1. How can you integrate the risk management with the corporation’s strategic plan?How can you ensure that it is a part of the day-to-day operations of business units?Almost all the business in the world is driven by technology and all the operations of thebusiness are dependent on the technology. With more dependency on technology, there arevarious risks that the firms face like the failures in the systems, the data in the systems gettingcorrupted, the loss of data, the inaccessibility of the systems and data etc. These are all the risksthat the companies and their management face. Some of them are driven by the business; someare event driven, while some of them are driven by the data. So, these need to be managed andthey have to be integrated with the strategic plan of the company. If the risk is not managementin line with the strategy, there is no use of putting time and cost in it. For example, the enterprise risk management helps in integrating the risks with the strategicplanning of the company. It helps in analyzing that how the strategic initiatives can help inincreasing or introducing the risks that have the potential to affect the goals of the company.With ERM, the weaknesses can be spotted and the most effective risk management can beplanned and implemented. There has to be an approach which ensures that the risk management activity is a part of the day-to-day operations of the business units of the company. This approach starts with theidentification of risk, its assessment, analysis, implementation, monitoring and evaluating therisk (Pritchard, 2014). Monitoring is the most important step in this because if the risk iscontinuously monitored, it will remain in line with the achievement of the strategy of theorganization; otherwise it may go in some other direction and may harm the company. 1
2. Why and how we plan for Project Risk Management?We plan for project risk management because there are unexpected problems that areencountered by the project managers. There are many circumstances and situations that come upwhich makes the team members of the project get stick to a point or they do not understand howto get out of the problem. If these situations are planned in advance the team members can findtheir own solution and they will not waste time to take guidance from any senior people.Basically, the planning for project risk management happens for identifying the potentialproblems that can cause trouble to an excellent project, for analyzing their occurrence, for gettingready to deal with them if they occur and for minimizing their effect on the project (Lam, 2014).Now talking about how the planning is done for the project risk management, it involves a seriesof few steps. The first one is the identification of risks and preparation of a list of the potentialrisks, then the risks are evaluated in terms of their impact, seriousness etc. Then, a risk mitigationplan is developed that may involve avoiding the risk, sharing it, reducing it or transferring it.Finally, the planning gets completed when a contingency plan gets developed for managing therisk during the implementation of the project. 2
3.Why and how to monitor and control project risk?It is very important to monitor and control the project risk because if the identified risks are nottracked, they can damage the project and the entire planning will go in vain. When the companyplans about the risk management, they have to evaluate that whether the plans and strategies areeffective or not. This needs to be done throughout the life cycle of project. Thus, it is necessaryto monitor and control the project risk. There are some responses to the risks that are planned inadvance and they are integrated into the project when required. So, when the contingencies arefaced by the project manager, he has to evaluate the risk response, which is done by monitoringand controlling activity. The project risk is monitored and controlled by evaluating that whether the assumptions of theproject that were made earlier are still valid or not, the degree to which the risk has changed fromits prior state, the effectiveness and following of the risk management policies and proceduresand the evaluation of the contingency reserves that needs to be modified in accordance with therisk that the project faces (Acebes, 2016). This is how the project risk is monitored andcontrolled. 3
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