2 management - School of International Business and ...

201 Project Management
After entering the identified risks into the risk portfolio (Fig. 7), there is a visual representation of
the project's risk situation. Depending upon the position in the portfolio, one can plan for appro-
priate countermeasures for each risk.
The following strategies apply here:
– High risk: defined as a critical success factor
– Medium risk: ensure, avoid, prevent
– Low risk: accept
Assessing the risks is a permanent task in a project and must be carried out by the project man-
ager at appropriate time intervals (e.g. in status reports)
2.1.1.7 CONFIRMATION OF THE PROJECT CONTRACT
Following a thorough review of the project objective, the project manager has the option to an-
swer still-open questions in a timely manner with the client. The formal contract confirmation
document then follows.
This written communication (for internal projects, an e-mail is usually sufficient), the project con-
tractor (project manager) confirms to the client that he is obligated to enter into the agreed con-
tract, and will carry out the project in accordance with the contract under the agreed conditions.
A project contract confirmation must, among others, contain the following components:
– Project description (name, number, etc.)
– Project objective
– Project goals
– Starting and endpoint of the project work
– Approved budget
– Project risks
– Invitation to a kick-off meeting
The risk for both client and contractor is minimized through a confirmed and agreed project con-
tract. If the contract basics are not changed, for example, through a Change Request, the project
contract must be carried out as agreed.
2.1.2 PROJECT ORGANIZATION
In the next step, the project manager will attempt to bring on board the necessary project team
members in order to fulfill the project contract.