Project Risk Management Assignment Example | Topics and Well Written Essays - 1000 words

Project Risk Management - Assignment Example Project description The new intranet communication system is computer based and it helps to link different departments within the company. This has been necessitated by the fact that the company’s operations have been negatively impacted by poor communication systems. Poor coordination between different departments has led to poor products which do not meet the needs of the customers. This project is anticipated to take six months in order for the new system to be fully operational. Project scope and objectives The scope of the project is to revamp the communication system of Furniture World in order to improve its communication system. The broad objective of the project is to improve the effectiveness of communication among employees so that they pull their efforts towards the attainment of the same goals. The other objective is to improve coordination among the employees so that they are aware of their role expectations. This can significantly contribute to improvement of th e products manufactured. Project overview Basically, a project can be described as a series of linked activities that are carried by an organisation and they are aimed at achieving a specific objective (Hellriegel, 2001). In this case, the aim of the project is to computerise the communication system of Furniture world. ... There is also need to develop software that supports the intranet communication system and there is need to train the human resources to use the new system. The budget for this particular project is set at $2 000Â  000 and it is expected to be completed in six months. Probable risks and their impacts According to Yeates & Cadle (1996), risk in project management is inevitable and it has to be taken into consideration when implementing a project in order for it to be a success. This assertion is also supported by Morris (2008) who posits to the effect that some situations are unavoidable due to uncertainties that may be encountered in the environment in which the organisation operates. In this case the following risks are expected to be encountered during the implementation of the project. Budget constraints are likely to be encountered since there may be need to hire more human resources in the implementation of this project. Jones (2007) posits to the effect that financial risks ar e a major threat to the implementation of any given project since it may fail to reach its objectives. The source of this risk is mainly as a result of poor project management. Resistance to change by the employees is another risk that is likely to affect this project. According to Werner (2003), resistance to change is mainly a result of general fear for the unknown or lack of information about the new initiative among the employees. This can derail the project according to (Rossouw et al, 2003). The other risk is related to lack of technical knowledge among the people involved in the implementation of the project. According to Waring & Glendon (1998), lack of knowledge about a particular project is a risk that may affect its