Question

IT Project Management:

Explain in detail and give 3 references:

Discuss the common sources of risk on IT projects and suggestions for managing them. Which suggestions do you find most useful? Which do you feel would not work in your organization? Why?

Answer 1

ANSWER:

Identification of common sources of risk in a project is very essential for the success of an IT project. The risk will may be appear again and again in a project. hence if the source of the risk will not be found out then the appearance of risks can't be reduced. Hence, in IT projects. there are four common sources of risks which are Tasks. Organizational. Technological and Market

1)Task risks:

The task related to the project to achieve the object is the main source of risk. The probability and impact of the failure of the task if the tasks are complex and requires a high level of investment and also if handled by an individual. If the members are not very much efficient to perform these tasks and not able to understand the latest technology and the complexity of the task. the whole project will be in a high risk. Hence. it is very important to check whether the team is efficient to handle the tasks of the project etc.

Suggestion to reduce the risk:

• The capabilities and abilities of the members of the project must be summarized before the project starts.

• The list of all the tasks should be prepared systematically according to the project's stages order.
• The task should assign to the person or team, which have the abilities to handle it or he had done the same task in the past.
• If such person is not available it is better to hire an external expert or team to handle that task

• The team should be chosen very carefully.

These suggestions are very effective and can reduce the risk completely from the project.

2)Organizational risks:

If the organization of the IT project is new in this field then it will become the source of the risk of the project. As the organization is new. member of the project will not be able to receive the best support system from the senior level management and it wit risk the project in communication lacking and many other sections. If a member needs any suggestion or any issue will come during the project. due to lack of proper knowledge project may lead to failure.

Suggestions to reduce the risk:

• The organization must deal in its field and should not opt for the new industry.

• If the organization is new to the industry, the team must be hired within the industry or must be an expert on that project

• The organization should be very careful to assign the management of the project as they have to assist the team of the project later.

• Also, the organization should he some advisor of that industry especially for this project so that any issue can be avoided by taking advice if required.

3) Technological risks:

If a project is not able to adapt the new technologies. it will also become the source of risks for the project. Which tool is necessary in which segment of the project must be decided appropriately by the team of expert. A project may be functioning on the standard tools and software and if upgrades must not be done on time. the project may run behind the time schedule and it may risk the budget of the project.

Suggestions to reduce the risk:

• The list of all the tools and technologies used in the project must be prepared before proceeding with the project.

• If necessary, a training program should be included for the members who are not very efficient in particular technologies.

• IT department of the project must be assigned very carefully in order to be in touch with the latest technology related to the project.

4)Market risks:

The market of the project is the biggest source of risk as the market changes very frequently. The product on which the organization is working. if not, be very useful for the people or it may have many competitors running effectively in the market. will lead the project to the failure. Markets uncertainties will become the risk of the whole project.

Suggestions to reduce the risks:

• As the market is very unpredictable and changes frequently, an organization can hire a market analyst who will continuously analyze the market during the project.

• Before proceeding with the project, the project manager should research enough about the uses. advantages. competitors. etc. of the product, company is going to develop.

In my organization, the suggestions given to an organization's risk will not be applicable. The reason that is behind this organization deals in a specific field cc industry and while hiring the members and management people, the company only selected the experts in the specific fields. Hence, if an organization wants to be in new industry. it is not possible to change the whole management and staffs of the company. Hence, for this organization. another approach should be taken to reduce the risks.