Project Risk Management - Essay Sample

Introduction

Risks are to be recognized and dealt with as early as possible in the project. Risk recognition is done all through the project cycle, with special stress during the main milestones. Some risks might be readily apparent to the project team-known risks; while others might take more consistency to uncover (Bender, 2013). However, they are still foreseeable.

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This paper presents a comprehensive risk identification of joint university project of installing a new VoIP phone system. It highlights recommendations for the challenges as well as the execution, management, and closure of the project.

Project Summary

The project is a merger of two universities, which decided to become one entity to enhance their operation. The universities were facing a common challenge in economies of scale, especially when organizing new technologies. The joint university is currently deploying a new VoIP phone system, installing Google G-Suite, purchasing novel Google digital mobiles for faculty, and eliminating MS Office to enhance interaction among all the associates within the learning institution.

Generally, the project is set out to address the barriers of communication between employees. The joint university project purposes to smoothen day to day operations so as to improve education to the students and reduce operations cost. The project is expected to be completed within one month. The total estimated cost for the project can be premeditated as [100,000 (students) + 10,000 (Faculty)] x 4 = $440,000/month (Bender, 2013).

Project Risk and Recommendations

Software and technology projects are high-risk activities, generating variable efficiency results. Risk in software project comprises of various issues or conditions that may pose an extreme threat to the fruitful conclusion of the project. The main risks that University A and B are likely to face when installing the G suite include;

The joint university might have to repurpose or release talent. With advanced technologies comes with a requirement for new services, often the size of the faculty might also be reduced as a result of work consolidation. To overcome this challenge the university should train and prepare its employees for the change. The two universities should make time and give the employees a chance to advance with more skills or knowledge. Groundwork and training can assist employees in transit more easily into new phones and system.

New technologies frequently have security vulnerabilities. A new technology project through a maturity cycle has phases of disruption and breaches. Implementing new technologies can also expose the university to new security threats. Most companies are exposed to cyber security disasters, massive data breaches and attacks using malicious software that locks down computer systems, when they are transiting to new technology (Kendrick, 2015). To manage these risk the universities should access controls for biometric data, keycards, gate passes, and other physical access controls should be tracked and managed carefully. Besides all the accounts should be carefully documented. The employees should also be educated on the importance of good logging procedures so as to protect the network against cyber-attacks.

Transiting to new technology can also cause squander of resources. The joint university can end up spending money without properly evaluating and vetting business models around the VoIP phone system. To avoid cost overruns university A and B should revisit, revaluate and re-forecast the budget plan again. They should ensure they get input from all applicable stakeholders. It is also important for the University to develop relevant Key Performance Indicators (KPIs). KPIs will help the university ascertain how much has been spent on the project, the level which the project's real budget varies from what was planned. Lastly, all the stakeholders in the project should be informed and accountable. All the partners should be aware of the current budget status, that way they will watch their project charges (Hilson, 2016).

Project Management Through Earned Value Management (EVM)

Earned Value Management helps project supervisors to measure project effectiveness. It is a methodical project management procedure applied to find variances in projects founded on comparison of work performed and work planned (Bender, 2013). EVM is applied on the cost and schedule management and can be advantageous in project prediction; project variance enables a more accurate understanding of project status, success and profitability. Below are Earned Value Management metrics that University A and B must have.

Baseline Schedule

Planned Value (PV) the approximated cost for project events scheduling or planned as of the recording date. The University can liken Planned Value with other key performance indicators to recognize if the university is getting ahead or behind agenda on a task. Basically, PV is calculated as:

PV= (the hours left scheduled on the task) x (project worker's hourly rate)

Planned value is also known as Budgeted Cost of Work Scheduled (BCWS).

Actual Cost (AC)

AC shows how much money a company has spent on a project on a date. It encompasses time and material costs which have been charged or planned (Kendrick, 2015). Actual Cost is also known as the Actual Cost of Work Performed (ACWP). Below is an outline for calculating actual cost.

AC=Add up the project cost- associated expenses the company has utilized up to date

Cost Variance (CV)

This metric compares the planned budget and the actual budget at a given point in time. It enables a company to decide if the project is running over or below the expected baseline which was initially predicted.

CV=scheduled budget vs. real budget

Project Closure

The project closure stage is the last phase in the scheme lifecycle, and it officially puts an end to the project. It is essential to have a closure process so that you can cover all bases. Failure to close a project properly can result in tough issues such as missing vital elements (Hilson, 2016). The following steps can help to avoid such issues.

The management should go over all plans to ensure nothing was left out. Sometimes, when the project is at the peak at you are just trying to finish the project some important things might be forgotten. Mistakes can happen if for the most comprehensive project management. In case the company finds something was left out, there should be transparency to the project team and the client- the team should find a way to weave the component in.

It is also important to review the notes for items that deferred from the phase since they could not be accommodated in the scope. For things that were set aside to be done later, the company should find a solution to them before closing the project. For every entry, the company needs to recognize if it is in scope or out of scope. The entries which are in scope should be handled cautiously so that the company is incorporating them in the right time. For out of scope entries the company can send an email to the client when closing the project. Such a measure will enhance the institution business development.

Sending a wrap-up note to the project team that the project was a success is also an important step in closing a project. Acknowledging the project team helps the members to feel accomplished. The ending note can also indicate any other task that requires to happen.

Lastly, the university should ensure they close the project with the technology developer. Wrapping up with the constructor helps to solve pending issues, any login information, URLs and anything that should come with the project (Kendrick, 2015). This measure can also strengthen the partnership with the service provider, and can also be applied as a kick off in maintenance project, should the need arise in the future.

Reference

Bender, M. B. (2013). Project Risk Management - Simplified!. S.l: Ally Publishing Group.

Kendrick, T. (2015). Identifying and managing project risk: Essential tools for failure-proofing your project.

Hillson, D. (2016). Managing risk in projects. London: Routledge.