The importance behind risk management can hardly be overstated. For a company to be successful, the fundamental steps in laying out the way to follow in doing business must include how the risks involved must be managed. …
Download file to see previous pages...
In fact, risk management techniques help in improving the strategies of doing business because the parties venturing are more cautious in all undertaking they involve themselves in.
It is always important for a company to lay down procedures of dealing with these risks. A well designed project must have additional different programs stating how the possible risks are to be handled. These programs are very useful s thy gives us guidelines with different options on how to handle different kinds of risks. Templates can be fixed in these programs as a guidance to project manager as they state how the available risks are handled in reference to the project policy.
One of the key significances of risk management in a project is the proper identification of all possible risks. It is always difficult to deal with a risk if it is yet to be identified. The risks evaluators are always encouraged to be thorough and accurate as well, this is met through overall analysis of the project and all undertakings in and around to facilitate their address in time. When the identification process is completed fully, it creates appreciation and lessens doubt (Committee on science, 2007).
This article has detailed information which can help project managers or project teams in their efforts to manage the risks associated in their scope. These guidelines entail the following:
Providing tools and techniques in risk management Providing consistency in the methodology used risk management The guidelines provides the relevant information in the risk management process Avails the data required in for both output and input analysis methods in risk management In a satellite project the management should fully understand the project by analyzing the procedures used by other successful projects undertaken by other organization. The cost should be evaluated, satellite projects are quite expensive and they require adequate fund either by big organizations or governments in the aim of laying down a foundation in their research methodologies (Kloppenburg, 2012). Cost base estimations Base cost refers to the reasonable cost if all material costs of a project are well calculated. Time should be apriority in as far as this subject is concerned. Regardless of the project being processed, the project management team should make correct timing to ensure that the project is not harried up by time limits. All projects are carried out to improve the performance of a certain field or sector; in other words they are carried out to facilitate growth (Roper, 1999). Resources Resources used in the setting up of the satellite project should be significant to the benefits associate with the products benefit. This means that the project should bring more it consumes in terms of resources. The project management team should use minimum resources in terms of cost of buying the technology used, total materials used, human resources should be considered too (Roper, 1999). Risk based estimation in a project This involves both simple and complex models which are related to schedule, cost, and all undertakings within a project. It makes use of both analytical and historical data techniques to lay down technical judgment in the process of project development. The cost and the cost associated in the process of implementing the project proceeds. Analysis of risk elements (threats or opportunities) is later applied and defined in relation to base cost to make ranges for the project schedule and base cost (Kloppenburg, 2012) The following are the values provided by project management Promote project success It helps in the determination of future uncertainties and provides
...Download file to see next pagesRead More
Proactive management of risk is a crucial benefit in implementation and use of standardized practices of management of a project today. Always a balancing principle manages the three challenges of time, the aim of the project and expenses.
3). A risk can be evaluated using two factors: probability and impact. Risk management is the detection, evaluation, and prioritization of threats followed by harmonized and economical application of possessions to monitor, minimize, and control the likelihood and/or impact of adverse events or to capitalize on the recognition of opportunities.
Construction projects involve risky undertakings, and contracts that result in inflexible management of risks. Contractors, in essence, need to engage in a collaborative and a risk management process considered less informal. However, relying on an already established risk management process within the construction site is suitable.
Any project can encounter uncertainties in the form of increased costs, schedule delays and diminished qualities. Unless tackled these uncertainties can lead to major project disasters. The uncertainties encountered during project execution are the potential project risks.
In order to effectively control the project, it is of great importance that the project managers must clearly identify the risks before starting the project and outline their responses against the various risks identified so that an effective and efficient strategy can be developed to meet the uncertainties related with the project.
Risk relates primarily to the extent of the ability of a project manager to predict a particular outcome with certainty. The effects of risk can be positive or negative. Positive effects of risk are often referred to as opportunities. Threats are the negative-or "downside"-effects of risk.
I understand that wherever 6 or more consecutive words are extracted from a source they must be acknowledged and 10 consecutive words that are unacknowledged will be regarded as proof of plagiarism.
Special thanks and gratitude is given to ---- who helped me with his
Usually businesses tend to use documentation review as a technique whereby the major inconsistencies within any project is analyzed by assessing the entire information gathered. This exercise helps in reducing the risk element that may occur for any business in
Therefore, errors in approximation are really possible in different kinds of method and the Monte Carlo methods come up to minimize the errors (Pengelly, 2002, p. 1-2).
The use of inputs is really essential especially in using a financial model for
1 Pages(250 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Risk Management in a Satellite Project for FREE!