For Ann Harris

Christopher Mihun

RISK MANAGEMENT PLAN – RISK RESPONSE PLANNING

PM650-1801B-01

Professor Al-Nizami

Risk Response

The risks identified are essential in the development of an essential risk response. Risk responses are the different ways and processes for which an organization can effectively use to manage risk. In the construction project, the project managers and stakeholders could have used different responses in the management of the risks. The risk identified and their responses includes:

Risks Identified	Responses
i. Incomplete designs which resulted in poor structural planning and delivery of the project.	Avoidance
ii. Poor stakeholder involvement in the due process and project planning	Contingency
iii. Lack of project leadership from the project manager	Accept
iv. Lack of project progress reports and this hampered the performance appraisals	Reduce
v. Poor Cost Estimates and budgeting	Avoidance
vi. Incomplete designs requirement gathering	Transfer
vii. Failure to keep within the cost estimate.	Exploit
viii. Inability to meet the completion timeline	Contingency
ix. Changes in project scope and requirements.	Accept
x. Project scope and design changes.	Reject
xi. Lack of project change controls and Scope of the project	Reduce
xii. The pressure to deliver projects on an accelerated schedule.	Reject
xiii. Inaccurate contract time estimates.	Exploit
xiv. Lack of communication between project participants.	Reduce
xv. Inadequately defined roles and responsibilities.	Share
xvi. Insufficient skilled staff.	Avoid
xvii. Political risks.	Enhance
xviii. Poor task and roles assigning among the project stakeholders	Reduce
xix. Inexperienced project managers	Share

Application of these Risk Responses

According to the risk responses as shown above, the responses for the opportunities and threats in the risk management. The responses are an opportunity for structural competency and how to effectively manage the risk. The process for risk identification and mitigation can be effectively managed to improve project performance. Therefore, the application for the risk responses can be effectively developed through:

a) Avoidance

Avoidance is a risk response which is essential for the changing the project to meet the expectations of the stakeholders while managing the risk. For instance, the change in the designs could have improved the outcome of the project. The change affects and reduces the ability for an effective risk mitigation and process. Avoidance also helps to change the necessary expectations, planning, and how to fully develop and improve resource allocation to ensure the impact of the risk does not affect the project.

b) Transfer

Transferring the risk is a risk response which is all concerned with the mitigation and management of the risk by transferring it to another aspect and event. For instance, transferring the risk to the project stakeholders could have helped to designing complete and effective designs. It is a process for ensuring the transfer for risk meets the value, resources, and exposition for the project. The risks could have been transferred to help in the mitigation and management of designs.

c) Reduce

Reduction of the risk means creating an opportunity such as reducing the occurrences bytapping the root causes of the risk. This can be completed and especially managed due to poor planning before implementation, planning and creating the resources for the risk. The reduction is essential for focusing on the risk entities. This will increase, change and effectively reduce by targeting the root cause of the risks.

d) Accept

Accepting the risk can be an essential process for ensuring the project meets the expectations of its stakeholders. Some risks can be accepted by the stakeholders. It is also a process to ensure and how to fully develop and support the performance of stakeholders. It is also a process for enhancing the changes, processes and accepting the risk to a manageable state. This will effectively help in improvement and gaining the value, resource and process management. Some risk such as unskilled staff and poor leadership can be accepted by managed effectively.

e) Contingency

The contingency planning is an essential risk management technique which helps companies in the modern society to develop backup plans. Backups can be an essential resource to help in the processing and functional performance. It can be effectively used for an effective process to improve performance and develop project success. Contingency can be developed in place of lack of budgeting and cost-timelines. The use of contingency planning can be a process for influencing change in performance through risk expectations.

f) Share

Sharing risks can be an essential opportunity to minimize the impact of the risk to a project. It is also an essential policy to effectively influence and increase performance based on values such as mitigation, planning, and process development. It is also important for an effective allocation of risk to other stakeholders. Stakeholders can share risk, develop the necessary roles such as engaging and defining the processes.

g) Exploit

Sometimes, it is important to exploit an opportunity. This is essential for curbing on the opportunities for affecting the project. The exploitation can be used effectively in improvement of risks and using the impacts for making another plan. This is management of risk opportunities by the project managers. It is also an opportunity for an effective planning to provide, develop and influence resources such as poor leadership to introduce change and increase resource processing. Effectively using exploitation, a project manager can allocate for more resources and skilled staff.

h) Enhance

Enhancing the occurrence of a risk can effective result in risk response and this can be used effectively to improve and develop financial allocations. The manner and ability for an effective resource is to effectively, develop, and improve financial planning. The process can be used progressively to help in the mitigation approaches. It is also important to develop and improve processes such as organization, performance and value creation.

i) Reject

Sometimes, if the risk is too high, it is important for an effective development, planning and creative allocation of resources. Mitigating risk can be a risk process which affects the performance of a project. Rejecting poor relations, unskilled and poorly designed requirements can be effectively improved and this can improve resource allocation and planning.

Risk Breakdown Structure

Sydney Opera House Project Risk Work Breakdown

References

Edwards, L. (1995). Practical Risk Management In The Construction Industry. Thomas Telford.

McNeil, A. J., Frey, R., &Embrechts, P. (2015). Quantitative risk management: Concepts, techniques and tools. Princeton university press.

National Research Council. (2005). The Owner's Role in Project Risk Management. National Academies Press.