Defining Risk Management

Risk is the possibility of loss or threat or damage that can occurs due to chosen activity, action, or decision. Risks are of two types: Known and Unknown Risks. Unknown risks are also term as uncertainty. Both the types of risk needs to be avoided and controlled.

  Managing IT Risks - Essential for the success of every project -

The risk related to information technology is known as IT Risks. To manage your IT project effectively, it is important to identify your IT risks in the beginning, before the start of your project. Identifying all risks is a big challenge and a crucial for managing projects. All risks needs to be documented properly in detail. Noting down all including low to very low impact risks can reduce the chance of uncertainty in future. It is very important to have a mitigation plan in place, to measure the impact of risks.

Risk management is one of the at most part of any project. Failing to manage risks in a right way can lead to severe damage to your projects and planning. A proper and standard risk handling plan is of high necessity for the success of the projects. With every identified risks a project manager must have contingency plan to tackle those risks effectively.

All good practice company also have a Disaster Management Plan (DMP), to handle any infrastructure or operational breakdown that can occur due to natural disaster, political uncertainty, war, or any other geographical disturbances. This helps to manage your delivery without any risks even in the case of un-predictable situation.

  Major IT Project Risks and the potential reasons for that -

  1. Budget Risks - Failure of scope management, wrong effort and cost estimation,
      uncontrolled expenses.

  2. Schedule Risks - Wrong time and ETC estimation, resource management failure,
      unawareness about scope of work.

  3. Development Risks - Misunderstanding of requirements, unavailability of good
      resources, technical challenges and obstacles.

  4. Quality Risks - Inadequate quality standards & guidelines, Improper testing,
       Lack of defect handling techniques and RCA.

All these above risks if not handled properly on time can lead to major client relationship risks that can finally impact your market image and business profit. To handle an guide you to manage all kind of risks there are several company who are dedicatedly providing services to help their client's to manage their risks.

There are several tools available to manage your project risks. SAP AG provides standard guidelines and process to effectively managing SAP project risks.







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