I’m studying for my Management class and don’t understand how to answer this. Can you help me study?
Please respond to both POST1: (A question from the professor) and POST2: (A peer response) in at least 250 words each.
MY ORIGINAL POST:
Scope Risks in Project Management
Project management is an elaborate process that requires the identification and mitigation of the various risks that are probable to ensure the successful implementation of the project plan. One of the risks that a project manager has to deal with is a scope risk. Scope refers to the processes that are scheduled to occur to allow the proceeding of the project from one phase to the other (Bissonette, 2016). Therefore, scope risk refers to the various unprecedented processes that may arise within the implementation of a project plan. Identifying and mitigating these risks is key in ensuring that the project proceeds without getting out of the financial projections to allow profitability in the long run.
There are three categories of scope risks. One of the most prevalent forms is scope creep. This refers to the essential requirements that crop up as the project proceeds (Kendrick, 2015). Fulfilling these requirements is imperative in the realization of the objectives. Creep risk may occur as a result of poor planning in the project planning phase. They can also result from the decisions of new stakeholders who were not involved in the initial plan. The respective activities that were unplanned for and require to be fulfilled represent the other form of scope risk that is referred to as the gap (Ference, 2015). The other form of scope risk is called the scope dependencies. During planning, there are the necessary inputs that are budgeted for beforehand. However, as the project proceeds, other inputs may come up, and their presence is vital in enabling the development of the project. These inputs are the scope dependencies.
Of all the above-mentioned types of scope risks, the scope creep is the easiest to identify and mitigate. This is because it primarily involves processes that, if their probability of occurrence can be determined beforehand, mitigation would be straightforward. To reduce this risk, you need to analyze all the project’s stakeholders that include the project manager, third parties, and clients. Identifying the kind of changes that they can cause to the project is key in scope creep mitigation.
A Black Swan refers to an unpredictable event beyond the standard expectation of a situation. Usually, a Black Swan results in severe damage to an organization (Chappelow, 2019). In project management, sometimes, there are unpredictable risks that may arise in the course of a project. Since these risks are unpredictable, it is only important that the management builds robust systems to prepare for them. An example of a Black Swan is terrorist attacks that may leave for the closure of a premise, thus distorting operations completely.
Bissonette, M. M. (2016l). Project risk management: a practical implementation approach. Project Management Institute.
Chappelow, J. (2019). Black Swan. Retrieved from https://www.investopedia.com/terms/b/blackswan.asp
Ference, S. B. (2015). Don’t let scope creep lead you out of bounds. Journal of Accountancy, 220(3), 18-19.
Kendrick, T. (2015). Identifying and managing project risk: essential tools for failure-proofing your project. Amacom.
POST1: (A QUESTION FROM THE PROFESSOR)
Welcome to week three and thank you for the continued engagement. The passage above states that scope creep (out of all of the other risks) is the easiest to mitigate. Many of your peers also believe this. What if the scope creep is occurring due to external factors? For example, I was volunteering for the Red Cross and we had to assist with the building of the external facilities for storm damage. Due to the weather, our project’s timeframe and added scope were required due to requiring more out-buildings as the storm was getting worse.
POST2: (Peer Response)
The PRBOK Guide describes scope creep as the uncontrolled expansion to product or project scope without adjustments to time, cost, and resources is referred to as scope creep (PMI, 2017, p. 154). Change on projects is inevitable, so the possibility for scope creep is also inevitable. Scope creep is a slow of gradual increase in scope beyond the original plan. Scope creep can occur with lack of clarity to the original specifications and poorly defined initial requirements. It is important to understand your scope of work beforehand in order to avoid additional work later.
This is when a requirement is not fulfilled, or delivered (Mahler, 2016). An example would be if you have a certain amount of time and money to complete something and then the customer asks if you can include more, before you think about the cost, time and resources, you say yes I can deliver. Now you are on the hook for more than what you have time, money and resources for.
Scope dependencies are due to outside risks caused by external factors. When you have activities that are dependent one another to finish or provide a piece of information before it starts, it poses a risk in not only your scope but your schedule as well.
Scope Gap would be the easiest to mitigate because you can control your commitment to additional deliverables. Before you commit, make sure you have the time, cost and resources available to deliver on your promise.
The term “Black Swan event” has been part of the risk management lexicon since its coinage in 2007 by Nassim Taleb in his eponymous book titled The Black Swan: The Impact of the Highly Improbable. Taleb uses the metaphor of the black swan to describe extreme outlier events that come as a surprise to the observer, and in hindsight, the observer rationalizes that they should have predicted it (Martin-Vegue, 2018). There may be something that can be done to reduce the impact (e.g. diversification of company resources in preparation for an earthquake) or perhaps nothing can be done (e.g. market or economic conditions that cause company or sector failure). Nevertheless, risk managers would be remiss to not point this out. I have not had to experience this within my professional career but I feel like I would be wrong to say that I have not experienced this at all, my personal life, I am sure of, has had some black swan moments.
Kendrick, C. (2003, September 25). Overcoming project risk. Retrieved from https://www.pmi.org/learning/library/overcoming-pr…
Mahler, B. (2016, May 15). Scope Creep or Scope Gap? Retrieved from https://www.linkedin.com/pulse/scope-creep-gap-bob…
Martin-Vegue, T. (2018, March 19). Black Swans in Risk: Myth, Reality and Bad Metaphors. Retrieved from https://www.fairinstitute.org/blog/black-swans-in-…