Risk & Uncertainty Essay

2291 words - 9 pages

Introduction

In order to tackle the issue surrounding the definition of the terms “Risk & Uncertainty” we should look at the general framework of project management which is a business and management of the changes that may occurred during the life cycle of the project because of the circumstances surrounding it including political perceptions, and the value management which are vital in taking decisions. Although, there have been a number of researches interested in accessing the field of risk management framework, where it has influenced some areas as “crime, social work, health, regulation and organisation” (Zinn 2009).

However, APM (2006) has defined the project management as “the process by which projects are defined, planned, monitored, controlled and delivered such that the agreed benefits are realised. Projects are unique, transient endeavours undertaken to achieve a desired outcome. Projects bring about change and project management is recognised as the most efficient way of managing such change”.

All projects are unique and complex in term of time, budget, circumstances, quality, performance, and the geographic location and culture, moreover, are constrained with the limited resources, in addition to the estimations performed by people based on previous experiences or some probabilities (APM 2006). Not to forget stakeholder participation in the multiplicity of outcome that results from the accumulation of serious events or lack of reliability and uncertainty in the project as a whole (APM 2006).

APM (2006) shows that “the project risk management must be built into the management of projects, and should be used throughout the project life cycle”. Therefore, monitoring and controlling the multiple tasks of the project during the life cycle due to the increasing of the customer demands with the globalisation market pressure though, will need to manage (the risks in which considered as downside) or (the opportunities that considered as a bonuses) that may arise from the changes could occur in the project. However, that means in some extent the risk and uncertainty are exist in any project whether they have negative or positive impact.

Thus, we should take into account the importance of the project risk management and its techniques in order to reach a firm decision in favor of the project and therefore in the interest of the organisation and the stakeholders. Merna& Al-Thani (2005) pointed that it is vital to have a high profile comprehensive risk management strategy in order to survive the market needs nowadays; and this point supported by the argument presented by (Nigel J. Smith, 2003) which states that the project risk management is a very important techniques serving not only the project but also the stakeholders, customers and the organisation as a whole.

Notwithstanding, there is a significant number of researches conducted in order to identify a common definition of the term “Risk & Uncertainty” whether they have...

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