.15.
Doernemann H. (2002). ‘Tool-Based risk Management Made Practical’, Joint IEEE International Requirements Engineering Conference, (RE’02), p. 192
Introduction to insurance and risk management.
Prentice Hall.
Risk management: A review of the literature.
Polish Journal of Management Studies. pp. 288-297.
The Rules of Project Risk Management: Implementation Guidelines For Major Projects.
Project Management Journal, 46(4). pp.e4–e4.
Kendrick, T. (2003). Identifying and managing project risk: Essential tools for failure proofing your project.
To accompany Project Management: A Systems Approach to Planning, Scheduling and Controlling.
Pennock M., Haimes Y.
(2001).
A study that examined the impact of project risk management on project performance: An empirical study.
Journal of Technology Management & Innovation 8, pp. 64-78.
Personal Effectiveness in Project management: Tips, Tools & Strategies to Increase Your Decision-making, Motivation and Confidence.
Project Management Journal, 45(2): pp.e1–e1.
Management of IT projects.
Merritt, G., and Smith, P.
New York Productivity Press
Practical Risk Management: An Executive Guide for Avoiding Surprises or Losses.
Risk Management: A Guide to Managing Project Opportunities & Risks
Project Management Institute.
Improvement of the project management process.
Boston: Artech House.