INFORMATION SYSTEMS IN MANAGEMENT V - SGGW

� Risk Management Policy and its cost implications, time horizon and the
benefits are communicated to the staff.
� Management of Risk is a process included in the project management processes.
� Risk Management affects the achievement of business objectives.
� The Specified Risk Management structure provides for that each element
of risk and its identification fits into this structure.
� If the project is part of the program, then the changes of status of risks in
the project also influence the program and are communicated to program
managers by the person designated to a Risk Management in the project.
Moreover, once the assumptions in the Project Initial Document (PID) are
signed by the project group, there are new functions during the testing and implementation
of the project. These functions are necessary and valuable for the customer.
The new amendments state what risk is a serious risk for the time and cost
of the project, which is useful particularly for an inexperienced young Project
Manager. It is possible that a young Project Manager can strive to meet the needs
of the business, to create an ideal solution for customers and to address their business
needs in every way, which increases the chance that the time and costs of providing
the solutions are exceeded.
Some people can not live without risk. Yet some say “No risk no fun.” Risk
management is a somewhat different approach. It allows for the existence of risk
but at an acceptable level. Therefore, before determining the response to the recorded
risk, the Steering Committee and Project Manager determine the level of
acceptable risk. Risk tolerance is not a constant factor during the project, because
in such case, the project would be separated from the natural market conditions.
Tolerance may change especially when the financial risks are analysed. The project
team must determine the manner in which the risk of greater financial resources
may jeopardize the organization's budget, and how it affects the business case of
the whole project. The risk components, called hazards, can quickly change over
time, and it is very important to respond to them to avoid the situation that the project
runs for itself and the goals have been missed.
The process of Risk Management is assigned to two groups: the Steering
Committee and the Project Manager. Identification, registration and regular reviews
are the most important tasks of the Project Manager. On the other hand, to
maintain two-way communication and force the Steering Committee not to forget
their obligations, the oversight responsibilities are defined:
� informing the Project Manager on the external threats (the Steering
Committee also includes decision-makers for organizations that have information
on current threats to the company and the project);
� responding to threats decisions proposed by the Head or others;
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