Project Risk Management: The Ultimate Guide

Category	Risks
Planning	Dependence on limited data or information during this phase  Lack of a team-based approach, which would allow input from stakeholders
Initiation	Lack of clear goals  Poor or inaccurate estimates
Scheduling	Delay in tasks  Poor prioritization
Resource	Insufficient storage of merchandise  Lack of sufficient or qualified personnel  Poor allocation of resources to certain tasks
Procurement	Contracts and agreement  Management of vendors
Communication	Inadequate communication  Ease or complexity of a message  Ineffective feedback channel
Relationship	Vendor relationship  User relationship  Supplier relationship  Stakeholder relationship  Sponsor relationship
Budgetary	Cost-benefit analysis  Budget overrun

The risks above were identified based on the requirements of the project in question. A team-based approach was used to identify what risks were likely to arise during the implementation of the project in question. Various stakeholders were consulted such as nurses, physicians, and the management. 

Qualitative and Quantitative Risk Analysis 

Qualitative risks	Quantitative Risks
Relationship	Budgetary
Communication	Procurement
Scheduling	Resource
Planning
Initiation

The qualitative risks were focused on identifying the potential challenges of the project, for instance, during its initiation phase. Key factors to consider during this stage were such as whether the project manager consulted with the various stakeholders, the quality of approach used to provide estimates of resources needed, the time required to complete the project, the amount of funding required, alongside other aspects. When it comes to quantitative risks, these focused on, for instance, how much money would be needed to run the project, the potential for a budget overrun or whether there are sufficient resources. 

Sponsor’s Risk Tolerance 

When implementing a project, there are certain risks, which sponsors or rather those involved in providing part or the entire funding of the project, can tolerate. These risks are considered having minimal damage or effect on the progress of a project. However, there are those, which can force sponsors to withdraw from providing any support towards a project. In the case in question, the risk tolerance would be mainly focused on some qualitative risks compared to quantitative risks. For instance, sponsors are likely to find measures to address issues with vendor relationship. They can seek inexpensive measures to deal with such challenges, such as improving the communication channel between the project manager and their team, with chosen vendors. Such a strategy would be focused on minimizing the impact of having a communication breakdown, which can affect the project massively. 

Identification of risk responses 

Risk Response 

Communication	Mitigation
Planning	Mitigation
Budgetary	Avoided
Scheduling	Avoidance
Initiation	Mitigation
Procurement	Transference
Relationship	Mitigation
Resource	Mitigation

Risk responses 

In project management, planning is very crucial and should be taken seriously. To ensure a project is healthy and viable, risk responses are the most important element. There are many strategies for responding to risks. In planning, when the projects face a risk of depending on limited data, it is vital that it be addressed since a project depends on a large pool of information to ensure it is healthy, therefore, using mitigation strategy to solve this risk is the best solution. More funds may be allocated to conducting intensive research to ensure the project overcomes the risk. Moreover, the mitigation strategy may also be used to forge a united team that contributes to the project. 

In projects, there should be clear goals on how to initiate projects, and without them, a project may not be successful. The best strategy to ensure goals are set in the progress of a project is to mitigate the risk. Poor and inaccurate estimates may lead to project failure hence mitigating this risk is important to give the project a clear direction. 

Scheduling in a project is very important as every task should be conducted in time to avoid time wastage. Therefore risks relating to poor prioritization and delay in tasks need to be avoided to ensure the success of the project. These risks can be avoided by the rescheduling of the tasks time and prioritization of the project; however, this may lead to increasing time meant for the project. 

Projects need a considerable amount of resources for the success of the project. However, in the case of such risks, it would be appropriate to avoid some of the risks that may not match the resources available. Accepting risks associated with lack of sufficient storage of merchandise is vital, this will enable the project to continue operation and deal with the risks if they occur. Health centres need adequate storage facility is essential considering storage space for drugs is necessary. Moreover, risks like inadequate qualified personnel should be mitigated by hiring more personnel that is more qualified; additionally, constant training may also be conducted to ensure the personnel is up to date with the technological changes in healthcare. On the other hand, poor allocation of resources to certain tasks can be responded to through acceptance of the risk. This enables the project to continue with the poor allocation letting things happen the way they happen, however, in case the risk occurs when the risks will be dealt with. 

Risks associated with procurement can be responded to through transference of the risk. In case contracts and agreements cannot be fulfilled then transference should be considered as this will give way to more qualified personnel that is capable of proceeding with the project according to the agreement. On the other hand, risks associated with management of vendors should also be transferred to more qualified personnel to manage them. 

Communication is the best way to ensure the project becomes successful. The risk of inadequate communication during a project should be mitigated. Mitigating communication risks will reduce the risk of message complexities or ineffective feedback channels. Communication is vital in any organization as it facilitates the achievement of goals. 

Maintaining a good relationship with every stakeholder in the project is essential. Therefore any risks that may result due to the relationships the company has should be mitigated. Ensuring the stakeholders are satisfied with the project should be ensured. All relationships vendors, sponsors, user, and supplier relationships should be mitigated to ensure every aspect of the project does not collapse considering these stakeholders are charged with attaining the success of the project. 

Proper budget allocation is the backbone of a project and its success. Avoiding budget risks is important since the success of the project largely depends on being committed to the set budget. Risks like cost-benefit analysis should be mitigated through properly going through the budget before the project commences and as the project is in progress. Proper analysis of a project ensures risks like budget overrun are mitigated. Budget overrun may make the project goals not to actualize. Therefore this should be mitigated by ensuring each department has the correct allocation of resources. 

Risk breakdown structure 

The only way that can facilitate risks to be clearly understood and effectively managed is through risk breakdown. Structuring is essential in making the necessary information is understood after it has been generated in situations in which a lot of data is produced. To facilitate effective management, it is vital that a full hierarchical approach with numerous levels be adapted to be able to understand the risk exposure. Therefore the RBS structure is important as it is potentially a source of risks. 

Level 0	Level1	Level 2	Level 3
Project risk	Human resource  Manager	Planning	Dependence on limited data or information during this phase  Lack of a team-based approach, which would allow input from stakeholders
		Initiation	Lack of clear goals  Poor or inaccurate estimates
		Scheduling	Delay in tasks  Poor prioritization
		Resource	Insufficient storage of merchandise  Lack of sufficient or qualified personnel  Poor allocation of resources to certain tasks
		Procurement	Contracts and agreement  Management of vendors
		Communication	Inadequate communication  Ease or complexity of a message  Ineffective feedback channel
		Relationship	Vendor relationship  User relationship  Supplier relationship  Stakeholder relationship  Sponsor relationship
		Budgetary	Cost-benefit analysis  Budget overrun

References 

Agha, L. (2014). The effects of health information technology on the costs and quality of medical care.  Journal of Health Economics ,  34 , 19–30. http://doi.org/10.1016/j.jhealeco.2013.12.005 

Beyan, T., & Son, Y. A. (2014). Emerging Technologies in Health Information Systems: Genomics Driven Wellness Tracking and Management System (GO-WELL).  Big Data and Internet of Things: A Roadmap for Smart Environments Studies in Computational Intelligence, 315-339. doi:10.1007/978-3-319-05029-4_13 

Project Management Institute. 2000.  A Guide to the Project Management Body of Knowledge (PMBOK ®  Guide), 2000 Edition.  ISBN 1-880410-25-7 (CD-ROM). 

Werder, M. (2015). Health information technology: A key ingredient of the patient experience. Patient Experience Journal, 2 (1), 143-147.