Assessment of Risk on Information Technology Projects Through Moments of Translation (original) (raw)
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RISK ASSESSMENT AND MANAGEMENT IN IT PROJECTS: AN ANALYTICAL STUDY
Dr. Malaya Nayak,
Risks management is indeed an essential part of the IT department. Opportunities for IT administration broadens to provide a reliable atmosphere for the ongoing IT programs. Opportunity selection becomes a crucial element in the performance of IT programs. The present report analyzed the risks of an IT organization as well as whether the possibility its adequate administration is linked to the performance of the company.Such assessment occurs in the context of risk management as well as the effect of the risk controller on the success of the application. Achievement investigation and risk monitoring as well as controlling are also linked to the qualitative delivery of IT companies. When risk control is attributed correctly, it is possible to increase the successful completion of projects, which, can then be properly managed.
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The gap between research and practice is strikingly evident in the area of information technology (IT) project risk management. In spite of extensive research for over 30 years into IT project risk factors resulting in normative guidance on IT project risk management, adoption of these risk management methods in practice is inconsistent. Managing risk in IT projects remains a key challenge for many organizations. We discuss barriers to the application of normative prescriptions, such as assessments of probability and impact of risk, and suggest a contingency approach, which addresses the uncertainties, complexities, and ambiguities of IT projects and enables early identification of high-risk projects. Specifically, in a case study, we examine how the project management office (PMO) at one organization has bridged the gap between research and practice, developing a contingency-based risk assessment process well founded on research knowledge of project dimensions related to project performance, while also being practical in its implementation. The PMO's risk assessment process, and the risk spider chart that is the primary tool in this assessment, has proven to be effective for surfacing inherent risk at the early stages of IT projects, thereby enabling the recommendation of appropriate management strategies. The PMO's project risk assessment process is a model for other organizations striving to engage in effective and collaborative practices in order to improve project outcomes. The case illustrates the importance of considering the practical constraints of the context of application in order to transform research findings into practices that promote attainment of desired outcomes.
Management of risks in information technology projects
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Information technology (IT) projects are renowned for their high failure rate. Risk management is an essential process for the successful delivery of IT projects. In-depth interviews with IT professionals from leading firms in Western Australia were undertaken to determine how IT risks were managed in their projects. The respondents ranked 27 IT risks in terms of likelihood and consequences to identify the most important risks. The top five risks, in order, were: personnel shortfalls; unreasonable project schedule and budget; unrealistic expectations; incomplete requirements; and diminished window of opportunity due to late delivery of software. The respondents overwhelmingly applied the treatment strategy of risk reduction to manage these risks. Furthermore, these strategies were primarily project management processes, rather than technical processes. This demonstrates that project management is a risk management strategy. Scope, quality management, and human resource management were solutions applied to several risks. In particular, managing stakeholders' expectations is a specific risk treatment that helps to manage several key IT risks.
International Journal of Project Management, 2005
A review of the outcome of many information technology (IT) projects reveals that they fail to meet the pre-specified project objectives of scope, time and budget. Despite well-established project risk management processes, project managers perceive their application as ineffective to manage risk. This failure may well be attributed to the inadequate application of those risk management processes. The purpose of this research was to investigate how project managers responsible for the management of risk in IT projects actually managed risk and to relate this back to established project risk management processes. In undertaking this investigation, we were seeking to understand the ways in which the project managersÕ approaches and behaviours, when considering risk in IT projects, differed from what might be expected. Results show that because of environment-related and decision maker-related conditions, project managers tend to deny, avoid, ignore and delay dealing with risk, with the consequence of those actions having an adverse influence on their perceived effectiveness of risk management and the project outcomes. If project risk management, and its underlying processes are not to be discredited, the behaviour of project managers when confronted by uncertainty should be considered and actions need to be taken to discourage project managersÕ irrational actions.
RISK MANAGEMENT AND INFORMATION TECHNOLOGY PROJECTS
IT projects management is not free from risks which are created from various sources of the environment. Thus a comprehensive understanding of these possible risks and creating strategic policies to confront them are one of the fundamental requirements for successful implementation of IT projects. The risks faced during the implementation of IT Projects are not just related to financial aspects. IT Project Managers must embrace these fundamental issues with more holistic view, rather than merely focusing on the financial matters. In order to prevent the potential problems from arising or escalating into bigger magnitude, serious attention must be given to it before the implementation of any IT project. The main focus of this paper is to investigate the impacts of Knowledge Management (KM) on Risk Management (RM) in IT project implementation process.
Evaluating ICT Project Risk: An Exploratory Study of UK and Czech Republic Practices
The FAP Model and Its Application in the Appraisal of ICT Projects
Although business is about accepting risks, the identification and assessment of project-specific risk is possibly one of the most controversial topics in project management theory and practice. While attempts have been made to include risk assessment as part of the financial appraisal process, this appears, to some extent, to have been unsuccessful. Baldwin 1 argues in fact that 'the rate-of-return figure should remain inviolate and should be complemented by a secondary factor indicative of the risk, thereby keeping sight of both economic effect and risk'. Risk and financial evaluations are two separate factors, and each will have an influence over the other, but their assessment should remain separate. 2 It is important, however, when allowing for risk in appraising capital projects to make it not merely more difficult to accept a project. Over the years, Baldwin's advice has largely been ignored, with academics looking for ways in which to incorporate a risk factor in the financial appraisal models, an example being the CAPM. Discount rates used in DCF calculations have been increased to allow for risk, while shorter PB periods have been required for those projects perceived to carry a higher risk. These measures, however, may just make it more difficult to accept a project. Project-specific risk is an important factor when appraising capital projects, because ignoring it can result in high-risk projects being accepted with catastrophic consequences. The literature shows that this is possibly more important with regard to new technology projects, such as ICT, than the more traditional capital projects. Recent research shows that assessing project-specific risk was an important issue with respect to ICT projects. 3 Risk is always an important issue, although in good times forgetting it is easy, but an organisation will suffer the consequences 68
RISK MANAGEMENT IN INFORMATION TECHNOLOGY PROJECT: AN EMPIRICAL STUDY
The companies are facing some risks due to changes in a dynamic environment. If risks are not managed properly, it will have some negative impacts on the companies at the present and the future. One important function of the Information Technology (IT) governance is risk management. Risk management in IT project aims to provide a safe environment for IT projects undertaken. Risk management becomes an important process for the success of IT projects. This article discussed the risk of IT project and whether there was a relationship between risk management and the success of the project. The method used was performing a literature review of several scientific articles which published between 2010 and 2014. The results of this study are the presence of risk management and risk manager influence the success of the project. Risk analysis and risk monitoring and control also have a relationship with the subjective performance of IT projects. If risk management is applied properly, the chance of the success of the projects undertaken can be increased.