A public engagement using 250 words.
Can you help me understand this Management question?
PJM410 MOD4 Discussion post Resonses
Please respond in at least 250 words each to both POST1: (A question from the professor) and POST2:
My original post:
There are three types of risks associated with resources, including human resources risks, costs risk, and outsourcing risk.
Human resources risk
Human resources risks are risks arising from the project team. How do people contribute to these risks? The identified staff may join the project late. Besides, there are individuals with questionable dedication resulting in quieting problems hence schedule issues with project completion. In addition, there is a risk of project team members leaving either temporarily or permanently. These individuals may also decide to strike where no activities are going on in the project site. This type of risk calls for a mitigation action through member contracts signing to prevent unprecedented leaving or unnecessary strikes (Larson & Gray, 2015). It can also be avoided by not changing policies without consulting the team’s representatives.
Risk of Outsourcing
This is a risk associated with using services, products or individuals from third parties. These outsourced materials could fail the standard compliance tests hence challenging the outsourcing control measures (Larson & Gray, 2015). Mitigating this type of risk requires a standard process of risk reduction. Minimizing the number of products or services outsourced will ensure control effectiveness.
Cost risks arise from insufficient funds to cater to the project completion. These risks impact the project significantly. Without money, goods and services cannot be outsourced and could cause project closure. Managing the risks prompts using the method of accepting risk. One can accept that the risks cannot be solved and that the problem of insufficient funding may only be resolved by getting money (Allen et al., 2015).
Resources risks are rampant. One incident is when a hospital was to update its health information system by system digitalization. However, funds were not enough to purchase the latest HIS and facilitate the process of implementation.
Allen, M., Carpenter, C., Hutchins, M., & Jones, G. (2015). Impact of risk management on project cost: An industry comparison. (Links to an external site.) Journal of Information Technology & Economic Development, 6(2), 1-19.
Larson, E. W., & Gray, C. F. (2015). A guide to the project management body of knowledge: PMBOK (®) guide. In Project Management Institute.
POST1: A question from the professor.
Great thoughts this week. Thank you for the continued engagement and welcome to week four. I think the four risks you selected are very good, HR, outsourcing, and cost risks are three very important risks to consider.
What about quality risk? Many students do not mention this one. Do you think it’s due to overlapping with other risks? How is this possible?
Resource risks are due to insufficient resources within the plan that cause project failure. There are four resource risks that are needed to meet the scope and project objectives which include time, money, people, and equipment and/or facilities (Bissonette, 2016). The project manager is not in control of the resources but are often due to the stakeholder either with holding resources or not having the resources to give.
Money is a very important resource to all projects. A project needs a certain amount of funds to complete a project depending on the project’s needs. The stakeholders control the amount of funds that go into each project. Sometimes the funds meet the needs of the project but do not cover unforeseen risks, or maybe the stake holder wants to give as little as possible to the project which accounts for purchasing poor material or cheaper labor. Some ways to manage monetary risks in projects are to push for a contingency fund and really do research on materials and ways to save money without producing poor quality. Seeing if there are things within the project that really need to be there (Bissonette, 2016).
Time is also another important resource for projects and sometimes is crucial to be one time to stay within budget. If the project takes too long, then other expenses may occur like paying tradesmen for extra days on the job. Time delays should be avoided but if they cannot be trying to adjust the project to loosen the reins in one area and tightening in others to help prevent project failure (Bissonette, 2016).
Equipment and/or Facilities:
In some cases, the necessary equipment or facilities are not provided to finish a project in its entirety. In some cases, could try and outsource the equipment but still there is a risk for it increasing funds along with other issues like poor communication, vendor quality, legal issues, there being trust issues, and more (Iqbal, Farid, Qadir, & Khan, 2017).
When the person for the project is not the right person or limited staffing for the project can all be detrimental to the project’s success. There needs to be a buffer in the schedule to make sure there is no staffing overlaps.
I have not worked on a project, but an example would be for monetary risks: a project manager building a custom home for someone and they want you to include all the bells and whistles which exceeds their budget by $100,000. There are insufficient funds to carry on the project and for the project to be a success would need to give something up like shingles on the roof instead of metal roof or DIY an outdoor kitchen instead of paying $10,000 for the builder.
Bissonette, M. M. (2016). Project risk management: a practical implementation approach. Project Management Institute, Inc. Newtown Square, Pennsylvania
Iqbal, J., Farid, S., Qadir, M., & Khan, M. (2017). Significant risks of outsourced IT projects. Technical Journal. University of Engineering and Technology (EUT) Taxila, Pakistan. Retrieved: https://www.researchgate.net/publication/322023902…