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  • We foster a "risk-aware culture" within an organization by encouraging certain behaviors and rewarding them, and by putting in place various processes (Fraser & Simkins 2010, p. 91). Some of the behavioral elements that need to be inculcated in the organization’s culture include risk-taking behavior, creativity and positive reinforcement. The process elements include measuring, monitoring and reporting about the behavioral elements and having an appropriate governance system in place to guide such processes (Fraser & Simkins 2010, p. 91). A risk-aware culture is important in complex project management because it enables the people involved in the project to know the risks that they are likely to encounter and how to address them.

We foster a «risk-aware culture» within an organization by encouraging certain behaviors and rewarding them, and by putting in place various processes (Fraser & Simkins 2010, p. 91). Some of the behavioral elements that need to be inculcated in the organization’s culture include risk-taking behavior, creativity and positive reinforcement. The process elements include measuring, monitoring and reporting about the behavioral elements and having an appropriate governance system in place to guide such processes (Fraser & Simkins 2010, p. 91). A risk-aware culture is important in complex project management because it enables the people involved in the project to know the risks that they are likely to encounter and how to address them. Essay Example

  • Category:
    Other
  • Document type:
    Assignment
  • Level:
    Undergraduate
  • Page:
    1
  • Words:
    418

Q1.What is the difference between “errors of commission” and “errors of omission” in complex project management? Please provide examples.(80WORDS)

An error of omission means failing to do something that ought to have been done while an error of commission means doing something that ought not to have been done (Kliem & Anderson 2003, p. 128). An example of an error of omission is failing to communicate the details of a project to the concerned stakeholders. On the other hand, an example of an error of commission is expanding the scope of a project to include activities that had to been planned for.

Q2.What is the difference between «value protection» and «value creation» in the context of risk management of complex projects? Please provide examples.(80WORDS)

Value protection involves measures that are taken to safeguard or preserve the value or intellectual property of a given project (Duening, Hisrich & Lechter 2010, p. xviii). An example is insuring a project so as to protect it from loss. On the other hand, value creation encompasses mainly those functions of a project that have to do with establishing the project and with aspects such as selling and marketing the project to enhance its value (Duening, Hisrich & Lechter 2010, p. xix). An example is creating awareness about the benefits of a given project to the project’s stakeholders.

Q3.How do we foster a «risk-aware culture» within an organization? Why do you think it is important in complex project management?(80WORDS)

We foster a «risk-aware culture» within an organization by encouraging certain behaviors and rewarding them, and by putting in place various processes (Fraser & Simkins 2010, p. 91). Some of the behavioral elements that need to be inculcated in the organization’s culture include risk-taking behavior, creativity and positive reinforcement. The process elements include measuring, monitoring and reporting about the behavioral elements and having an appropriate governance system in place to guide such processes (Fraser & Simkins 2010, p. 91). A risk-aware culture is important in complex project management because it enables the people involved in the project to know the risks that they are likely to encounter and how to address them.

References

Duening, TN, Hisrich, RA & Lechter MA 2010, Technology entrepreneurship: creating, capturing, and protecting value, Elsevier Inc., Burlington, Massachusetts.

Fraser, J & Simkins, B 2010, Enterprise risk management, John Wiley & Sons, Inc., Hoboken, New Jersey.

Kliem, RL & Anderson, HB 2003, The organizational engineering approach to project management: the revolution in building and managing effective teams, St. Lucie Press, Boca Raton, Florida.