The risk management is an important factor for the success of a project. There are different risk management practice that should be followed during the development lifecycle of a project (Frigo & Anderson, 2012). The risk management contains the different operation like risk analysis, identification, prioritizing, mitigation, planning, monitoring, etc. An example of risk management failure is the Bank of America which decided to charge extra money for gaining access to their funds. The bank has not applied an risk management for taking such an important decision and thus caused dumping of the new idea. An example off risk management success is Papa John International Inc
that demonstrated that risk management can play a crucial role in the success of an organization. They used different risk analytical tool like risk pyramid, risk appetite survey, risk heat map and immediately responded to the risk that arose during their project management (Frigo & Anderson, 2012).
There are different project management models like Agile, Waterfall, CPM (Critical path method), CCPM (Critical chain project management), Scrum, six sigma, etc. The different project management models are used for getting different outcomes from the model. The Scrum model is used for the determination of the prioritized task while the six sigma model is used for the reduction of waste from the project (Andrat & Jaswal, 2015). The CCPM and the CPM also differs from each other, the CCPM is used for analyzing the use of the resources while the CPM is used to analyze the potential issues related with the resources. The effort became a success because they created the risk management plan was created aligning it with the business needs.
Leading indicators are used for the prevention of risk and monitor the risk. The company accepted that all risk cannot be mitigated and they build contingency plan to deal with the risk.
The three different standards PMBOK, PRINCE 2 and ISO is compared and contrasted with each other and it is found that the standards are used for different purpose. The ISO 21500 is used for the overall framework of a developed project and it act as a common language to act as a bridge between the various methods used for the development of the project (Axelos.com, 2016). The PMBOK is used as a national standard and it consists of the local framework condition and provides guidance to the internal and external quality control. It also provides internal and external quality assurance for the project developed (Frigo & Anderson, 2012). In case of PRINCE2, focus is given on the maximum number of actual outputs. The Prince 2 is a methodology that defines the standards and the effect of its application on the project. In case of Prince 2, the internal result consists of the quality control and the external result consists of quality assurance. The internal Prince 2 process is concerned with Project assurance and the external process is concerned with quality assurance.
Global project management is applied in an organization for emphasizing the company’s needs and reorganizing the cultural allegation for working with the employees with diversified origin. For the global project management the company need to choose right certification for project management that is internationally established (Rui et al., 2016). The use of this standardization help the organization in different ways like reduces the cost because the organization does not need to develop the project from the scratch. The organization also find it useful because it is easier for the company to find skilled resources around the world who have specialization in working in the specified field and improve their international communication field. The implementation of the standardization in the current business process also simplifies the trade process.
(2016). Axelos.com. Retrieved 30 November 2016, from
Andrat, H., & Jaswal, S. (2015, December). An alternative approach for risk assessment in Scrum. In 2015 International Conference on Computing and Network Communications (CoCoNet) (pp. 535-539). IEEE.
Frigo, M., & Anderson, R. J. (2012). Strategic Risk Mangement: The New Core Competency. John Wiley & Sons Limited.
Rui, X. U. E., Baron, C., Esteban, P., & Zheng, L. (2016). Integrating the ISO/IEC 15288 Systems Engineering Standard with the PMBoK Project Management Guide to Optimize the Management of Engineering Projects. In Complex Systems Design & Management (pp. 291-291). Springer International Publishing.