This website uses cookies to ensure you have the best experience. Learn more

Risk & Uncertainty Essay

2291 words - 9 pages


In order to tackle the issue surrounding the definition of the terms “Risk & Uncertainty” we should look at the general framework of project management which is a business and management of the changes that may occurred during the life cycle of the project because of the circumstances surrounding it including political perceptions, and the value management which are vital in taking decisions. Although, there have been a number of researches interested in accessing the field of risk management framework, where it has influenced some areas as “crime, social work, health, regulation and organisation” (Zinn 2009).

However, APM (2006) has defined the project management as “the process by which projects are defined, planned, monitored, controlled and delivered such that the agreed benefits are realised. Projects are unique, transient endeavours undertaken to achieve a desired outcome. Projects bring about change and project management is recognised as the most efficient way of managing such change”.

All projects are unique and complex in term of time, budget, circumstances, quality, performance, and the geographic location and culture, moreover, are constrained with the limited resources, in addition to the estimations performed by people based on previous experiences or some probabilities (APM 2006). Not to forget stakeholder participation in the multiplicity of outcome that results from the accumulation of serious events or lack of reliability and uncertainty in the project as a whole (APM 2006).

APM (2006) shows that “the project risk management must be built into the management of projects, and should be used throughout the project life cycle”. Therefore, monitoring and controlling the multiple tasks of the project during the life cycle due to the increasing of the customer demands with the globalisation market pressure though, will need to manage (the risks in which considered as downside) or (the opportunities that considered as a bonuses) that may arise from the changes could occur in the project. However, that means in some extent the risk and uncertainty are exist in any project whether they have negative or positive impact.

Thus, we should take into account the importance of the project risk management and its techniques in order to reach a firm decision in favor of the project and therefore in the interest of the organisation and the stakeholders. Merna& Al-Thani (2005) pointed that it is vital to have a high profile comprehensive risk management strategy in order to survive the market needs nowadays; and this point supported by the argument presented by (Nigel J. Smith, 2003) which states that the project risk management is a very important techniques serving not only the project but also the stakeholders, customers and the organisation as a whole.

Notwithstanding, there is a significant number of researches conducted in order to identify a common definition of the term “Risk & Uncertainty” whether they have...

Find Another Essay On Risk & Uncertainty

Influence of national culture on FDI

2529 words - 10 pages opportunities as well as what is the possible risk involved, two sub-research questions can be stated: First, which factors do most strongly affect the choice to enter into a new country? Second, what is the most efficient way to reduce risk in order to achieve a successful FDI? To extent these main statements, the paper focuses also on the interactive effects of uncertainty avoidance and trust on FDI. Since, these specific cultural values underline and

Cultural Issues and the Psychological Framework

645 words - 3 pages Avoidance This dimension explains the level at which different cultures are able to cope with uncertainty, and its ability to deal with the risk of the unknown (Andrews University, n.d., para. 1). If an employee comes from a culture that has low uncertainty avoidance, then it might be easier for them to adapt to new situations and cultures. There would be less fear of relocation for an employee from a country with low uncertainty avoidance, but

Dow Jones Industrial Average

708 words - 3 pages because investors do consider the price before selling or buying the stock.Votality is more in cycles due to the risk and uncertainty in the market. The difference between the Dow's high and low has been seen more in the past three years due to different factor in the US economy as well as the global economy. Some of these factors are the rising prices of oil, war, and the weakening US dollar in the market. in the past year the value of Dollar has

Uncertainties in Strategy

980 words - 4 pages can return far higher payoffs, far more quickly; the wrong ones carry a much higher risk of systemic failure. Betting big today may fundamentally reshape a market on a global scale to the advantage of a company or quickly produce losses that can throw it into bankruptcy. A company may avoid foolhardy mistakes by waiting for uncertainty to diminish, or it may squander the chance to lay claim to first-mover advantages.The truth is that no dominant

Investigating Insolvent Trading

1412 words - 6 pages This paper considers “how, when and why” a firm ought reasonably suspect insolvent trading via exploration of areas of law, management, psychology and economics. Factors given consideration include the difference between risk and uncertainty, the imperfection of market information, the risk appetite of entrepreneurs, the impact of corporate culture on self-awareness and finally criteria for assessing proximity to insolvency from both a case law

Risk Management

589 words - 3 pages the control of uncertainty because by identifying and questions could affect the success of a project, thus assesses the cost benefit. Another advantage is by setting the project objectives will help you to recognize any constraints that might have an impact on the project. Risk can be reduced by visualization of the finished project. Risk and opportunity goes hand in hand, taking into account the possible outcomes drives you directly to


5603 words - 22 pages 1996; Zeitz, Johannasson, and Ritchell 1997; Jabnoun 2001). Reed, Lemak, and Montgomery (1996) attribute this failure rate to the fact that the match between environmental uncertainty, firm orientation, and total quality management (TQM) was not properly addressed. They generally focus on the content of TQM in relation to firm orientation (internal focus/customer focus) and performance in the context of environmental uncertainty. They relate

What´s Risk Management?

775 words - 4 pages Risk Management Risk management is the process of responding to uncertainty and potential hazards (Barnabei, 2008) which can be studied in different approaches: psychology, anthropology, sociology and interdisciplinary studies. Psychology deals with human behavior while anthropology and sociology explores on the effect of culture and societal values on the said process. The interdisciplinary approach on the other hand is the framework used to

Societal Risk Assessment

3279 words - 13 pages components and is therefore (intrinsically) open to negotiation and contestation (Shrader-Frechette 1991).Statistical probability is a mathematical concept that quantifies the chances of an event or occurrence, and it has limited relevance for explaining how people think and act in situations where there is an element of uncertainty. People do not always make rational decisions about risks from a point of view of scientific risk assessment definitions

Cognizant Technology Solutions

634 words - 3 pages introduction of TIB) to have differentiated departments closer to the core of their cross border client service offerings. Such organisational differentiation in response to the complex and rapidly changing environment faced by Cognizant put them at risk of creating silos that potentially dealt with the uncertainty of changing requirements in a discontinuous way (Daft et al., 2010). Due to this increasing uncertainty of the external environment

The Issues and Importance of Risk Reporting

2171 words - 9 pages (Berg, 2010). Rules on risk disclosure in the company reports are designed in order to improve transparency and reduce market disorientation. Thereby improving the market efficiency of the capital markets. With the financial crises main focus of attention is directed at the importance and issue relating to risk reporting (Abraham and Marson 2012) Risk is driven by internal and external factors and is viewed by ASB and ICAEW as an uncertainty on

Similar Essays

Types Of Poject Management Essay

1011 words - 5 pages support stage (Ward and Chapman, 2003). The word ‘risk’ can be defined as ‘the relevant uncertainty’. A more refined definition will be ‘the uncertainty that will affect one or more objectives which is in other words are relevant uncertainty’. It is common for the word ‘risk’ to be confused with uncertainty since it brings ambiguous meaning and feeling. Although it may sounds easy to define the word risk, Dowie (1999) does not think it so. He

Uncertainty Essay

1008 words - 5 pages two ways ‘wait and see ‘ strategy and ‘just do it ‘ strategy. Under the wait and see approach until the future becomes clear large investments are post ponded which can lead to a big opportunity for the rivals. Whereas under just do it approach executives place misinformed bets on the emerging markets which can lead to record write-offs. Uncertainty is very tricky when it comes to taking a measure if the managers are risk averse and think that

Multinacional Companies Ownership Advantages And Internalisation

1260 words - 5 pages OA; i.e. apply it itself to support its own production of the final product (or service) embodying the knowledge or skill. Internalisation theory (Buckley and Casson, 1976). These markets for intermediate goods are characterised by high risk and uncertainty as perceived by both buyers and sellers, the costs of making markets for OA's work are sometimes very high. There are often very high transaction costs in such markets, in the form of

An Analysis Of The Great Influenza By Author John M. Barry Ap English Analysis

876 words - 4 pages "through the looking glass into a world that seems entirely different". Their standing right on the frontier deciding which way they should take, they could risk everything to solve the uncertainty or stay where they are at because they can not make the decision to risk everything they have. The previous sentence is long, but it elaborates a bit for the reader to understand Barry's purpose of uncertainty and certainty. "Like a crystal to precipitate an