3: Risk Management on a Satellite Development Project - Case Study Example

Contractor’s estimates for the requisite resources were inflated and inconsistent (Kloppenborg, 2014). The engineering costs have been exaggerated while the project philosophy required replacement of gross maintenance and reduction of engineering requirements within the minimum focus points. It is possible to lose control of the changes to project scope. Unworkable and meaningless project processes and schedules with impacts through proposals for changes that are gauged. The contractors do not use effective planning strategies that focus on becoming scope reducing elements for the necessary elements adopted by appropriate approaches.

The risk plan identifies the scopes of work based on the differential places (Aven & Vinnem, 2007). Absence of a project risk plan means that the project organization lacks a reflection of requirements developed with the work. The plan engages all aspects of the process of execution of works for rescue situations. The fact that project owners are not in a position of revoking contracts; contractors have executed projects without employing any form of cost-savings and mitigation strategies (Ruhe & Wohlin, 2014).

It is recommended to have a project risk management plan to facilitate the audit and analysis processes. Risk management plans facilitate project success through the establishment of comprehensive lists of external and internal risks. The plan includes identified risks, proposed actions, probability of occurrence, and potential impact. Low-risk occurrences have minimal impacts on cost, performance or schedule. Moderate risk exposures cause an increment in costs while disrupting the schedule and degrading the performance.

For purposes of ensuring that the projects run efficiently, effective project risk managers communicate plans to all project sponsors, team members and stakeholders (Ruhe & Wohlin, 2014). The focus sets the expectations among the people providing funding as well as the affected