High Value or High Risk Projects
High Value Projects or High Risk projects have to go through thorough audit, inspection and approval.
The purpose is to increase the likelihood that the project will achieve the desired results in a timely manner as per the agreed budget and advice on the risks of deliverability.
It is also important to verify that the planning of the project and procurement processes have been followed to support quality project planning and documentation processing.
It is in the best interest of any organization to optimize the selection of projects with the highest risks or value to safeguard its interests.
The following concerns need to be addressed before starting any project, especially high value and risk projects:
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Does the project executor have the capacity and sufficiency to deliver the required project?
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Does the governance team has the necessary level of engagement and capacity to achieve the investment outcomes?
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Are the contracts, budget, schedules are being properly managed?
Any project, especially risky, high value projects require both vision and confidence to foresee challenges, and create a necessary a plan to resist those challenges in order to move forward.
Identifying the legal challenges which might occur, mitigating the risks and keeping each risk category in balance is crucial.
High risk projects have a profound effect on the organization, its performance and they impact inside and outside the organization and constitute a threat to team's ability to deliver.
Preventive assessment, managing, control of potential threats to the business entity’s revenues and timely allocation of appropriate resources and strategies quite often saves the high value projects.
Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings. These risks stem from a variety of sources including financial uncertainties, legal liabilities, technology issues, strategic management errors, accidents and natural disasters.
It is absolutely necessary to determine the organization's ability to handle risk or amount of risk it is willing to accept to realize its objectives.
Some risks will be accepted with no further action necessary. Others will be mitigated, shared with or transferred to another party, or avoided altogether.