Risk Management Might Take Place A Project â€Myassignmenthelp.Com

Question: Discuss About The Risk Management Might Take Place A Project? Answer: Introduction Risk refers to anything that could affect the projects schedule, performance, and its expenditure. Risk Management Plan in a project entails identifying, analyzing and taking action to any risk that arises over the entire life cycle of a project (McNeil, Frey Embrechts, 2015). It helps keep the project on track to achieve its intended goal. Risk management helps in figuring out the risk that might take place in a project, and how to remedy the risk if it occurs. The ATA should proceedas follows to come up with a sound project risk management plan for the project; Risk Management Cycle As a project team member, learning to make use of the five core risk management steps would ensure the project runs smoothly. The first process is risk identification. Itinvolves uncovering, identifying and describing risks that may influence your project (Chance Brooks, 2015). At this stage,Project Risk Register is prepared for consistency, compactness, concision, commitment, completeness, and control throughout the project. In East Timor, theinvolvement of Government geologist would give a clear indication of the terrain in the area. The landscape has rugged mountains,waterfalls, coastal lagoons,and even patches of dense rain forest (Brockwell, OConnor, Litster Willan, 2016). If the ATAs East Timor Solar Project were to establish in such a terrain, we would expect various risks to arise, including delay in delivery and shipping of equipment fromdifferent regions, let say like China. Nonetheless, we may expect a delay in delivery due to import licensing requirements.This would lead to delay in the projects timeline, and a risk management should be carried out to ensure that the project meets its purpose. The second process is to asses.Once the risk has been identified as being poor terrain and importing licensing requirements, you determine the likelihood and repercussion of the risk (Brockwell, OConnor, Litster Willan, 2016). You come up with a clear understanding of what nature the risk belongs to and how it would affect the aspiration and purpose of the project.In our case, the effect of terrain on the delivery of equipment (solar panels and other crucial machines) would mean that the project would not kick off as they are a prerequisite for the project. The potential of the delay is a high percentage considering the rugged mountains, waterfalls and coastal lagoons hence affecting transportation of the equipment (Alongi, 2014). Importing licensing laws would also lead to delays as the cargo may stay for long awaiting dispatched as per the requirements. The third process is to evaluate and rank risks. Once the risk has been accessed, you list it by identifying its extent, which includes how likely it is to occur and how it may affect the whole project in general (Haimes, 2015). One needs to choose if the risk is severe enough to warrant remedy. In the case of ATA East Timor Solar project, our seems severe enough to warrant for treatment which may include extension or addition of time required to accomplish the project, meeting its standards and its prerequisite purpose. The fourth process is treating the risks. Also known as Risk Response Planning. It involves choosing your highest ranked risks among all risks and identifying a plan to help remedy the risk to achieve acceptable levels (Olson Wu, 2015). You minimize, or full treat negative risks and at the same time improving on opportunities.you come up with means to lighten the risk, a preventive plan as well as a possible plan. Risk treatment measures are added to the most serious risk. In our case, Importation Licencing requirements may delay time of delivery of all materials. As such, it would be wise enough to approach the local authorities in charge and lying down our issues. This can guarantee that our cargo is cleared with immediate effect on delivery to sustain the period set aside for the project. Regarding the nature of East Timor, finding better and the admittable mean of transport to reach the required site would in return reduce the risk by a given percentage. If the issue seems ambiguous enough such that it becomes critical, this affects the whole project regarding thetime required to accomplish the project. Hence, to accelerate the project, we would require reducing the time for critical path activities. For example, if delivery of materials affects the accomplishment of Task 7 let us say by six days, the whole project is affected such that time to accomplish it becomes 25 days rather than the 19 days as earlier stipulated. Delay in the critical path (longest path on a network diagram) would lead to the delay in the whole project The fifth process is to monitor the risk.It involves taking your Project Risk Register and use it to oversee, track and revise your identified risks (Grote, 2015). The tasks may involve ensuring the launch of actions set aside to mitigate the risk have desired effect, looking out for indicators at early stages that a risk is developing, ensuring overall management of risk is put into action effectively. Potential Risk Exposure Risk exposure refers to themeasure of the likelihood of a loss to take place in a proposed project that may resultfrom an activity or occurrence. It ranks the various types of losses and ascertains the losses that are acceptable and those that areunacceptable. ATA project that maybe was planned to take ten months needs to examine the possibility of the project taking more extra time. After conducting research, the firm learns that the chances of the project taking longer than ten months are 40%. This would mean more expenditure regarding paying employees as well as the upkeep cost which would impact on the total budget of the project. The risk is entirely unacceptable, hence, seeking to deliver equipment earlier enough than stipulated time of the project would help save on time. Conclusion Risk entails uncertainty, and a plan is needed to de-risk your project. The plan helps in finding a solution to a risk in case it takes place as they have been researched in advance and means of treating them been developed and agreed upon (Kerzner, 2013). In the end, you are in a position to reduce impacts of project threats and take advantage of the opportunities that may present themselves. References Alongi, D. M. 2014. Mangrove forests of timor-leste: ecology, degradation and vulnerability to climate change. InMangrove Ecosystems of Asia(pp. 199-212). Springer New York. Brockwell, S., OConnor, S., Litster, M., Willan, R. C. 2016. New insights into Holocene economies and environments of Central East Timor: Analysis of the molluscan assemblage at the rockshelter site of Hatu Sour.Northern Territory Naturalist,27, 2-12. Chance, D. M., Brooks, R. 2015.Introduction to derivatives and risk management. Cengage Learning. Grote, G. 2015. Promoting safety by increasing uncertaintyImplications for risk management.Safety science,71, 71-79. Haimes, Y. Y. 2015.Risk modeling, assessment, and management. John Wiley Sons. Kerzner, H. 2013.Project management: a systems approach to planning, scheduling, and controlling. John Wiley Sons. McNeil, A. J., Frey, R., Embrechts, P. 2015.Quantitative risk management: Concepts, techniques and tools. Princeton university press. Olson, D. L., Wu, D. D. 2015.Enterprise risk management(Vol. 3). World Scientific Publishing Co Inc.