Risk Management

Introduction

The risk management has an implementation in the execution stage of the project. The execution stage refers to the phase where the deliverables and the documentation of the project get produced. The risk management team ensures a risk has minimal chances of occurring. The risk management team provides the solution to the risk that has occurred to mitigate the impact of the risk in the organization. The risk management plan guarantees reduction of the impact caused by the risk to the project developers.

The risk

The risk refers to what may happen in future that affect the progress of the proposed project (Jones, & Rankin, 2015). The risks in a given project contribute the proposed budget running below the expected level making the proposed project unrealistic. The risk also affects the planned schedule followed in the implementation of the project. The risks affect the scope of the project through failing to cover the actual areas specified by the project. The risk may or may not happen. For the project developers to reside on the safe side, they plan for the risk based on principles of the probability of risk occurrence and the impact to the project team in case the risk occur (Jones, & Rankin, 2015).

The Risk Management

The risk management refers to the process of identifying, quantifying and managing the risk during the project development life cycle (Bon-Gang, et al. 2015). The functions of the risk management team are ensuring that through the risk has complete avoidance and prevention of gaining the chance of occurrence. The process of the risk management has four stages. The first stage involves the risk management team identifying the particular risk. The second process involved the management quantifying the risk. The third stage involves the risk management team monitoring the risk to guarantee the risk has effective curing methods. The fourth step involves avoiding the risk, transferring the risk and mitigating the risk (Weshah, et al. 2014).

The risk encountered within the project development process strike at any stage during the project development lifecycle (Sundararajan, et al. 2014). With the risk management plan, the risk management process takes over and solves the problem. However without the risk management plan the aim of delivering the quality project within the time and budget may have compromising effects. The risk management ensures the risks within the environment of the project development have passed through the documentation process, the escalation process and the mitigation process. The risk management team achieves the above goals through applying the five-step risk management process. The four steps include the identification of the project risk, the logging and prioritizing of project risks, the identification of the risk mitigating actions, the assignment and monitoring of risk mitigating actions and the closure of the project risks (Berlec, et al. 2014).

Identify the Project Risk

The process involves any person identifying a particular risk (Berlec, et al. 2014). The person who acts as the originator of the risk classifies the risk as either affecting the project scope time or the budget. The risk originator communicates the risk to the managers.

Logging and Prioritizing

The steps involve evaluation of the risks and determining if the identified risk has any connection with affecting the project. The project managers the risk affects the deliverables specified in project charters, the risk manager check if the risk affects the quality targets specified in the quality review planning (Jones, & Rankin, 2015). The risk managers evaluate to check if the risk affects the delivery targets specified in the project planning. The risk managers evaluate the risk to check if it affects the targets specified in the project charters. The risk managers analyze the project to check if it affects the financial targets specified in the budget. If the risk affects the proposed project, the project manager records the risk in the risk register and assigns it a risk id.

Identification of risk mitigation action

The project manager checks the available actions associated with the risk affecting the project. The manager raises a request to modify certain parameters within the project. The manager then assigns the actions to specific individuals to escalate the risk (Jones, & Rankin, 2015).

Monitoring of risk mitigating action

The project manager performs the scheduling of the steps involved in the risk mitigation (Jones, & Rankin, 2015). The project manager ensures the steps for completing the task has the clear implementation. The project manager communicates the success of completed task and the risk is closed in the risk register.

Conclusion

The main aim of the project team is ensuring that the risk has effective quelling and suppressing procedures that must be applied to mitigate a risk. The risk management team ensures that the methods and the strategies applied will neutralize the impact of the risk in a firm. The risk management team ensures that the risk can have the absorbing measure to avoid any influence on the project’s budget, schedule, and the scope. The risk management team applies the risk management process to control the risk.

References

Berlec T, Starbek M, Duhovnik J, Kušar J. Risk Management of Cyclically Recurring Project

Activities of Product Realisation. Journal Of Integrated Design & Process Science [serial

online]. September 2014;18(3):59-72. Available from: Academic Search Premier,

Ipswich, MA. Accessed November 17, 2015

Bon-Gang, H., Xianbo, Z., & Shi Ying, O. (2015). Value Management in Singaporean Building

Projects: Implementation Status, Critical Success Factors, and Risk Factors. Journal Of

Management In Engineering,31(6), 1-10. 

Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in Online Writing Services if you need a similar paper you can place your order from free essay writing services.