Use of Risk Analysis Techniques in Operational Planning

1.1 Evaluate the use of risk analysis techniques in operational planning
Risk analysis is a technique that helps you identify and overcome new problems. To conduct a risk
analysis it is important to first identify risk. Risk analysis should be used for instance when you are
planning a new project. There can be two different types of risk analysis techniques. Qualitative and
quantitative methods are both used. For the day to day running of an organisation, qualitative
methods are more efficient as they are designed to monitor day to day risk that businesses can
face. The purpose of risk analysis is therefore to evaluate whether or not the risk involved in a
project is acceptable and whether the outcomes are worth the risk.
Two risk analysis techniques will be evaluated specifically linked to the context of a school. The first
risk analysis technique is risk probability and impact assessment. Firstly impact in probability are
both essential considerations in risk analysis. This technique considers the impact versus the
probability of certain risks on a projects and aims to assess whether the impact is considerable or
not. Indeed, most activities that businesses initiate involve a certain degree of risk. This is due to the
fact that there are some unknowns and therefore outcomes of projects are not always easily
predicted. Hence risk management should be an important consideration when an organisation
plans a new activity to ensure the success of the project. ‘A commonly used method for risk
assessment is preparing descriptive scales to rank risk in terms of probability and impact’
(Thorhallsdottir). This method usually involves an impact and probability matrix which helps to
prioritise risk.
The second risk analysis technique is expert judgement. This technique is based on expertise of
groups or people within a specific industry. This technique can be used by groups or individuals from
within an organisation or they can be brought in through external consultations. “Expert judgement
is used for situations which require recourse to expert judgement by completing, validating,
interpreting and integrating existing data, assessing the impact of a change, predicting the
occurrence of future events and the consequences of indecision, determining the present state of
knowledge in one field, providing the elements needed for decision making in the presence of
several options.” (Sotille, 2016). Therefore expert judgement is used when trying to assess the
repercussions of specific activities on the functioning of the organisation. Planning appropriately
and identifying risks are an essential part of project management.
To conclude, It is essential to assess the level of risk involved in a project during operational
planning in order to determine what could impact on the success of the project. Various techniques
are used in different situations. They are an essential part of planning a project and responsibility
for risks should be assigned to specific individuals so that they can keep track of any new
developments and preempt any issues that may arise.
1.2 Explain the components of an operational plan
An operational plan is part of an organisation’s strategic plan, and it sets out the work to be carried
out and the workflow from initial input to end results, including all the resources that will be
needed.
It also sets out how risks will be dealt with and how the achievements of the plan will be sustained.
According to ‘Ultimate Workbook Develop and Implement an Operational Plan
(M&L 27)’, key components of an operational plan include:
 Clear objectives
In order for an organisation to run efficiently, it needs to have clear objectives. The first step for that
is the creation of a strategic plan. Once this has been done, operational plans are designed to set

out the steps required to implement the company’s goals and objectives. The team needs to be
aware of the objectives and they need to be “major, measureable objectives” (Klinkert, 2014). This
is important for employees to see the bigger picture and understand the direction of their work and
to motivate them. It helps focus employees and avoids wasting time. For objectives to be effective,
they should be SMART: specific (narrow enough so that they are easily met), measurable (success of
outcomes can be observed through analysis of data), attainable (they are likely to be met), relevant
(they align with the broader picture), and time based (tied to a schedule to help prioritise work). An
operational plan should address the following questions: where are we now?, where do we want to
be?, what do we need to do to get there?, how do we measure outcomes? In the context of
education, clear objectives can relate to areas of teaching and learning, and are essential for each
department to be aware of in order for them to work collectively towards these objectives.
 Activities to be delivered
Usually the responsibility for the creation of operational plans lies with department heads or project
leaders, who have to determine the activities needed to achieve the goals of the organisation. Once
the objectives of the operational plan have been laid out, it is important to identify which activities
will be delivered and by whom. This means setting out the roles and responsibilities of each member
of the team. Although the success of operational plans are important for individual departments, it is
also going to have an impact on the success of the strategic plan. Therefore, middle leaders in charge
of operational plans need to carefully consider what activities need to happen to ensure the success
of the project. Furthermore, as middle leaders know their team well, they should consider who is
best placed within their department to oversee individual activities.
 Quality standards
An essential part of an operational plan is ensuring the quality standards are met. A quality plan is
needed to specify standards, specifications, allocation of responsibilities, and ways of testing and
inspecting the quality of the work. “A quality control plan may specify product tolerances, testing
parameters, and acceptance criteria” (American Society for Quality). A quality plan includes three
elements: quality control, quality assurance, and quality management. “Effective quality
assurance is proactive. It aims to prevent defects before they occur through process design. QC is
reactive and exists to identify defects after they have happened.” (Stanton, 2021). The entire team
should be involved in quality assurance, but only single individuals are required for quality control.
Quality control plans usually contain information on: Team members involved, industry standards
that need to be met, testing parameters, acceptance criteria, a feedback mechanism, corrective
action and preventive action, etc. (ASQ). In the context of education, Operational plans should be
aligned to quality standards of teaching and learning, and professional standards. The bodies who
set these standards can be the local authority or the Department for Education.
 Key targets and key performance indicators
Collins defines performance indicator as “a quantitative or qualitative measurement, or any
other criterion, by which the performance, efficiency, achievement, etc of a person or organization
can be assessed, often by comparison with an agreed standard or target“ (Collins). Therefore, key
performance indicators are measures used to assess the effectiveness of the project. A useful way of
doing this is by using leading indicators, which indicate what can be expected in the future. Hyun
states that “leading indicators allow the team to make adjustments before it's too late (2021).
Leading indicators are used by businesses to assess “how future economic conditions may affect
markets and revenue” (Investopedia, 2021). They are often used in contrast to lagging indicators,
that usually produce evidence when it is too late for any changes to occur. In an educational setting,
KPIs can be tracking data on pupils that reflects their progress, attitudes to learning, End of key
stage data, and/or exam results.

 Risk management plans
Risk Management plans are important to identify any potential risks involved in any project.” We
encounter and plan for risks in every part of our lives, from buying disaster insurance to practicing an
evacuation plan” (Workfront). The purpose of a risk management plan is to ensure the success have
a project by being prepared for any potential risk. Collins states that “if something that you do is
a risk, it might have unpleasant or undesirable results” (Collins). Therefore it is not something that
has already happened but something that could potentially happen in the future. When creating a
risk management plan, the first step is to identify the types of risks involved and their consequences
on the project outcome. It is also important to assess the level of urgency of this risk and the
probability of it occurring in order to rank risks and produce action plans to mitigate their
consequences. According to Workfront, there are three types of risks: a known risk, which has
already been identified by the team, an unknown risk which arises from the project at a later date,
and unknowable risks, which no one can anticipate. When designing a risk management plan, it is
important to evaluate potential risks and to give ownership of these risks to individuals who will be
in charge of reviewing the response. It is also important to continue checking on the progress of the
project and continually reviewing the organisation’s response to risk as new risks may arise.
 Staffing and resource (including budget) requirements
When planning a project, it is important to spend time considering who will be in charge of which
tasks and who else might need to be involved. This helps the team be clear on roles and
responsibilities of each member and gives accountability. Furthermore, Isaac states that “thought
has to be given to all possible costs that might be incurred if a strategy is implemented”. This should
be detailed and try to include all costs involved, ranging from photocopying/printing, phone calls,
postage, equipment, promotional materials, advertising, etc. it is essential to consider staffing and
resources when designing an operational plan, as spending may need to come out of department’s
budgets, and new jobs may need to be created.
 Implementation timetables
In the initial stages of an operational plan, consideration should be given to timeframes in order to
ensure the success of the project. It is important to set a clear timetable “to give order to the great
many tasks that need to be done” (Isaac). In an operational plan, the timeframes can be on a
“weekly, monthly, quarterly, or yearly basis” (Hyun, 2021). This is different to strategic plans, that
set out timeframes over longer periods of time, for instance the next five years. In the context of
education, setting timetables is essential, as pupils are given specific timeframes for examinations
and therefore any objectives of an operational plan are time bound.
 A process for monitoring progress
Once the operational plan has been clearly mapped out, it is essential to create a mechanism to
monitor the progress of the plan. The outcomes then need to be reported back to management, and
the whole process reviewed in order to be adjusted to be more fit for purpose if needed. This
process is important to hold the department to account. In schools, monitoring systems already
exist. For instance, tracking is an important part of schools’ systems, and indicates pupil progress,
which is an effective mechanism to assess pupil outcomes and to predict future results.
1.3 Analyse the relationship between strategic and operational plans
Strategic plans are the responsibility of the leadership team, and usually set out the direction of the
whole organisation. In contrast, operational plans are usually developed by department heads or
middle leaders, and detail the work of individual teams. Operational plans should feed into strategic
plans, and should aim to have similar objectives.