Introduction

How project planning helps minimize risks and give examples?

Risk pertains to the uncertain or unpredictable condition that might influence the project. Project planning is a vital component when it comes to the project as it enables minimization of risk and prepare for the risk thereby coming with a contingency plan (Wauters et al 2014). Hence, project planning can help in overcoming issues such as unavailability of resources or the problems that are unexpected. Project planning comprises of immense benefits and the major one being the risk minimization.

Accountability – Project planning ensures that the allocation of the responsibilities by the project manager to the different team members that makes people accountable for the roles and hence introduces the element of accountability in the project. If the project manager, as well as the team are well versed of the roles and responsibilities then it is easier to perform.

Direction – One of the major challenges in the project is the deficit knowledge in terms of proceeding. During the process of planning, the project team takes a decision what task is required to be completed and the process of planning that helps in providing the desired course of action to the team members (Wauters et al 2014).

Lessons Learned – During the process of planning the project team even refers to the old project outcome and what really went wrong thereby learning from the failure and application of the successful process. Hence, the failure is eliminated.

Adequate resources – During the project resources are consumed before the project completion that can impact the project immensely hence this cause failure of the project. Planning enables the team in determination of the resources and the requirement for completing the project which can avoid the situation where the project needs to be stopped for lack of resources (Wauters et al 2014).

For instance in one of the projects which comprise of a huge project and proper planning could not be done at the very beginning that resulted into delay and inadequate resources were needed for the project thereby the project was delayed. This even impacted the team in the area of direction that was needed to follow as resources were not adequate. Before the initiation of the project the team evaluated the lessons that were understood from the previous project. This helped in knowing the gaps and thereby failures were overcome.

Strong planning helps in ensuring that the resources, budget, requirement and process can be managed in an effective manner. Further, it helps the project manager to undertake the risk management plan so that it can be quantified and the risk can be identified at an early stage (Wauters et al 2014). Moreover, it provides proper time duration for the planning process. For prioritizing, the issue will be evaluated for deriving a plan for the unpredictable activities through the use of a standard formula. This enables the project manager to know the direction of the project and the risk that are likely to attract. To understand the score card, the project mitigates the risks that are of high priority and may turn into issues that are critical for failing the project. Hence, it is imperative that the project planning needs to be done considering the entire organization. The major area of risk needs to be reviewed and considering that the decision needs to be undertaken. This helps the project managers to see the direction of the projects and what risks are more likely to happen. To follow the score card, the project can mitigate the high priority risks that may turn into critical issues to fail the entire project (Noor Fareen et al, 2019). Hence, mitigation of the risk can be done through proper planning and the scope of the project.

For a particular project, it is difficult to ascertain the result in advance. Once the project initiates, any changes or problem can lead to critical, as well as negative impact on the outcome of a project (Martin 2010). Hence, in this scenario, through a proper review of the initial assumptions of the project and its plan, the predictions can be enhanced of the powerful result that needs to be understood. There are different manner in which the risks can be minimized during the execution of the project. To lead a provided project in a successful manner, it is important that potential risks, as well as opportunities might be missed. It is vital to understand the experience and knowledge and ensure clarification that is responsible for what type of risk during the course of the project (Noor Fareen et al, 2019). For instance, the project can be scheduled by defining the scope and the cost associated with it. On the contrary, when adverse event occur, the issue tend to be avoided by the members of the team due to the lack of skills to handle the issue or assign the workload and follow the deficit. In this scenario, if one understands who is experienced for the problem solving and who is undertaking the risk issue then the project can be executed in a better fashion. Hence, the risk management plan should be done considering the entire organization thereby it helps in proper risk mitigation.

To lead a project in an effective manner and successfully, it is imperative to consider the potential risk and opportunities which might be missed. It is important to understand the experience of the team and knowledge followed by the clarification that is responsible for what type of risk or problem during a specified time. Paying attention to the risk communication and sharing the problem during the team meetings ensures that the team perceives that risk management is imperative for the project (Martin 2010). If the team understands the difficulties it becomes of less issue that leads to changes in the schedule and cost and hence the best utilization can be made.

Some risk comprises of higher impact as compared to the others. Through focus and spending higher emphasis on the risks that leads to heavy losses, the risks can be reduced. The number of risks needs the time capacity of the team for evaluation and solving the process. Accordingly, putting emphasis not only helps in management of the risks scope but even reduces the change related influence. Thereby it can be concluded that the aim of the risk management is to trace potential issue before they happen so that activities of risk-handling might be planned before and invoked so that the adverse impacts might be reduced. The project risk status needs to be reviewed on a periodic basis with the desired level of management so that visibility can be provided to the potential for risk exposure of the project and undertake the desired action. The reviews can comprise of the critical risk, parameters of risk and the status of the efforts of risk mitigation.

References

Martin, P. H. (2010). As risk management evolves, is operational risk management important? The Journal of Operational Risk, 4(4), 75-84. Retrieved from https://www.proquest.com/scholarly-journals/as-risk-management-evolves-is-operational/docview/223573734/se-2?accountid=30552

Noor Fareen, A. R., Essia, R. A., Sarkawi, M. N., Abdul, R. J., & Shamsuddin, J. (2019). Operational risk management and customer complaints: The role of product complexity as a moderator. Benchmarking, 26(8), 2486-2513. doi:http://dx.doi.org/10.1108/BIJ-04-2018-0089

Wauters, E., van Winsen, F., de Mey, Y., & Lauwers, L. (2014). Risk perception, attitudes towards risk and risk management: Evidence and implications. Agricultural Economics, 60(9), 389-405. doi:http://dx.doi.org/10.17221/176/2013-AGRICECON