THE PCNET PROJECT (B) DYNAMICALLY MANAGING RESIDUAL RISK

THE PCNET PROJECT (B) DYNAMICALLY MANAGING RESIDUAL RISK

As the PCNet project progressed, its management team and their leader at one time found out that certain components or facet had associated detrimental consequences (Nicholas, 2012). This chance of negative outcomes contributed to the project’s residual risk. After the determination of the risk, the management team had to assess their reaction in dealing with the minimization of the risks. As the determination was realized while moving on with the PCNet project, particular risks were remaining. Such risks could be referred to as the residual risk. Residual risk was applicable to the risk factors remaining after risk assessing and response implementing.
Risk acceptance occurred during the life cycle of the PCNet project for the risks that had not been dealt with. The project manager was determined to admit that the unexpected factors had arisen and they were calling for a consideration if the project was to continue smoothly (Nicholas, 2012). Risk accepting was useful because it helped in determining how the rest of the project was to be carried out if success was to be accomplished with the stipulated project time. By accepting a particular risk during the project’s lifecycle it was possible to come up with solutions that were required in the evaluation procedures for a conclusive addressing of the contributing factors (Nicholas, 2012). It was only to after the root course of a risk had been established that the best ways of dealing with the situation were determined to address the risk factors in totality. Risk avoidance was also to be part of the project manager’s responsibility because it aimed at doing away with the contributing factors to the occurrence of a danger. Any indications that an unpleasant situation was to arise during the course of a project were to be identifiable through an expert’s opinion of careful consideration.

Using the ATOM methodology, analyze the opportunities of this project
This PCNet project started off well. Despite the serious plans, residual risks started plaguing the project. The residual risk was not a weakness of the management. Adequate planning had been useful in dealing with the known risks (Nicholas, 2012). The management team was so equipped that they could adequately address what they were aware of happening. The existing financial stability of the company was so sound that they were ready to deal with minor complications as the project progressed. The government at the time was ready to facilitate the completion of the PCNet project because it was to be helpful to the country’s economy. There existed a quality pool of human resources that were adequately available in the market. Such human capital provided the necessary entrepreneurial ability that was helpful in combining the rest of the input factors of production that is raw materials, machinery and capital.
The varying workforce requirements were adequately addressed by the existing pool of labor that facilitated the realization of the PCNet project’s objectives. The availability of the raw materials in the market was adequate and there was no competition that could increase the pricing due to the market forces of supply and demand. The favorable market conditions worked to the advantage of the PCNet project’s completion (Nicholas, 2012). The adjustments needed in the project could adequately be addressed through the natural elimination of the known risks by the market conditions. The availability of the resources in the market at the best prices was also an advantage to the project’s success. By being a source of revenue to the government through taxation, the ruling authority was supportive of the PCNet project’s undertakings that could contribute to high taxable profits.
The loss of the email files affected the information and communication needs of the company. In any project, information needs are very useful in ensuring the realization of the project’s objectives. The back up procedures required were supposed to help in the restoration of the information specifications that were required for the different departments of the company to operate smoothly (Nicholas, 2012). Data was necessary so that the processing capabilities could facilitate how input factors could trigger off chain reactions that were necessary in fostering the developmental efforts. The untraceable email files also affected the dealing with the residual risks. The unknown factors of dangers were calling for material facts that could facilitate the healing processes through the risk accepting.
The quality of information that was needed during the PCNet project’s lifecycle could not be comprised. A fast addressing of the risk that had come up was the only way that was to get the project back on track. The lost emails could also cause a leakage of the company’s private information to the outsiders to the company’s disadvantage. The effects of the lost information were to be addressed in a very short time because a delay in the coming up with a solution could worsen the future of the company in different projects (Nicholas, 2012). The delays by the channel conflicts were doing a lot of arm to the way in which the expected need based attention could result in the minimization of costs. The existing channel conflicts were also calling for an addressing of the lost email files. The costs of time or resources could not be extended due to the fact that the need based approach could not work well.
As per an impact assessment, the related risks needed a prioritization that was aimed at allowing their project team’s focused attention regarding the critical ones. The prioritization depends on the expected risk impacts in terms of the magnitude, monetary value and the occurring probability (Nicholas, 2012). The financial resources that would be required in dealing with the residual risks had a great impact in the funding of the PCNet project’s normal operations. There was to be a limitation in the volume of resources for the remainder of the project. At this time it was necessary to consider additional sources of funds that could support the financial requirements for the project. Through a prioritization of the risks, the most pressing ones could be dealt with fast so that the rest were to be allocated the necessary funds after the successful addressing of the fundamental complications.
It was also necessary to consider the incorporation of project experts that could come up with the best strategies for solving issues in the best way possible. The key objective of the PCNet project was to maximize profits at the lowest cost possible. The arising residual risks had not been budgeted for at the beginning of the project and it was for this reason that the financial implications were doing a great arm to the successful project’s implementation (Nicholas, 2012). Additional allocation of resources was to greatly affect the forecasted profit margins as per the initial plans. It was also necessary to consider human resources to be the most valuable asset to the PCNet project. The level of education, training, skills and expertise of the project professionals needed an adjustment to deal with the residual risk.

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