Risk Management: Implications on Effective Project Risk Management

This article discusses the implications of project life cycle on effective management of project risks. It also elaborates on the risks associated with the design of hybrid passenger vehicle and provides a risk management plan.

Running head: RISK MANAGEMENT
Topic- Risk management
Name of the Student
Name of the University
Author’s Note

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Table of Contents
Part A.........................................................................................................................................2
1. Project life cycle and discussion on the implications on the effective management of
project risk..............................................................................................................................2
Part B..........................................................................................................................................5
1. Risks associated with the design of hybrid passenger vehicle...........................................5
2. Risk management plan.......................................................................................................5
References................................................................................................................................13

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Part A
1. Project life cycle and discussion on the implications on the effective management of
project risk
Project management life cycle is mainly divided into four different phases which
includes initiation, planning, execution as well as closure phase. It is found that the project
management life cycle helps in providing proper framework for managing any type of the
project (Li et al. 2016). It is identified that the four-step procedure is mainly followed by all
the project managers while moving through different stages of the project completion. It is
found that the project life cycle generally assists in providing proper framework in order to
manage any type of projects within the business organizations (Dong and Ng 2015). It is
found that the project management leaders generally conduct number of research for
determining the proper process for running the entire project successfully. It is found that the
project life cycle is quite critical for the various service organizations.
It is found that the project life cycle is considered as one of the significant standard
procedure with the help of which the project team generally achieves proper project success
(Matejka et al. 2016). As per the institute of project management, the project life cycle is
considered as one of the critical process for the project managers with the help of which they
can be able to deliver the project effectively to the clients of the organization (Kamoona,
AlHares & Isik 2016). The steps that are mainly involved within the project lifecycle
includes project conceptualization phase, project planning phase, project execution phase as
well as project termination phase.
In the conceptualization phase of the project, the project manager generally develops
proper business case for the project and generally undertakes feasibility study in order to

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establish project charter effectively. In addition to this, the project team members who are
will be associated with the project are also hired in the conceptualization phase of the project.
However, in the planning phase of the project, the project manager generally creates
proper project plan as well as resource plan. It is identified that the budget that is needed for
developing the project are also assumed in the planning phase of the project (Chong and
Hopkins 2016). In addition to this, the project manager creates a plan and assumes the risks
as well as challenges that are mainly associated with the project in order to make sure that the
risks will be mitigated in the initial phase so that it does not create any type of negative
impact on the execution phase of the project.
In the execution phase of the project, the project manager gets involved within
building the deliverables of the project so that the entire project can be successfully executed
(Dong and Ng 2015). It is found that proper steps are generally taken in order to monitor as
well as control the entire project so that execution of the project generally assists in brining
positive outcome and the entire project will get successfully finished within the expected
budget and time.
In the closure phase of the project, the project manager undertakes post project review
and generally asks the stakeholders of the project to sign off the project so that it can be
developed appropriately within the expected time.
Risk identification is considered as one of the major step that helps in managing as
well as mitigating the risks that are associated with the project quite effectively in order to
prevent negative impact on the life cycle of the entire project (Chance and Brooks 2015). It is
found that the risk is generally identified after analyzing each stage of the lifecycle of the
project. The researchers generally help in distinguishing number of potential risks of the
project. It is found that the project team needs to be quite aware of the fact at each project is

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very much unique and the risks that are associated with the project mainly vary as per the
type of the project.
In addition to this, it is identified that proper analysis as well as assessment of risks
generally helps in creating huge impact on the lifecycle of the project which generally can
vary from low to high (Wynne 2016). It is found that project team generally forecasts the
various possible impacts that are associated with the project. It is found that after proper
analysis of project risks generally assists the team members of the project to allocate the
needed resources in order to develop all the possible types of alternatives that are generally
needed for mitigating as well as s resolving the negative impact of the entire project
(Bromiley et al. 2015). It is found that the risks generally vary in context to their impact on
the project from high to low but the probability that is associated with the occurrence of the
risk also varies.
It is identified that project life cycle generally helps in creating proper implications
on the effective management of project risks. It is identified that with the help of the project
life cycle, the risks that are mainly associated with the project are generally categorized as per
the four phases of the project and it is the responsibility of the project manager to review each
phase of the project after completion (Cole, Gine and Vickery 2017). It is found that due to
reviewing each of the project phases, the project manager generally gets to know about the
risks as well as challenges that are associated with each phase of the project and thus the risks
get resolved in each phase (Koks et al. 2015). The technique of project review for the risks
and challenges generally assists in creating positive impact on the project as all the challenges
and risks associated with the project cam successfully resolved and thus they will not be able
to create any type of negative impact on the project.

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Part B
1. Risks associated with the design of hybrid passenger vehicle
The risks that are mainly associated with the design of hybrid passenger vehicle are
mainly elaborated below:
Designing improper prototype for the vehicle: It is identified that due to improper
design of the prototype, number of technical issues and challenges can be faced by the
designers who are involved with the designing of hybrid passenger vehicle (McNeil, Frey and
Embrechts 2015).
Improper management of project schedule: If the schedule of the project that is
created for the designing phase is not properly then the designers can face lot of challenges
due to insufficient time (Rampini, Sufi and Viswanathan 2014).
Complex design: If the design that is developed is quite complex then the designers
need to invest much of their time in the design and thus the Project time schedule will
increase which further creates enhances budget of the project.
Inexperienced designers: If the designers are not experienced then they can face lot
of issues in working with the project (Chong and Hopkins 2016).
Flaws in design: If the design techniques as well as metrics are not used then the
created design will contain lot of flaws.
2. Risk management plan
Risk Description Impact Probability Responsible
person
Mitigation

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Designing
improper
prototype for
the vehicle
The
prototype that
is mainly
created for
the new
hybrid
passenger
vehicle is not
appropriate
and as a
result the
development
team can face
lot of
challenges as
they will
generally
focus on the
design that is
created and
thus the
vehicle that
will be
developed
will be
High High Project
designers
It is found
that for
mitigating
the
challenges
the designers
of the project
must focus
on the needs
as well as
requirements
of the project
and as per
the need the
entire design
should be
created. This
is because in
the
development
phase the
developers
does not face
any type of
challenges in

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inappropriate. developing
the vehicle.
Improper
management
of project
schedule
If the
schedule that
is mainly
created by
the project
managers is
not
appropriate
then the time
that is mainly
assigned for
designing the
new hybrid
passenger
vehicle will
be
inappropriate.
This is
because due
to lack of
time, the
designers
faces lot of
High Medium Project
manager
It is the
responsibility
of the project
manager to
analyze the
time that is
needed for
designing the
vehicle quite
effectively.
This is
mainly done
so that the
entire project
will
successfully
get designed
within the
time that is
mainly
assigned to
the designers
of the project

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difficulties in
finishing the
entire design
for the
vehicle
within such a
short time.
without
facing any
type of
problems and
issues.
Complex
design
The
blueprint that
is created for
the design of
the vehicle is
quite
complex and
as a result the
designers are
generally
facing lit of
difficulties as
well as
problems in
designing the
vehicle quite
effective. In
addition to
Medium High Designers In order to
mitigate the
issue, it is
very much
necessary to
create simple
design so
that the
designers do
not needs to
invest much
of their time
in finishing
the design. In
addition to
this they can
be able to
proceed quite

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this, it is
identified that
the time that
is required
for designing
the complex
blueprint for
the vehicle is
quite more
and thus the
designing
process
become too
much time
consuming.
easily with
the design
without
creating any
type of issues
and
challenges.
Inexperience
d designers
If the
designers
who are
involved with
the project
are not
experienced
then they can
face lot of
difficulty in
Medium Medium Hr manager It is quite
necessary to
hire
designers
within the
project who
are
experienced
as well as
skilled so

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proceeding
with the
design of the
new hybrid
passenger
vehicle. Thus
it is very
much needed
to have
experienced
designers
who will be
engaged with
the designing
the entire
vehicle quite
effectively.
that they can
be able to
design the
vehicle quite
effectively
without
facing any
type of issues
and
challenges.
Experienced
designers
will have
ideas about
the design
and thus they
will not
invest much
of the time in
designing the
new hybrid
Vehicle and
thus the
entire vehicle
will be

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effectively
designed.
Flaws in
design
Due to flaws
with the
design the
development
team can face
lot of
challenges
and issues.
Thus, it is
needed to
design the
prototype
quite
effectively
without any
flaws.
However, as
the designers
does not
utilizes
proper
designing
metrics and
High High designer In order to
resolve this
issue, it is
very much
important for
the designers
to utilize
proper
designing
metrics as
well as
techniques so
that the
design that
will be
created will
be flawless
and the
development
team of the
vehicle does
not need to
spent much

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as a result the
entire design
that is made
is full of
flaws.
of their time
in the
development.

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