Risk Management and Organizational Goals
Think of an organization in which projects and products all strongly align with its goals, mission, and culture. For instance, it has been said that Apple Inc. has found great success by making sure each of its projects closely aligns to its corporate culture and goals. The more an individual project aligns with corporate goals, the greater impact it may have on the success of an organization, and the more likely it will be that the organization will support that project at all costs. In this week’s Discussion, you will consider two scenarios and analyze the relationship between enterprise and project risk management concepts and their associated impact on the overarching goals of an organization. The more a project’s approach to managing risks aligns with the organization’s approach to managing risks, the more effective both approaches will be.
Examine the following two project scenarios:
You work for a company that strives to be first to market with new products. As Chief Risk Officer (CRO), you have assembled a risk team to assess risk on the release on a new product. The risk team has identified 62 risks associated with the product release. They have also determined what would trigger the risks and have ranked them on a risk rating matrix, tested their assumptions, and measured the precision of the data used. The team is wrapping up the risk assessment, preparing their final reports to leadership, and has been given the go-ahead for production to start. No one notices that you have not included the participation of the key stakeholders in the risk assessment.
You work for a company that feels it has a social responsibility to its customer base. You have been appointed as the new project risk manager of an unusually large and complex project. Because this project is business-critical and highly visible, the executive management staff has told you to analyze the project’s risks that may impact the organization’s social responsibility to the consumer and to prepare mitigation strategies for them as soon as possible. The organization has adopted standardized risk management procedures, but they are seldom followed, and they have a history of handling risks poorly. The project’s first milestone is in one week.
With these thoughts in mind:
Answer the following in 3 pages:
- Identify which project you think will have the greatest negative impact on the organization.
- Clearly support your answer with reasons why you believe the case you chose is the worst situation.
Element 1: Initial Post – Project Risk Impact Comparison
Provide a thorough and detailed comparison of negative risk impact for two project scenarios. Make sure relevant resources are provided to support the response.
Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide). Sixth edition. Newtown Square, PA: Author.