Sources of risk include the use of new technology, prospective users’ resistance to change, availability of critical resources, competitive reactions or changes in regulatory actions due to the construction of a system, and team member inexperience with the technology or business area. A manager should identify the potential sources of risks, describe the possible negative outcomes, determine the probabilities of occurrence, and prepare contingency plans for those significant outcomes with a high probability of occurrence.
Although contingencies can be prepared for, often nature an scope of such negative events are unknowable in advance. Now, managers often attempt to identify and plan for any contingencies that they feel may occur with any significant likelihood using predictive model. For example, financial management often errs on the conservative side, assuming slightly worse than ex[ected outcomes, and arranging a company’s affairs so that it can weather negative outcomes with the least distress possible.
Hi Feng, I have the exact finding as yours and I believe it is correct that sources of risk include all the things you have mentioned. To deal with all the risks, a manager should acknowledge the risk and implement controls to mitigate them. I would let a project manager establish a matured requirements management process to improve traceability so everything is being speculated.
There are many sources of risk in system analysis and design project, they include risk planning/identification/analysis/response planning/monitoring and control, along with external risks out of the project teams control. A project manager copes with risk during the stages of project management by identifying potential risks that would hinder the development of the project early on and implementing solutions that would mitigate/lessen the risk. A project manager oversees all areas of the project and has to exert a certain level of control over the team, by carefully planning and monitoring each phase of the project, risks can be identified early on. No matter what project, there’s a certain level of financial/technological/governance risk involved, if the ROI is higher than the bearable risk, the project should continue, if not, the project should be halted.
As I was reading through your response to the question involving sources of risk in system analysis and design projects and how project managers handle it, I reflected on lessons I learned in previous courses which you emphasized. While risks are ever present in a project, it is important for the project manager to identify as many as early on as possible, followed shortly by implementing relevant controls to mitigate the risks. I also appreciate you taking a moment to point out that a project manager should also take the initiative in getting involved in every phase of the project, as this helps prevent mistakes related to negligence or delays in work.
Sources of risk in a system analysis and design project are poor skills to new technology and resources availability that are hard to analyze. A project manager is supposed to manage the risks identified well and communicate with team members accurately to cope with risk during the stages of project management.
I agree as well, the project manager possesses great responsibility to identify and present solutions to risk. Effective communication with team members to cope with risks entails a successful transition through each stage of the project.
I agree with you, the technology and resource availability pose risks to system analysis, When designing a new system, the analyst must have an idea up front of the technical resources needed to complete a project. If these resources are not available, then the project will be delayed and the client may lose interest in the new project.
Sources of risks could be new technology, prospective users’ resistance to change, availability of critical resources, competitive reactions or changes in regulatory actions due to the construction of a system, or team member inexperience with technology or the business area. A project manager could cope with those sources of risks start from the stage of identifying and assessing risk, so the consequences of those risks could be awarded. Besides that, the project manager could also develop a risk management plan, communication plan, and a change management plan to prevent the risk that purely because of poor management.
Hoffer, Jeffrey A., et al. Modern Systems Analysis and Design. Pearson/Prentice Hall, 2005.
Hi Shuyue, I could not agree more with your points that the new technology would be one source of risks. Whenever the new technology come in place, the project manager should be ready to get familiar with it.
Hi Shuyue, I agree with your ideas. I also talked about the new technology could be one of the risks. Since the company is not familiar with the new technology, the project manager should know the risks before they start the project to prevent anything bad happen.
Risks can originate from internal and external sources. Internal risks depend on the very project nature, organizational questions, staff, available resources, and so on. External risks include political, regulatory or legal requirements etc.
Risks associated with System Analysis and Design is an internal risk. Following are some of the sources of risks:
– Analyzing the resource availability is difficult
– Very limited knowledge about the trending and new technology
– Constraints are always changed as requirements are changed
– Changes in regulatory requirements (EXTERNAL RISK SOURCE)
– If project analysis is not done appropriately in the earlier stages, then final project will not be delivered on time and it would not meet client requirements
In order to cope with the risks during the project management process, it is very important for project manager and other team members to perform ‘Risk Assessment’ process. This involves Risk Evaluation and Risk Control. It helps to identify possible risks, as well as the evaluation of consequences of risks on the project and each of these risks should have a decision in place.
Agree, there are two risk from internal and external environment. In addition, as a manager, it should be a good idea to write a very detailed project charter, with the project vision, objectives, scope and deliverable. This way risks can be identified at every stage of the project. Then the manager want to engage his team early in identifying any and all risks.
Sources of risk in system analysis and design project should be managed in an efficient manner. Some source could use new technology, resource availability of analysis is very hard. Resistance is changed as a requirement are changed or team member inexperience with technology or the business area.
A project manager should do a risk assessment for any project before starting. During this stage, the project manager should identify uncertainties, analyze risks, and prioritize risks. Also, a project manager copes with as well as prepares for the risk by applying a practical risk management process and having and maintaining good communication.
I agree with your point, and the project manager is a very important role. The project manager must have a combination of skills including an ability to ask penetrating questions, detect unstated assumptions and resolve conflicts, as well as more general management skills.
Key among a project manager’s duties is the recognition that risk directly impacts the likelihood of success and that this risk must be both formally and informally measured throughout the lifetime of a project.
Hi Zhu, very interesting response. I like how you cited technology as a leading source of risk in the system analysis and design phases. As we become more advanced and intertwined with technology this risk will be more relevant that most other sources of risk. I can also appreciate your viewpoint on the experience of the team members on the project. Every individual on a team needs to be well versed in whats expected of them and what their role entails. If even one team member is disconnect fro the team/project goals the situation could go array. To your point, having a strong PM who puts their players in the right places to win is crucial. What do you think makes up a good PM?
There are countless sources of risk for a systems analyst and design project.
– Organizational threats (culture, staff error, etc.), improper project planning, poor project management, organizational inexperience with new tech/system, political/legal regulation changes, changing technology industry standards, etc.
To cope with all of these potential risks, project managers need to identify all risks throughout the stages of the project. It is not enough to just be aware of the risks, the organization must value the significance of each risk, and mitigating the risks with project adaptations. This risk evaluation is essential for project managers to understand whether or not projects will add value to the organization.
Hi, Adam
Thank you for point out the political/legal regulation changes, and I totally agree with you. A project must consider legal regulation. If a change of a relevant legal regulation happens in the middle of a project, that would cause a huge positive/negative impact.
In project planning, risk may stem from a lack of documentation and interaction, parties refusing flexibility, lack of resources, and employee inexperience. It’s important to identify possible risks and results as well as record them in order to avoid unnecessary spending on a failed project. This should be communicated with a stakeholder that may be pushing for a shorter planning schedule in order to finish a project quickly, without thinking of the consequences. A project manager may cope with risk by assessing potential mistakes or obstacles, and by referring to any previously documented failures in project execution. By giving stakeholders real-life examples, they may be more willing to adapt to both the technological and business-based requirements.
The project manager’s role varies according to industry and individual business, but at its heart, project management entails balancing a project’s timeframe, budget and overall scope as the team works to meet its objectives. Project managers oversee the individual tasks that move a project toward completion, so its ultimate success or failure depends in large part on the project manager’s competency.
Hi Sarah, I think you mentioned most basic types of risks may arise in a system analysis and project design. The lack of documentation and interaction may lead the project to the wrong way, parties refusing flexibilities may result in some unexpected delay, and lack of resources and inexperienced employees would be the root cause of the project failure.
Some of the sources of risk in a systems analysis and design project could be the use of new technology, prospective users’ resistance to change, availability of critical resources, competitive reactions or changes in
regulatory actions due to the construction of a system, or team member inexperience with technology or the business area.
A project manager copes with risk during the stages of project management by establishing a matured requirements management process to improve traceability; establishing a formal requirements development process to include requirements review, acceptance and commitment; peer review; ensure everybody understands their authority and responsibility.
There are countless risks associated with IT Projects. New technology, changing regulations, employee error, etc… are all different kinds of risk. It is the project managers responsibility to anticipate these risks and gauge his response accordingly. The manager can choose to avoid the risk completely, if possible, or have systems in place to mitigate or reduce the risk. Managers will weigh the risk by probability and financial impact.
I agree with your answer, it is almost impossible to list all of the potential risks for a project. It really makes you think how much skill and luck it takes to be successful. Navigating risks may be the most important aspect of project management. Managers do have a lot of options when it comes to mitigating risk, and it is the identification process that is most crucial. Without successfully identifying all risks, companies can face huge liabilities.
I agree. Sources of risk is definitely endless. Some of these risks include personnel issues, technological issues, customer issues and financial issues. Risk is unavoidable in any project. Therefore, it is very important for a project manager to identify the risks at the beginning of the project so that he/she can manage it. There are four ways to manage risk— accept the risk, avoid the risk, transfer the risk, or mitigate the risk. The key is to have a good balance between risk and reward.
A portion of the sources of risk in systems analysis and design projects might be the utilization of new and new technologies, critical asset availability, client protection from change and administrative limitations, or absence of specialized or business space involvement by group members. The project manager addresses and gets ready for risk by applying a real risk management procedure and keeping up great communication.
Hi Penghui, I agree with you. Many risks could be mitigated with acknowledgment and awareness. So having the project manager addresses those risks and having awareness program and something implemented to speculate the risk will be very useful.
What are sources of risk in a system analysis and design project? How does a project manager cope with risk during the stages of project management?
The sources of risk in a system analysis and design project include unfamiliar technology, inadequate monitoring, lack of communication, poor availability of resources, and/or team member inexperience with technology or job duties.
A project manager copes with risk during the stages of project management by conducting an assessment to identify any area where risk is present. It is then necessary to evaluate each risk and prioritize it accordingly. Afterwards, risk reduction techniques must be applied and the risks continuously monitored. In the course of all of this, a project manager should be thoroughly communicating the findings to all of the members of the project team.
Some of the sources of risk in system analysis and design project should be the use of new unfamiliar technology, critical resource availabillity, users’ resistance to change and regulatory constraints, or team member experience with technology or the business are. A project manager opes with as well as prepares the risk by applying a practical risk management process and having and maintaining good communication.
Team member inexperience is interesting when considering risk within projects. It’s probably conflicting for managers because on one hand they want to keep risks to a minimum, but on the other hand they also want their employees to take part in challenging tasks in order to build their skill set. In loose terms, I think it kind of relates to risk appetite- allowing that team member to gain experience could pay off down the road so there won’t be a need to outsource. But, in the mean time, the manager will still have to monitor their work closely so to not cause any delay in project duration.
Among the most common risks associated with system analysis and design projects include poor structure and management, often associated with poor or quick decisions made during the planning phase. Other less direct risks that are often talked about also include regulatory changes associated with federal decisions or rapid technological progression (that isn’t being kept up with). When a project manager is faced with managing risks during any of the four stages of the project management process, the best action to take would be to begin with a risk assessment of all the facets of the project. This is done in order to enable logging and the analysis of all the associated risks through each phase of the project, which includes detailing the potential frequency and impact of a noted risk. A project manager would then formulate appropriate controls in accordance with the rule of thumb that the cost of said risk occurring should be higher than the cost of the controls meant to mitigate the risk.
I agree with your point! Regulatory changes which are associated with federal decision are often over looked during the project development and also during the audits. As part of a project closing review process, the compliance team should submit a formal document that authorizes the project closure. At this stage, it is expected that there will be no compliance defects, but if there are some, they must be covered later by the organization, and must be clearly documented, and they must have a responsible party for follow-up. It is also important to get approval and signature from the management.
Sources of risk in a system analysis and design project can be divide into two parts, which are internal and external risk. Internal risk include design risk, engineering service risk, project management risk and organizational risk. Internal risk is the organizational and technological problem. The external risk is the risk from external negative factor company cannot control and predict, such as environment risk. I think project management should understand the potential vulnerability in the organization and coordinate with others to have a clear and completed plan to solve. Then the communication ability is essential to put all department work together.
Hey Yuan, good point, It can be broken down into internal risk and external risk. From your opinion, I wanna bring up something, The schedules and timelines may cause risks towards to system analysis. and it’s internal risk based on your analysis. Schedules and timelines are critical to the success of a new project. When promising the client a delivery date, consideration must be given to software developers’ schedules and availability. Stressing the developers with tight schedules can backfire and result in buggy code that takes longer to QA and troubleshoot than the original development time.
I think there are many risks could happen in a system analysis and design project. The market risk factors could be considered during the design stage such as production of products encountered strong competitors and insufficient competition or the market is running low on demand. The project manager may also think about the technical risk that may conquer later like the construction unit technology and management level is not high and lack of experience. Therefore, the project managers have to research all these aspects before officially make a plan for the project with well communication with the construction unit and deep market research.
Hi, Yuqing:
Great point on market risk and I totally agree with you. When the market goes down, the project would not gain success in terms of new IT products because fewer people would buy it. The market risk would be less matter when the project is about the company’s internal IT adjustment.
hi yuqing, I agree with that the project managers have to research all these aspects before officially make a plan for the project with well communication with the construction unit and deep market research. Deep market research indeed helps a lot to cope with risk during the stages of project management.
Hi Yuqing,
I appreciate your detailed thought process in identifying the risk factors. I agree that the Market risk is one of the important risk which management and executives needs to consider during the project selection phase. There are many key financial considerations before selecting the project like return on investment, net present value, economic model, cost-benefits analysis and most importantly their business competitors.
There are many sources of risk that could occur during the analysis and design of a project. Some of those sources stem from the Vendor/Client, the design specifications, the technology being used, and the organization as a whole. On the vendor/client level the project managers lay out the expectations of both parties and put that in writing. With expectations and requirements laid out, there is less room for confusion and thus and issue on that side. With regards to technology risk, it often feels like technology will only not work when we need it to. Also, knowing which technology to use for the project at all stages will affect the quality, scope, and time. Having a plan and being able to plan for changes on a macro and micro level will help cope with the risk. Finally, organizational risk deals with how the PM’s team is set up. By surrounding them self with the best team members and SME’s, the risk of an organizational failure.
Hi Alex, I agree with your idea. As you mentioned, having a plan and being able to plan for changes on a macro and micro level will help cope with the risk. I also think that being prepared is really important for a project manager since he will never know what might happen next, being prepared is better than under-prepared.
System analysis and design project might associate with different kinds of risks. For example, if the team decided to use new technology, the risk might be that it is not suitable for its current business or lack of training. Moreover, the team could not know whether the new technology will improve the efficiency of the business operation. The project manager could cope with the risk when planning the project. The project manager needs to identify the risk and analyze them, then decide to go with the plan or modify it. I believe that the risk assessment is important for the team to understand the risks, and find out the way to mitigate the risks and develop a better plan.
Hi Ryu, I appreciate you using an example to put risk into perspective. It is very true inexperience posts a great risk for IT project. For the project manager, he needs to raise awareness of the risk and implement something that can trace and speculate the risk.
We may set the price too high – The rule for time estimates used to be “double it and add 25%”. However, if we raise prices too high customers may find more cost effective alternatives and turn away from a new software system. The price must be competitive, while staying realistic as to what the developers can deliver in the time-frame. Technical resources are not available – When designing a new system, the analyst must have an idea up front of the technical resources needed to complete a project. If these resources are not available, then the project will be delayed and the client may lose interest in the new project.
Feng Gao says
Sources of risk include the use of new technology, prospective users’ resistance to change, availability of critical resources, competitive reactions or changes in regulatory actions due to the construction of a system, and team member inexperience with the technology or business area. A manager should identify the potential sources of risks, describe the possible negative outcomes, determine the probabilities of occurrence, and prepare contingency plans for those significant outcomes with a high probability of occurrence.
Zhu Li says
Although contingencies can be prepared for, often nature an scope of such negative events are unknowable in advance. Now, managers often attempt to identify and plan for any contingencies that they feel may occur with any significant likelihood using predictive model. For example, financial management often errs on the conservative side, assuming slightly worse than ex[ected outcomes, and arranging a company’s affairs so that it can weather negative outcomes with the least distress possible.
Yuchong Wang says
Hi Feng, I have the exact finding as yours and I believe it is correct that sources of risk include all the things you have mentioned. To deal with all the risks, a manager should acknowledge the risk and implement controls to mitigate them. I would let a project manager establish a matured requirements management process to improve traceability so everything is being speculated.
Mei X Wang says
There are many sources of risk in system analysis and design project, they include risk planning/identification/analysis/response planning/monitoring and control, along with external risks out of the project teams control. A project manager copes with risk during the stages of project management by identifying potential risks that would hinder the development of the project early on and implementing solutions that would mitigate/lessen the risk. A project manager oversees all areas of the project and has to exert a certain level of control over the team, by carefully planning and monitoring each phase of the project, risks can be identified early on. No matter what project, there’s a certain level of financial/technological/governance risk involved, if the ROI is higher than the bearable risk, the project should continue, if not, the project should be halted.
Imran Jordan Kharabsheh says
As I was reading through your response to the question involving sources of risk in system analysis and design projects and how project managers handle it, I reflected on lessons I learned in previous courses which you emphasized. While risks are ever present in a project, it is important for the project manager to identify as many as early on as possible, followed shortly by implementing relevant controls to mitigate the risks. I also appreciate you taking a moment to point out that a project manager should also take the initiative in getting involved in every phase of the project, as this helps prevent mistakes related to negligence or delays in work.
Haixin Sun says
Sources of risk in a system analysis and design project are poor skills to new technology and resources availability that are hard to analyze. A project manager is supposed to manage the risks identified well and communicate with team members accurately to cope with risk during the stages of project management.
Mei X Wang says
Hi Haixin,
I agree as well, the project manager possesses great responsibility to identify and present solutions to risk. Effective communication with team members to cope with risks entails a successful transition through each stage of the project.
Xinye Yang says
Hey Haixin
I agree with you, the technology and resource availability pose risks to system analysis, When designing a new system, the analyst must have an idea up front of the technical resources needed to complete a project. If these resources are not available, then the project will be delayed and the client may lose interest in the new project.
Shuyue Ding says
Sources of risks could be new technology, prospective users’ resistance to change, availability of critical resources, competitive reactions or changes in regulatory actions due to the construction of a system, or team member inexperience with technology or the business area. A project manager could cope with those sources of risks start from the stage of identifying and assessing risk, so the consequences of those risks could be awarded. Besides that, the project manager could also develop a risk management plan, communication plan, and a change management plan to prevent the risk that purely because of poor management.
Hoffer, Jeffrey A., et al. Modern Systems Analysis and Design. Pearson/Prentice Hall, 2005.
Penghui Ai says
Hi Shuyue, I could not agree more with your points that the new technology would be one source of risks. Whenever the new technology come in place, the project manager should be ready to get familiar with it.
Ryu Takatsuki says
Hi Shuyue, I agree with your ideas. I also talked about the new technology could be one of the risks. Since the company is not familiar with the new technology, the project manager should know the risks before they start the project to prevent anything bad happen.
Deepa Kuppuswamy says
Risks can originate from internal and external sources. Internal risks depend on the very project nature, organizational questions, staff, available resources, and so on. External risks include political, regulatory or legal requirements etc.
Risks associated with System Analysis and Design is an internal risk. Following are some of the sources of risks:
– Analyzing the resource availability is difficult
– Very limited knowledge about the trending and new technology
– Constraints are always changed as requirements are changed
– Changes in regulatory requirements (EXTERNAL RISK SOURCE)
– If project analysis is not done appropriately in the earlier stages, then final project will not be delivered on time and it would not meet client requirements
In order to cope with the risks during the project management process, it is very important for project manager and other team members to perform ‘Risk Assessment’ process. This involves Risk Evaluation and Risk Control. It helps to identify possible risks, as well as the evaluation of consequences of risks on the project and each of these risks should have a decision in place.
Yuan Liu says
Agree, there are two risk from internal and external environment. In addition, as a manager, it should be a good idea to write a very detailed project charter, with the project vision, objectives, scope and deliverable. This way risks can be identified at every stage of the project. Then the manager want to engage his team early in identifying any and all risks.
Zhu Li says
Sources of risk in system analysis and design project should be managed in an efficient manner. Some source could use new technology, resource availability of analysis is very hard. Resistance is changed as a requirement are changed or team member inexperience with technology or the business area.
A project manager should do a risk assessment for any project before starting. During this stage, the project manager should identify uncertainties, analyze risks, and prioritize risks. Also, a project manager copes with as well as prepares for the risk by applying a practical risk management process and having and maintaining good communication.
Feng Gao says
I agree with your point, and the project manager is a very important role. The project manager must have a combination of skills including an ability to ask penetrating questions, detect unstated assumptions and resolve conflicts, as well as more general management skills.
Key among a project manager’s duties is the recognition that risk directly impacts the likelihood of success and that this risk must be both formally and informally measured throughout the lifetime of a project.
Alexander Reichart-Anderson says
Hi Zhu, very interesting response. I like how you cited technology as a leading source of risk in the system analysis and design phases. As we become more advanced and intertwined with technology this risk will be more relevant that most other sources of risk. I can also appreciate your viewpoint on the experience of the team members on the project. Every individual on a team needs to be well versed in whats expected of them and what their role entails. If even one team member is disconnect fro the team/project goals the situation could go array. To your point, having a strong PM who puts their players in the right places to win is crucial. What do you think makes up a good PM?
Adam J Wolf says
There are countless sources of risk for a systems analyst and design project.
– Organizational threats (culture, staff error, etc.), improper project planning, poor project management, organizational inexperience with new tech/system, political/legal regulation changes, changing technology industry standards, etc.
To cope with all of these potential risks, project managers need to identify all risks throughout the stages of the project. It is not enough to just be aware of the risks, the organization must value the significance of each risk, and mitigating the risks with project adaptations. This risk evaluation is essential for project managers to understand whether or not projects will add value to the organization.
Shuyue Ding says
Hi, Adam
Thank you for point out the political/legal regulation changes, and I totally agree with you. A project must consider legal regulation. If a change of a relevant legal regulation happens in the middle of a project, that would cause a huge positive/negative impact.
]]]]]]]]
Sarah Puffen says
In project planning, risk may stem from a lack of documentation and interaction, parties refusing flexibility, lack of resources, and employee inexperience. It’s important to identify possible risks and results as well as record them in order to avoid unnecessary spending on a failed project. This should be communicated with a stakeholder that may be pushing for a shorter planning schedule in order to finish a project quickly, without thinking of the consequences. A project manager may cope with risk by assessing potential mistakes or obstacles, and by referring to any previously documented failures in project execution. By giving stakeholders real-life examples, they may be more willing to adapt to both the technological and business-based requirements.
Feng Gao says
The project manager’s role varies according to industry and individual business, but at its heart, project management entails balancing a project’s timeframe, budget and overall scope as the team works to meet its objectives. Project managers oversee the individual tasks that move a project toward completion, so its ultimate success or failure depends in large part on the project manager’s competency.
Yuqing Tang says
Hi Sarah, I think you mentioned most basic types of risks may arise in a system analysis and project design. The lack of documentation and interaction may lead the project to the wrong way, parties refusing flexibilities may result in some unexpected delay, and lack of resources and inexperienced employees would be the root cause of the project failure.
Yuchong Wang says
Some of the sources of risk in a systems analysis and design project could be the use of new technology, prospective users’ resistance to change, availability of critical resources, competitive reactions or changes in
regulatory actions due to the construction of a system, or team member inexperience with technology or the business area.
A project manager copes with risk during the stages of project management by establishing a matured requirements management process to improve traceability; establishing a formal requirements development process to include requirements review, acceptance and commitment; peer review; ensure everybody understands their authority and responsibility.
Penghui Ai says
Hi, Yuchong, I agree with your point. It is useful to have the project manager addresses those risks and having awareness program
Panayiotis Laskaridis says
There are countless risks associated with IT Projects. New technology, changing regulations, employee error, etc… are all different kinds of risk. It is the project managers responsibility to anticipate these risks and gauge his response accordingly. The manager can choose to avoid the risk completely, if possible, or have systems in place to mitigate or reduce the risk. Managers will weigh the risk by probability and financial impact.
Adam J Wolf says
I agree with your answer, it is almost impossible to list all of the potential risks for a project. It really makes you think how much skill and luck it takes to be successful. Navigating risks may be the most important aspect of project management. Managers do have a lot of options when it comes to mitigating risk, and it is the identification process that is most crucial. Without successfully identifying all risks, companies can face huge liabilities.
Raisa Ahmed says
I agree. Sources of risk is definitely endless. Some of these risks include personnel issues, technological issues, customer issues and financial issues. Risk is unavoidable in any project. Therefore, it is very important for a project manager to identify the risks at the beginning of the project so that he/she can manage it. There are four ways to manage risk— accept the risk, avoid the risk, transfer the risk, or mitigate the risk. The key is to have a good balance between risk and reward.
Penghui Ai says
A portion of the sources of risk in systems analysis and design projects might be the utilization of new and new technologies, critical asset availability, client protection from change and administrative limitations, or absence of specialized or business space involvement by group members. The project manager addresses and gets ready for risk by applying a real risk management procedure and keeping up great communication.
Yuchong Wang says
Hi Penghui, I agree with you. Many risks could be mitigated with acknowledgment and awareness. So having the project manager addresses those risks and having awareness program and something implemented to speculate the risk will be very useful.
Raisa Ahmed says
What are sources of risk in a system analysis and design project? How does a project manager cope with risk during the stages of project management?
The sources of risk in a system analysis and design project include unfamiliar technology, inadequate monitoring, lack of communication, poor availability of resources, and/or team member inexperience with technology or job duties.
A project manager copes with risk during the stages of project management by conducting an assessment to identify any area where risk is present. It is then necessary to evaluate each risk and prioritize it accordingly. Afterwards, risk reduction techniques must be applied and the risks continuously monitored. In the course of all of this, a project manager should be thoroughly communicating the findings to all of the members of the project team.
Zhu Li says
Some of the sources of risk in system analysis and design project should be the use of new unfamiliar technology, critical resource availabillity, users’ resistance to change and regulatory constraints, or team member experience with technology or the business are. A project manager opes with as well as prepares the risk by applying a practical risk management process and having and maintaining good communication.
Sarah Puffen says
Team member inexperience is interesting when considering risk within projects. It’s probably conflicting for managers because on one hand they want to keep risks to a minimum, but on the other hand they also want their employees to take part in challenging tasks in order to build their skill set. In loose terms, I think it kind of relates to risk appetite- allowing that team member to gain experience could pay off down the road so there won’t be a need to outsource. But, in the mean time, the manager will still have to monitor their work closely so to not cause any delay in project duration.
Imran Jordan Kharabsheh says
Among the most common risks associated with system analysis and design projects include poor structure and management, often associated with poor or quick decisions made during the planning phase. Other less direct risks that are often talked about also include regulatory changes associated with federal decisions or rapid technological progression (that isn’t being kept up with). When a project manager is faced with managing risks during any of the four stages of the project management process, the best action to take would be to begin with a risk assessment of all the facets of the project. This is done in order to enable logging and the analysis of all the associated risks through each phase of the project, which includes detailing the potential frequency and impact of a noted risk. A project manager would then formulate appropriate controls in accordance with the rule of thumb that the cost of said risk occurring should be higher than the cost of the controls meant to mitigate the risk.
Deepa Kuppuswamy says
I agree with your point! Regulatory changes which are associated with federal decision are often over looked during the project development and also during the audits. As part of a project closing review process, the compliance team should submit a formal document that authorizes the project closure. At this stage, it is expected that there will be no compliance defects, but if there are some, they must be covered later by the organization, and must be clearly documented, and they must have a responsible party for follow-up. It is also important to get approval and signature from the management.
Yuan Liu says
Sources of risk in a system analysis and design project can be divide into two parts, which are internal and external risk. Internal risk include design risk, engineering service risk, project management risk and organizational risk. Internal risk is the organizational and technological problem. The external risk is the risk from external negative factor company cannot control and predict, such as environment risk. I think project management should understand the potential vulnerability in the organization and coordinate with others to have a clear and completed plan to solve. Then the communication ability is essential to put all department work together.
Xinye Yang says
Hey Yuan, good point, It can be broken down into internal risk and external risk. From your opinion, I wanna bring up something, The schedules and timelines may cause risks towards to system analysis. and it’s internal risk based on your analysis. Schedules and timelines are critical to the success of a new project. When promising the client a delivery date, consideration must be given to software developers’ schedules and availability. Stressing the developers with tight schedules can backfire and result in buggy code that takes longer to QA and troubleshoot than the original development time.
Yuqing Tang says
I think there are many risks could happen in a system analysis and design project. The market risk factors could be considered during the design stage such as production of products encountered strong competitors and insufficient competition or the market is running low on demand. The project manager may also think about the technical risk that may conquer later like the construction unit technology and management level is not high and lack of experience. Therefore, the project managers have to research all these aspects before officially make a plan for the project with well communication with the construction unit and deep market research.
Shuyue Ding says
Hi, Yuqing:
Great point on market risk and I totally agree with you. When the market goes down, the project would not gain success in terms of new IT products because fewer people would buy it. The market risk would be less matter when the project is about the company’s internal IT adjustment.
Haixin Sun says
hi yuqing, I agree with that the project managers have to research all these aspects before officially make a plan for the project with well communication with the construction unit and deep market research. Deep market research indeed helps a lot to cope with risk during the stages of project management.
Deepa Kuppuswamy says
Hi Yuqing,
I appreciate your detailed thought process in identifying the risk factors. I agree that the Market risk is one of the important risk which management and executives needs to consider during the project selection phase. There are many key financial considerations before selecting the project like return on investment, net present value, economic model, cost-benefits analysis and most importantly their business competitors.
Alexander Reichart-Anderson says
There are many sources of risk that could occur during the analysis and design of a project. Some of those sources stem from the Vendor/Client, the design specifications, the technology being used, and the organization as a whole. On the vendor/client level the project managers lay out the expectations of both parties and put that in writing. With expectations and requirements laid out, there is less room for confusion and thus and issue on that side. With regards to technology risk, it often feels like technology will only not work when we need it to. Also, knowing which technology to use for the project at all stages will affect the quality, scope, and time. Having a plan and being able to plan for changes on a macro and micro level will help cope with the risk. Finally, organizational risk deals with how the PM’s team is set up. By surrounding them self with the best team members and SME’s, the risk of an organizational failure.
Ryu Takatsuki says
Hi Alex, I agree with your idea. As you mentioned, having a plan and being able to plan for changes on a macro and micro level will help cope with the risk. I also think that being prepared is really important for a project manager since he will never know what might happen next, being prepared is better than under-prepared.
Ryu Takatsuki says
System analysis and design project might associate with different kinds of risks. For example, if the team decided to use new technology, the risk might be that it is not suitable for its current business or lack of training. Moreover, the team could not know whether the new technology will improve the efficiency of the business operation. The project manager could cope with the risk when planning the project. The project manager needs to identify the risk and analyze them, then decide to go with the plan or modify it. I believe that the risk assessment is important for the team to understand the risks, and find out the way to mitigate the risks and develop a better plan.
Yuchong Wang says
Hi Ryu, I appreciate you using an example to put risk into perspective. It is very true inexperience posts a great risk for IT project. For the project manager, he needs to raise awareness of the risk and implement something that can trace and speculate the risk.
Xinye Yang says
We may set the price too high – The rule for time estimates used to be “double it and add 25%”. However, if we raise prices too high customers may find more cost effective alternatives and turn away from a new software system. The price must be competitive, while staying realistic as to what the developers can deliver in the time-frame. Technical resources are not available – When designing a new system, the analyst must have an idea up front of the technical resources needed to complete a project. If these resources are not available, then the project will be delayed and the client may lose interest in the new project.