Verified Document

Importance Of A Risk Management Plan Case Study

Risk Management on a Satellite Development Project Enrolling a project requires risk assessment and management at various levels of implanting a project. This is based on the knowledge that quality of risk management determines the performance and outcome of the project. In any case, the Project Management Office (PMO) is mandated to spearhead a risk assessment and management plan. Risk management blueprints will later be implanted to each department. This analysis attempts to vindicate the role risk management in explaining the quality of output of this project. The commencing document is structured in two main parts. Firstly, a critical assessment on the fundamentality of risk. Secondly, the document will analyze the role of the team in responding to risk management stipulated by the PMO office (Charrel & Galarreta, 2007).

Issues arising from the lack of a risk plan.

Absence of a risk management plan would have affected this project negatively. Potential negativist challenging the project could have been identified as costing and budgetary allocation would result to funds being allocated to inappropriate destination. Besides, the project risk plan sought the aggregate commitment of all parties. If the project did not analyze the aggregate commitment of all parties, then various departments would not have functioned collectively, thus leading to optimal breakdown of project mechanism. Thirdly, the project risk assessment considered the usage and proper utilization of time. Absence of time management would mean that activities would not be scheduled leading to the crumbling of the project (Dar, 2013).

Failure to apply communication methods would incapacitate the project coordination mechanism. In any case, project stakeholders would be pursuing different agendas on aggregate. Fifthly, the risk management contingency plan adopts leadership mechanism to ensure activities are timely and prudently delegated. Absence of a risk management plan implies leadership and delegation will be constrained (Kerzner, 2013).
Value of risk plan

The central considerations of the proposed risk management will attempt to balance investment (cost) against returns (cost). For the members, it is appropriate to calculate steps ahead before the real project plan. This calls for the integration of futuristic results because many projects change as technology changes. For justification, the upcoming risk management plan will facilitate the formulation of better decision in the corporate strategy. Secondly, the plan enhances project agility. The project will respond appropriately to meet demands of a given cost. This Justification is adopted from Accenture Global Risk Management, which identifies a 98% percent of project participants often favor risk assessment and risk management before the commencement of a given project (Kloppenborg, (2012).

Determining the level of risk management appropriate for a project

As seen from the case study, risk management plan endeavors to reduce the aggregate harm targeting the project's success. While initiating a risk management plan, it is prudent to allocate risk…

Sources used in this document:
References

Charrel, P., & Galarreta, D. (2007). Project management and risk management in complex projects studies in organizational semiotics. Dordrecht: Springer.

Dar, M. (2013). Operational Risk Management, Risk Management Approaches, and Risk Mitigation Techniques: Challenges Faced By Islamic Financial Services. IOSR Journal of Business and Management, 11(2), 72-79

Kerzner, H. (2013). Project management a systems approach to planning, scheduling, and controlling (Eleventh ed.). Hoboken, N.J.: Wiley.

Kloppenborg, T.J. (2012). Contemporary project management: organize, plan, perform (2nd ed.). Mason, Ohio: South-Western Cengage Learning.
Cite this Document:
Copy Bibliography Citation

Related Documents

Risk Management Plan Due Week 4 Worth
Words: 1511 Length: 5 Document Type: Essay

Risk Management Plan Due Week 4 worth 240 points Note: The assignments a series papers-based case, located Student Center shell. The assignments dependent . In assignment, create a risk management plan. Scope and objectives of risk process The project consists of fixing of the firm's data security weakness and brand restoration. Brand restoration would ensure that the company is able to demonstrate to its customers that it is able to move

Sidpers Program Risk Management Plan Project Description
Words: 3288 Length: 12 Document Type: Essay

Sidpers Program Risk Management Plan Project description and Objectives Project Scope Project sizing Stakeholder analysis Project Manager (PM) Risk Manager Risk Analyst The identified Sources of Risk in the SIDPERS Project Risk Register Summary Risk Report Risk Breakdown Structure Double P-I matrix Hillson, D and Simon, P (2007).Practical Project Risk Management: The Atom Methodology. Management Concepts. This document contains details of the Risk Management Plan for the SIDPERS Project and defines the risk management process to be used in the risk management process that

Risk Management in Corporate Governance: Corporate Governance
Words: 1558 Length: 5 Document Type: Essay

Risk Management in Corporate Governance: Corporate governance can be described as the control system that is designed for the purpose of evaluating the company's operations and the potential conflicts of interests between various stakeholders of the organization. The achievement of the significant goals of corporate governance requires the use of a board of directors as one of the vital mechanisms. The board of directors plays a critical role in corporate governance

Risk Management in Family Owned Businesses
Words: 4161 Length: 12 Document Type: Term Paper

Risk Management in Family Owned Businesses A family business can be simply described as "any business in which a majority of the ownership or control lies within a family, and in which two or more family members are directly involved" (Bowman-Upton, 1991). In other words, it is a multifaceted, twofold structure consisting of the family and the business meaning that the involved members are both the part of a job system

Risk Management Program First, We
Words: 1584 Length: 5 Document Type: Essay

Each risk should be assigned to the appropriate level of implementation and approval. As an example, a decision to build that second data center we talked about would be a decision for the company management team. A decision to serialize, catalog, and appraise all of the engineering equipment would be decided and approved by the head of the engineering department. (Risk Management) The plan created by the appropriate level should

Analyzing the Risk Management
Words: 3962 Length: 10 Document Type: Term Paper

Risk Management Plan for Exxon Mobil A risk management process is a systematic application of management policies for the purpose of identifying, analyzing, evaluating and mitigating any possible risks within an organization. The following paper focuses on formulation of risk management plan for Exxon Mobil, one of the world's most renowned oil and gas companies. The risks would be identified and selected applicable to this firm and after their evaluation, a

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now