How Project Process Is Reliant on Effective Risk Management - Case Study Example

Introduction

Risk management is imperative for any project. Most importantly, from the analysis of the case project, it is effective that diverse risk management approaches are implemented for successful outcomes. Through the project team implementing the several risk management techniques, successful completion of the project is bound to prevail (Kloppenborg, Nkomo, Fottler, & McAfee, 2012). Therefore, this paper will evaluate risk management as per the case questions.

Issues that could have developed had the team not had a risk plan. Impact of risk that the team needs to understand for the project to be successful

Risk management is important for any project to be undertaken. Accordingly, from the analysis of the project evident it is fundamental that the management invest into a proper risk management plan (Kloppenborg, et al., 2012). The focus on and a management plan is important since there are various issues that may emanate as a result of ineffective plans. Some of the issues that may be evident in the project include:

Ineffective Information Relay

In reference to Chance & Brooks (2015), the prospect of a reduction in the perceived risk is through obtaining of information through proper relay among the team members. Accordingly, a risk plan is effective towards ensuring that information relay is within a clearly stated manner. As a clear example, in the case project, there is the prospect of the use of new technology, the team should, therefore, invest financially into learning about the technology (Kloppenborg, et al., 2012). Through encompassing a plausible plan towards information relay, the success of the project is bound to prevail.

Unplanned Contingencies

There are diverse aspects that may emanate in the process of a given project. Accordingly, focusing on a risk plan is important since it describes the steps to be undertaken in the instance that certain risks materialize. Through the risk plan, the team is prepared and maintains a steadfast approach in the process of evaluation and mitigation of the evident uncertainties (Kloppenborg, et al., 2012).

Ineffective Reduction of Risks

Risks emanate from different issues in the project process. As a clear example, in the instance that a team is concerned that the use of a new technology may cause a delay, the budget change may be evident. Accordingly, the risk plan provides a clear-cut approach in the financial risk assessment and ensuring that proper ways are implemented toward the reduction of the available risks (Kloppenborg, et al., 2012). There is the notion of potential slip in the risk management process. Therefore, the need for in-depth focus by the management towards comprehensive risk reduction is as a result of a risk plan. Without a risk plan, the team is caught off-guard in its process of risk reduction.

Value of the Risk Plan

The analysis of the risk plan exudes diverse advantages and benefits towards the successful completion of a given project. From the evaluation of the project, it is evident that a risk plan provides an enabling environment for the team in its performance mandate (Kloppenborg, et al., 2012).

A risk plan enables for a team to develop and implement approaches to minimize foreseeable disruptions in operations. As such, a risk plan is important and effective towards ensuring that the organizational team can plan ahead and implement proper safety measures. In reference to pundits such as Chance & Brooks (2015), the risk plan generates a blueprint that an organization can implement towards ensuring disruptive aspects are eliminated in the project completion process.

A risk plan is valuable to an organization since it enables the identification and minimization of the potentially adverse negative effects of any operation. As a satellite project, it is important that identification of the predictable and unpredictable outcomes prevail. Through identification and putting in place, the right measures towards identification and mitigation of the evident outcomes, plausible completion of the project are bound to prevail.

A risk plan is important to the satellite project and valuable since it will necessitate an effective transitional process in the project implementation. A risk plan generates a properly structured approach for the team in the decision-making process. Through the in-depth focus on the available processes in risk management plan, smooth decision-making process is bound to prevail.

Therefore, from the analysis of the value and importance of a risk plan, it is evident that the project team should ensure that the accomplishment of the tasks set is to cost, on time, and in a plausible resource use.

Proactive Approach

The focus on a proactive approach is important to necessitate success in the project process in a timely, to cost and profitable manner through the implementation of:

Proactive process in the management of risks through consistency in the crisis management and analysis of the contingencies that may emanate,

Systematic approach to the analysis of the surface risks that emerge from the marketing and management of the risks evident using both checklists and a comparative approach to risk assessment,

Ensuring that all the stakeholders communicate on the various risks that are available throughout the development cycle which is crucial to cost management,

Prioritization of the risks through computing of the exposure risk rate of the diverse risks available in the project,

Management of a daily schedule that focuses on ensuring that the project team members are aware of the contingencies that may impede on the performance mandate of the project, and

Implementing and utilizing a risk-driven process in the choice of either cost management or resource maximization in the risk management process.

Determining the Level of Risk Management for the Project

This relies on a systematic identification of the evident risks that are bound to prevail. As such, an organization can implement a previously prepared in the categorization of the model (Bessis & O’Kelly 2015). Accordingly, determining the level of risk management can take the form of a simplistic list of categories. Additionally, from the analysis of the satellite project, the implementation of a risk breakdown structure (RBS) is a plausible strategy for the business (Kloppenborg, et al., 2012). The RBS initiative entails the focus on:

Project size

Risk assessment level

Strategy

Points for the project team

0-$100000

Level 1

Qualitative tools in project risk management

The project team should evaluate each of the identified risks especially in the evaluation of the probability of occurrence. Through the analysis plausible documentation of the impact of the project on the team, objectives are bound to prevail. The use of the self-modeling spreadsheet is a plausible initiative for any project

$100000-$1000000

Level 2

Formal qualitative and quantitative risk management approaches

The team should work collaboratively with the evident independent subject matter experts workshops should be set forth to ensure that accomplishment of the structured and set modeling of the targets set. Modeling of the set targets can be accomplished through the in-depth implementation of the self-modeling spreadsheet. The focus on an enabling environment especially in the process of project analysis if important.

$25 million

Level 3

Cost validation approach

The focus of the cost validation approach is towards ensuring that the project scope, schedule and the estimates set are met. The procedural mandate towards analysis of the results is through focusing on both preliminary and final reports

Virtual teams and how to meet the current goal in planning and execution

The management of geographically dispersed work teams through the implementation of virtual collaboration is a daunting task for the project accomplishment. Accordingly, it is important that the management implements effective strategies that necessitate an enabling environment towards the planning and execution of the virtual team activities (Bessis & O’Kelly 2015). Kloppenborg, et al., (2012) emphasize that the transition to the virtual team process is dependent on the effective communication techniques through diverse practices. Therefore, in the planning and execution process, the two most effective practices that the management can implement include:

Implementing a Communication Management Plan

There are two integral tools for a virtual team manager that improves the interaction and ensuring clear accomplishment of the expectations set. A communication and team operational agreement are two significant tools that generate a plausible approach towards extending a proper environment in the project process (Kloppenborg, et al., 2012). Through the virtual team communication management, there is a clear outline of the communication needs, the frequency of communication, well laid out techniques to communicate and the information relay approach.

Setting Appropriate Technologies for the Virtual Team

Technology forms the communication medium among the virtual teams. Therefore, the teams that are incorporated in the communication are essential to necessitate proper planning and execution of the targets set. Accordingly, the priority of the communication tool forms the operational dynamics. The various approaches to communication include high-quality video interactive medium, emailing, video conferencing and even the use of mobile telephony (Bessis & O’Kelly 2015).

Conclusion

The project process is reliant on effective risk management. Most importantly, from the analysis of the case project, it is important that proper tools and techniques are implemented for successful project process. The focusing on team management, in-depth evaluation of the virtual teams and focusing on technology use will ensure success in the planning and execution of the teams.