Last updated: 08.12.2021 02:09
With the accelerating development of information technologies and the growing needs of users, IT project management is essential, regardless of the size or type of project. Taking this further, risk management is an integral part of IT project management. In this article, learn what is risk management in an IT project and what are its main methodologies.
Read on to find out:
A project is a set of coordinated activities and actions that mobilize resources within a specific time frame, with a beginning and an end, in order to meet a clearly identified need.
For an IT project, this is a goal to develop new software or install a system solution, such as ERP (enterprise resource planning) or CRM (customer relationship management). This type of project usually requires these several steps to follow:
Technology is often expensive: McKinsey found that nearly half of all IT projects go over budget (The art of project leadership: Delivering the world’s largest projects, 2017). That’s mainly caused by the errors in IT management which lack the know-how of several areas like accounting, finances, sales, etc.
IT project managers face challenges that are very specific to this sector:
Now for the good news. Success rates have been improving for some time. Money wasted has dropped by 20% since companies started managing IT projects differently than other processes (The Impact of Project Management Methodologies on Project Success, 2017).
A good example is American Airlines which decided to increase its visibility of divisional and global priorities. For this reason they implemented resource IT management for all the fields:
This way, the company increased the 10 percent of their IT labor to 20 percent. It translated to a multi-million-dollar net revenue. (Planview, 2017).
IT project managers help companies achieve their strategic goals through technology. They are responsible for planning, implementing and managing technology-driven projects. This includes:
Depending on the industry, they may also be in charge of specific responsibilities. For example:
In the IT sector, risks come from losses or damages that may occur following many factors like:
This is no easy challenge and a lot of responsibility and therefore it is necessary to implement appropriate measures. To take this further, a person responsible for management should be acquainted with IT processes as well as all the threats.
The way IT systems are developed, integrated and managed is changing dramatically, and for your organization to be both proactive and reactive, you need to integrate IT security into the infrastructure and product lifecycle as early as possible, as well as into your risk management strategy.
By helping you adopt predictive analytics and automation tools that monitor your infrastructure, we can also reduce the risk.
Operations teams can use predictive analytics to proactively identify and resolve issues before they affect your environment. it’s very important to eliminate it in time, as it can have long-term effects that can result in bringing the project to the end. Not only that, it can present a real threat to the company’s security, credibility and financial liquidity.
There are many methodologies in project management, such as :
Some of the methods are more often used in IT project management, such as the Agile Scrum method, which offers great visibility and allows the team to be more reactive.
Here in Altkom this is our most common choice as it applies very well to the development cycle of an IT solution and puts a great emphasis on risk management. As per our experience, this is the best method to ensure that risks aren’t a serious threat for the project’s health but even more so, it helps to reduce costs as much as possible by applying the most optimized approach. By using Agile methodology, you are well prepared for your risks but also know how to eliminate them before they are even a threat.
Agile Methods are much different than “classic” risk management in that they approach the risks of an IT project in a much more offensive way. The project is organized so it can remove the strongest risks as soon as possible, those that threaten the most to compromise the smooth running of it.
Knowing how to manage risks is a good project management practice that has been taught for many years. But why is that usually talked about with a mention of Agile?
Let’s break it down to some points:
Our main goal is to keep up the best communication with our clients to best understand their needs and priorities. As result, it helps us to best understand the risk for their project and therefore eliminate them with agile solutions.
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