Project Risk Management Assessment Essay
Part 1
The success of the projects in the today's environment depends on the effective project risk management. A PUMP approach to the project risk management has been realized to be such a useful tool when it comes to management of project risks in the execution and the delivery strategy stage of the project's lifecycle. This approach is designed for an uncertainty management, which combines both risk management and opportunity management. (Chapman, & Ward, 2003) Basically, each project is assessed based on the project lifecycle stages that it will require in assembling the needed services to provide solutions to each stage. In analysing uncertainties at the execution stage, the PUMP framework comprises seven phases in the process structure.
The project lifecycle structure defines the PUMP pack structure. (Chapman, & Ward, 2011) Thus, a key feature of a PUMP approach is its focus on the lifecycle issues. The basic PUMP process consists of seven stages, which are the following:
Define the project. Kerzner (2013) explains that at this stage, the project is brought to date at the strategic level to allow the definition of the project in a manner that is consistent with the rest of the PUMP in the execution lifecycle step. The main aim of this phase is to resolve any bridges or gaps that may be inconsistent with the on-going aspects of the project lifecycle at this stage (Lee, Park & Shin, 2009). An effective define phase focuses on the nature of the project interest, the lifecycle stages themselves, and the other seven aspects of the framework as they relate to the project.
Focus the project. According to explanations in Dey’s (2002) report, the focus stage of the PUMP involves adapting the necessary processes to the lifecycle stages and the project. The key feature of this phase is the consideration of the degree of complexity of the processes to be employed in the analysis.
Identify all relevant sources, responses, and conditions. At this stage, the PUMP approach identifies all relevant sources related to uncertainties, the response alternatives in a closely coupled manner and evaluation of the effects viewed in qualitative perspective since they act as the connection between the sources and responses.
Structure all uncertainty. Structuring entails exploring relevant interactions, testing implicit and explicit assumptions, and identifying vital qualitative aspects of the analysis that may not have been considered at the initial stages of the project lifecycle. According to Collyer and Warren (2009), this process primarily involves developing alternative assumptions, identifying links not yet considered and distinguishing specific responses.
Clarify ownership. Here, the owners have to create a suitable plan for contracting strategy that aligns with the objectives of all the relevant parties. Next, the ownership has to distinguish sources of uncertainty with the associated response alternatives that the owner is prepared to manage. (Ward, 2005) Lastly, the ownership has to allocate responsibilities for the management of the sources of uncertainty.
Quantify some uncertainty. The quantification of the risk …
