Running head: MANAGING RISKS IN PROJECTS
Managing Risks in Projects
Name
Wentworth Institute of Technology
1
Commented [PJ1]:
The following paper is an example of a synthesis.
A synthesis paper uses multiple sources to explore one
specific topic and shows where those sources agree
and/or disagree on that topic.
This example paper is more objective than analytic—
that means that the writer does not share his/her opinion
on the topic, but instead simply presents the ideas found
in the sources themselves.
MANAGING RISKS IN PROJECTS
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Abstract
Commented [PJ2]: An abstract introduces the topic and
offers a brief summary of the paper’s key points.
This paper explores four articles on risk management practices for project managers.
Commented [PJ3]: In the topic sentence of the abstract,
the writer identifies the paper’s topic.
These sources look into the process of risk management and how it may be different than
Commented [PJ4]: In the remainder of the abstract, the
writer identifies the key points that he/she will develop
using the source material.
the process most project managers are used to. Like much of project management, there
is no one way or practice that will guarantee success in risk management. This paper will
delve into how risk management can be implemented to offer the best chance for success.
MANAGING RISKS IN PROJECTS
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Managing Risks in Projects
Risk management is both the science and art of identifying and planning for
various problems that may be encountered while working on a project. More than ever
before, organizations are launching innovative projects in order to stay on top of their
Commented [PJ5]: The writer begins the essay by
introducing the topic (risk management) and by giving a
definition of that term.
industries. As rapidly changing technologies become more and more ubiquitous, projects
are marked by “increasing complexity, uncertainty, and ambiguity” (Podean, Benta, &
Mircean, 2010). In response to these complexities, organizations and the project
managers they employ realize that planning for the unexpected is just as important as
achieving strategic objectives.
Projects that fall victim to various risks can upset the iron triangle of scope,
budget, and time. Planning for risks helps to ensure quality deliverables, on time and on
budget (De Meyer, Loch, & Pich, 2002). Ongoing planning during a project lifecycle
Commented [PJ6]: The writer begins weaving source
information into the paper. Notice how the writer leads
into the quoted material and follows up afterward with
framing information and context—the quote isn’t just
plopped in there without introduction or explanation.
For additional tips, view the Learning Center handout on
Integrating Sources.
means that executing risk management procedures may be as dynamic as executing the
Commented [PJ7]: There are no quotes around this
idea, but it is information gathered from a source and
rephrased in the writer’s own words—it is a summary.
project itself (Stanleigh, n.d.).
Summaries of source material are very common in APA
Style and are often preferred over quotations.
Risk Management Steps
Stanleigh (n.d.) held that there are four main steps in the risk management
process: identifying the risk, assessing the risk, developing responses to the risk, and
developing contingency plans or preventive measures for the risk.
Identify the Risk
During the identification step, the project team must brainstorm all possible
sources of risk (Stanleigh, n.d.). This is one of the most important and difficult steps in
You still need to cite when you summarize. In this
example, the writer has included all the necessary
citation information in the parentheses at the end of the
sentence.
Commented [PJ8]: APA Style recommends breaking a
paper down into sections if it helps with readability and
organization. Because risk management is process-based,
it makes sense for the writer to break down the process
of risk management into sections.
Notice how the “four main steps” of this process,
introduced in this main section, are broken down into
four sub-sections that follow.
For addition section tips, view the Learning Center
handout on Sections.
the process, since “it’s not possible to anticipate everything that can put a project’s plan
or schedule at risk” (Gray, 2005).
Commented [PJ9]: Here, the writer uses multiple
sources to develop the main point of this section. Using
one source, they identify a method for identifying risk
(brainstorming), and using another, they elaborate on the
importance and shortcomings of that method.
MANAGING RISKS IN PROJECTS
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Gray (2005) itemized the common types of risk to look for: financial resource risk
(example: funding is cut), human resource risk (example: key team member leaves during
a project), supply risk (example: flow of resources from a third party stops), and finally,
quality risk (example: project outcomes compromised because of rushing to finish).
Beyond considering these fundamental risks, balancing when to end the identification
process is important, as having to plan for every possible outcome is impossible.
Assess the Risk
A high level assessment of risk would categorize the various risks that were
identified as either acceptable or unacceptable (Stanleigh, n.d.). To do this a project
manager must assess the negative impact each risk may pose, ideally drilling it down to a
dollar value (Gray, 2005). Yet while a dollar value is good for putting impact into
perspective, there are additional merits to doing a mixture of qualitative and quantitative
assessment: “Past experience, gut feeling, lessons learned and historical data should all be
weighed in when making judgments about risk” (Podean et al., 2010). Additionally,
Podean et al. (2010) recommended assessing if project components are on the critical
path to get an idea if they might delay the project overall. This type of assessment is
called “duration cruciality” and allows managers to see how an isolated risk could impact
the project as a whole.
Develop Responses to the Risk
Responses to risk fall under three main categories: avoidance, mitigation, and
acceptance (Stanleigh, n.d.). Say, for instance, a project consists of developing new
memory to go inside PCs and the project team identified a risk in that a supplier may be
unable to fulfill the quantity of chips the project needs. Possible solutions would be to
Commented [PJ10]: When this source was first cited,
all author names were written out (Podean, Benta, &
Mircean, 2010). For sources with more than two authors,
all citations after the first need only list the first author
followed by “et al.”
For additional tips, view the Learning Center handout on
In-Text Citations.
Commented [PJ11]: In this paragraph, 3 of the writer’s
4 sources are used to develop the main point of the
section. Information from each source is arranged in a
way that helps the reader see how each source
corresponds and relates to each other.
MANAGING RISKS IN PROJECTS
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find an alternative supplier for the chips (avoidance), find a variety of suppliers for the
chips (mitigation), or develop a contingency plan if the supplier falls through
(acceptance).
Develop a Contingency Plan or Preventative Measures for the Risk
During the final step of risk management, a response to the identified risks must
be agreed upon and implemented. A contingency plan should be ready to be put into
action at a moment’s notice if the risk becomes a reality (Stanleigh, n.d.). If the
acceptance option was chosen in the example above, this might include drafting a list of
backup suppliers or developing an alternative chip in-house. Understanding what needs to
be done in case a risk becomes a reality alleviates some of the stress of the situation and
helps to prevent the need for crisis management (Stanleigh, n.d.).
Uncertainty Management
Like Gary (2005), De Meyer, Lock & Pich (2002) agreed that it’s impossible to
anticipate every risk a project may face: “Uncertainty is an inevitable aspect of most
projects” (De Meyer, et al., 2002). Uncertainty can be classified into four types (from
least uncertain to most uncertain): variation, foreseen uncertainty, unforeseen uncertainty
and chaos. These classifications do not necessarily go against traditional project risk
management theory but in fact complement it in terms of how one would assess various
risks.
De Meyer et al. (2002) stressed that risks in each of these four classifications
require the project manager to manage differently. The less uncertainty there is about a
risk the more a project team can rely on planning. In contrast, the more uncertainty there
is about a risk, the less a project team can rely on planning. In the case of significant
Commented [PJ12]: Here, the author creates a new
section to discuss an aspect of risk management that is
slightly different from what has previously been
discussed.
Separating this information into its own section helps the
reader digest it and see how it both relates to the
previous points made.
MANAGING RISKS IN PROJECTS
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uncertainty, a project team must keep an open mind as they move forward and learn as
the project develops (De Meyer et al., 2002).
Conclusion
Project risk management does not guarantee that projects will be a complete
success but it certainly helps. As Stanleigh (n.d.) noted, “Proper risk management will
reduce not only the likelihood of an event occurring, but also the magnitude of its
impact.” Organizations have a lot to gain when proper risk management techniques are
implemented throughout the project lifecycle.
Commented [PJ13]: The conclusion offers a concise
wrap-up.
In this example, the writer reminds the reader why,
overall, risk management is important.
MANAGING RISKS IN PROJECTS
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References
De Meyer, A., Loch, C. H., & Pich, M. T. (2002). Managing project uncertainty: From
variation to chaos. MIT Sloan Management Review, 60-67.
Gary, L. (2005, October). Managing project risk. Harvard Management Update.
Podean, I. M., Benta, D., & Mircean, C. (2010, April). Overlapping boundaries of the
project time management and project risk management. Informatica Economica,
14, 156-163.
Stanleigh, M. (n.d.). Risk management...the what, why, and how. Business Improvement
Architects.
Commented [PJ14]: View the Learning Center Handout
on the References page to learn more about formatting.
This writer has used four print articles for source
material. Your References page may look a little different
if you use a variety of sources, like websites, online
articles, podcasts, and more.