RISK MANAGMENT ON A SATELLITE DEVELOPMENT PROJECT

Risk management on satellite development project Name: Institution: In project management, a risk plan is a vital tool as it can influence the success rate of a project (Kloppenborg, 2010). Identifying risks and incorporating them into the process of project delivery is essential in of risk planning. Project completion may not happen if there is inadequate planning or when teams set unrealistic goals. The cost, time and scope risks of a project are critical aspects for project completion, whereby the project team has to strike a balance between limited resources and maintaining quality in the project (Kloppenborg et al., 2012). Thus, the project team ought to integrate various risk assessment techniques which will eventually influence project outcome. In essence, risk assessment helps to highlight on the likelihood of risks occurring which necessitates adequate planning. Thus, incorporating risks in agreements and contracts ensure that the risk management plans are up to date and capture all the relevant information. Lack of risk plans may lead to delay in projects as the budgeted costs increase dramatically; the costs could include research costs on new technologies in satellite development or unforeseen risks after contract approval. In addition, the schedule estimation may also lead to increased costs as schedule delays increase the cost of the projects, the subcontractors involved in the satellite development ought to be chosen carefully to ensure that there are no unnecessary delays In most cases prices tend to go up over time and delay scheduling necessitate an upward review of the costs to match the current market prices. There is a possibility of scope impact when the team does not incorporate risk plan to the extent that the end result is different from that envisioned at the initial stages. Risk management plans are essential in minimizing the effects of uncertainties in projects; this is also accompanied with the application of resources to mitigate the impact of these adverse events. Through use of risk plans team members are able to allocate resources efficiently by minimizing the length of time taken. In addition, the plans provide adequate information that enables the decision making process as the plans cover the whole project life cycle (Schwalbe, 2006). Factoring in the likelihood of risks in the projects also ensures that there is efficiency through cost minimization and shortening of scheduling activities. Thus, the value of a risk plan cannot be underestimated with regards to enhancing efficiency before project completion. Risk plans also ensure that there are no projects delays, and hence save costs brought about by project failure. Projects are more likely to be more valuable through better return on investment when members make use of risk plans. Through use of risk plans, the team members of the satellite project worked on risks which provided appropriate responses when changes arose (Kloppenborg et al., 2012). Identifying risks is not a clear cut issue because some risks are not identifiable, and it is not possible to deal with all risks. For a project management team leader, identifying risks typically involves the communication skills and experience of the team leader indentifying the causes of the risk (Kendrick, 2009). However, other stakeholders are also...