ARC515-18 - Specialization 2

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FIRST SEMESTER 2022 - 2023

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AR. OWEN L. RAMOS

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5AR – 1

RISK MANAGEMENT PLANNING

ASSIGNMENT NO. 1

FACTURAN, JHON KARL C

 RISK MANAGEMENT PLANNING

DISCUSS THE STEPS IN RISK MANAGEMENT PLANING

Step 1: Identify potential risks

Identify various risks for the strategy for risk management by brainstorming them with the
whole team and all project stakeholders. Each member should carefully analyze the project
from the perspective of their particular position and list any situations or conditions that
may be viewed as risky.
Encourage the group to discuss any possible risks during this brainstorming session and to
include all interested parties. All concepts must be on the table at this time. The project
manager is ultimately responsible for summarizing and completing the components of the
risk management strategy.

Step 2: Evaluate and assess potential risks

Sort the extensive list of potential risks according to effect and probability (low, moderate,
and high risk). This data can be put in a document known as a risk record. The risk register
should be viewed as a constantly changing document that everyone refers to and may
change throughout the project, even if it isn't a part of the project planning process.
At least three disasters will occur on every project, and they won't be connected to the
current technological challenges. They will have communication at their core. And in most
cases, it isn't how to prevent the crisis that counts. It is how to respond to them in
considering the fact that misunderstanding, ambiguity, or inability to timely convey
important information and choices are likely the root causes of the disasters.

Step 3: Assign ownership for each potential risk

Prioritize the list and understand how many resources are required for each risk before
assigning team members to oversee risks. Should the possible risk materialize, designated
team members will be in charge of taking immediate action. The risk management plan's
assignment of risk ownership guarantees that someone is always monitoring each issue and
aids in prompt and effective problem solving.

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Step 4: Create preemptive responses

To decide what should do if and when a risk becomes a problem, the project manager and
owner of each risk should collaborate and use the risk register. All team members should be
able to see the risk management strategy so that everyone is aware of the dangers to be on
the lookout for and who to contact should one materialize. It is simple to integrate the
organization with a single corporate work management system in the internet age.

Step 5: Continuously monitor risks

New risks are certain to emerge in addition to the risk they have previously recognized in
the risk management strategy. Here, a risk management system as well as continuing risk
monitoring and control become important. Monitoring and reporting on challenging
situations that necessitate launching the response plan are required for risk management (s).
Additionally, it will entail comparing the risk to the initial estimate in order to learn and
plan for the future.

DISCUSS AND EXPAIN THE FUNCTION OF PROJECT RISK MANAGEMENT

TEAM

1. Admit and Identify

Every project activity that is carried out contains some level of risk or uncertainty over
what will happen in the future. Recognizing and identifying such risks is the first step in
addressing them. Almost every action carries a risk of failure since some of the concerns
are general and essential to the project's implementation.
Other risks and threats are specific to the performing company, such as a possibility of
vehicle accidents or copyright violations. As an example, some necessary goods to be
procured for executing the project are delivered ahead of schedule so completion of the
respective project's phase or the overall project completion is under the risk of failure, or at
least delay. The risk management group must acknowledge a possibility of risk occurrence
through risk management workshops, seminars, and meetings before using risk
identification methods to identify and define the likely risks.
The team should include any risks and uncertainties that it can foresee occurring in the
current system at the very beginning of the risk management process. It will be important
for team members to have proper risk management training since insight will be crucial for
spotting concerns.

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2. Measure and Prioritize

In the second stage, the team assesses the likelihood that each risk will materialize and
determines the potential (positive or negative) impact and expense on the project and its
operations. A given observational risk assessment methodology allows using lessons
learned and taking into account the potential public reaction taking into account the past
experience. The group can use a retrospective risk assessment methodology to look at past
accidents (if they occurred) and check with similar situations in order to try developing risk
probability estimates and cost estimates. After using a retrospective risk assessment
technique, the team can examine the risks using strategic risk management tools and
methodologies if no comparable threats were found in earlier projects.
3. Implement a Strategy.
The team chooses how to handle the priority risks by applying risk management
methodologies. The workgroup's next responsibility is to create a written plan that explains
the actions that need be followed to control significant risks and enable the performing firm
to complete the project with the lowest possible risk of failure. In that plan, a recommended
strategy—or a group of suggested strategies—is described as being used to the project.
4. Implement Risk Management Plan.
The team's main responsibility is to formally accept and put the risk management plan
template into practice. The risk management team distributes the plan's components to
those who may be affected by it, and this is the first step in putting the plan into action.
Even if every member of the workgroup gets the chance to discuss the implementation of
the plan and offer input on its content (so that the proper guidance and support can be
given), further risk management training may be necessary. Members who have the
necessary training and skills in risk management can assist individuals who have questions.
In order to enable the team members to fulfill particular risk treatment and control tasks,
some workers and volunteers may also participate in risk management training activities.
5. Review and Revise Risk Management Plan.
In order to adapt the plan to the changing requirements of the job management system, the
risk manager, working with risk analysts, examines project activities throughout
implementation, assesses the status and development of the identified risks, re-estimates
current threats, and registers new ones. For instance, new risks may arise as a result of
problems with service delivery, the demands of additional clients, or financial restrictions.
The dynamic of the emergence of new hazards determines the dynamic of the risk
management information system. The risk manager should frequently assess the risk
management plans in place. The risk management team should assess an example of a
current risk management strategy to ensure that it remains suitable, thorough, and effective.