Running head: RISK RESPONSE PLAN

RISK RESPONSE PLAN

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Purpose of a risk response plan

In Risk Response Planning, choices are developed, and actions determined that improve

chances while lowering substantial concerns to a project's primary goals are included in the

procedure. Risk response planning entails determining which risks need to be addressed and

assigning individuals or groups to take on the tasks associated with addressing those risks. If all the

recognized risks are appropriately managed, risk response planning will establish whether the

indicated risks rise or reduce for the whole project (Risk management, 2014).

Risk owner?

A risk owner is a person who oversees, assesses, and regulates a recognized risk and also

the execution of determining responses for that risk (Risk management, 2014). This person must

have the skills, tools, and power to handle the given risk. Classifying risks to individuals is an

important aspect of risk management since it makes the person accountable for each risk.

Who should be appointed to own risk on a project?

A risk owner has been selected because they are considered to have more understanding

about the specific risk. The risk may be within the scope of this person's tasks and obligations. Still,

this person should have the ability to control the risk by utilizing the resources at their disposal

(Abkowitz, 2015). The person in question must be able and willing to task others with

implementing the different therapy options that could be employed in this situation. To assign

project risks to the right people, the project leader will work with the management team.

What is a risk owner's role in the risk response plan?

This person's task is to maintain, regulate and evaluate a specific recognized and allocated

risk and handle the execution of chosen response to that risk. A risk owner delegates particular

responsibilities
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for coping with this risk to others and uses the funds allocated to you to minimize this risk (Risk

management, 2014).

How should a project manager assess and deal with risk?

An effective project manager should engage their project team to determine all of the bad

outcomes that could arise during the project's life cycle and hinder the project from being

completed successfully. Among the circumstances that can affect a project's registration are the

project budget overruns before it's finished, missing a timeline, or even vanishing entirely

(Abkowitz, 2015). To deal with the risks that have been recognized, the project manager can

assign them to diverse external stakeholders. For example, if a supply chain risk is discovered, the

project coordinator may consider relocating the risk to the company's finance team to complete

the work effectively. Despite delegating risks to various parties for mitigation, the project

manager must prioritize all identified hazards. This follows the risk exposure calculation for the

indicated risks, which includes the chance of the risk occurring. To ensure each risk identification

is managed effectively, hazard prevention and risk reduction measures are implemented.

List and describe the most common areas of the project where risks can originate.

Below are the primary project areas wherein risks may arise:

Management of the project's scope: This comprises the project's business needs and the

determination of the scope baseline. One of the most important places where project risks might

arise is the details of the project estimations and their corresponding dependencies.
 Time management for the project: Changes to project goals, effort, and schedule are all part

of this. Any of these changes during a project can result in significant risks identified.

Cost of the project, often known as the allotted budget. This has to do with the total amount

of money allocated to the project. Many project risks hinder continued execution if the project

budget is underestimated. Expansion of the project scope might lead to some cost hazards, such as

a delay in project delivery or even an unfinished project closure, aside from incorrect project

budget estimates (Wideman, 2013).

Management of the project's quality: Personalization, information transfers, design

specifications, coaching, work quality, and testing are all part of this process. Project quality and

testing are also included. Project process tailoring and variance rules are incorrectly applied, and

new workers are handed project roles without training in quality systems and practices that the

organization has accepted, as evidence of this (FROEHLICH et al., 2014).

Management of project resources: This is a crucial area that can result in many project

dangers. It involves challenges such as a shortage of project resources, organization, the project

team's availability, personnel turnover, requisite skills, and technological issues (Risk management,

2014). A lot depends on the project's timetable, employees, available funds, and other amenities. If

these are not handled correctly, project resource risks will prohibit the project from being properly

implemented.

Types of risk in each area

➢ Project Scope Management.

 A large, ambiguous, and complicated project scope poses a serious risk. To

successfully manage the project, more time, more reserves, and highly competent

personnel will be required, resulting in the project cost being greater than the firm’s

profitability.
 • Another project hazard is the occurrence of scope changes. Project duties will need to be

reassigned, time commitments will need to be enhanced, and the budget and timeline for

completion will be extended as a result.

➢ Project Time Management.

• Deadlines that are too optimistic. An implementation plan can be jeopardized if a

deadline is set that is not reasonable.

 The project's workload is overestimated or misleading. Under-estimated project work

will inevitably harm the project funding, resulting in major resource issues. As a result,

the project may be terminated prematurely or with significant defects.

➢ Project cost or budget

• Overestimation of costs. If you have the wrong budget in place, you run the risk of

running over budget or under-budgeting your project.

• It has reduced financial support. Unavoidable circumstances may necessitate project

cost reductions that have an impact on its completion.

➢ Project quality management.

• Quality expectations weren't met. The project may necessitate obtaining

professional knowledge in difficult-to-reach areas, which will cause features to

malfunction.

• Inadequacy of current data. The proposed system may have problems converting

this data because it is in an unreadable format.

➢ Project resource management.

• A scarcity of resources. When project resources aren't accessible when required, it's a

big problem, and the project can't move forward unless the funds are provided.

• A lack of the necessary skillset: the required skills for the project aren't available,

thus, hindering the project from being completed successfully.

 In the project you discussed in Week One, what were the risks, and how were they handled?

Part one of this series detailed my plan to start an animal modeling agency using pets,

which I dubbed the animal kingdom, to help animals in our society that are often abused. Even

though this isn't a completely new venture in this field, as other animal kingdoms exist nearby

but haven't provided the services, my goal was to make sure that all animals were contented. As

a result, the company would be on its own and face fewer risks.

One was the absence of animals in my new kingdom with which to model them. There

was a lot of competition, but because of the services my kingdom provided to animals, more

people came to us to have their pets’ models for us. Several sponsors have agreed to collaborate

with us, and that's great news for us.

Another issue I worried about was the lack of people interested in our pets, which could

hurt my business. No matter how long we spend meticulously modeling a pet, people may still

be unwilling to buy it from us because it is already made. However, this never came to pass

because despite being well-behaved and handled, our pets were able to assist us with household

tasks despite these attributes.

Competing with other kingdoms didn't bother us as much as we thought it would because

we had sufficient staff to care for the animals in every way imaginable. Our final product was

well-received, and we had a lot of help from the community.

Should they have been handled differently?

If our community lacked creatures to mimic, we could have gone to the neighboring areas

searching for suitable species. If no one came for our designed pets, we might have suggested

dropping our prices to make the creatures cheaper.

 Conclusion

Every project has its ups and downs, as well as several potential dangers. For your project's

future success, you must have a risk assessment and response plan in place. There was a risk

mitigation strategy in place that identified various potential hazards that could arise during the

execution of the work and the essential techniques for mitigating such hazards. Risk response

planning was addressed, emphasizing the duties of a risk mitigation plan, which should be

appointed as a risk owner, and where risks can arise in a particular project. The paper ends with a

summary of the apparent risks in my week one project and how they were managed. This study

drew on about four scholarly resources in total.

 References

Abkowitz, M. D. (2015). Operational risk management: a case study approach to effective

planning and response. Hoboken, N.J.: John Wiley & Sons.

Risk management. (2014). Sydney, NSW: Standards Australia International, Ltd.

Wideman, R. M. (2013). Project and program risk management: a guide to managing project

risks and opportunities. Drexel Hill, PA: Project Management Institute.

FROEHLICH, G. K., HODGES, A. L., PILCH, M., & PEERCY, D. E. (2014). Risk Management

Plan. Washington, D.C: Distributed by the Office of Scientific and Technical Information,

U.S.