Issues Without a Risk Plan
All projects contain some form of risks. A risk management plan’s purpose is to reduce the overall risk level that is acceptable by to stakeholders and sponsors. Planning risk management is the process of defining how to conduct risk management activities for a project (Kloppenborg, 2012). Risks are an occurance that can have a positive or negative effect of the objectives of a project. Detrimental issues for a project can develop without a risk management plan and can cause failure or success depending on the results. Threats are one issues that can have negative impact on a project. Oppurtunity is another form of risk to a project that can have favorable results. Specific issues to the Satalite Development Project may have been not spending enough time planning, lack of resources, and not having a thourough risk management plan (Kloppenborg, 2012). It would be wise to develop a risk management plan before these issues can become detrimental to a project.
Risk Plan Value
Careful planning must be implemented to risk identification. The process of developing the risk plan involves the project team and the appropriate stakeholders and consideration of elements such as project scope, schedule, deliverables, constraints, culture, and environmental factors. Many methods may be used to aid in identification risks, includint brainstorming, interviewing, Delphi technique, and SWOT analysis. Risks are then categorized by level of importance with risk analysis (Kloppenborg, 2012).
Integral parts of a risk management plan are time, effort, cost, and resources. High risk projects consume more time, effort, and funding. With a well managed risk management plan, time, costs, and effort can be saved as well as resources that would otherwise be wasted. According to Hayes, people think about risk management as stopping things that can go wrong, but good risk management programs are about ensuring the right people have the right information to make good decisions (Power, 2012).
Level Of Risk Management
Determining the level of risk management can also mean considering the potential for change that may occur during the project. Creating criteria for evaluating these probabilities and their impact must be identified on an associated plan of action and then tracked. The method that is implemented should be integrated into the risk management plan while also utilizing risk management reviews. Developing a risk management report allows for the team to identify if the risks should be elevated and determines how to proceed with the project.
Risk management review allows a team to work together to resolve high priority risks