Risk Management on a Satellite Development Project
HRM 517: Managing Human Resource Projects
Risk management is a significant component of the project management. The risk Management practical application is a vital constituent in the successful execution of any project. The process of Risk Management must structure component of the project management schedule at every Life-Cycle stages of a Project. Although it is not mainly often provided the attention, it needs. It is as well important to be set if the risks essentially occur. In this paper, I am going to discuss the Satellite Development Project’s Risk Management process.
Importance of having a Risk Plan
The primary feature of failure of the project team is poor initial risk planning ordinarily. Optimistic period and estimates of the cost are typically a standard risk in the execution of projects. Indistinct responsibilities and functions and slow feedback can as well add to dangers in the project. Misunderstandings owing to slow feedback can additionally affect poor communications and direct to the failure of projects (Duncan, 2012).
The Satellite Development Project already had in place a risk management plan at the project’s start phase. They spotlighted on four uncertainties for example time, cost, scope, and resources. If there was not in a position a risky plan as implemented by the Development Project quite a few issues could have raised and lead to the delaying of the project.
The first risks would consist of regarding the planning, funding, and pricing of the project. (Duff 2013) The main issue would be of the cost of the project arising as the team not being able to anticipate the risk. Funding is the critical issues to be taken care of while the execution of the project,
The plan of decreasing the funding cost for the project satisfy the stakeholders in addition to all involved as it adds to the project profitability. With the method, the period of the project is similarly noteworthy. There is a tight production schedule to be followed. Often limits on time are needed to provide each stage of a project an opportunity to generate the outcome devoid of delaying the product from its expected goal. Not following the fixed period of the production process effectively, it would have resulted in extending the delivery date which would have occurred in increased cost due to delay in the project.
As the Satellite Development project was in charge of the project, all these risks were able to avoid. There was team meeting held for an almost a day discussing the dangers to be encountered during the project execution. There was a research carried out of various approached used in the industry, and a unique method was developed to face the risks in the implementation of the project. The plan of risk management plan was reviewed for every single month.
Even with a well-deliberated plan for risks, the time required needs to be matched with each other every month. Risk Planning is described as the course of arranging risks for supplementary act or operation analysis by appraising their viewpoint and outcome (Hällgren, Wilson, 2011).
If they had not met every other month to evaluate the risks connected to project, problems would have occurred as risks are extremely difficult to avoid for example resources used for a project like a database tool, assisted in providing a priority listing to the dangers connected with the project. Also supports the team to encounter the threats associated with the design of the plan. A lot of factors can control the process of the project. It is significant for the project manager to manage the project progress and verify the structure for making changes in an intended course. If this is deserted, projects can divert from the intended path and will direct to colossal failure.
Justifying the Value of Risk Planning
Risk management planning is “the procedure of determining how to carry out activities of risk management for a project.” (Hällgren, Wilson, 2011) The effectively spent time developing and accessing a comprehensive risk plan might facilitate the project to be executed with considerable savings. If the entire project puzzle pieces are counted for, and the whole thing fits together as planned, then the project ought to be performed on schedule and very much below budget. That does not regularly happen, and by taking the time to prepare for possible opportunities or threats then there would be a plan in position to tackle any potential issues that occur (Fleming, 2012).
It is significant to primary have a well-planned project. Consecutively to entirely understand and review the risks of a project everybody on the team has got to have a shared project understanding. That is the most straightforward means through which anybody can spotlight on the ultimate uncertainties and associated risks connected with the project. As a result, the schedule, scope, and estimated budgetary needs will require to be communicated at the risk analysis period. It is significant to give attention to the standard that establishes the success of the project. First, project success involves determining and attaining the objectives of the project. This can merely be carried out with clear goals and measurable target gains (Hällgren, Wilson, 2011).
Project managers for implementation of the risk management plan have to be mindful of the purposes of the project principally. The leading driver of the Satellite Development Project’s was to be prepared to tackle any risk at the project start. A proper plan was executed by them which included the resources essentially required for the implementation of the project.
A strategy to deal with the ensuing risk to be encountered while implementing the project in advance ensure smooth flow of the project and saves time and cost. With planning for risks, it is also essential to prepare for any failures which may arise during the execution of the project (Fleming, 2010). The Satellite Development developed a proper plan for encountering the risks associated with the implementation of the program and also the recommendation of the team was vital.
Early on identifying risks in the project need an open mind and the competence to spotlight on future scenarios that might or might not perhaps occur. The most exceptional resource of information is people and data. People on the team all get along their expertise and experiences. They as well have contacts with whom in the past, they have worked that might have real insight into circumstances this project might encounter. In view of the fact that, the plans are inclined to generate a massive volume of electronic data that might include the same project risk. This too can be a helpful resource when creating a risk analysis plan for a project. Provided that adequate time is utilized in planning and researching for the preponderance of the likely issues that might occur in any project, there might be insufficient time tackling with the unforeseen risks that might arise.
Assessing Risk Management
A risk management analysis plan is extremely vital for the successful implementation of the project or any business venture (Applegate, 2013). Evaluation of the risk in a project is dependent on the project. Qualitative risk examination is the process of delineating risks for proper action and execution.
Quantitative systems help to decide how much risk influence the project and how a manager need to plan on classifying the risk involved in the project. Furthermore, the project ought to be weighed to find the slight and critical risks which might be encountered by the project so that significant risks can be tackled at the beginning and subsequently directing on the minor issues. Despite the fact in the course of starting project periods, there was an occurrence of critical risk, it can be adequately dealt with and later time can be focused for minor risks.
There is a straight connection connecting the complexity of the project level and the level of risk management about the project. Projects that have a higher level of complexity typically need a considerably higher risk management level. Just like with projects which are a great deal simpler or lesser complex projects do not necessarily require much risk management (Fleming, 2010).
As a virtual team is communicated by the Satellite Development Project, the consequence would include total stoppage of the communication network, and the team’s members could not have connected with each other. Planning and the execution of the project are essential for the success of the project. Various methods can be used for successful communication between the team members which can include video conferencing, online chats and websites,
The project manager can hold all the information and messages relating to the project. The project manager may set up a team of Human Resource that would take care that all messages are sent on a daily basis to all members of the team. Meetings of the group might be held on a regular basis during various times in a day to make sure that everybody is on board with the similar information. The group can meet once in the morning and once more prior day end to talk about problems or suggestions to make sure that there are no risks that have not been discussed.
Risk management is a significant component of every project (Kloppenborg, 2012). Risk management is a procedure managing any uncertainties that might occur in a plan. Risk management is an ongoing procedure of risk mitigation for the organization and should be mainly useful by incorporating into the culture of the company. Risk management as well as improves teamwork by escalating honesty, openness, and understanding amongst the team members of the project.
Applegate, M. (2013). How to Conduct a Risk Assessment. EHow magazine.
Duncan, H. (2012). Project Planning Step by Step Guide. Retrieved from http://www.projectsmart.co.uk/project-planning-step-by-step.html
Fleming, L. (2010). Risk Assessment Working Group Merger Document. Louisville, KY: Louisville Metro Government.
- Gido J., & J, P. Clements, (2006). Successful Project Management. (4th ed.). Ohio: Cenage Learning.
Hällgren, M., Wilson, T. L. (2011). “Opportunities for Learning from Crises in Projects”, International Journal of Managing Projects in Business. Vol. 4 Iss: 2, pp.196 – 217