[THE RADFORD PLANT PROJECT]
Week 5: Project Risk Analysis
[CHINEDU JAMES EJIOGU]
DeVry University / Keller Graduate School of Management
PROJ586 - Project Management Systems
[August 10, 2014]
Risk Management Plan
Project Managers have to lead their teams to focus on corrective actions when they develop risk management plans. This will either make the project a success, late or fail. This requires turning uncertainty to certainty by identifying risks and threats before they happen. Risks are encountered throughout the life cycle of a project. A risk management plan helps a project team manage the project. Risk management plans should be periodically reviewed and updated. Risk management involves identifying, assessing, prioritizing and responding to project risks in order to minimize the negative effect on the project objective.
For the Radford Plant project, there are many risks that can take place in the process of building a plant. The first risk identified would be cost. You have to plan your budget and assure that in the planning phase, you have enough to pay contractors, equipment and building materials. You also have to make plans for unexpected expenses. The second risk is Weather. Weather can be unpredictable. It can easily go from a sunny to rainy to hurricane to tornado day. Advanced and daily weather monitoring can cut down on building delays. The third risk is Licenses, Approvals and Permits. This needs to be obtained in a timely manner to be in compliance for work done or to be done. Another risk is unforeseen incidents like critical personnel getting hurt on the job. This can cause a delay in the project schedule because the injured employee has to be replaced. An agency that can provide temporary talent to fill roles should be on standby should there service be needed. Another risk can be due to Equipment and building materials. If there’s a delay in delivery or delivered product is not up to specification and...