This topic represents a project risk management plan, which contains the analysis and interpretation of risk occurred due to the improper planning by the project management. Here the study conducted to identify the possibility of risk in the preparation of a project in department of defense. There is a system of defense, named automated defense system designed and developed by project ‘x’. As a project manager I have to take proper decisions, before making the overall review of a project. I have to develop a sufficient risk management plan to identify the investment associated with the risk management project.
Project risk management
A risk is the possibility to get loss. In other words risk is something may happen, will have a positive or negative impact on the project. Before making a project, the project manager should consider the following stages of risk management plan.
- Identification of risk.
- Quantification of risk.
- Responses of risk.
- Mentoring and control of risk.
In the first stage, the management considers a list of risk related project outlays by using a combination of brain storming ideas. The second stage giving preference to the quantification of risk into different dimensions. It can be assessed on the basis of the probability to get loss. In the third stage, the four things such as avoid the risk, transfer the risk, mitigate the risk and accept the risk are taken into consideration. The next stage will be given preference for mentoring and coaching to control the risk.
Investment risk management
Before making a risk management project, an investor has to know a lot of things. First of all he must assess the viability of the project. Then he analyses the maximum risk by using mathematical formulas and statistical techniques.
The different types of risks involves with automated mobile defense system (AMDS) are external risks, internal risks, budget risks, schedule risks, resource risks, and human resource risks. Each of these risks is need to evaluate. That is “the objective of the risk evaluation is to identify event sequences with potentially serious negative consequences based on the business model.” (Security architectural model, 2009).
The external risks are mainly happened with government or any rule changes. This will even lead to cancellation of the project. Another risks involved with external risks are lack of availability of technology. These kind of risks should be avoided earlier itself, otherwise even cancellation of the project may happen. The lack of communication, mission, workflow, support from management, and training for workers may lead to internal risks.
The lack of communication may happen due to trouble in the tele-communication system. The sudden change in the management/head may lead to change in their mission also it will affect the workflow of the workers. These kinds of issues must be mitigated. The next risk is budget risks, these risks are happening due to the lack of fund availability. These kinds of risks should be avoided early; otherwise the whole project comes in to breakdown.
Then comes scheduled risks, this may happen due to many factors such as absence of engineers, delay in commodities, unavailability of workers, weather problems etc. These kinds of risks should be mitigated by making availability of respective things/commodities. The next is resource risks. This may happen due to unavailability of resources available for making automated mobile defense system (AMDS).
This should be avoided otherwise the whole project may not be happen. Not only this simply having the resource may not solve the problem. Its quality should be unimaginable. Having the resource but without quality won’t give any meaning to the work. The next risk related with AMDS is human resource. This may happen due to the unavailability of efficient team leaders and team members. This risk should be mitigated otherwise it will effect the performance of the system. These are the risks that can happen at the time of manufacturing of automated mobile defense system (AMDA) and appropriate risk management facilities.
Contingency Plans are vital part of any project. It is prepared as a precautionary measure against any crisis that the project has to face in the near future. A contingency plan is defined as “A plan that provides resources for problem solving in the event that something happens by chance.” (Glossary and references, 2005).
Execution of Contingency Plan
Contingency Plans should be developed for every process or function. Contingency Plans will vary with each system, process and purpose.
Objectives of Contingency Plan
- Contingency Plan determines the risk of failure and its impact on business.
- Contingency Plan describes the risk involved with using the chosen contingency plan alternative and its impact on business.
- Contingency Plan gives a clear picture of desired outcomes in terms of output and level of service.
- Contingency Plan anticipates the potential impact of financial, market share aspects.
Steps involved in Contingency Plan Execution
- Implementation Criteria: This step describes the basic criteria involved in the implementing the plan. It also describes the situation that prompts the decision to implement.
- Trigger Events: This step describes the date or specific failure that will lead to the implementation of plan.
- Responsibilities: This step describes the person responsible for making implementation decision. More precisely this step describes the person who is on duty the time the event happens.
- Duration: This step describes the estimated time that contingency operations will cover. (Contingency planning outline, 1999).
If there is any cost occurred due to failure of the implementation of project as a Project Manager, I give first preference for the contingency factor as a time factor, 50% of the contingency reserve is being taken to meet the loss due to time. Remaining 50% is taken to meet the other contingency factors such as damage of property, price decreases, economical impacts etc.
Contingency planning outline. (1999). Web.
Glossary and references: Contingency plan. (2005). Instructional design at ICS. Web.
Security architectural model: Risk management: Risk evaluation. (2009). Search Security.com: The Web’s Best Security Specific Information Resource for Enterprise IT Professionals. Web.