The paper 'Risk Assessment in Project Planning" is an outstanding example of management coursework. Every organizational project is subject to risks of which if the state of perpetual crisis arises within a project implementation process, this shows the failure of the project managers to identify the risk fully. Risk identification, analysis, and management is a facet of Quality; hence, it is crucial to use basic techniques of analyzing and measuring to ensure that there is proper risks identification, classification, and management (Maylor 2010,314). Considered as an inevitable component while undertaking projects, project risk can be minimized by the managers to ensure the reduction in the impacts they cause.
Therefore, after the identification of the risk, project managers have the responsibility of coming up with mitigation measures plans to counter-attack the risk (Webb, 2003, 183). Project team faces difficulties while trying to identify and name the risks arising when performing the projects. Solving these risks may involve using formed or formless brainstorming approaches to get inclusive information. Risk analysis is significant to recognize that the project team and other stakeholders can only handle risks relating to the project (Royer, 2001, 413).
In most occasions, the risks influencing a project results from the suppliers of materials, resources used in the project, and the budget. Risks from the suppliers may occur whenever the supplier fails to meet the outlined timeline. Resource risk, on the other hand, results whenever the project team has neither the required skills nor knowledge about the project they are yet to undertake. Budget risk occurs when the project costs are more than the initial budget (Hulett, 2009,92). Many institutions like banks and investment management firms take risks frequently. Risk analysis is very important even for these business entities. For example, the role of management in financial firms is to help quantify the financial risks involved in every investment activity and assign a risk budget across such activities. Particularly, risk assessment is one of the requirements for the banks by their regulators to help identify and quantify risk.
Moreover, it also ensures that they have sufficient capital to maintain solvency should the worst effect occur. Risk is inherent in most project activities especially when the project team fails to identify and resolve them at an earlier stage.
Consequently, the risk analysis process simply helps to make better decisions (Maylor 2010, 82). If a project manager undertakes risk analysis and comes up with a reasonable and realistic estimate of timescale and costs of the risks identified, then either that cost or project timescale is cut; the responsible project team. Therefore, bears the blame when the project budget exceeds the stipulated cost, or it entirely overruns. Almost all the projects including those operating with instructional design rarely go according to stipulated strategies (Harrison & Lock, 2004, 239).
As a result, the competent project team must equip themselves on how to deal with unforeseen risks while implementing the project. For the reduction of the negative effects of risks, identification of the risk and planning how to avert them should be the initial step taken by the project team. Failure in considering the risks may result in decrease project quality or unnecessary increases in the budget may as well set in. Furthermore, the project requires sufficient scoping and definition but many organizations do not like such overheads (Royer, 2001, 422).
Bartlett, J., 2004. Project Risk Analysis and Management Guide. High Wycombe, Association for Project Management.
Cooper, D. F., & Chapman, C. B.,1987. Risk Analysis for Large Projects: Models, Methods, and Cases. Chichester, Wiley.
Harrison, F. L., & Lock, D., 2004. Advanced Project Management: A structured approach. Aldershot, England, Gower.
Maylor, H. 2010, Project Management (4th Edition), London, UK: Pearson
Royer, P. S., 2001. Project risk management: A proactive approach. Vienna, Virg, Management Concepts.
Webb, A., 2003. The Project Manager's Guide to Handling Risk. Aldershot, Hants, England; Burlington, Vt, Gower.