CMGT 411 Week 4 Risk Management - 1188 Words

Risk Management CMGT 411 Risk Management Working to understand the risks a project may endure along with the cost associated is critical in every project management plan. Understanding potential risks based on the project type, resources needed, timeline and budget still leaves gaps that creates uncertainty for actually predicating the outcome of the project. There is not a true way to predict when and where a project risk will occur but designing a plan to properly address and manage those risks will increase confidence while eliminating the element of surprise. Before developing a risk management plan an analysis of risk needs to be performed. This analysis should include all aspects of the project that may be part of†¦show more content†¦This part of the plan works to tie an owner to a particular risk and ensure that resources are immediately made available to respond to the risk. Once these details are documented, they then become the basis for the risk response plan. Risk monitoring and control is the next step and involves the owners of the risks to monitor various risk triggers. This works by scanning the project environment for both identified and unidentified threats and opportunities much like a radar screen (Marchewka, 2009). This approach directly relates to how to respond to the risk. Risk response allows the owner of the risk to commit resources and take actions once the risk is known or opportunity is available. This action usually follows the planned risk strategy. The last step in a risk management plan is to evaluate the risks. This is a learning step and works to provide experiences gained form working with risks. This evaluation should consider all aspects of the plan and identify best practices. The evaluation should answer the questions pertaining to how the project team did, what could be done better, what lessons were learned, and how can best practices be incorporated into the risk management process. This risk evaluation helps to influence how the org anization will plan, prepare and commit to future risk management plans. Another important plan described in