QUESTIONS AND ANSWERSQ1. Does the customer have the right to expect the contractor to perform risk analysis and develop a risk management plan if it is not called out as part of the contractual statement of work?The customer does have all the right to expect a risk management plan based on a risk analysis even if it is not called out as a part of the contractual statement of proposal of work. A risk management plan is a tool which helps build customer confidence and assurance in the project team. If the contractor is equipped with a risk management plan, the customer would be assured that the project goals are more inclined to be attained. At the same time, it provides the customer with the knowledge of the higher attainment of goals and the harmful things are less likely to happen and positive results are more inclined to be made achievable. It also ensures the customer of the contractor’s awareness about potential task risks and vulnerabilities and management choices through intensive examination of the information.
Risk management allows for a possible arrangement that is controlled and prescribed risk mitigation techniques in case of any occurrence of the risks. These reactions can be archived as a notable record for future referenceQ.2. How effective will the risk management plan be if developed by the project manager in seclusion?A risk management plan created by a project manager in seclusion would be of poor use. Risk management planning is the process of planning the management activities of the project and making decisions about risk mitigation methodologies that could be employed in case of a risk occurrence. This plan needs to be established at the start of the project and continually developed over the course of the project. Without the data input from subject matter experts, the project sponsors and key stakeholders of the project, all risks from different perspectives will not be identified by the manager in seclusion. Q.
3. Can the sudden disclosure of a risk management plan be used as a stop gap measure to prevent termination of a potentially failing project?If the project is already failing due to the lack of a risk management plan or the failure of an existing risk management plan, then a sudden disclosure of a new risk management plan would not be used as a stop gap measure. A risk management plan is a tool which helps build customer confidence and assurance in the project team. Thus, the sudden disclosure would only give rise to more questions about the contractor’s trustworthiness.
The customer who has already considered termination of the project is liable to ask the contractor as to why the risk management plan wasn’t conceived earlier and shared when the risk trigger had occurred. Q.4. Can risk management plan be justified on almost all programs and projects? Why or why not?Risk management planning could be justified on almost all projects as a necessary aspect of the project. This is because they are very necessary to the organization. It is through the risk management processes that the managers are able to be protected so as to identify, plan, analyze and control all the risks that could affect a project. It reduces the costs that could be incurred in the organization if the risk management was not initiated.
It also raises the expectations of the organization and managers since there are assured of lesser risks affecting the project. There is hence the importance of considering the risk management processes in almost all projects.