INFORMATION SYSTEMS IN MANAGEMENT V - SGGW

tion of work, establishing a new branch of the organization, or others. In the project,
by its nature, the future is always less predictable than in the routine work. In
addition, projects can be large and complex, dealing with novel or unusual factors.
Risk is therefore a major factor to consider during project management. Risk can
be defined as the uncertainty of reaching the objective. It can be considered positively
– as an opportunity, or negatively – as a threat. Omitting the risk problem is
like trying to circumvent the awkward subjects and creating an ideal environment.
Such trials, sooner or later, cause the project disaster. In order to avoid compromising
the design problems the process of Risk Management is introduced. It consists
of the identification, assessment and prioritization of risks, together with determining
the probability of occurrence of unfortunate events and their potential consequences.
Determination of risk is a proactive activity, planning to avoid threats and
actions to follow if problem occurs. The project manager can minimize, monitor,
and control the risk, and as a consequence, can inform the management of
a company about the danger and the possible level of costs related to risk. On such
base, management may decide to abandon the business or to maintain the identified
risk at some level of acceptance. Hence, risk management requires that the project
design team have:
� current and credible information about threats;
� defined processes for monitoring the risks;
� decision-making processes: analysis and risk assessment;
� balanced risk control mechanisms.
It should also be noted that the Risk Management focuses on keeping unwanted
outcomes of the project at an acceptable level, or completely eliminating them. A
key element is that suppliers and partners should be included in the project. Thanks
to them it is possible to determine the real risks and to be aware of how to manage
such risks. Due to that the Risk Management determines the costs to be spent is an
important indication for the Board of Directors.
4. PRINCE2 AND RISK MANAGEMENT
PRINCE2 incorporates the management of risk into its processes and defines
the risk as: “The chance of exposure to the adverse consequences of future events”.
The management of risk is one of the most important parts of the jobs done by the
Steering Committee and the Project Manager. Rule by which the PRINCE2 should
be used during the project for Risk Management is: The Steering Committee is
aware of the existing risks, it supports and promotes the Risk Management and it
gives a green light for the time and resources devoted to risk analysis.
In addition, PRINCE2 methodology sets out the following rules for the treatment
of risk.
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