Project Costing and Business Continuity

Organizations' Investment in IT

Organizations have increased their investment in IT throughout time. Organizations are gradually but surely reaping the rewards of an investment in information technology portfolio management that is well matched. Organizations have concentrated their expertise and resources more in order to ensure that the advantages are realized as a result of the increased investment. Schniederjans, Hamakiand, and Schniederjans (2004) state that the goal of information technology portfolio management is to provide a way for information technology investments to be evaluated, tracked, and managed so that the business can be sure the investment is paying off. Application of information technology portfolio management in different industries is similar because its goal is similar across all industries; to make sure that the benefits are achieved. According to Schniederjans, Hamakiand and Schniederjans (2004), information technology portfolio management aims at providing an avenue where investments in information technology can be analyzed, measured and controlled with an aim of ensuring that the investment is yielding benefits to the organization. Application of information technology portfolio management in different industries is similar because its goal is similar across all industries; to make sure that the benefits of Information technology performance management is achieved.

Risk Mitigation Strategies for Disaster Management and Control

As a disaster management and control process, there are four risk mitigation strategies which could be adopted. The strategies include acceptance of risk which could be applied when the cost of avoiding risk is higher than absorbing the risk. The second option is limiting risk which is a strategy undertaken to reduce how the organizations is exposed to risk. It aims at reducing occurrence of risky events. The third option is avoiding risk which is a strategy taken to reduce the exposure to risk to the bare minimum. The last option is transferring risk and this could be undertaken if the company wants to free itself of other duties which is not of so much importance.

The Importance of Cost Estimation

Cost estimation is one of the most important ways of measuring feasibility of a project because it enables the organization to be able to develop a budget, source for funds, establish controls and finance the project. The organization also uses the cost estimation to measure performance once the project has commenced.

Benefits of Business Valuation

In a bid to risk mitigation, a business will benefit from business valuation by being able to establish the value of the business to insure unlike cost estimation which will not give an accurate position. Also business valuation helps the organization be able to determine its key operations and using that to expand. Lastly conducting regular business valuations is good practices as it enables the organization to know its current status and monitor its performance.

Reference

Schniederjans, M.J.; Hamaker, J.L. E Schniederjans, (2004) Information Technology Investment: Decision-Making Methodology. World Scientific Publishing Co. Singapore.