Literature Review on Risk Management

Literature Review on jeopardize ManagementSoftw ar catch Management (CI6113)Title Reviewing the Past inquiry Papers on hazard ManagementAbstract lay on the line Management is nowadays the important seek topic in the m all critical trading atomic number 18as and industrial aras. find teams do non achieve their nominates goals of reducing cost and gaining much profit without assessing run a chances and managing put on the lines. This term subject analyzes research cover through with(p) by many researches in the theme of the jeopardy Management within 2000 and 2007 and describes the results of the outline of those research written document. Our goal of this paper is to inference and to justify the trend of the danger guidance in research beas and business areas. There are many topics in the seek Management such as venture Analysis, find discernment, encounter Control and others. This papers analysis path is starting from the roam risk identification and end with the risk verify topic. This paper provides the results what the gaps between researches are. Furthermore, this paper take aims briefly what the problems and trends before year 2000 are. enteringThis paper examines the results of the past research papers published from 2000 through 2007. We focus on Risk Management and their link up topics. In addition, we also examine the trends of the Risk Management within this accomplishment. We analyze which topic had been researched most in a particular year and which methods were used in that year. This paper learns publications issued by year by year and group them in each year. In addition, we analyze the topics which are relating to the specified topic. We found trends of the research in a year while we were cultivation them. According to the past results came from publications, we tidy sum make sense of mind for future of the Risk Management. This paper examines the situation which can become in future fit to the study.Back groundMany expulsion theatre directors and strategical direction are concerning roughly risks in long term strategic basic. So, we contain to learn the risks. Risk is the precariousness in the life cycle of the project. In 2003, Websters New Explorer College Dictionary defines the risk as the possibility of danger and sufferance of harm or combat injury. Risk cannot be seen without any emphasize upon it. In addition, risks can also give hopes to the successful project. So, if risks which cannot be seen before could be found and assessed past the proposed project will be successful. But risks found and assessed can never be avoided. It can be reduced by victimization the several(prenominal)(prenominal) techniques or adjustments. Some risks can be ignored without any executing. Risk whitethorn terrify to some persons related to the project because if it could not be uncovered, the team may incompetent in managing the project.According to the problems, risk management was cr itical issue of the project management. Researchers were doing researches to reduce and manage the risks which can be encountered in a project. citizenry in the business areas were also finding the ways how to ignore the encountered risks. Some are finding how to control the risks. In addition, they were finding what risks can violate the project management unless they did not control the risks encountered. A risk which encounters in a year is not the same as the problem in another year.Because of the disposition of project which depends on the Worlds business. As changing the record of the business, the nature of the risks is becoming change. Furthermore, research area is also changing tally to the nature of the risk. So, the research trend for a year may not same as the trend of another year. To learn the research trend turmoil, we need to learn publications issued from 2000 through 2007. The next section will explain the importance of our paper.Situation of the paperThere are many researches for the project management. Past research (Timothy Warrren, 2002) had done a research for the whole project management. It covered research published in English from 1960 through 1999. This paper covered within the period of 2000 and 2007 knowledgeable the topics of the risk management. We separated the research areas according to the Project Management Body of Knowledge (PMBOK). These are Risk Identification and Assessment, Risk Qualification, Risk Response festering and Risk Control.Objectives of the paperThe objective of this paper is to learn the trend of the Risk Management in past research publication. We restricted the period to be acquire for each topic. This paper is intended to learn that how the risks emerged during the project measure, is handled using which tools and methods. This paper intended to find the gaps between researches in each year and whole period of year 2000 and 2007.The paper learn only risk management out of topics of project mana gement for the period. So, the other topics can be intimate like our paper. These are Communication, Cost, Procurement, Human Resource, Outsourcing, Integration, Quality, Scope and Time Management.Literature reviewIn this era, many companies bring a great portion of their jobs in project puzzle out. Traditionally projects were primarily found in the construction industry and sections of the military, but the competitiveness of the markets of today with fast-changing technology encourages almost all companies to adopt project management (Burke 2003).Project management is the application of knowledge, skill, tools and techniques to project activities to meet project requirement. Project management is accomplished through the use of the processes such as initiating, planning, executing, controlling, and closing (PMBOK guide 2000).Because of global efficient pressures, turbulence in the corporate environment and market forces leading to the increasing demands and tougher competitio n projects nominate to be implemented at lesser time, cost and with bettor functionalities. This causes growing demands on the managements ability to forecast and react to unforeseeable events- risks.Risk is an abstract concept whose measurement is very difficult (Raftery, 1994). The Oxford advance Learners Dictionary 5th Edition defines risk as The possibility or chance of meeting danger, suffering loss or injury. The British Standard BS 4778 defines risk as A combination of the probability, or frequency, of occurrence of a defined hazard and the magnitude of the consequences of the occurrence. Risk may be expressed in a mathematical form as followsRisk = (Probability of the occurrence of a defined event) x (Consequences of the occurrence of that event)Therefore, risk management is nowadays a critical factor to successful project management.Overview of Risk ManagementProject risk management is the art and science of identifying, analyzing, and responding to risk throughout the life of a project and in the best interests of meeting project objectives. (Schwalbe, 2006)Risk management has been practiced informally by everyone, with or without apprised of it, since the dawn of time. Modern risk management, which had become a widely accepted management function during the period from 1955-1964 (Snider, 1991) has its roots in insurance to which it has been closely align for more than three centuries (Ibid). The story of risk management has not all been positive and supports the argument that it is currently in performanceive at managing surprise. In the 1960s project management was under heavy criticism for project failures due to technical uncertainty, contact strategy, community opposition and project environmental impacts (Morris, 1997). A project manager may still today argue that the last two are external project factors and outside the immediate project environment under their control (Ibid) and it may be often assumed that these will be passed up the li ne to higher management levels (Chapman Ward, 1997).The main objectives of risk management include (Yee et al., 2001)To modify decision-making to be more systematic and less subjective.To provide an improved understanding of the risks facing a project by identifying risks and reply scenarios.To assist in decision making which risks require urgent attention and which can be addressed later.To force management to realize that there are many possible outcomes for a project, and stamp down measures should be planned for any adverse consequences.Flanagan and Norman (1993) proposed a risk management framework as shown in Fig.3.1 which depicts the elements of the risk management system risk identification, risk classification, risk analysis, risk attitude and risk response.Risk IdentificationRisk ClassificationRisk AnalysisRisk ResponseRisk locationFigure 2.1 Risk management Framework (Source Flanagan Norman, 1993)According to (PMBOK, PMI 2000) and (Schwalbe 2006), Project Risk Man agement has following processesRisk Management disciplineRisk Identification soft Risk AnalysisQuantitative Risk AnalysisRisk Response PlanningRisk Monitoring and ControlThe following Fig.3.2 depicts how risk management processes multiform in each of the project management processInitiationPlanningExecutingControllingClosingRisk IdentificationRisk IdentificationRisk Response ControlRisk QuantificationRisk Response DevelopmentFig 2.2 Risk Management Processes in each Project Management Process (Source Dan Brandon, 2006)Risk management will not eradicate all the risks. It will enable decision to be made explicitly which will reduce the potential effect of certain risks. It will also assist in rational, defensible decisions regarding the allocation of risk among the parties to the project.Risk analysis is not a substitute for professional creative thinkers and experience. On the other hand, it helps professionals to make use of the full extent of their experience and knowledge by l iberating them from the necessity of making simplifying assumptions in order to produce deterministic plans and forecasts. Risk analysis is supplement to, not a substitute for professional judgments.Recent Approaches to Risk ManagementProject risk management is a topic of study current interest. It is being actively addressed by many government agencies and most of the professional project management associations around the world, and many relevant standards are extant or being developed. Some examples from the many approaches in use include (Cooper D., Grey S., Raymond G., Walker P., 2005)Project Management Institute (PMI), USA (2003), Project Management Body of Knowledge, Chapter 11 on risk management standstill for Project Management, UK (1997), PRAM GuideAS/NZS 4360 (2004), Risk Management, Standards Association of AustraliaIEC 62198 (2001), Project Risk ManagementApplication GuidelinesOffice of Government Commerce (OGC), UK (2002), Management of Risk andTreasury Board of Canad a (2001), Integrated Risk Management FrameworkWe fill the research gap in risk management field from year 2000 to 2007.MethodologyWe conduct a quantitative bibliographic study on pass papers published from year 2000 to 2007. We self-contained papers and journals from electronic databases ACM, IEEE and ProQuest. Our objective of this paper is to find the current research trend on Risk Management by analyzing and categorizing those research papers.Project Risk Management ResearchIt is the process of finding what current researchers are emphasizing in. It includes defining the current works on project management, particularly on Risk Management articles and papers. Then make generalized conclusion establish on collected and analyzed works. This conclusion or judgment is made based on project risk management processes risk management planning, risk identification, soft risk analysis, quantitative risk analysis, risk response planning, risk monitoring and control (PMBOK 2000, Schwalbe 2006).Sources of dataWe collected articles and papers published in years 2000 to 2007 from these databases which are known to be rich schooling about project management.ACM Digital LibraryACM digital library includes magazines, journals, transactions, publications by affiliated governings, SIG news letters, Conference Proceeding Series. ACM digital library provides service for individual, universities, libraries and corporations.We find that risk management is one of the research field in many businesses and industries. ACM includes diversity of business and industrial processes which enables us to inference the future trend in antithetical fields.IEEE ExploreTo support our conclusion and get strong analytical results, we also collect articles and papers from IEEE explore which has more technical articles and papers than ACM digital library. It includes 1,682,970 online documents to be referenced.ProQuestAnother supporting database which we extracted articles and papers is ProQue st. That includes ABI/INFORM databases, dissertation and theses, etc. selective development analysis from that database will be icy on our research cake information selection from the databasesWe conduct full text search in above databases using author, title, keywords based on year. Then tasks are separated among us based on years and combined later. Papers and articles are found based on the following criteria Keywords Risk Management, Risk Identification, Risk Analysis, Risk Transfer, Risk Control, Risk ResponseYears 2000 to 2007Output format and research data representationOutput format will be as the followingResearchersTitle informationbaseRisk CategoryYearBusiness CategorySub CategoryMethodThe papers and articles are attached in the appendix B.We classified each paper into specific risk management processes (PMBOK 2000, Schwalbe 2006). We also analyzed which business category that each paper falls into and which specific method do they use in conducting the specified risk ma nagement Process.To get the consistent taxonomy in risk management, we identified the papers and articles into the categories guided by (PMBOK 2000, Schwalbe 2006). They areRisk Management Planning This is how businesses and industries plan and handle for risk.Risk Identification This is how businesses and industries emphasize on identification of risk throughout their organizational processes.Risk Analysis This involves how organizations conduct quantitative and qualitative risk analysis based on sampling and probability/impact matrixes.Risk Response Planning This shows how organizations develop risk response strategies like how to avoid, how to have tolerance, how to mitigate risk, how to transfer risk etc.Risk Monitoring and Control This involves how organizations monitor the identified risks, new risks through out the execution of the projects.Business and industrial categories are identified as followConstructionEducationfinanceHealthcareInsuranceinformation Technology hazardE- commerceE-bankingInternet BusinessInformation Security packet developmentMaritimeMarketingOrganizational ProcessPure General ResearchTerrorismWe also found that information technology risk management plays a great role in modern businesses and industries because of wider usage of internet and web technologies.Our analyzed data will be delineate in pie chart, bar chart and line chart by comparing different categories, different risk manage processes, different years etc.Data Collection and AnalysisData CollectionWe used digital databases web site ACM, IEEE and ProQuest for scholar paper and articles and the existing search engines google and yahoo. But we are not unable to get some papers from the search engines. So, we used these to get only information which papers are located in which databases. Using information returned from the search engines, we search the desired papers in the databases. The following chart, Fig 1 shows the state of the materials found in the three sources ACM, IEEE and ProQuest.Figure 1 dissemination of papersThere are 113 papers found in those databases. We summarized the papers found in the three sources. We categorized by the papers by using PMBOK guide. We provided the Risk Analysis, Risk Assessment, Risk Control, Risk Response and Risk Identification. The following diagrams show the results.We learned that ACM database has more papers related to the risk management as in Fig 2. Other two databases have papers. But some papers are general for risk management. So, we discarded the papers and then we collected the more specified papers which are related to the above titles. We prepared the results with some charts as shown in below figures.Figure 2 Research papers found in ACM database by categoryFigure 3 Research papers found in IEEE database by categoryFigure 4 Research papers found in ProQuest database by categoryThe above figures, Fig 2, Fig 3, Fig 4 show that the papers found in the ACM, IEEE, ProQuest database are shown by categories. Risk analysis is mostly conducted by majority of researchers. It was conducted mostly in year 2005 and 2006. Risk assessment and risk response research areas are fewer than other risk management process areas. Research for risk response is very rare, not fairly distributed and found in certain year.Data AnalysisThe trends of the risk analysis for the year 2000-2007 are shown in graph, Fig 5. We learned that IT project management was highest in recent 7 years.Figure 5 Trends in different business and industries within year 2000-2007Information TechnologyWe learned that there are varieties of IT projects. We categorized it as follow.Software DevelopmentE-Banking misadventureInformation SecurityE-CommerceInternet BusinessWhen we categorized these topics, we found that some fields are ambiguous to group them. Some fields are software performance testing and fields emerged after the development phase. We grouped these fields were in the Software Development part. We grouped Networking certification measures and other Internet bail fields into the Information Security part. We formed a group for the Internet Banking as a E-Banking. In the Disaster group, we put the some disasters in the Disaster parts.These disasters sometime can be seen when processing some tasks in IT such as software error, hardware crash, and wrong information usages. We collected the potential security risks and group them into the Information Security group. Internet Business can be confused with E-Commerce and E-Banking. We intended the Internet Business to group the fields of the some businesses which are using Internet and make transactions via internet such as Online Registration.We found that Software Development risk analysis is most famous. In 2006, Software Development trend is the more than year 2005 and 2007. But year 2007 is not ended. So we cant make any decision for that year.Figure 6 Risk management processes in different information technology fieldsInternet Busi ness is the second thing to be learned. But Information security is down in 2006. Internet Business is coming up.ConstructionConstruction group has the fields of which are architectural fields and construction works. We learned that in 2000 and 2001, there are some interests upon that field. In 2001, the construction field can be seen as a hottest field.EducationWe grouped the some fields in to Education group that fields are Education fields, learning methods in Education. The research related with the Education can be seen in the year 2004 only.FinanceFinance group is wide. We formed the Finance group for some fields that are Cost Estimation, Accounting, Management Accounting and Banking. The finance is most famous in 2004. In the subsequence year, trend for the finance is running down to bottom.HealthcareWe collected the data for the health care. But it is difficult to collect for the healthcare. We learned that in 2005, healthcare was arrogate level. But later, we cannot see it until 2007.MarketingIn 2002 and 2005, marketing was in regular level. In 2003 and 2006, it was high up to 2. So, we learned that marketing was the regular level.OrganizationIn the organization group, we combine the Oil Field, NASA, and some other organization-oriented fields. There are some researches for the organization in every year. There are some researches in the organization group within 2002 and 2006.TerrorismTerrorism was the new emerging fields after 9/11 problem. But later, we were not obtainable for that field later years. This group is an exception for the risk management. But it is one thing to be considered later.MaritimeMaritime was the individual fields. We did not combine any fields to that group. This category can be seen in only 2001.InsuranceInsurance is the same as the Maritime. We learned that that group is only one field. We learned that the field was in the 2004 and 2005. But Insurance can become an interesting topic in future.General In General group, we combine other fields such as some theory approves and lecture views.Before conclusion section, we intended to present the findings as summary of data collection and analysis. Risk management is the sub-set of Project management. In academic field, risk management researches are becoming increasingly. According to our analysis, risk management researches related to Information Technology are highest topic of the research filed. But one of our exceptional cases is that we need to learn many research papers from many databases. We studied only three databases and 113 research papers. If we learned more papers, we can get more perfect result. In this paper, we categorized only 11 fields. It is general for the risk management. To get the better result, we also need to categorize the exact fields out of many fields. We can also categorize the risk management fields more according to the PMBOK guide.Conclusion and good wordBusiness organization and industries suffer from lost and harm bec ause of poor handling in risk management. They have been enduring the agonizing outcomes of failure in the form of unusual delays in project completion, with cost surpassing the budgeted cost and sometimes failed to meet quality standards and functional requirements. Competition among rivals makes the companies to deliver projects in less time and cost with better functionality.Risk management is a predefined and structured approach for identifying and analyzing potential risks associated with a project so that effective risk treatment can be done at the lowest cost. It is not impossible to eliminate all risk and costly to overdo risk management, but it is also inexpedient to think of eliminating risk. There will be, sometimes, positive risks those will lead to profit if properly analyzed and identified.Our term paper provides an analysis on papers and articles and conduct bibliographic study by particular risk management process and business category. Risk management researches are mostly done in commission critical environments and risky projects. As internet booms, information security and e-business issues are associated with a lot of risks. We found that majority of research papers are related to information technology in last decade. Risk in credit portfolio management, supply chain, pricing and insurance fields are also researched as they are related to financial lost and harm.Though risk management can offer significant benefits to a project in order to reduce filthy surprises and identify and act upon opportunities, it is, however, not a panacea for the problems and surprises which befall many projects and should not be seen as the silver bullet of project management (Pavyer, 2004) as Murphys Law is the governing law of project management if something can go wrong, will go wrong.As we collected from three databases, in the main from ACM, our result can be a little affected by other finding and papers. Results will be slightly different as we go tho ugh several databases. Even thought we titled to 2007, we believe that other findings and papers will come out during this year. But based on our analysis, some inferences and emerging trends can be seen.RecommendationsAs people and management are aware of the importance of risk management processes, it would be more affective and appropriate to put more emphasis on formal and or informal cultivation and training to further enhance their awareness of risk management. Formal education could be graduate studies in financial project management, software project management and construction project management etc. Informal education and training could be in the form of career development programs or workshops within organization or organized by academic institutions or professional seminars.each organization should have own risk management plan, risk response plan, and human risk factors plan. Risk management team should be formed according to project managers guidelines and organizatio nal goals. Project manager must aware of current risk management trends and technological trends for long term strategic planning. Researchers on risk management should cooperate and conduct on research areas which have been done less like autonomous agent systems, spacecraft systems, information security management.Appendix A. ReferenceBurke, R. (2003). Product Management. Biddles Ltd, Guildford.Brandon, D. (2006) Project Management for Modern Information Systems IRM PressCooper D., Grey S., Raymond G., Walker P., (2005) Managing Risk in outstanding Projects and Complex Procurements.Chapman, R. J., and Ward, S. (1997). Project Risk Management Processes, Techniques and Insights John Wiley Sons, Chichester, UK.Flanagan, R., and Norman, G. (1993). Risk Management and Construction, Blackwell, Oxford, UK.Pavyer, E. (2004). Evaluating Project Risk. Strategic Risk Management, Auguest 2004, 24-25Project management institute (2000). A Gide to Project Management Body of Knowledge Project m anagement institute, 6Raftery, J. (1994). Risk Analysis in Project Management, E FN SPON, London, UK.Snider, H. W. (1991). Risk Management A retroactive View. Risk Management April, 47-54Schwalbe, K. (2006). Information Technology Project Management. Thomson Course Technology, 425Yee, C. W., Chan, P., and Hu, G. (2001). Construction Insurance and Risk Management- A Practical Guide for Construction Professionals, The Singapore Contractors Association Ltd., Singapore.Appendix B. List of papersResearchersTitleDatabaseRisk CategoryYearBusiness CategorySub CategorySteven L. Cornford, Martin S. Feather,John C. Kelly, Timothy W. Larson, Burton Sigal,James D. KiperDesign and Development AssessmentACMRisk Assessment2000ITMary SumnerEnterprise Wide Information Man