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Risk management

INTRODUCTION:

Academic research into project management is fairly recent. This report addresses two specific areas that have been generating particular interest, debates as well as ample scope for further research in the field of project management - decision making and risk management.

Decision making in today's industry is highly complex due to the number of stakeholders and other factor involved. A critical review of these factors has been undertaken in this essay

There are numerous examples which provide evidence of how organisations can easily save millions of dollars and while at the same time avoid major risks by using process simulation l (Doloi & Jaafari, 2002). For example, in early 1993 the IBM PC Company based in Europe had faced a number of challenges that were causing an erosion of its market share. These were frequent price cuts, rapidly decreasing customer order response times, and a steady arrival of new products by much more aggressive competitors. The IBM management efficiently reacted to these record corporate losses by not only emphasising the necessity of reducing operational costs, but also the inventory throughout the company. This was possible due to the process simulation techniques that were used to evaluate the different manufacturing execution strategies and also in order to identify the distribution policies with lower costs (Chen, 1997).

CONCLUSION

To conclude, while academic debates have been on about the best techniques of risk management, their effectiveness in practice is to be established. There is further scope for research particularly within techniques for identifying and managing risks. Decision making in project management is no longer a hit and miss game and company's need to make use of all available tools such as ICT to get it right the first time.

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