Risk Management Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

1. PROBLEM STATEMENT

The problem associated with IT managers is that they do not have any idea of risk at all regarding how risk develops and its consideration on future operations. Most of the IT mangers have no idea what risk management is, some are so concerned with the current task in hand that they don’t have time to conduct risk management, whereas some part of risk management is a costly procedure with minimum benefit and some just don’t do it because they don’t want to use the scare resources of shareholders with uncertain futures.

2. Analysis:

There are different things that need to be understood by IT managers in order tp avoid risks, such as the nature of risks and the nature that an individual IT manger has. These two things determines that how an individual reacts in uncertain situations.

a) Nature of risk:

The nature of risks always depends on the nature of an individual that how an individual responds in a critical situation or in a difficult situation. This response is developed by the previous experiences that an individual may have. For an IT manager, the level of risks associated with the project is always unknown and they fail to respond to react on these risks because they do not have any experience and it is also because they are only aware of the technicalities of the risks and do not know about how to cure them. They also have the nature to identify the risks but do not make decisions regarding these risks. Therefore, they always have the nature that identifies risks that enables them to avoid risks.

b) Probability of effects/Likely hood of risk

They always know the probability of the risks that a project possess because they always perform the positive result oriented work and those tasks that have the tendency to go worse is always avoided by the IT managers. They only know the technical part of the tasks that have the positive result or that will create the value and this positive result oriented tendency leads them to avoid the risks. By doing so, it becomes a part of their nature to avoid tasks or project that has the tendency of risks.

IT managers are also unaware of the management of risks that how risks should be eliminated or how to manage risks associated with the projects, which is also because of the tasks they perform. They only know that how to secure the data base, software, hardware and the interconnectivity of the information system. Hence, they do not know which decisions should be taken in order to manage risks.

c) Magnitude of effects/impact of risks

IT managers also avoid the risks associated with the project on the basis of the impact those risks have as an outcome. It is because they only knew about the IT related function, and do not have the knowledge about the financial aspects of the projects. The financial aspects that an individual project has are the cost incurred in the project and the return generated by incurring those costs. IT managers are not concerned about the cost and the returns it will generate; it is because they are only concerned about the IT related matter such as the transformation of information, storage capability and capacity of the technological equipments and machines. They also know only about the technological advancement of the equipments. What causes the equipment to fail is the concern that the IT managers have.

The IT managers also avoid the methodologies that identify the risks. In this they are either unaware of the scaling procedure that how to scale particular risks and what are the attributes that are used to rate the risks associated with the project. They don’t even know that how to solve the risks regarding the team conflicts that are associated with the project. This conflict creates hurdles in completion of the project on time and IT managers don’t know how to handle this risks and how to rate this risks and what impact this may have on the project. The team assigned for the project has different tendency to take on the responsibilities of assigned tasks. If these members of the teams are not contributing in the benefit to complete the project then it is not the concerned matter of the IT manager as they perceive it as personal matter of that member. In these situations, IT managers do not take any restrict action into this kind of matter and unconsciously this leads the project towards disaster or failure as they don’t know the impact that these matters have on the projects...................................

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