Auditing and Risk Management - Auditing of Projects and Contracts
Description:
How many projects do you know which have been delivered on time, to budget and fully met the needs of all the parties involved? Not very many, I am sure will be your answer.
Research indicates that in many projects, risks are identified and analyzed in a random, uncoordinated manner. Not only does this result in unexpected risks arising, but the true impact of the risks actually identified are not fully appreciated or the combination effect of the risks are misunderstood.
It has been estimated that a strong risk management process can decrease problems on a project by as much as 80 or 90 percent. In combination with solid project management practices, a good risk management process is critical in cutting down on surprises, or unexpected project risks. Such a process can also help with problem resolution when requirements change, because now those changes are anticipated and actions have already been reviewed and approved, avoiding the need for panic and emergency treatment.
Auditing the project throughout its life from the project development stage to the post implementation review and adopting a risk based approach is a proven way to maximize the opportunity to deliver the project to time, to budget and fully meet the needs of all interested parties.
