Elements of Risk Response Planning, Essay Example

When dealing with management and project management, managers must be able to access any risks that might develop over the duration of the project. Some of the tools that project managers utilize is the risk response plan. A risk response plan is useful in looking at risk mitigation by being able to implement the correct actions in order to achieve the objectives or goals of the project from revisions to the scope, budget, or project schedule. In order to implement an effective risk management it must be able to anticipate events or problems before they happen and take a proactive approach. It must be able to provide correct information and knowledge about anticipated events. Help in delivery of the project goals in terms of the project’s quality, costs, and time, and allows for the development of proactive responses in the event of the impact of a high risk event. More importantly it must provide an improved contingency plan, and accurate records of risk control and risk planning.

Within a risk response plan it must create a risk register which are a list of risks that are prioritized, ranked, and the probability of the impact to the project. The risk response plan will detail a potential responses to the risk, by identifying it can help to find the correct response to a group or a single risks. The risk response plan will involve the stakeholders and owners, and spot any trends from the analysis of the risks that make them either more or less urgent. In assessing the risk in the response plan knowing if the impact of responding to the risks is economically feasible or could create a higher impact, considered secondary risks. The steps within a response plan include accepting to tolerate or respond to the risks. Avoidance is made from an informed decision not to involve in or withdraw from the activity in the project in order to not be exposed to the risk. Mitigation is used in order to reduce the risks and its consequences, and finally transferring the risk which could involve other parties in order to shift schedules, budgets, and costs of the risks. Explain the difference between dealing with causes and dealing with effects.

In risk management, mitigating risks is crucial in evaluating the impacts of the consequences of the risks. Deciding to either ignore the risk or accepting the risks is an informed decision that the manager must make at the expense of the project and company. When assessing risks at the root there are reasons the risks develop. These can be documenting by doing an analysis of cause and effect. The causes can be boiled done to inexperienced staff, understaff, inadequate budge, or too short of a timescale. In order to deal with the causes, managers think of all the possible risks that can be caused by variables in the project. This is done by creating a risk assessment of the project and then circling back to the source of the risks. When managers are able understand what drives the risks then they are able to design proactive approaches and risk metrics to respond at the causes of the risks.

The effects of the risks usually called consequences are handled in the risk response plan. They can be dealt with in a manner of several ways depending on if the risks are opportunities or threats. The effects that can be negative are either avoided, transferred to a third party, or can be mitigated in order to reduce the risk’s probability of impacting the project. In some cases, the managers will accept the effects of the risk. By doing this they can take two steps which include creating a contingency plan that will be executed if a risks were to occur, or passively accepting where managers take no action and decide to deal with the effects once the risks occur. The effects that are positive can be exploited by placing qualified personnel or eliminate any uncertainty when the risks occurs. Managers can share the risks, and enhance the risks by increasing the likelihood that it would happen to get more benefits. In dealing with effects a manager can ultimately choose to accept the effects of because one cannot always change the situation.

What determines a trigger event, and what happens after a trigger event has occurred?

Trigger events are usually discovered when mangers perform a risk assessment and found out when identifying risks in the project. A trigger event is usually an indication that or a warning sign that a risk can occur. A risks that is considered a threat is a triggering event that must be assessed in before the start of the project. In the risk response plan when creating the risk register the manager must make a list of possible trigger events that will occur when a variable sets off a chain reaction in the project. The risk register serves as a vital element of the risk response plan because it lists a large amount of possible risks positive or negative and prioritizes their impact on the project for the project manager to analyze. For high impact risks, the tangible barrier that is breached can trigger another event. A triggering event can be determined by risks metrics, the level of impact can significantly a project by choosing to involve or accept the risks, the manager gamble causing a secondary or residual risks to occur.

After a triggering event occurs several things can happen including a chain reaction of bad consequences that can severely impaired the project. If management has implemented a contingency plan that is designed to handle risks that have great impact. A contingency plan would prepare the project by adjusting budgets, schedules, staff, and other resources in order to deal with the event when it occurs. Another plan that is implemented in the event of a trigger event is a fallback plan that is designed to handle high impact risks. It is the backup plan used in case the contingency plan doesn’t work as planned. Under certain circumstances when trigger events aren’t able to be mitigated or control the fallback or backup plan will develop other ways in which to handle the situation including eliminating milestones or tasks in the project.