Introduction
Whenever a project manager talks about risk management plan in a project, there are diverse options that ought to be considered. It would be essential to have the list of all foreseeable risks, the potential level of impact in addition to responses to risks in mind. A risk merely is an event that has the significant effect either positive or negative. Risk management plan should thus work to reduce the impact strategically. Tesch, Kloppenborg & Frolick, (2007) asserts that the plan ought to entail the risk analysis and strategies that would help to eliminate the risks thus achieving the project’s goal. It would be important that the plan is reviewed severally throughout the project’s life to make sure that all the risks are dealt with in timely fashion (Belout & Gauvreau, 2004). The paper will analyze satellite Management project’s risk management. Next, the issue that might develop if the team fails to complete the risk plan will be suggested. Justification why the risk plan is highly valuable to the project with resources, cost, and effort, time would be analyzed. Further, determination of the proper level of risk management for the project and potential impact when the team’s only means of communication is through virtual devices would be discussed.
Issues without Risk Plan
The primary factor in the failure of the project team is the poor initial planning. In an event where unrealistic objectives are created which in the process results in a chaotic working environment, there is nothing much to be expected but sheer failure in future. There are two primary causes for the failure of the team, first, going beyond a set financial plan and missed time standards. Tesch, Kloppenborg & Frolick, (2007) posits that with a clear interpretation of the daily fundamental risk evaluation into the team’s developed project, there is a more realistic guideline in place.
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Risk assessment is the identification, evaluation and estimation of the risk level include in any situation, their overall comparison against the benchmarks and determination of an acceptable risk level (Belout & Gauvreau, 2004). With an established risk evaluation technique, one can eradicate potential liabilities or any future occurrence in a project plan. The primary importance of developing a successful project management team is to have a strategic risk management technique. In the event of planning together with the project’s team, it is recommended that one should think critical of a futuristic mindset and focus on what might happen then plan all potential risk to the team (Loosemore, 2006).
There are various explanations of the project team’s failure and these includes, misconstruing of the shared facts, poor communication among team members in addition to unclear roles of the members. According to Loosemore (2006), lack of an explicit instruction among the members of the team will make it impossible to be successful in creating a clear-minded team. Without explicit information sharing among the teams of a project, there is the opportunity for the misinterpretation and spread of untrue information. In addition to this, with unclear roles among project teams, it might be difficult for them to accept a clear direction which will ultimately create more room for chaos (Belout & Gauvreau, 2004). A risk is thus any action that might affect the capability of the team to achieve t success of the project and specific priorities of the project’s stakeholders. Such an impact might be negative thus posing a significant threat to the project or might represent opportunities.
It is vital to ensure that the organization has a risk management plan that will enable them to be successful. In any new project, it would be critical that the project team understand the success measures and priorities (Loosemore, 2006). Once they do that, the focus should be directed to understanding various risk factors of the project. It is evident that all projects have specific risks and it might not be possible to eliminate all of these risks; therefore, a wise project manager should come up with a valid risk management plan as was evident in the case.
Risk Plan Value
Previously noted above, risk plan at the satellite project was critically pertinent to the type of activities. For the project manager to be able to create all-inclusive risk aversion strategies, it would be important that the team members sufficiently allocate the significant amount of resources and efforts. They should have utilized time and efforts to vital activities of the project (Loosemore, 2006). Conversely, it might also be critical to take into consideration the idea that the members of the project had to make sure that the risks connected with the project are decreased or prevented. It might be imperative to also take into consideration the whole extent of the project and opportunity costs of failure to develop scrupulous risk aversion infrastructures.
The team first had to make sure that the budget constrictions are fulfilled and operational challenges and threats are all managed. A slight accident might cause major issue in the project, and as a result of which, the firm would have had to deplete the constrained financial budget. In any project where advanced technologies elements are utilized, it is essential that higher risks aversions strategies are adopted. Tesch, Kloppenborg & Frolick, (2007) notes that a dilemma in the project might result in astronomical high financial costs; therefore, the team’s effort to create a risk plan would be defensible based on the scope of the final plan. In addition to this, once running, the costs of accomplishing sufficient repairs might be tremendously high. Therefore in such a context, risk plan development would be justified based on the opportunity costs of not making the risk plan (Jugdev & Mathur, 2012).
According to Jugdev & Mathur, (2012), once the project is sufficiently planned, that is when the risk management plan ought to be implemented. The primary purposes would be to establish a proactive measure and at the same time create processes for any unforeseen circumstances that might emerge. Therefore, when it is appropriately implemented, potential problems ought not to delay the project’s operations. Provided the needs of the project are defined and leave no slight room for the assumptions or even misinterpretations, the risk management plans would go much seamless.
Level of Risk Management
Determination of the level of risk management further implies taking into consideration the possibility for change that might take place throughout the project. Development of criteria for the evaluation of such likelihoods of occurrence altogether with their impacts ought to be identified on the associated plan of actions in addition to the milestones and then closely tracked. The approach to accomplish this must be intergraded into the risk management plan while at the same time make use if the risk management reviews (Jugdev & Mathur, 2012). Creation of risk management reports will allow the project’s team to understand whether the risk must be evaluated and how they should move ahead with the project. Additionally, risk management reports illustrate the team and the sponsors of the project where potential risk is actively identified, analyzed and managed although the lifetime of the project.
Additionally, the risk management review will enable the team members of the project to work together when resolving the high-priority risks, be critically proactive and evaluate strategies for all levels of risks. For the team to efficiently review the risk management plan, regular review must be scheduled since risks are not static. Belout & Gauvreau (2004) claims that
any potential new risk might emerge as the project progress, and risk factors might change. This might be monthly as evidenced in the case study 3, however, must be one the established schedule such that the decision and actions concerning a potential risk or change that have taken place since the last review can be thoroughly discussed and team members are all up-to-date.
Virtual Team-Risk Plan Management
If it happened that the Satellite team had to communicate with the use of technology efficiently, then the enormous impact on such a project would be a breakdown in communication. It might be challenging to get all the team members to take into consideration or even entertain communication with one another at the same time (Huemann, Keegan & Turner, 2007). When the team members communicated with one another would entirely depend on the specific time of the day, the precise location in addition to the total number of individuals to make such an attempt worthwhile. However, for the team to successfully maintain their current objectives there ought to be specific guidelines and rules in place which will require each member of the team to participate regardless of what is going on actively. This would evidently be the only way to ensure a sufficient communication is achieved among all the participants (Belout & Gauvreau, 2004).
It might be critical for the project manager to set up different communication means for the team. In addition to communication devices, another efficient way that the team might adopt to maintain their goals and objectives would be to establish a Human Resources Team which would apparently ensure that every correspondence or messages are communicated on a day-to-day basis to all the members of the team (Ahuja, 2010). The team would be required to meet at least twice each day to make sure that every member has the same information. Therefore, the project manager would be necessary to closely monitor the entire process to make sure that the project becomes successful.
Conclusion
Based on this analysis, it is evident that risk management is an ongoing process that must be taken into consideration for a successful project. The moment the team members of the project have identified all potential risk that might affect the project; they must proceed to determine those risk with higher probability of occurring and would cause significant impact to the project. In most instances, the judgment of the project’s team would be entirely based on the past experiences. Based on this, it would be critical for an organization to choose the most qualified and highly experienced project managers based on the type and nature of the project. In every project, one will learn that in the early stage, numerous risks might affect the project in each phase; therefore, project risk analysis ought to be accomplished early. It would also be essential to understanding the process of risk management in an ongoing process and should be completed at the beginning of the project but continuously throughout the project’s life.
References
Huemann, M., Keegan, A., & Turner, J. R. (2007). Human resource management in the project- oriented company: A review. International Journal of Project Management , 25 (3), 315- 323.
Ahuja, J. (2010). A study of virtuality impact on team performance. IUP Journal of Management Research , 9 (5), 27.
Tesch, D., Kloppenborg, T. J., & Frolick, M. N. (2007). IT project risk factors: the project management professionals perspective. Journal of Computer Information Systems , 47 (4), 61-69.
Loosemore, M. (2006). Risk management in projects . Taylor & Francis.
Jugdev, K., & Mathur, G. (2012). Classifying project management resources by complexity and leverage. International Journal of Managing Projects in Business , 5 (1), 105-124.
Belout, A., & Gauvreau, C. (2004). Factors influencing project success: the impact of human resource management. International journal of project management , 22 (1), 1-11.
