Risk Paper two Project Risk Management- Mentor Hurst Fluidity in Risk Planning – A Case Analyze One of the most essential steps within a project is definitely risk management since it plans pertaining to and responds to hazards that effect the overall task deliverables which includes budget and timeframe. Risk management is used to mitigate risk in ways that align with each individual risk and its potential impact. Throughout the risk management method risks will be identified and defined and a plan to regulate, monitor and eliminate all of them is created.
Risks coming from all areas are brought up during these thinking sessions with the risk management organizing phase and are planned for accordingly. The work breakdown framework of the job is used as a guide the moment compiling a risk matrix that will determine potential hazards, their intensity and impacts. The case examine in chapter 13 demonstrates two several risk response strategies with regards to the tender review process of a project’s gifts.
The first phase of the watch case study aligns more strongly with a complete and effective risk organizing process program while the second phase builds on the baselines determined by the first phase to generate a even more solid and final risk assessment which will continue to be smooth throughout the task. Risk management is actually a crucial stage of the job planning stage that continually evolves through the entire project. During phase one of the case study this kind of stage is considered a high importance and benefit step therefore resulting in the right planning from the risks centered of off of the WBS.
The objectives of phase a single are plainly identified and the intention to recognize major hazards of the project, which will be utilized as a primary when comparing every individual tender for the project’s risk outcomes, is apparent and all main steps to accomplish that are taken. Step one of the creating the young phase 1 case study calls for the “project structure to become reviewed while using project director and essential staff” and creating “an agreed risk WBS”. (Cooper, Grey, Raymond, Walker, 2005, p. 52) The first step requires a meeting of all parties involved to review the WBS and begin brainstorming on potential risks. This is an extremely advised stage because it permits proper risk identification and mutual knowledge of the risks between all parties. Phase one will do a solid work identifying dangers using recruiting, quantifiable actions and satisfactory documentation. Period two uses the outcomes of phase one particular as a baseline and performs of away those when comparing each tenderer’s offer for the risks and determining the effect the soft will have to each individual risk.
Phase two uses the exact same process since phase one except it already provides a baseline to work with whereas phase one produces the base. Both measures are highly deemed steps yet step two will do a better job at determining risks as it uses the baseline of potential risks and compares them to the introduction of a new significant risk, the tenderer, while measuring it is impact on the complete project. Phase two may be the more solid one of the two phases since it demonstrates the fluidity of the risk planning process while quantifying every single change to the baseline using the same way as in phase one.
The case study claims that during phase two all “revised risk likelihood and effect measures must be converted to numeric scales and risk elements [should be] recalculated”. (Cooper, Grey, Raymond, Walker, 2006, p. 160) Thus stage two likewise does a better job for quantifying the hazards because it analyzes each altered risk to the baseline and adjusts it is ratings depending on the suggested changes setting up a more practical understanding of the risk likelihood and impact. The case research was interesting because it demonstrated the pre planning phase of the risk planning process.
The pre planning stage was period one since it created a primary of presumed risks while phase two built with this fluidity and showed the impacts each tenderer would have on these risks. Essentially phase one of many case study directed phase two since stage two could hardly be finished without the discovered baselines. Phase one was obviously a simpler stage of the case study because it contains brainstorming and risk identification without taking into consideration the positive or perhaps negative affects a third party might have. This does not mean that it did not plan for these as period two was going to follow when tender submissions were received.
Phase two, however , had a more persuasive assessment of risk since it had a map already summarize and it just needed to abide by it to arrive at the best location or perhaps situation. The first period identified risk assessment formulations to assess the risks, that created a baseline of dangers and audit proof procedure for follow. With those ends in mind, the second phase was more concrete because it followed things set forth by the first period, analyzed the impact of the actions of the tenderer on the baseline risks, evaluated those, anked them then assigned statistical values using the formula set forth in the initially phase. These two cases are incredibly much likewise yet they may be so diverse as well. They are alike because they use a similar process to distinguish and ranking risks however baselines will vary. The 1st case, period one, started out with a write off slate making use of the WBS to identify risks even though the second circumstance, phase two, used the baseline established by the 1st phase and used the WBS to learn new ways and their impacts for the overall job.
Both levels of this case study are crucial in risk management projects and are enforceable whether a tender is requested or not really. Risk management is actually a fluid procedure that necessitates constant alterations to achieve the best suited outcome with minimal if perhaps not absolutely no interruptions in the project’s gifts. This case analyze showed the importance of regular review of hazards and the job that goes in to risk avoidance and mitigation.
Risk avoidance does not only occur during the initial period of risk planning but it is something that project managers prefer to remember with every step they take, if this means hiring contractors, workers or support staff, each individual and their actions will effect the overall likelihood of the task, the question is how severely? Referrals Cooper, Deb., Grey, T, Raymond, G., Walker, P. (2005). Project Risk Management Guidelines Managing Risk in Large Projects and Complex Procurements. West Sussex, England: Wiley and Sons.
