The risk management plan is a detailed process and its purpose is to determine both positive and negative risks to which the project may be exposed to prevent losses and material wastage. The objectives of the plan will be achieved through determining risks, conducting qualitative and quantitative risks analysis, risks response plans, and adopting monitoring and the control measures of the project. Therefore, this paper will focus on discussing risk management plans and its outcome in the Master Project Management Plan.
The risk management plan is done by project managers who are the most influential stakeholder that will oversee all the process. This risk plan involves some few steps carried out by the project managers. The steps include; the risk preparation and identification, calculating the probability of risks occurrence, its impact, the severity index, mitigation strategies, and selection, risks communication, risk plan execution, risk plans reevaluation and analysis, and the risk repository (Hopkin, 2018).
Risks identification should start with extrapolating the same risk from other successful Master Plan Projects by use of the comprehensive lesson learned approach. Once the same risk has been identified, the risks management teams continue to identify the inherent risks through a work-breakdown structure (WBS) related to each activity. The risks management teams then assess each risk activity by using a framework that has been outlined and after this exercise, calculation of the risk probability is done to determine the anticipated project cost.
Mitigation strategy will be developed after each risk activity is identified to enable project progress oversight control in all the stages. Lastly, the risks budget will be combined with a project baseline and such is dependent on the calculated severity of the risks index. Therefore, the risks budget and project budget if added will give a realistic total anticipated cost. This approach gives the Master Plan project development team and the project managers ways of assessing and evaluating the impacts of change in project strategies
After identifying and evaluating all the risks, the team should prepare strategies for both positive and negative risks. The main output of the process will include the updated Risk Register which will be also used during monitoring the risks associated with the project (The Project Management Institute, 2013). Risk audits and status meetings can be employed as effective techniques to ensure that all the risks are taken into account.
In conclusion, the risk management plan is an important aspect to be undertaken in project management. For the project to be successful, it should put into consideration all the risk plan steps outlined above to prevent and reduce risks. The project manager and team leaders are the key individuals in the outlined planning process and are responsible for the success of project management.Free essay samples and research paper examples available online are plagiarized. They cannot be used as your own paper, even a part of it. You can order a high-quality custom essay on your topic from expert writers:
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Hopkin, P. (2018). Fundamentals of risk management: Understanding, evaluating and implementing effective risk management (5th ed). New York, NY: Kogan Page Publishers.
The Project Management Institute (2013). Project risk management. In A guide to the project
Management Body of Knowledge (PMBOK® Guide) (5th ed.) (pp.309-53). Newtown Square, PA: Project Management Institute, Inc.