Project Management Objectives: Visit The Project Management
Project Management Objectives: Visit the Project Management Institute
Visit the Project Management Institute (PMI) website and access the link to PM Network® under the Knowledge Center tab. Download one of the featured articles related to project management and share with the class. Write a summary of the article, explain what project management principles the article addresses and how it would be helpful to a project manager or team member, and discuss what additional information the article could have included.
Paper For Above instruction
The article titled "Taking a Wider View of Risks" by Joel Crook, published in PM Network in May 2015, emphasizes the importance of enterprise risk management (ERM) beyond just project-level risks. The author explains that ERM extends risk oversight to encompass organizational reputation, safety, environmental impact, and national security, integrating risks across all levels of an organization. This holistic approach allows organizations in sectors like defense and aerospace to proactively identify, analyze, and mitigate risks that could have far-reaching consequences beyond the scope of individual projects.
The article underscores the core project management principle of risk management, particularly the need for a comprehensive framework that considers both tangible and intangible risks. Crook discusses how ERM facilitates risk aggregation, enabling organizations to normalize different types of risk—whether financial, reputational, or environmental—by translating them into comparable dollar impacts. This normalization aids decision-makers in evaluating the overall risk profile and making informed strategic choices. In project management, such principles help in optimizing project portfolios, balancing risk-reward tradeoffs, and improving stakeholder confidence by understanding the total risk landscape.
Furthermore, Crook highlights the significance of risk-based decision-making (RBDM). RBDM involves integrating risk assessments into strategic planning and project selection, ensuring that initiatives align with the organization’s risk appetite and strategic objectives. By assessing risks at the enterprise level and then refining them through project-specific analysis, project managers can better control and monitor risks. This continuous process of risk assessment and escalation ensures that risks are managed proactively throughout the project lifecycle.
The article also addresses scenario analysis, a vital risk management technique that considers how multiple risks can combine to create catastrophic events, exemplified by NASA’s use of scenario planning to anticipate system failures. An essential aspect discussed is contingency planning for low-probability, high-impact risks, such as “black swan” events like the Fukushima nuclear disaster, which are unpredictable yet potentially devastating. Developing contingency plans and regularly training staff increases the organization’s resilience against such extreme risks.
While the article thoroughly discusses the strategic implications of ERM, it could have included more practical guidance on implementing ERM frameworks at the project level. For example, detailed steps for integrating enterprise risk insights into day-to-day project management practices, or case studies illustrating successful ERM implementation, would enhance the article’s usefulness for practicing project managers. Additionally, insights into advancing organizational culture towards risk-awareness could provide further value.
In conclusion, Crook’s article effectively links enterprise-wide risk management principles with project management, underlining the importance of a holistic approach to risk that supports organizational strategy. For project managers, understanding ERM enhances their capacity to align project goals with broader organizational objectives, ensuring risks are managed proactively at all levels—ultimately contributing to project success and organizational resilience.
References
- Crook, J. (2015). Taking a wider view of risks. PM Network, May 2015. Retrieved from https://www.pmi.org/learning/library/wider-view-risks-9150