| Most organizations have more project
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| | $2,000 + $8,000 or $15,000. The return is
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| proposals and ideas than they can
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| | now $20,000 - $15,000 or $5,000, making
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| realistically fund. This means project
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| | the project substantially less attractive
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| teams are competing for project approval
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| | than it originally appeared. But by
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| and funding. Consequently, project
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| | managing the risks, the value of this
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| champions often conceal or exaggerate the
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| | project can be increased to a level that
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| true value of their projects. Teams and
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| | again makes it attractive.1. First, the
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| organizations typically focus on the
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| | requirements could be tightened by first
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| up-front costs of a project and the
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| | developing a proof-of-concept or simply
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| expected return. Other costs are glossed
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| | by delaying the project until the
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| over or ignored entirely, and risk
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| | uncertainties can be eliminated. By
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| assessment is treated as a perfunctory
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| | taking this approach, the
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| afterthought. This focus on the up-front
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| | value of the project can be increased by
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| costs and the net return is only half of
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| | eliminating the $5,000 reduction for the
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| the story, however.It may be time to stop
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| | risk of uncertainty.2. A proof-of-concept
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| thinking of risk assessment as the
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| | could also be evaluated by the sales
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| killjoy exercise which drains the
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| | force to ensure that they will not
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| enthusiasm from your project and to start
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| | need training, as feared, thereby
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| thinking of it as a tool for enhancing
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| | eliminating the second risk and
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| your project's value.Understanding the
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| | increasing the project's
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| Fundamentals:A project risk is any
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| | value by an additional $2,000.3.
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| problem that could cause some loss or
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| | Finally, although external uncertainties
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| threaten the success of the project1.
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| | cannot be eliminated, mitigation and
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| Risks differ from issues because they
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| | contingency
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| refer to the future or to the potential
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| | plans can be put in place to reduce the
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| for adverse outcome."A risk consists of a
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| | overall impact on the project's value.
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| condition which is not currently true,
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| | For example,
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| the likelihood that the condition will
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| | instead of structuring the project as an
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| materialize, and a consequence or impact
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| | all-or-nothing proposition, perhaps it
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| on the project if the condition does
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| | can be
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| materialize."Risk management is the
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| | implemented so that parts or stages of
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| process of identifying, analyzing, and
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| | it can be adapted to many different
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| addressing project risks proactively to
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| | environments.
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| maximize positive consequences
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| | Perhaps the data structures and encoding
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| (opportunities) and minimize negative
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| | can be separated from the database
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| consequences (losses). Risks are
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| | implementation
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| addressed by formulating mitigation
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| | so that if organizational changes arise
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| plans, which are aimed at reducing the
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| | that undermine the implementation, the
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| likelihood that the condition will
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| | data structures can
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| materialize, and contingency plans, which
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| | still be used in the implementation
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| are aimed at addressing the condition
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| | ultimately adopted by the organization.
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| when it does materialize.As mentioned
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| | If a third of the work can
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| above, the value of a project is
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| | be salvaged, the value of the project is
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| determined by its net return and its
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| | increased by $2,640 ($8,000 x .33).This
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| risks. The net return on the project is
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| | brings the total increase in return as a
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| equal to the present value of the project
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| | result of risk management to $9,640.After
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| minus the costs (return = present value -
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| | risk management, the value of the project
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| costs). This return assumes that the
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| | is $14,640 ($5,000 return after risk
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| project will proceed as planned and
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| | assessment
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| budgeted - that is, it assumes a
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| | + total increase in return after risk
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| risk-free project. But projects are
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| | management).Conclusion:The true value of
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| rarely risk-free. To get a true
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| | a project cannot be evaluated without
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| assessment of the project, the return
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| | being realistic about the costs of the
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| must be evaluated against the
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| | undertaking, including the risks. Risks
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| risks.Applying Risk Management:Suppose I
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| | that are simply acknowledged and built
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| have a project proposal to unify two
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| | into the costs will always lessen the
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| corporate databases. I estimate that this
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| | value of a project, motivating project
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| will save the organization $100,000 over
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| | managers to report overly optimistic
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| five years and that it will cost $80,000
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| | outlooks, which undermines the very
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| to implement. The return is $20,000
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| | reason for considering risks. But if
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| without factoring in any risks, but there
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| | risks are actively managed by meeting
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| are risks.1. Due to some uncertainty in
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| | them head-on, formulating mitigation and
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| the requirements, there is a 50%
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| | contingency plans and treating risk
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| likelihood that the development effort
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| | management as an ongoing process, risks
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| will cost an additional $10,000. This
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| | can be minimized. As a result, project
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| comes to a reduction of the return by
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| | values can be increased, and
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| $5,000 ($10,000 x .50).2. Although the
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| | organizations will get a more accurate
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| project team has assurance from sales
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| | and consistent understanding of project
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| that the impact upon the sales force will
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| | values.About Ralph Dandrea:Ralph Dandrea
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| not be substantial, the team believes
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| | is the President of ITX Corp., and leads
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| that there is still a 25% likelihood that
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| | its Business Performance practice. He is
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| upon seeing the changes, sales will
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| | experienced in business and information
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| require additional training, costing
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| | technology management and holds graduate
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| $8,000, thereby reducing the return by
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| | degrees in business and law. ITX(R):ITX
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| $2,000 ($8,000 x 25).3. Due to some
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| | Corp is a business consulting and
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| inherent uncertainties regarding the
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| | technology solutions firm focused in
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| technologies, as well as the direction of
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| | eight practice areas including Business
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| the organization and some anticipated
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| | Performance, Internet Marketing, IT
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| acquisitions, there is a 10% likelihood
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| | Staffing, IT Solution Strategies, IT
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| that the entire project will fail or be
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| | Solutions Implementation, Technical
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| superseded by other efforts. This means a
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| | Services, Internet Services, and
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| reduction of the return by $8,000
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| | Technology Research.To learn more about
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| ($80,000 in overall project costs x
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| | what ITX can do for you visit our website
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| .10).When all risks are factored, the
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| | at or contact us at (800) 600-7785.
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| reduction on the return is $5,000 +
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