The Effect of Integrating Risk Management on Large-Scale Information Technology Projects Using an Integrated Software Risk Management Tool Open Access
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A risk in principle is an uncertain event that if it occurs, may have an adverse or positive effect on a project's objectives. Adverse risks imply threats and positive ones may lead to opportunities. Proper risk management is creating an appropriate environment and a policy for maintaining efficient and effective processes that are vital elements not only to the success of projects but the organization as a whole. The occurrence of risks is a reality in information technology (IT) projects, regardless if it is an implementation of proven technology, a new one or development of software for a specific function. An appropriate approach is a practice whereby organizations methodically address these risks with the objective of achieving sustained benefit within each project and across the organization as a whole. On the other hand, poor management is ignoring the chances of anticipating time, resources, and scope or budget risks. Risk management incorporates risk planning, identification, analysis, response planning, monitoring and controlling and closing processes. These standard methods, marshal the understanding of potential upside and downside factors that can affect the business and increases the probability of success while reducing not only the likelihood of failure and cost overrun but also the uncertainty of achieving the organization’s overall financial objectives. This praxis represents a modeling approach focused on the impact of risk management on information technology projects by developing an integrated risk management tool. A framework to proactively adhere to risk management processes for identifying and analyzing risks so that proper responses are planned, risks are tracked, monitored, controlled and closed. The successful implementation of this risk management tool will serve as a guide to others for developing and implementing systematic project risk management that is suitable for their organizations. It helps provide better control over the future of the project and improves the chances of the project meeting its objectives and complete on time and budget. This praxis contributes to the practice of risk management in IT projects by refining the perception of proactively utilizing proper risk management processes from the inception of the project and throughout its lifecycle. It also improves the understanding of what drives the use of risk management processes and methodologies on IT projects for the improvement of projects success rates and the overall health of the organization. The failure ratio of IT projects meeting their objectives is a common concern and a frustrating challenge for executives. Integrating risk management processes throughout the lifecycle of project management using appropriate methodologies, techniques, and tools, mastering technology, relying on skilled project managers and effective teams and stakeholders’ management is practical and proven applications companies, project managers and practitioners can employ to increase the value and make the most of their IT projects.