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Risk Management Planning
Even carefully planned projects run into trouble; therefore, it is essential for all managers to establish a risk management plan that will enable them to overcome these challenges. A risk management plan is designed to prevent, avoid, or minimize uncertainties (Heagney 2016). A risk simply refers to any condition that can adversely affect the success of a project. In some cases, positive unexpected conditions may arise like the emergence of a new market. Although the unexpected positive events are treated in the same manner as risks, they are referred to as opportunities (Heagney 2016). Importantly, a risk management plan enables an organization to successfully implement all its projects by either preventing, avoiding, or minimizing risks while at the same time maximizing on the opportunities.
In risk management planning, an organization normally develops tactics for dealing with eventualities that may occur during the implementation of its projects. The measures of dealing with uncertainties in a project are categorized as risk avoidance, control, transfer, and acceptance (Larson & Gray, 2017). Risk avoidance simply refers to the implementation of strategies that provide total protection against eventualities. Risk control aims at minimizing the severity of the damage caused by uncertainties. Risk transfer ensures that the impacts of possible eventualities are shifted to a third party. Finally, through risk acceptance, an organization ensures that it has adequate resources and the right mindset to overcome any uncertainty that may occur.
In order to properly implement a risk management plan, an organization must continuously conduct a rehearsal of the tactics to be used. In this case, the project manager must ensure that all team members involved in the task are skillful in their works (Larson & Gray, 2017). Therefore, the training is aimed at improving their skills so that they are competent enough to deal with an uncertainty that may occur when implementing the project.
A project manager has a duty of ensuring that an organization does not deviate from its main objective (Heagney 2016). Consequently, he/she must continuously compare how his/her organization is implementing a project against the established plans and also the industry’s performance. This process is called benchmarking. The continuous assessment of the organization’s performance enables the project manager to quickly identify risks that may delay a project and assists him/her to establish the corrective actions to be undertaken.
Project maintenance refers to the purposeful tracking of all the activities being undertaken when implementing a project. By ensuring that the project rigidly follows the established plans, a manager is able to minimize the number of errors in the implementation process (Heagney 2016). In most cases, a project manager usually has a weekly meeting with supervisors where he/she is updated on its progress. In addition, he/she modifies the established plans in order to counter any eventualities that may adversely affect the project implementation process.
The project implementation process must be continuously audited in order to ensure that all processes comply with the recommendations that have been established by the organization (Larson & Gray, 2017). The audit process mainly checks on the effectiveness of the established tactics and whether they have been correctly implemented. In addition, it assesses if the allocated resources are sufficient to deal with the expected uncertainties. For example, if the main risk in a company is a fire accident, an audit and assurance process evaluates if there are sufficient fire extinguishers in the building, whether employees have been trained on how to fight a fire, and if there are fire exit doors. Consequently, an audit and assurance process enables an organization to identify any weakness in its plans.
The continuous monitoring and assessment of a risk management plan are essential for proper implementation of a project. They also ensure that the uncertainties are detected in good time and appropriate corrective actions are undertaken. Finally, an organization is also able to assess the probable risks in a project and develop appropriate corrective tactics of dealing with them.
Heagney, J. (2016). Fundamentals of project management (5th ed.). New York: NY, AMACOM.
Larson, E., & Gray C. (2017). Project management: The managerial process (7th ed.) New York: NY, McGraw-Hill Publishers.