The above points have actually intrigued me a lot about risk management. What can be termed as a safe risk or what can be termed as exaggerated risk are probably something which we might have to look into more. I have searched the internet and found out seven different types of risks which people can categorize. Such as financial, security, compliance, economical, reputation, operation and competition risks. There are lots to be looked upon and lot to be learnt about. I have done my internship in a reputed electrical plant where one of the mega-power generator was shut down , so the project managers and the senior engineers at the site had taken the risk to generate more than the capacity power in the other 5 generators to compensate for the power losses. This was a calculated risk which every managers have to take in order to deliver the output within the expected time frame. Ever plan should have a backup such that whenever something goes wrong or even there is a surplus amount of profit which could be earned the backup idea or the plan comes into play. So, it is very important to look up for a risk manager in all the operation plans such that the workflow goes smoothly without any interruptions.
When we say the word "Risk" it always come in mind a Negative thoughts, but does the Risk are always negative ?
As we know Risk results can be positive or negative, can you please give an examples where a Risk Results affected a project you work on in a negative way?
Risk is defined as a hazard, the likelihood that an undesirable consequence will come to pass. One example that currently comes to mind is related to my current profession. I am a classroom teacher. I currently teach in a new school that offers specialized courses to students; it is not a traditional school. Of all of the departments at the school, only three have two teachers who are qualified to teach the courses in that program. The majority of the teachers at that school teach their entire programs solo. There are various responsibilities beyond teaching extensive programs that are stressors or potential deterrents. It is quite risky to only hire one person per department, especially in a school that provides specialized courses. Most of the courses offered even require special certifications to teach. If one teacher leaves, there is no one to immediately come and replace that teacher. The additional pressures of the job will also increase the chances teachers will leave and decrease the chances that teachers will stay if they are able to find a replacement.
The most important project management process to ensure a high success rate on associated projects, I believe, is the risk management process. Responding to the risks associated with any project allows the project manager and the team of professionals to maximize results and to reduce, if not eliminate any adverse or negative effects associated with the execution of a project. According to a George Washington University studythe question of whether risk management made a significant difference in the performance of organizations was a resounding yes. They also concluded that training for these risks is equally as important for the general as well as the specific aspects of each project including the risk assessments that coincide with the policies of the organization. Another studyfound that risk management played a role in being able to meet timelines and goals set by the project budget in a more efficient manner when using risk management practices as opposed to not for overall project management success.
Risk is not always negative as many would believe. A risk is simply an event where anything can happen. Yes, they can be negative in that they can be detrimental. An example is a risk that you take may cause you to lose your business. It can also be positive where the risk is beneficial. For example, the risk may be landing a dream job. One example where a risk resulted in a negative occurred while trying to help develop a school's gifted program. The overall project failed as the project managers did not account for the number of students that would likely test into the program (not enough students to form a program). They also did not check to ensure that the teacher they initially thought would be the gifted teacher had a current gifted certification.
The cycle begins when a product or idea comes together. Within Every stage, a project's process may have its risks and challenges, so being able to manage the risk at each stage, the chances that come with the specific project is very important. It is important to know the risk areas compared to the success of the project.
When we say the word "Risk" it always come in mind a Negative thoughts, but does the Risk are always negative ?
As we know Risk results can be positive or negative, can you please give an examples where a Risk Results affected a project you work on in a negative way?
As it pertains to the project planning process i agree that most often the first thing considered its the negative risks that come with the project. However positive risks aren't considered as much. These risks could include any change in the law or the project approval process that could benefit your product. For example, the FDA gave Pfizer and Moderna a faster vaccine approval because of the pandemic. Also, a negative risks that I have had to encounter involved end of the semester projects there is always the risk that some member won't participate and that can obviously have adverse effects on the project.
As Dr. Simon mentioned, a risk is a "hazard" or a probability that some undesired consequence will occur". I cannot see how a hazard could be a positive thing to a project because it could effect the outcome of the project. Now, it's possible that a hazard in site could encourage the project team to do all things to avoid the hazard or it could give them motivation to make sure that the quality is good. However, that could lead to the timeline of the project being affected. An example of when a risk resulted with a negative impact to the project was when one of our team members during our group project didn't do the work in our project at all. It's possible that the person wasn't actually enrolled in the class but it resulted in more work or the individuals that were working on the project meaning that more time had to be put into the project because we had to meet the same deadline. Another example of a negative risk during a project was when
Every project in any company or industry run into risk even the most meticulously planned project can run into risk. No matter how carefully laid your plan is, it can encounter unexpected issues you may not be prepared to handle. Risk can sound or come off in a negative sense but when put into a plan in other to avoid them brings out positive outcome. A risk management plan can impact the identification and analysis of potential risks that may undermine your project, the methods you can use to avert the risk, and the effects of unavoidable risks.
As you implement risk mitigation strategies, you will need to test, evaluate, and update your Risk Management Plan regularly, as changes can happen any time either to the product in question or the company. Keep in mind also, that there are some products that gets into the market and potential risk are noticed by a customer, depending on how such product was used, which sometimes leads to recalls. Situations like this cannot be completely ruled out. That is why a CAPA is always in place for customer complains. Developing an effective plan may help keep small issues from evolving into a crisis. A reliable and current plan may also help you resume operations quickly after an adverse situation.
According to Dr. Simon, risk is simply the probability of a hazard occurring. Knowing this, I don't believe "risk" is always a negative connotation. However, working in an organic chemistry laboratory synthesizing cancer agents from phytochemicals, there were multiple examples where risk turned out to be negative. For example, one of my lab mates neglected to wear safety goggles and had earphones in with the cord hanging. This was VERY risky in that it could have been very dangerous for her for many reasons. One, any one of the chemicals could have splashed in her eye, causing irritation. Two, the cord to her headphones could have been snagged in the mixer and caused damaged to her hearing or the device itself.
Risk is a negative term for many, but it does lead to better innovation for product. There is always a risk assessment completed for a projects I work with that is completed by quality to ensure product is safe for the customer, whether that be the surgeon or patient. If one were to design without risk, then an endless stream of products would be created that would do more harm than good in some cases. Knowing when hazards may occur or if misuse can be predicted, a product can be designed with a customer focused process that allows for a device that works well without producing harm. Risk also drives the testing of product for verification with statistically relevant sample sizes and data analysis to prove that a product's inputs/specifications are met with confidence. Risk, although a negative term, ensures a product can be confidently used or implanted without concern.
Risk strategies are put in place to avoid risk impacting a project. Risk management is a key process that project managers must include when working to complete a project. A risk that I was faced with included working with other members who did not communicate well, or complete there task on time. I took a risk by expected them to complete their task without communication and was avoiding communication.
When we say the word "Risk" it always come in mind a Negative thoughts, but does the Risk are always negative ?
As we know Risk results can be positive or negative, can you please give an examples where a Risk Results affected a project you work on in a negative way?
Risk to me sounds like a game; for example, if you bet $10, the quarter will land on tails, then you have a 50% chance to win $10, but you also have a 50% chance you lose $10, which is a risk. Usually, when working in a university lab, I believe it is good to take risks since if you take a chance and it goes wrong, it can be a great learning experience. However, if you take a risk and it goes great, you will look great. I'm not telling anyone to do crazy risky things all the time, but I'm saying it is always good to take risks and to learn from your mistakes since failure is a great teaching tool.
There will always be risk in everything that we do.
To me, planning for risk is very positive, it means that there is a plan in place to keep the project moving in the event that something comes up that might otherwise derail the project. Of course, one can't plan for everything, but what can plan for, one should. It's possible that a strategy in the risk plan might be able to used for another unintended consequence that comes up.
@jjp93 Agreed, risk management is implemented to calculate the likelihood of unforeseen events and to attempt to mitigate those risks. Project management, if planned, executed and monitored correctly might do a feasible job at keeping risks low but the risk management component paints a clear picture and can also help navigate through it if those challenges do arise.
Risk management is very important as to protect yourself and company from lawsuits and liabilities. A proper risk management team can reduce and avoid problems. Knowing possible risks will give you a plan on how to attack future events.
