Importance of Risk Register in Risk Management Plan
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This document discusses the importance of risk register in risk management plan. It explains how risk register helps in identifying and addressing risks effectively. It also highlights the role of risk register in project management.
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PROJECT MANAGEMENT
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TABLE OF CONTENTS PROJECT 2......................................................................................................................................1 A. Risk register containing 10 documented risks.......................................................................1 B. Importance of risk register in risk management plan..............................................................2 PROJECT 3......................................................................................................................................4 A...................................................................................................................................................4 i) Need for the effective, structured communication between project manager and the members of team........................................................................................................................................4 ii) Critical analysis of the different project management methodologies....................................5 REFERENCES................................................................................................................................8
PROJECT 2 A. Risk register containing 10 documented risks. Typesof risk Responsible person Pre actionPost actionScores (1-3) 1-high 3-low LikelihoodMitigation strategy Technical Risks Software engineer Inthis engineer willbe engagedin providing trainingto all employees relatedto software andsystem handling. Thiswill assistthem in overcoming the risk They will be involvedin evaluating theservices provided by employees sothat technical riskcanbe reduced 1FrequentTraining can be provided Supply chain risks Supply manager Inthis manager willmake surethat product is of high quality Theywill makesure thatbetter resources arebeen used. 2SometimesTraining can be provided Manufactura bility Risks Production manager Thegoods produced aredonot haveany error. Theywill makesure thatbetter resources arebeen used. 3SometimesCoaching canbe provided Operational Risks ManagerEmployee errors. Criminal activitycan 1Highly possible System failures 1
Systems failures needs to be reduced be reducedneeds to be checked upon. Product Risks Marketing officials systemor software might fail to satisfyor fulfilsome reasonable expectation ofthe customer, user,or stakeholder In this they willcheck upon system failure 2Highly possible Training can be provided Resource Risks Resource manager Theywill keepa checkupon utilization of resources Theywill implement policies 1Highly possible Coaching canbe provided Managemen t Risks ManagerManaging people effectively Theywill implement policies relatedto people 3FrequentlyTraining can be provided Interpersona l Risks General manager Communica tingwith employees They will do brain storming 2sometimesCoaching canbe provided Regulatory Risks Legal executive Complying to policies Theywill implement rulesand regulations. 1PossibleTraining can be provided Financial Risks Chief financial officers Making sure fundsare been used. They will do brain storming 2sometimesTookitscan be used. B. Importance of risk register in risk management plan Risks register is used for gathering information about identifying risks and hazards, nature and their impact to business and the documents immediate corrective steps. It could be described as the tool that captures and allows systematic approach for risk management.It is 2
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project management tool helping managers and the companies in documenting risks, tracing risks and addressing them with the preventive control and with corrective actions. Risk registers are created in the starting of project and is referenced regularly and is updated throughout life of the project by deliberate risks control and monitoring. Most of the project based companies uses risk registers risks management is critical and most important part for delivering the project on time and in budget(Kivilä,Martinsuo and Vuorinen, 2017). Risk register is the source for assessing and understanding the risks. It helps the business in identifying the risks through various methods. Risks should not be described on the basis of complexity or severity of risks. Risk registers are maintained for serving database for the specific risks. There are different types of risks which could be financial risks, commercial risks, environmental and other risks. There may be specific register or consolidated having several functional risks into the general risk register. Risk registers enables the company or project manager for listings all the potential or possible risks in rows and identifying as well as outlining the important components of the risks in associated columns. Purpose of the risk registers evolves slightly during course of the project. At starting of the project purpose is of providing brainstorming frameworks where project managers and stakeholders could come together for establishing risks. Risk registers are explored are scored in two dimensions which are likelihood of turning risks in incident and severityof incidentwhere risksbecomesreality(Kerzner,2018). It helpscompaniesin prioritising the risks and the risks which will be monitored and addressed more effectively. Risks register are more of reference point and document that is updated with the new risks. Risk register help the company in taking effective strategic decisions analysing the different risks associated with the business. At end of the project purpose of the risk register is shifted slightly and becomes more related with assessment of the risks which are identified in the beginning of project. Likelihood of the each risk accurately estimating and also identifying how severity of the risk was estimated by the managers or company. For example if the risks are not managed properly by the entity or the managers this could seriously affect the project or the company.A company may require serious attention regarding the production process related to the handling of machinery and temperature. If the managers do not take active measures for managing the risks associated with theproduction process it could cause serious injuries to workers or operators of the machines. Managing the 3
risks is essential for the organisation it could affect the reputation of the company, could lead to accidents or losses. Therefore it is essential for the company to analyse the possible risks and to take measures for mitigating the risks. PROJECT 3 A. i) Need for the effective, structured communication between project manager and the members of team. Communication is important in everyday life of the people. Communication becomes more important when at workplace. When the project managers are not able to communicate effectively the motive of the project may be lost. Communication skills are inherent in some of the people where some develop them. It is difficult for the people to articulate the feelings and thoughts in conversation which often results in conflicts and errors. It is essential to understand the importance of good communication and how it helps in reaching the goals and objectives of the project effectively. Diffusion theoryof the communication shows how new ideas and viewpoints spread over cultures. Ideas and information pass through communication channels to reach over target groups. Ideas are spread on the basis of nature of idea to spread via the communication channels. Project managers is required to have diffusion theory in head while planning & executing the ideas in group. Some members could be disoriented with minor changes while other may not be affected.Plans of project management should not create confusion as well as inability in adjusting by some members(Kerzner, 2017).Theory states influencing the behaviours of individuals is critical and some people accept may accept changes immediately and some may not accept. Effective communication between the team members and the project managers is very essential for taking the project towards desired results. Due to the communication gap things maygoooffthetrackandmoveinadifferentdirectionawayfromthemainmotive. Communication gap between the managers and members should be removed by establishing effective communication channel where the members and managers of the project could freely communicate with each other. Structured communication will allow the project managers to understand the given roles and responsibilities correctly and ensuring that they are working 4
effectively towards achieving goals. Lack of communication between membersand team members may cause inefficiency in work of the employees of company. It is essential for the project managers to ensure that members are well informed about the flow and direction of the project and work. Project managers should be well informed about the details and progress of the project. Effective communication is also essential for receiving the information from the members. Structured communication channel helps members in reporting all the information regarding the work and also getting quick response from the project managers regarding the issues or problems if any faced. Everyone is aware that projects are fluid and project managers are required to be prepared for challenges which may arise at any stage of the project. For ensuring effective communication throughout the plan communication channels shouldbedecidedattheplanningstageofproject(MengandBoyd,2017).Effective communication is essential so that all the issues and problems associated with the project are discussed between the managers and project managers and most appropriate solutions are drawn. Without having effective communication project could face failures. Example a instruction was passed by the project manager to the members regarding the performance of specific task. Instructions were passed but there were no guidelines regarding the roles and time period. There were no effective channels between the managers and project management. Due to this the roles were distributed improperly and time length of project was extended that increased the cost of project. If there were effective communication they would have discusses the roles and responsibilities of different project managers and members also did not clarified the time period of the project. Effective communication allows project managers to have regular updates regarding progress of project and issues are resolved effectively of the members. ii) Critical analysis of the different project management methodologies Agile Methodology Agile methodology of the iterative approach for delivering the project throughout life cycle of the project. Agile life cycle of the project are composed of the several incremental steps or iterations towards completion of the project. It is a practice which promotes constant iteration of the development & testing throughout the development cycle of project. In agile methodology process starts by defining users as well as documenting the vision statement over scope of 5
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opportunities, problems and values to address(Turner, 2017). Owner of the product develops the work and vision with multidisciplinary team for delivering on the vision. Strengths Agile methodology aims at providing products as per the need and requirement of customers by having short work cycles which allows rapid productions and the constant revision. Agile methodology promotes team and individual interaction of the tools and processes. It involves collaboration of the customers over negotiation in the contract. Weaknesses It method is less predictable as compared that may cause the project to go in wrong direction.The method requiresmore commitmentand timeof the membersand project managers. Demand from the developers and clients is high and processes are not properly documented. Waterfall Methodology Waterfall methodology refers to linear approach in project management where customers and stakeholder requirements are collected at beginning of project and sequential project plans create to accomplish the requirements. Waterfall methodology was developed by in 1970 by W. Royceandwasadoptedbyvariousindustriesbecauseoflogicalsequencingandeasy implementation. Industries regularly including method are construction, software development and IT. Waterfall is used in context of software(Young, 2016). It is project management approach which have around 5 phases. Waterfall methodology in project management involves mapping out the project in distinct and sequential phases where new phase begins only when previous phase is completed. Strengths It is most traditional method to manage projectwith the members working in linear fashion towards a defined goal. Every member has defined role & no goals or phases are expected of changing(Badewi, 2016). It works best with the projects with detailed and long plans which requires completing one phase before starting other. Weaknesses The project requires single time line and also changes are costly and often discouraged. The methodology is in contrast with agile methodthat involves short project cycles, adaptation 6
and constant testing as well as simultaneous overlapping of the work by multiple contributors or teams. PRINCE 2 Methodology Itisaprojectmanagementapproachandpractitionercertificateprogramme.It emphasises over dividing the projects in controllable and manageable stages(Anantatmula and Rad, 2018). The method is flexible which guides through essentials to manage the successful projects without considering scale or type. It is built over seven principles, processes and themes and method could be tailored for meeting specific requirements. Strengths Project could be broken down in stages that helps in close monitoring using step wise method. It standardises every aspect of project for ensuring there are no chances of misdirection or miscommunication. The method is also cost effective and time saving. Weaknesses This method of project management only comprises of 2 techniques or tools. Soft skills which are essential part in project management are not covered. It requires high involvement of senior management for success of the project. Recommendation Project manager should adopt for agile methodology of the project management helps in providing quality product to the customers as integrated testing is conducted throughout the development andlife cycle. As the methodology involve customer collaboration it helps the company in providing higher customer satisfaction as the products are designed to meet the requirements of customers. 7
REFERENCES Books and Journals Kerzner, H., 2018.Project management best practices: Achieving global excellence. John Wiley & Sons. Kivilä, J., Martinsuo, M. and Vuorinen, L., 2017. Sustainable project management through projectcontrolininfrastructureprojects.InternationalJournalofProject Management.35(6).pp.1167-1183. Kerzner, H., 2017.Project management metrics, KPIs, and dashboards: a guide to measuring and monitoring project performance. John Wiley & Sons. Meng,X.andBoyd,P.,2017.Theroleoftheprojectmanagerinrelationship management.International Journal of Project Management.35(5). pp.717-728. Turner, J.R. ed., 2017.Contracting for project management. Taylor & Francis. Young, T.L., 2016.Successful project management. Kogan Page Publishers. Badewi, A., 2016. The impact of project management (PM) and benefits management (BM) practicesonprojectsuccess:Towardsdevelopingaprojectbenefitsgovernance framework.International Journal of Project Management.34(4). pp.761-778. Anantatmula, V.S. and Rad, P.F., 2018. Role of organizational project management maturity factors on project success.Engineering Management Journal.30(3). pp.165-178. 8