Question

Write a 350-500 word essay after reviewing all of the material from this week regarding the major components of risk management. Ensure all of the following questions are answered with this week’s assignment:

·         What are the inputs to the risk management plan? Why are they important?

·         Who is a risk owner?

·         What are residual risks? Secondary risks?

·         What are the various risk categories?

·         When would you use a risk audit?

Answer 1

There are six inputs to the risk management plan are:

• Project scope statement.
• Cost management plan.
• Schedule management plan.
• Communications management plan.
• Enterprise environmental factors.
• Organisational process assets.

Risk management planning is important as it needs to be consistent with the project’s approach for scope, schedule, cost, and quality and procurement.

A risk owner is somebody who is responsible for scrutinizing the risks and implementing risk responses when appropriate. Risk owners assist in defining the risk response plans and in performing qualitative and quantitative risk analysis for the risks involved.

Residual risks are those which are expected to remain after the planned response of risk has been taken, as well as those that have been intentionally accepted where as Secondary risks as those that arise as a direct outcome of implementing a risk response.

Risk management is an important activity of project management. The various risk categories are as follows:

1. Operational Risk

2. Schedule Risk

3. Budget Risk

4. Business Risk

5. Technical Environment Risk

6. Information Security Risk

7. Programmatic Risks

8. Infrastructure Risk

9. Quality and Process Risk

10. Resource Risk

11. Supplier Risk

12. Technology Risk

Risk audit is the examination and documentation of the effectiveness of risk responses in dealing with identified risk and their root causes, as well as the effectiveness of the risk management process.

Risk audit is used to ensure that the project stays on track and on budget. The aim of the audit is to ensure that each process is doing what it’s supposed to be doing.