TOSSA COLLEGE OF ECONOMIC DEVELOPMENT

DEPARTMENT OF PROJECT PLANNING AND MANAGEMENT

DEPARTMENT OF ECONOMICS (MSc)

PROJECT EXECUTION AND RISK MANAGEMENT

INDIVIDUAL ASSIGNMENT

PREPARED BY

YASSIN ESHETU MEHAMMED

ID No. TCED/162/14

SUBMITTED TO: - D.r DESSALEGN (PhD)

September 2022 Dessie, Ethiopia

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1. What are project execution management and project risk management?

Ans;

 To make clear that to implement or execute a project means to bring out actions planned in
the project proposal with the plan to attain development objectives and deliver results and
out puts. It is true that Implementation of a project involves coordinating and guiding the
project team members to complete the work as out lined in the approved project plan. In the
process of implementation resources, people are kept focused on the work to attain as per
the intended plan. It is also the project process that is most directly affected by the project
application area in that the product of the project is actually created by all concerned
stakeholders. Project execution is always concerned with the ideas of activities that can
produce the expected project outputs, the process and sequences of those activities, the time
frame or schedules to do those activities write down in plan, the responsible body for
carrying out each planned activities.

Whereas project risk management meansa term that clearly shows the identifying, analyzing, and
responding to the planned task in the risk throughout the life of a project and in the best interests of
meeting of minds or project objectives as it is determined, Identifying, analyzing, prioritizing, and
responding to the planned risk events, integration of risk management activities into our project
management functions. It is the developing responses to risk to meet our project objectives in some
of the objectives of risk management reduce the number of surprise events, minimize consequences
of adverse events, and maximize the results of positive events. It is the management of the risk that
will be executed and planned to the aimed project.

2. What is project risk management?

Ans;
 Project risk management is a term that clearly shows the identifying, analyzing, and
responding to risk throughout the life of a project and in the best interests of meeting
project objectives. A subset of project management that includes the processes concerned
with identifying, analyzing, and responding to project risk. It consists of risk identification,
risk quantification, risk response development, and risk response control.

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 3. Briefly discuss the four pillars in project execution management:-
Ans;

There are four pillars in project execution management tasks. They are system, people, Processes
and leadership.
1. System: It includes the actual site preparation, buildings, Equipment, machinery, facilities…etc.
and it is being ready to functioning to deliver planned project objectives. Without a system,
none of the project tasks are come to effect.
2. People: The Organizational framework should be systematized with the structure of the project
and Personnel‟s are hired and trained must be followed up to bring the objective of the projet
tasks. Also the adequate „soft institutions‟ for managing and operating the project
3. Processes: This process outlines the Supply Chain Management (i.e. Procurement of logistical
mats), Maintenance managementand Accounting systems, marketing and public or stakeholder
relations in the process must be implemented to reach the final goals.
4. Leadership: A good project leader must have gained prior experience across the three main
areas in the execution of a project Creating and sharing the vision of the organization. To create
and shared vision, leaders should show commitment to the project in a visible manner, and these
leaders must have the ability to articulate clearly what the project is designed to do and how to
arrive at that end. As communication holds more than 90% of the project tasks, Effective
Communication must incentivize performance Motivation skills Honesty and integrity in the
Team-building at project sites.

4. Discuss the processes and approaches of project execution management.

Ans;

Every project task requires a series of processes to bring the project to fruition. These processes are
pretty consistent, regardless of the industry or the type of deliverables. So that what are these
project management processes, and what do they consist of are our main targets.The five project
management processes are initiating, Planning, Executing/implementation, Monitoring and
Evaluation and Closing. The Project Management Body of Knowledge breaks down the over
arching process of managing a project into five stages, or “process groups.” These process groups
are typically defined as follows:
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 a. Initiating:

During this phase, the project is conceptualized, and feasibility is determined in the project. We
must understand that some activities that should be performed during this process includes
defining the project goal; defining the project scope; identifying the project manager and the
key stakeholders; identifying potential risks, and producing an estimated budget and time line.

b. Planning:

Next to initiation process, the project manager will create a blueprint to guide the whole project
from ideation through completion. This blueprint will map out the project‟s scope; resources
required to create the deliverables; estimated time and financial commitments; communication
strategy to ensure stakeholders are kept up to date and involved; the execution plan; and proposal
for ongoing maintenance. If the project has not yet been approved, this blueprint will serve as a
critical part of the pitch.

c. Executing:

During this phase, the project manager will conduct the procurement required for the project and
staff the team. Execution of the project objectives requires effective management of the team
members on the ground. PMs are responsible for delegating and overseeing the work on the project
while maintaining good relationships with all team members and keeping the entire project on time
and budget. The Project Management must, therefore, be highly organized and an exceptional
leader. That‟s because they will need to address team concerns and issues that arise along the way,
requiring frequent and open communication with all team members and stakeholders.

d. Monitoring and control:

During this process group, project managers will closely measure the project's progress to ensure it
is developing properly. Documentation such as data collection and verbal and written status reports
may be used. Monitoring and controlling are closely related to project planning. While planning
determines what is to be done, monitoring and controlling establish how well it has been
doneMonitoring will detect any necessary corrective action or change in the project to keep the
project on track.
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e. Closing/phase-out:

The closing process group occurs once the project deliverables have been produced and the
stakeholders validate and approve them. During this phase, the project manager will close contracts
with suppliers, external vendors, consultants, and other third-party providers. All documentation
will be archived, and a final project report will be produced. Further, the final part of the project
plans in the plan for troubleshooting and maintenance that will kick into place. When we come to
Approaches of Project Execution, it depends on and the most known are Top-down approach,
Bottom-up approach technical, Collaborative participatory approach. To discuss them one by one
we will elaborate them as follows.

i. Top-down approach

In simple terms, a top-down approach is an investment strategy that selects various sectors or
industries and tries to achieve a balance in an investment portfolio. The top-down approach
analyzes the risk by aggregating the impact of internal operational failures. It measures the
variances in the economic variables that are not explained by the external macro-economic factors.
As such, this approach is simple and not data-intensive. The top-down approach relies mainly on
historical data. This approach is opposite to the bottom-up approach directly.

ii. Bottom-up approach technical

A bottom-up approach, on the other hand, is an investment strategy that depends on the selection of
individual stocks. It observes the performance and management of companies and not general
economic trends. The bottom-up approach analyzes individual risk in the process by using
mathematical models and is thus data-intensive. This method does not rely on historical data. It is a
forward-looking approach unlike the top-down model, which is backward-looking.

iii. Collaborative participatory approach

Participatory Approach of a project seeks to engage the local populations in any development
projects. Participatory approach of development projects hastaken a variety of forms since it
emerged in the late 1970s, when it was introduced as an important part of the basic needs approach
to development projects. Most manifestations of public participation in development projects seek to
give the poor a part in initiatives designed for their benefit in the hopes that development projects

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will be more sustainable and successful if local populations are engaged in the development
process.

5. List the different factors (problems and experiences) affecting project

execution management.
Ans;

 Many factors are affecting the success or failure of implementation-related projects. A

talented project manager is one of the key contributors to manage them effectively. Many
fundamental steps and guides in the project management processes are taken for granted
because they seem very basic and obvious. This includes better and more factual testing
methods, communication processes and protocols, and the role of key staff members and
project manager. This results in many problems like delays in execution that result in
missed deadlines, uncertainty about the exact deliverables and expectations, confusion
about the direction of the execution, work requirements, and project status, dissatisfaction
in the client due to the quality of deliverables.

Also there are Factors that lead to success of projects are Political Commitment, Simplicity of
Design, Careful preparation, Good management, Involvement ofbeneficiaries/community, and
others. Also we can say that Factors and problems that lead to failure of projects:

 Financial Problems
 Management problems
 Technical problems
 Political problems
 Poor scheduling of projects leading to delays in implementation.
 Misallocation of funds
 Delay and sometimes lack of counterpart funding
 Lack of accountability and transparency
 Bureaucracy in decision-making.
 Selfishness/nepotism/favoritism by some project managers.
 Weak monitoring systems
 Natural calamities like drought, earthquakes, landslides, and hailstorms.
 Policy changes
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  Migration of beneficiaries
 Lack of team work
 Lack of incentives for implementers.

6. What is the difference between Risk and uncertainty? What is the role of risk
in project? Discuss.

A risk is the chance or probability of something that or may not occur; it is something which can be
quantified. A possible future event if occurs will lead to an undesirable outcome i.e. risk. A risk
should only be taken when the potential benefit and chances of winning exceed the remedial cost of
an unsuccessful decision and chances of losing by a satisfactory margin. A situation there is
uncertainty about the outcome, and the possibility exists that the outcome will be unfavorable. Risk
is a condition in which there is a possibility of an adverse deviation from a desired outcome that is
expected or hoped for. Project risk is an uncertain event or condition that, if it occurs, has a positive
or a negative effect on at least one project objective, such as time, cost, scope, or quality (i.e., where
the project time objective is to deliver in accordance with the agreed-upon cost; etc.). Project risk
involves understanding potential problems that might occur on the project and how they might
impede project success. Therefore, uncertainty is something, which cannot be predicted with
statically confidence normally due to insufficient information. The role of risk in projects are very
important to lead, support, and risk team membership management techniques for each type of
activity in the risk management plan, by assigning people to these roles and clarifies the
responsibilities. The risk response success will be dependent upon the full support and involvement
of the project team and other stakeholders. The key roles for Project Risk Management are those of
risk owner and risk action owner. A single risk owner should be assigned to every identified risk,
and each agreed-upon risk response should have a single risk action owner. The Plan of Risk
Responses process is to determine effective response actions that are appropriate to the priority of
the individual risks and to the overall project risk. It takes into account the stakeholders‟ risk
attitudes and the conventions specified in the Risk Management Plan, in addition to any constraints
and assumptions that were determined when the risks were identified and analyzed. This is all over
the roles and responsibilities of the project in project management techniques.

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 7. Discuss the processes and approaches of project risk management.

Ans;

The risk management process are identifying risks, planning risk management, Risk analysis, risk
response plan and some others as follows.

i. Planning risk management: Deciding how to approach and plan the risk management
activities for the project
ii. Identifying risks: Determining which risks are likely to affect a project and documenting the
characteristics of each
iii. Performing qualitative risk analysis: Prioritizing risks based on their probability and impact
of occurrence
iv. Performing quantitative risk analysis:Numerically estimating the effects of risks on project
objectives
v. Planning risk responses:Taking steps to enhance opportunities and reduce threats to meeting
project objectives
vi. Controlling risk: Monitoring identified and residual risks, identifying new risks, carrying out
risk response plans, and evaluating the effectiveness of risk strategies throughout the life of the
project.

Risk Management Approaches: There three kinds of approaches that can be followed for involving
management and stakeholders in identifying risks are:

 Top down-approach: this is the decision-making process that centralized at projects‟ governance
level.
 Bottom-up approach: this is the decision-making process that is done at management level in
project execution system. Operational risks are identified by any staff member while performing his
or her daily work in the project.
 Mixed approach: it is the broad entity that states the criteria (top-down) by which the heads of
unit identify and manage risks (bottom-up). Risks may be viewed and assessed throughout the
organization at any level (e.g., group, program, office, project, etc.). In order to set the framework,
the hierarchy of risks on which attention is focused corresponds to the enterprise, operational and
project levels.

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8. What is “scope creep”? What actions can a project manager take to avoid and
control scope creep on his or her project?

Ans;

Scope creep is an Adding or additional features or functions of a new product, requirements, or

work that is not authorized (i.e., beyond the agreed-upon scope) in any project tasks. Scope creep is
as “adding features and functionality of a project scope it is without addressing the effects in a
project on time, costs, and resources, or without customer approval. Change on projects is
inevitable, so the possibility for scope creep is also inevitable. Perhaps this is the reason why
taming scope creep is so challenging in project activities.

To conclude we don't mean to imply that additional functionality or work is not desirable on
projects. We also don't mean that scope creep occurs just because requirements change. The key
part is whether changes are authorized or not. If an expansion of scope is approved, then it is not
scope creep.

9. Describe the information that you would expect to find in a „risk register‟
Ans;

A risk register is a document that contains the results of various risk management processes and that
is often displayed in a table or spreadsheet format it is a tool for documenting potential risk events
and related information in project management techniques. Risk is an event that refers to specific
and uncertain events that may occur to the detriment or enhancement of the project tasks. Risk
register is the main output of the risk identification process in that a list of identified risks and risk
events as well as other information needed to begin creating a risk register. An identification
number and name for each risk event. Its contents are a rank for each risk event, a description of
each risk event, the category under which each risk event falls, the root cause of each risk, triggers
for each risk; triggers are indicators or symptoms of actual risk events, potential responses to each
risk, the risk owner or person who will own or take responsibility for each risks.

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 10.Identify and describe three common techniques or methods used in risk
analysis
Ans;

There are there common techniques or methods of risk analyses. They are Quantitative technique,
Qualitative techniques, Contingency planning.

i. Quantitative technique:

Performing quantitative risk analysis is often follows qualitative risk analysis, but both can be done
together. It is used in large and complex projects involving leading edge technologies often require
extensive quantitative risk analysis. The main quantitative techniques include the decision tree
analysis, simulation and sensitivity analysis. It relies on a numeric value which uses objective data
that requires understanding of probability theory to removes some uncertainty issues. It should be
based on historical data and some examples are: sensitivity analysis, expected monetary analysis,
and modeling and simulation.

ii. Qualitative techniques

Qualitative techniques are a qualitative risk analysis tool that helps to identify risks and maintain
an awareness of risks throughout the life of a project. It establishes a periodic review of the some
project risk items. They are the current ranking, previous ranking, number of times the risk appears
on the list over a period of time, and a summary of progress made in resolving the risk item. It
keeps management and the customer awareness of the major influences that could prevent or
enhance the project‟s success. It is occurred by involving the customer and the project team may be
able to consider alternative strategies for addressing the risks. It‟s a means of promoting confidence
in the project team by demonstrating to management and the customer that the team is aware of the
significant risks, that has a strategy in the place and is effectively carrying out that best strategy.

Many organizations implement a project rely on the intuitive feelings and past experience of experts
to help identify potential project risks. Experts can categorize risks as high, medium, or low with or
without more sophisticated techniques. It can also help create and monitor a watch list, a list of
risks that are low priority, but are still identified as potential risks.

iii. Contingency planning

Contingency plans are plans that can be predefined actions in which the project team will take if an
identified risk event occurs. Fallback plans are developed for risks that have a high force on
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meeting development objectives, and are put into effect if attempts to reduce the risk are not
effective. Contingency reserves or allowances are provisions held by the project sponsor or
organization to reduce the risk of cost or schedule overruns to an acceptable level; management
reserves are funds held for unknown risks that are not part of the cost baseline but ARE part of the
budget and funding requirements.

11.Identify and describe three common techniques used in quantitative risk

analysis
Ans;

The Main quantitative techniques include decision tree analysis, simulation, and sensitivity
analysis. A decision tree is a diagramming analysis technique used to help select the best course of
action in situations in which future outcomes are uncertain. Simulation uses a representation or
model of a system to analyze the expected behavior or performance of the system. Simulation has
three estimates (most likely, pessimistic, and optimistic) plus an estimate of the likelihood of the
estimate being between the most likely and optimistic values.

12.Discuss the four basic response strategies for negative risks

Ans;

Strategies for Negative Risks are avoided, transfer, mitigate, and accept the systems. To see them
one by one we discuss as follows:

i. Avoid: Risk Avoidance can involve changing the project management plan to get rid of the
danger posed by the risk. Some risks can be avoided by clarifying requirements, getting
additional information, improving communication or acquiring expertise.
ii. Transfer: Transferring a risk requires moving, shifting or reassigning some or all of the
negative impact and ownership to a third party. This does not eliminate the risk but gives
another party the responsibility to manage it.
iii. Mitigate: Risk Mitigation implies a reduction in the probability and/or impact of a negative
risk. Reducing the probability and/or impact of a risk occurring is often more effective than
dealing with the risk after it has occurred.

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iv. Accept: This strategy indicates that the project team has decided not to change the project
management plan: schedule, approach or reduce project scope or is unable to identify
another suitable response strategy.

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