Answer to Question #185252 in Management for Naseer Mazen

Question

Discuss three reasons why risk management is important in IT projects?

Answer 1

Risk management in IT projects is a core component in project control. This involves three key steps i.e., Identification; Control; and Monitoring. Risk management cycle kicks off during the initial project planning and periodically repeat throughout the project. In IT projects, risk management is important because of the following reasons:

Identification of troubled projects - with risk management, it is easier to identify troubled projects, assess them and plan for the best response strategy. this can be done by virtue of the project's risk trajectory and if a project progression results in accumulation of risk, decisive actions can be taken.

Better quality data for decision making - performing IT projects properly requires analysis of technology risks which requires available technical information. Risk management in IT projects thus help to identify any technological problems and address them appropriately.

Clear expectations - Most individuals want their IT projects succeed as envisioned. To avoid unnecessary disappointments, risk management in IT projects can help stakeholders identify risks and activate risk contingencies to ensure the completion of the projects.