Risk Analysis And Risk Management In New Product Development Projects

As the complexity of projects increases, schedule and budget become tighter and tighter,more and more unknowns which lead to project failure arise nowadays. In order to succeed incomplex projects with limited resources and within schedule, to predict and management thepotential risks in projects becomes a new challenge for project managers, thus risk analysisand management becomes a hot topic in project management fields. Proper implementation ofrisk analysis and risk management tool will help to finish projects on time with desired qualityand within budget. Thus, it’s very important for the enterprises to set up a complete riskanalysis and risk management work flow. This thesis aims to provide a suitable work flow ofrisk analysis and management for my department by an intensive study on the risk analysisand management theories.At the beginning of this thesis, what is risk, how to analyze risk and manage risk will bediscussed. And in particular, methods of how to analyze the possibility and impact of a risk ifit happens will be studied, including fault tree analysis, event tree analysis, FMEA andHAZOP. Besides these subjective methods, modeling and simulation in computerenvironment will be also introduced.At later on of this thesis, more intensive studies will be done on the topics of project riskanalysis and risk management and its methods. A real project will be selected and conductedby using complete risk analysis and risk management work flow from the very beginning.Different techniques like qualitative analysis, quantities analysis, modeling and simulation,SWOT and etc. will be used in this real project. And meanwhile, the risks which have beenidentified will be managed in several methods e.g."the three steps". A comparison will bealso given of the effectiveness between this project and a project in the past which hadn’t beenconducted with this work flow. In the end, a work flow which fits the situation of mydepartment will be proposed.