Can you help me understand this Management question?
Please reply to both POST1: and POST2: in at least 200 words each.
I have included my original post because the professor has asked a question pertaining to my post. The professors question is marked as POST1:
Project Planning and Risk Management
Project planning involves every activity undertaken to ensure that a project is successful. It mainly consists of going through several steps that establish what one needs so as to define their project objectives. It further clarifies what needs to be done and creates a list of the tasks to do. Risk management planning, on the other hand, refers to the steps undertaken by the project manager to foresee risks, define responses, and estimate the amount of impact. Risk planning contains a proper risk assessment matrix (Elson, 2015). The project manager should periodically review the risks so as not to stall the process of project management. This continual monitoring is imperative in ensuring that the respective corrective measures are applied in the required timeframe.
The risk planning process involves the identification, prioritization, and management of risk. It consists of establishing the objectives that one needs to accomplish and identify any risks that might affect its achievement. Risk events may threaten the achievement of critical success factors. The planning process, therefore, involves identifying important risk events, developing response plans, and prioritizing them. When planning your risks, you need to use an extreme risk identifying process. It may involve using risk analysis or using a risk register.
For successful risk planning to happen seamlessly, there needs to be at least three documents. The first document is a risk management plan, in which a document is prepared by the project manager to foresee risks and estimate their impact. It also helps the project manager to come up with responses to those risks. A risk register is also required to facilitate the fulfillment of regulatory compliance (Uzulāns, 2016). Another essential document is the risk assessment matrix. A risk matrix defines the level of risk by looking at the probability of occurrence and severity.
Elson, R. J., O’Callaghan, S., & Walker, J. P. (2015). Integrating corporate governance concepts in the classroom with the risk assessment project. Journal of Instructional Pedagogies, 17. Retrieved from https://files.eric.ed.gov/fulltext/EJ1083855.pdf
Uzulāns, J. (2016). Project risk register analysis based on the theoretical analysis of project management notion of risk. Economics & Business, 29(1), 43-48. doi:10.1515/eb-2016-0020.
Thanks for the engagement this week and welcome to week two. I agree that the risk process includes identification and prioritization. I think the prioritization piece is often missed in the risk management plan. What are your thoughts about the prioritization process? Why do you think it’s so important in the risk management process?
Risk management planning is a component of project planning. Project planning encompasses the scope of risk as well as other high level aspects of a project. Risk Planning involves selecting a strategy and methodology to use in executing risk analysis. During planning, the budget and schedule are created for risk management tasks. Roles and responsibilities are defined among the risk management team and stakeholders (Project Management Institute, 2017).
The primary tools used in planning risk management involve using expert judgement and stakeholder analysis. Meetings with stakeholders and subject experts facilitate the creation of the risk breakdown structure, risk register, risk impact scale, and ultimately the risk management plan. Cause-Risk-Effect descriptions can be summarized through the use of meta-statements. Risk severity and probability can be conveyed through the use of a matrix which show the varying impact on budget, schedule, and scope (Bissonette, 2016).
Risk management requires the input of: the project charter, project management plan, stakeholder register, enterprise environmental factors, as well as organizational process assets. The project charter and project management plan assist in the creation of the risk breakdown structure, in part because of the work breakdown structure, which is useful for a top down analysis. The stakeholder register assists in defining the roles and responsibilities within risk management. Enterprise environmental factors help identify potential external causes for risk while the organizational process assets help define the overall methodology and strategy used throughout risk management (Project Management Institute, 2017).
Bissonette. (2016). Project risk management : A practical implementation approach. Project Management Institute.
Project Management Institute. (2017). A guide to the project management body of knowledge. Sixth edition. PMI Publications.