When a project manager talks about risk management mechanisms, there are several things to bear in mind. The main things that will cross your thoughts are the foreseeable risks, the impact that will have, and the mitigating factors or responses. They go a long way in establishing the assessment matrix that aids in evaluating the levels of risk that can occur. A risk is an event that can influence a project negatively or positively. An effective risk management plan will help in minimizing the impact. The plan should contain the ways of mitigating the risks and strategies for achieving the objectives of the project. The project team must review the risks from time to time to reduce its impact.
This paper seeks to analyze the risk management is the development of a satellite project. It will suggest the problems that will arise if the project team does not complete the risk plan. It also seeks to validate why risk management programs are necessary for any project with cost, time, and resources constraints. Additionally, it will also point out how to determine the appropriate levels of risk. It will explain the likely influence on the project and recommend two (2) ways the project team could uphold its current goal in both planning and implementation.Suggest the issues that could have developed had the team not had a risk plan. Determine the major impacts of risk that the team needs to understand the project to be successful
While managers cannot put off all risks that come in their way, careful risk planning aids in mitigating the effects it can have. All projects come with a certain level of risks. Proactive risk management is one of the primary advantages of executing and utilizing standardized project management practices in the current world. It is always indispensable to manage cost, time, and scope constraints. Besides, it is essential to guarantee project quality and that there are adequate resources to facilitate the work. Performance optimization and efficiency are central due to the magnitude of work available and the inadequacy of human resources. Therefore, it is clear that people work with risks every day- from the risks of not planning for the risk of not having sufficient resources and even the risk of not assessing potential threats and even lack of risk management programs (Haimes, 2015).
Justify the value of risk plan considering the time, effort, cost, and resources it took to develop such a plan. If you were the project manager, recommend the approach that you would take to ensure the project met the critical path identified.
As a project manager working on a satellite development project that involves many research technologies, for instance, is not a walk in the park. There are many unknowns with inconsistencies in the production of components, integration of systems and subsystems, working with subcontractors, trials, and other areas that make a project full of risks. Sometimes, the timelines and the budgetary allocations or financial resources needed to facilitate the production are limited. According to Kerzner (2013), this calls for a reasonable way of handling and dealing with the risks associated with the project. Working steadily with the risks facilitates the development of rejoinders of the risks in case they occur. It is necessary to have integrated systems and mechanisms for mitigating risks during the development of a project. Thus, during the development stage, we came up with risk management mechanisms and established ways of dealing with risks and changes that will occur in the process due to the risks. It took us a whole day to come up with the plan considering that the project was high risk and we wanted an effective program.
Besides, we came up with a criterion for assessing and identifying potential risks that could occur and the impact they could have. Furthermore, we conducted a study with the aim of our approaches to the industry’s standards for risk management. Once we had a sound strategy for managing risks, we carried on with the process of identifying potential risks, analyzing the risks, developing sound rejoinders to the risks, and deciding upon the next strides for the risks. Our approach was an integrated approach whereby we used the risk management database instruments as the basis. The basis enabled the team to identify risks, enter risks, and provide input for possible responses.
According to Thamhain (2013), an ideal tool allows logging of risks as records in the database. The database will allow the project team one warehouse for recording and loggings all the risks associated with the project. The move is critical considering that the risks were varying from time to time. Every month, the satellite project team would hold discussions with a goal of reviewing the risks and deciding on actions. We would meet to discuss the risks logged in the system, and the risks’ assigned owner would explain to the team on matters concerning the background of the risks, things that took place since the logging, and the recommended actions and steps to take. The project team will then point out the areas impacted by the risk and the new risks that arose due to the occurrence of that particular risk. The team member will also provide ideas for putting off, transferring, extenuating, or accepting the risk. There was also a discussion on the need to elevate the risks.
The other reason for holding monthly reviews was to make sure that every team member is up to date on risks affecting the project. The cornerstone of the projects provided timely reports about the project’s risks. The reports generated provided a platform for developing mitigation measures that would in turn help in managing possible project’s risks. It went a long way in ensuring that there were enough avenues for resolving high-priority risks. High-priority risks relate to overall project. The approach also helped in the evaluation and identification of satellite development project risks. Remember, the level of risk management for different projects vary vastly. In this case, Schwalbe (2015) points out that it is indispensable to have comprehensive ways of addressing risks due to the many unknowns that exist in satellite development projects. With the performance of duties by the development team with an objective to understand the risks, addressing the daily needs became easy. The approach helped in comprehending the long-term strategic needs and risks consequences.
Assess how to determine the level of risk management appropriate for a project
Haimes (2015) affirms that the determination of the level of risk in management suitable for projects takes a comprehensive understanding of the project to examine it further. In addition, address the problems of risk management at the outset of the project to ensure the requirements and objectives to recognize the risk first hand. With satellite development projects, there are needs to be set, objectives as well as procedures, full illustrations, and deep relations with the project. Besides, direct interaction the project team opens up doors for success and future undertakings. Haimes further asserts that the determination of the risk level of a satellite development project happens at the beginning of the project. This step is important to complete at the outset of a satellite development project. At this phase, there is a lot of time to resolve potential risks. It also allows the developer to maintain a risk reserve for the project. Determining the risks may not look like a straight endeavor, but often the documents mostly contain data and information about apparent risks for the project. The aspects to consult with include but not limited to project charter and resource documents. Additionally, it is imperative to consult with the project team as well as other external bodies with experiences in similar projects.
Imagine the team working on the satellite development project was a virtual team in which team members were unable to meet in person. Explain the expected impact on the project, and suggest two (2) ways the team could maintain its current goal
In order to realize success there is need to come up with realistic policies. The project team and the member must be aware of the rules and regulations and the expectations of each person. Upon implementing and analyzing the risk management plan effectively, there should be hardly room for errors. For the team to maintain their current goals, communication must be open by creating a ground for expressing ideas and gathering ideas. The process of managing cost and time constraints and even the risk technique of significantly implemented risk management mechanism is an incredibly exhausting assignment, but with afflictive communication, it will be easy. The inability to communicate effectively will hinder the flow of information that will promote the identification of risks and mitigation factors that will help (Kerzner, 2013).
Again, if the team had to communicate using technology, the greatest impact of the satellite development project could be a communication breakdown. It can as well prove difficult to get all team members to consider interactions with one another at the same time. To get all members to communicate with each other is not an easy task. In order to maintain their current goals, it would be necessary to have the abovementioned guidelines and rules to get each member participating regardless of what is going on. The approach will be the only way of ensuring maximum participation. The project manager will find a way of setting up a variety of communication means. The project manager should avail the appropriate communication devices to the project team. Lack of communication devices can be a major challenge considering that it will be the cause of communication breakdown. It means information might reach a few persons in a team (Hamimes, 2015).
Besides the communication devices is setting up a Human Resource Team to ensure maximum correspondence and efficient communication with the project team. It is from the Human Resource Team that team can maintain their goals. Without such communications, it will almost be difficult to ensure efficient delivery of message and communication on a daily basis. In this case, the project team should meet at least two times a day. The purpose of this meeting is to ensure that the information has reached all the parties in the team. Additionally, the meeting will seek to ensure that all team members have similar information. It will be the sole duty of the project manager to monitor this to ensure success in the project. It is impossible for a team to maintain their goals without proper delivery of the message. Having the similar information will facilitate quick and precise executions of projects assignments (Haimes).
Proactive risk management is crucial for satellite development projects. Once the team has identified risks, then they can identify other possible risks. The monthly reviews help in building skills on how to assess the levels of risks. Thus, most of their judgments will depend on their experience. It is thus necessary for one to contract a project manager with vast knowledge on the type of project you want to be undertaken. Additionally, you will notice that there are more risks at the outset of a project than when the project has moved forward. However, risk analysis and management should be an ongoing process. The process should be a friend to a project manager who knows what a project entails.