In today’s world, the popularity of project management as a profession is growing rapidly. By 2025, it is estimated by an American-based Project Management Institute (PMI)® that more than 35 million project management vacancies will be rolled out globally. Although several international standards exist today, yet there are many new project management methodologies and approaches that are making the businesses more efficient. Also, individuals are now certified for being highly efficient project managers as due to an increase in globalization, various companies are tending to get projected across intensive project industries. This emergence of project management is aimed to be more efficient by launching newer products in no time and at cheaper rates than before. Therefore, many government agencies and companies have designed and developed new frameworks and systems that are strongly influenced by these standards (Drob, & Zichil, 2016).
There are two kinds of project methodology approaches include the traditional project method and the modern project method. The modern approach to project management consists of two main approaches, namely Project Management Body of Knowledge (PMBoK) and PRINCE2. These two crucial project approaches have a significant impact on organizations globally. Both PMBoK and PRINCE2 are focused on project management systems and will appear next to it in the path matrix. Therefore, there are many courses on Project Management Methodologies (PMM), most of these courses focus on how to work within a broad framework and focus mainly on IT projects (Jamali & Oveisi, 2016).
PMBoK aims to include all information related to project handling and management. Where on the one hand, PMBoK is responsible to assist with the emergence and evolution of Project Management (PM) understanding and knowledge skillsets; on the other hand, PRINCE2 (PRojects IN a Controlled Environment) is a method for project management in any public or private sector or industry that promotes the chances of successful project outcomes. Although the other project management approaches might be efficient to achieve the same target as these two do, yet PRINCE2 is the easier and most widely accepted approach across the world (Manole, & Grabara, 2016).
Just as projects are different, so are project management methods. The standard defines what to do; when the method explains how things should be done. Many organizations are developing their project management practices, particularly in the IT PRINCE2, Agile, Rational Unified Process (RUP), and Six Sigma project management systems.
PMBoK® Guide, at a large level, is a Body of Knowledge and PRINCE2® is a method for the successful management of Projects. The methodologies, PMBoK, and PRINCE2 simultaneously accept the fact that they are incomplete, and have the potential to provide additional guidance to the project managers. These approaches focus to manage the project onboard effectively and efficiently. They are capable of providing leadership and interpersonal skills to the project manager as these techniques dictate the project management approaches. These two methods are recognizable and famous worldwide in different geographies. PMBoK and PRINCE2 are effective reporting techniques and follow a professional code of conduct. Hence, proper training followed by a series of examinations is required essentially t attain the completion certification in this domain of expertise (Manole, & Grabara, 2016).
PMBoK is a collection of standards and solutions related to project management, compiled and published by PMI (Project Management Institute) members. The PMBoK standard is a set of well-known and widely accepted methods used in project management. In the USA, PMBoK is accredited by the American National Standards Institute as a national standard for project management. While PRINCE2 introduced a project management approach based on the experience of project managers from Anglo-Saxon countries. It can be used for the management and control of any type of project (Matos, & Lopes, 2013).
The project management method (PM) using the PMBoK guide is very detailed. On the other hand, PRINCE2 is well established - especially in process collaboration, but it is also questionable at the same time. The PMBoK guide has no principles, 10 sources of information, 5 process groups, 49 procedures, 132 tools and strategies identified and PRINCE2 has 7 procedures, 7 goals, 7 themes, 40 tools, 41 works, and exhibitions (Rehacek, 2017).
The PMBoK, 2000 edition states the project risk as an undetermined and uncertain condition or an event that may cause either a negative or positive effect on the project goals and targets. Therefore, a risk is not a necessary event that occurs or is already present in any project, rather it is an event that may tend to occur in any project in any odd situation or circumstance.
Identifying and Understanding the risk that can occur in any kind of project is the primary step to apply the risk management approach to treat that risk. Next, come the risk assessment and the possible impact on the project while treating and managing the risk. It is observed that many a time, the project manager only focuses on the negative risk potentials on a project, while appropriate risk identification, determination, and assessment must be required for risk mitigation (Bukłaha, 2017).
Generally, the risk has three major components that include the risk event, the probability or likelihood of the occurrence of the risk event, and the impact or the consequence of the occurrence of that risk event in a project or a program. An unclear and undefined risk event can lead to detrimental effects on a project that includes delaying the project schedule, additional cost of budget, and many more catastrophic effects. Severity, likelihood and risk impact factors of the risk events in a project are carefully calculated in the PRINCE2 approach.
The severity rate in this approach is calculated by the product of the likelihood and consequences of the risk event (Critical Evaluation of Prince2 and Agile Project Management Methodologies for a complex project, 2016).
The appropriate application of the approaches to manage risks in a project will lead to the improvisation of the overall project and program performance. These stated methodologies possess the capabilities to simplify project communications, improve project visibility, and provide a concrete foundation to the lessons that are learned during the project execution. Moreover, an effective and efficient project risk management procedure includes the risk analysis against the well-laid procedures involving all the project/program members having pre-developed risk response plans and initiative events (Jamali & Oveisi, 2016).
Several visual graphs, tables and charts can be designed that is based on various categories of project management stages. For instance, a graph of the number of open risk factors associated with various product modules or for the task at hand gives an overview of the program. In the same way, the total number of open risks can be traced to a part-time job. By having written projects or programs and a continuous process, the number of ‘known’ risks is reduced providing more responsiveness to those who are truly ‘unknown’. This will increase the chances of the program succeeding and reduce the number of nights the program manager sleeps (Critical Evaluation of PRINCE2 and Agile Project Management Methodologies for a complex project, 2016). In this way, the two modern project management approaches can be applied to different project risk factors.
A Practical Risk Management Approach. (2019). Pmi.Org. https://www.pmi.org/learning/library/practical-risk-management-approach-8248
Bukłaha, E. (2017). Managing Change in Project Management Methodologies. Management Forum, 5(2), 1–7. https://doi.org/10.15611/mf.2017.2.01
Critical Evaluation of Prince2 and Agile Project Management Methodologies for a Complex Project. (2016). International Journal of Engineering and Computer Science. https://doi.org/10.18535/ijecs/v5i10.61
Drob, C., & Zichil, V. (2016). Overview Regarding the Main Guidelines, Standards, and Methodologies Used in Project Management. Journal of Engineering Studies and Research, 19(3). https://doi.org/10.29081/jesr.v19i3.113
Jamali, G., & Oveisi, M. (2016). A study on project management based on PMBoK and
PRINCE2. Modern Applied Science, 10(6), 142-146.
Manole, A. L., & Grabara, I. (2016). Methodologies and Visualization Tools of Effective Project Management. Polish Journal of Management Studies, 14(2), 137– 149. https://doi.org/10.17512/pjms.2016.14.2.13
Matos, S., & Lopes, E. (2013). Prince2 or PMBoK–a question of choice. Procedia Technology,
9(2), 787-794. https://www.sciencedirect.com/science/article/pii/S2212017313002417
Rehacek, P. (2017). Application and usage of the standards for project management and
their comparison. Journal of Engineering and Applied Sciences, 12(4), 994-1002.
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