Risk Management Essay
At this point, the client (TechWatt corporation) is expected to provide information concerning the actual site for the project, the size, the amount of available funds and the sources of revenue, a well detailed budget plan and documented project proposals, the relevant legal documents such as title deeds for the land on which the project is to be set up and so forth.
Considering that the team studying the risks is external and completely new to this particular project, the client is expected to provide all the background information necessary for the team to completely understand the project and be in a good position to assess the risks involved. Proposed agenda for the study. As mentioned above, the risk management study is bound to last for a period of one week. The three day workshop should address the following issues:
Risk awareness;- the study team should throughly analyse the potential threats and uncertainties which are likely to face the project. The risks should be clearly documented together with their respective causative factors. Risk assessment;- the next agenda for the workshop should be to assess the identified risks. This involves a deep analysis of the impacts of the risks in case they happen
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This is the most difficult part of risk management study since the team members have to throughly analyse all the threats and come up with practical solutions and if the risks are too high, then they should come up with alternative methods to counteract the risks either in form of other projects or solutions. Risk assurance;- at this point the respective team members should document their findings and solutions which are meant to give the corporation managers a quality assurance that all the risks are under control so that the project can go ahead.
The remaining four days of the proposed period of risk management study, the team members should do a through field study on the proposed project site and the resources available to see whether the risks and the respective solutions offered in the earlier three day workshop are practical. On the last day, the teams should have a conclusive documentation of all their findings and risk control measures ready for presentation to their client. Conclusion.
Both value and risk management complement each other in that management of the project value can help to minimise the occurrence of a risk and on the other hand, risk management can help to increase the value/benefits of a project as well as helping to minimise loss of value (Bilnett, Jones 2007). Value and risk management studies enable organisations to establish stable and successful projects by clearly speculating the possible outcomes and putting into practice the necessary measures aimed at maximising the benefits and minimising the uncertainties.
By the end of the value and risk management studies discussed above, the management of TechWatt corporation will be in a better position to understand the viability and the practicability of the proposed project and the value of the expected long-term benefits.
Bernstein, L. (2006). Managing risks. Oxford: oxford University Press. Bezirkan, A. (2004). Experiences with Risk Management in a Large Multi-Site Project. Pittsburgh, PA, SEI. Proceedings of the Third SEI Conference on Software Risk Management. Bilton, T. , K. Bonnett and P. Jones (2007). Value and Risk Management, 2nd edition. London: MacMillan publishers.