Importance of a Risk Management Plan

Risk Management on a Satellite Development Project

Enrolling a project requires risk assessment and management at various levels of implanting a project. This is based on the knowledge that quality of risk management determines the performance and outcome of the project. In any case, the Project Management Office (PMO) is mandated to spearhead a risk assessment and management plan. Risk management blueprints will later be implanted to each department. This analysis attempts to vindicate the role risk management in explaining the quality of output of this project. The commencing document is structured in two main parts. Firstly, a critical assessment on the fundamentality of risk. Secondly, the document will analyze the role of the team in responding to risk management stipulated by the PMO office (Charrel & Galarreta, 2007).

Issues arising from the lack of a risk plan.

Absence of a risk management plan would have affected this project negatively. Potential negativist challenging the project could have been identified as costing and budgetary allocation would result to funds being allocated to inappropriate destination. Besides, the project risk plan sought the aggregate commitment of all parties. If the project did not analyze the aggregate commitment of all parties, then various departments would not have functioned collectively, thus leading to optimal breakdown of project mechanism. Thirdly, the project risk assessment considered the usage and proper utilization of time. Absence of time management would mean that activities would not be scheduled leading to the crumbling of the project (Dar, 2013).

Besides, the risk assessment methodology sought to apply communication to respond various needs of the project. Failure to apply communication methods would incapacitate the project coordination mechanism. In any case, project stakeholders would be pursuing different agendas on aggregate. Fifthly, the risk management contingency plan adopts leadership mechanism to ensure activities are timely and prudently delegated. Absence of a risk management plan implies leadership and delegation will be constrained (Kerzner, 2013).

Value of risk plan

The central considerations of the proposed risk management will attempt to balance investment (cost) against returns (cost). For the members, it is appropriate to calculate steps ahead before the real project plan. This calls for the integration of futuristic results because many projects change as technology changes. For justification, the upcoming risk management plan will facilitate the formulation of better decision in the corporate strategy. Secondly, the plan enhances project agility. The project will respond appropriately to meet demands of a given cost. This Justification is adopted from Accenture Global Risk Management, which identifies a 98% percent of project participants often favor risk assessment and risk management before the commencement of a given project (Kloppenborg, (2012).

Determining the level of risk management appropriate for a project

As seen from the case study, risk management plan endeavors to reduce the aggregate harm targeting the project's success. While initiating a risk management plan, it is prudent to allocate risk allowance for unforeseen delimitations like accidents. In arriving at a required threshold, the risk level is calculated by the risk harm occurred against the severity of the harm. This project has identified the following categories of risk; negligible (those instigated by the project management office), marginal (risks occurring in project enrollment), Catastrophic risk (risks with significant impact), and critical risks (those that need immediate concern). The PMO will be required to align each risk based on its severity in the overall risk assessment plan.

Ways of maintaining the current goal

Managing a geographically dispersed team presents significant challenges to the PMO. Consequently, the PMO is required to choose the appropriate team players. Satellite candidate should be self-motivated and have the ability to work at individual levels as well as, handling pressures. The satellite team should as well have coherent communication skills. Thirdly, the team should have optimistic results driven capacity. The above team will technically request minimal supervision on aggregate. This reduces the total cost of operations and boosts quality of work in individual located in diverse grounds (Dar, 2013).

Secondly, there is a need to reinstate the project objective regularly. The PMO has to emphasize on the need of ensuring that the project succeeds. This can be accomplished through constant evaluations, development of goals, objectives, and charters. The reinstatement intrinsically examines on the possibilities on the virtue of independence as a vital prerequisite required in managing the project office (Charrel & Galarreta, 2007).