Essential Risk Management Elements

Sources of Technical Risks Paper
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Sources of Technical Risks Paper
Introduction
Management is a primary role central to sustaining and maintaining a company’s operations in the increasingly competitive and dynamic business environment. The recent shift in dominant economic landscape paradigms implies that traditional management strategies prove infeasible in handling contemporary realities. Approaches such as risk management and strategic management are increasingly being adapted to these novel paradigms. In this context, the risk management plan has emerged as a practical strategy for firms seeking to implement their projects effectively. For purposes of this report, risk management would be conceptualized as a central component of project management that many companies seem to downplay. This report sought to evaluate the risk categories, roles and responsibilities, funding, and timing as essential risk management elements. The paper will describe the application of these elements in a company project and recommendations for improvement using the elements, including the reasons for the suggestions.
How the Elements were Exhibited in the Project
The project completion highly relied on the effectiveness of the risk management plan. The plan constituted the most relevant area in training the project managers. In addition, the project managers were required to analyze the risk categories that might impact the project’s success. How risks are described and understood significantly impacts how they would be analyzed. In addition, this might have severe effects on decision-making and risk management techniques. Risk should be considered systemic because it allows the appraisal of interrelationships between the vulnerabilities and fosters the mitigation of the connectedness of the interactions between them, thus creating an opportunity to appreciate the project risks holistically. The main risk categories that impacted the project include organizational, contract, technical-operative, financial, and political (Lima et al., 2021). Organizational risk entailed human factors and vulnerabilities deriving from policies, regulations, and lack of coordination. Technical-operative risks are vulnerabilities related to equipment, materials, change requests, design, and technology used. Contract risks are inherent in the contract associated with the project. Financial risks are also called economic, and they include interest rates and inflation. Political risks impacting the project included environmental regulations and government policies (Lima et al., 2021).
The elements of time, roles and responsibilities, and fundings are closely related and affect each other. In this context, their influence on project planning and implementation would be considered concurrently to understand how they were demonstrated in the project. The project could only be successful when the anticipated outcomes constituted the predetermined requirements were achieved sustainably within the stipulated time and under the preliminary funding (budget) umbrella. The dynamic and complex nature of project implementation implied that the project cou...