Risk Management on a Satellite Development Project

Risk Management on a Satellite Development Project
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Risk management on a Satellite Development Project
Introduction
While all projects are associated with uncertainties and risks, it is essential to have a risk mitigation plan to minimize project risk, such that it can only reach an acceptable level to both stakeholders and project sponsors. Project risks cannot be fully reduced; they can be mitigated and managed so that their overall impact cannot derail the project objectives. It is for that project managers have devised risk planning and management techniques defined by Kloppenborg and Nkomo (2012) as the tools necessary for the execution of the procedure of defining, predicting, evaluating and assessing the impacts of risks on the projects.
Issues arising from the lack of a risk plan
The leading issue that would have developed as a result of the lack of risk plan for Satellite Development project is increased cost. A lack of risk plan increases the project cost as resources would be required to secure the project against risks (Jeynes, 2013). Since the project had a tight schedule and the risk plan was not executed, it would cost the project managers more resources in securing the project because the uncertainties and risks would not have been identified. It was necessary to formulate a risk plan to reduce the cost of the project as avoidable risks are identified at the right time. Risk planning, assisted the project to follow the pathways with fewer risks and uncertainties leading to avoidance of the project extending beyond the stipulated date, hence saving on the cost of production and reduce exhaustion of budget reserves. The second issue that would arise if there was no risk plan is the lack of a database tool. The consequences of the absence of database tool are the difficulties in the formulation of priority report for identification, evaluation, and estimation of all project risks.
The other consequence of the absence of database tool is the failure and constraints among the project managers to make project decisions. As suggested by Power (2012), a database tool is essential in risk planning and management for the establishment of a common working mode among the project managers for resolving project risk that is of high priority. Lastly, if there was no risk plan, the project managers would encounter difficulties in identifying and analyzing foreseen risks of the project. The aspect goes hand in hand with the other issue that without the risk plan, Satellite Development Project managers would lack the chance of highlighting key areas of the project with high probability of being affected by risks. The issues would occur since risk plan has imperative functions in project management as proposed by Jeynes (2013) that it is an integrated system and mechanism utilized in managing risks.
Value of risk plan
Resources, effort, costs and time are integral components of a project that need to be considered for effective implementation. Risk plan assists project managers managing the four elements as proposed by Power (2012) in his definition of the risk plan as an integrated tool for effective management of project scope, cost and time constraints. Risk planning is...