discussion internal factors of the risk may arise


Risk identification is one
of the most sensitive areas in the projects because it requires proper consideration
from each and every point of view.The main sources of the risk could be either
internal to the project or external to the project whereas internal factors of
the risk may arise from people, processes, procedures, organizational culture,
managerial decisions, quality of the equipment etc  (Hilson, 2003).The primary purpose of the
risk management is to increase opportunities and decrease threats by keeping
the focus on objectives and goals of the project (Hillson, 1999).Since Project
management is a combination of teamwork so effective communication plays an important
role throughout the life cycle of the project but Enterprise Technology
Projects (2016) mentioned  4 common miscommunication
mistakes in projects  and one of them is
that we often think that we have done enough communication within teams to
completely understand the nature of the projects and there is a true fact
regarding this is that no amount of communication is ever enough.When Team 2
arrived at the site, there was no proper communication in between the Team 1
and Team 2 about cement bond log test (Deepwater
Horizon, 2016). In Risk Management, before identifying
general or overall risks, it is more important to identify that what events
might be risky against which barrier at what stage. There is no doubt
that most probably same nature of the risks impacts on same objectives which
means that technical risk could influence technical objectives and in the long
run these objectives may disturb overall goals of the project (Jaafari, 2001;
Hillson, 2005). In Deepwater horizon, one of their technical safety officers told them that 10% machinery on board
is not working properly and may cause hazard during the drilling process but
that won’t help in convincing the management to stop from performing the last test. In some cases, performing risk
analysis or mitigation of risk requires more expenses that result in exceeding the current budget up to
20%, but the main thing is that whether the reduction
in the risk worth the additional expenditure? (Morris et al., 1991). That was the main reason behind not doing
cement log test in Deepwater Horizon, management
was already late for 43 days and they were ahead of almost $50 million more
expenditure because they were confident enough about cement log for more
drilling without testing the capability of its current state. If you want your
decision making to be efficient then there is a need to quantify security and
safety risks to enable risk-based assessments of the effectiveness of
protective measures (Stewart et al.2006; Little 2007). Management at Deepwater
Horizon didn’t expect that sort of disastrous blowout, but again not enough
amount of prearrangements was done to protect the workers from the fire. Deepwater Horizon incident took lives of
11 workers just because of management’s immature behaviour and decision-making process. In a nutshell, the business world is all about profit and loss and
if investor lost their money from one project then maybe they find different opportunities
in other projects to get a return on
their investment but the most valuable assets in any organizations is the lives of the employees because we can’t
get it back in case of loss.

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