Risk management is about identification, assessment, and prioritization of risks followed by

coordinated and economical application of resources to minimize, monitor, and control the
probability or impact of unfortunate events or to maximize the realization of opportunities. Risks can
come from uncertainty in financial markets, threats from project, legal liabilities, credit risk,
accidents, natural causes and disasters as well as deliberate attack from an adversary, or events of
uncertain or unpredictable root-cause.
The process of identification, analysis, assessment, control and avoidance, minimization, or
elimination of unacceptable risks. An organization may use risk assumption, risk avoidance, risk
retention, risk transfer, or any other strategy in proper management of future events. It occurs when
project manager needs to make decision that will minimize risk that falls upon on that decision.
There are few types potential risk that might involved in this project as below:
a) Will the system be user friendly as none of the member of the staff is computer illiterate? Six
office staff is not computer illiterate, so the design of the system must be user friendly. User
friendly with tutorials to guide the user to use the system, friendly GUI for user to use and
others etc that will enable an illiterate computer user to able to use the systems.
b) Will the system be able to handle future transaction volume and company growth? Currently
the clinics have 3,500 patients from 275 different employers and also accept 34 different
insurance policies. The customers that the clinic serves are in wide range that will grow
further in futures. The systems have to be able to cater the growth of the system to around
of 10 thousand patients in the next five years.
c) Does the budget provided by the company to build the new system to make profit in long
run be supported by the tangible and intangible benefits the system would provide to the
company? The budget provided by the company may only allocate for present ongoing
project but the project may need extra budget if the completion date is prolong and there is
also the maintenance or future upgrade for the system have yet to be allocated. This
problem could cause the project to suspend during the development stage or is not
sufficient enough to last for the next 5 years.
d) Can the project be completed within the timeframe the company wants us to finish? If not,
are they willing to increase the budget to finish it on that particular time frame? This is also
another main concern for the IT consultant cause if the project is prolong due to some
circumstance and the company have not enough budget then the project will given up half
way. This issue have to address during the initial stage. The issue have to clarify with the
project manager to make sure that this issue is properly address.
e) Will the project management techniques be available to coordinate and control the project?
As an IT consultant, the project management techniques to be fully utilize to make the
project will be completed within the time frame and error free. To do this, full research on
the project management techniques available and choose the correct and efficient
techniques is important to address to this issue.
f) Will the data migration from the documents to the new systems be 100% accurate? As an IT
consultant, have to make sure that the data migration from the documents to the new
systems is 99.9& accurate due to the reason that sometimes there might human mistake
such as typo error, documents writings is faded, documents are not in a good condition and
other etc possible reason that might occur and prevent from 100% accurate intact.



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