Financial or technical, commercial or legal, the risk can affect an organization at any given time. Operations and compliance along with laws and regulations input by an organization have an important role in controlling the factor of risk within a project. As Pinto (2013) well noticed, projects tend to operate in an environment composed of uncertainty. There are projects that succeed and others that fail. The difference between these two types of project is given by the plan developed as well as the level of risk. More so, in the event in which the critical path for a project has a high level of risk, the way the resources are used once the risk factor was identified becomes crucial for the success of the project.
Risk Management is the science that identifies analyzes and responds to the risk factors throughout the life of a project (Pinto, 2013). Before a project is put in place and a plan that goes along created, the Team Management for the project needs to make sure that is identifying and controlling the risk associated with the project. The team needs to consider any unexpected situations that might appear and try to come out with a strategy of mitigation in the event in which the factor of risk is happening throughout the life of the project. At the same time, the management needs to be able to analyze the probability of the risk to happen and the consequences that are taking place once the event took place. Once the factors of risk are identified, the manager needs to make sure if and at which extent the factor of risk is going to impact the critical path of the project.
The healthcare industry is focused more on benchmarking and measuring. Therefore, operational efficiency represents a highly important for the medical providers. The health care operations companies are looking to operate at no loss and if possible to maximize their profits. Considering that health care companies are evaluating operational efficiencies, meeting their expenditures can help the healthcare organizations survive on the long run. (Hall, n.d)
The risk management strategies are presented easily with the help of an important tool, the risk matrix. There are people that are willing to take a high level of risk while others are not ready to risk anything; unless they are reassured that nothing will go wrong. According with Onkuwa (2010) this group of people is interested more in preserving capital and reputation. They are unlikely to take an unacceptable level of risk for high gains. Regardless of the type of risk taker one is, having a method of determining and estimating the level of risks is crucial in any business and organization. Different levels of risk have different approaches and handling strategies.
Critical Path at Risk
According with Pinto (2013) the risk management is a four-stage process. The first step in the process is represented by the risk identification. In this step, the critical path is identified and any...