Sample Management Paper on The Risk Management Plan

The Risk Management Plan

Project managers use a risk management plan to identify risks and devise strategies for mitigating them. The risk management document is essential because it gives an insight into the risk levels and ambiguity that may lead to the failure of a project thus enabling proper preparation to ensure the success of the project. In this paper, the risk management plan highlights how the risks associated with the late delivery and technical capabilities can be analyzed and managed. Several ways can be adopted to handle risks, and these include avoiding, mitigating, transferring, and accepting risks. In this case, the risk of late delivery of prototypes is to be mitigated by hiring additional vendors to reduce the timeline and cost of the project and the change shall be communicated to the original vendor.

Addendum

Date: 19/08/2019

Notice to the Vendor

            This addendum highlights the modification on the declaration documents in the above-referenced project. All the previous declarations and addenda shall remain unchanged apart from the sections modified in the addendum, which will be part of the contractual documents. It is imperative to consider all the amended sections during the preparation and delivery of prototypes. For the official purpose, you should recognize the acknowledgment of this addendum on the delivery form.

Delivery Prototype Deadline

            The submittal deadline for deliveries has been adjusted. Therefore, the deadline specifications in the original section are no longer valid but instead adhere to this new date. The new deadline for prototype delivery shall be 29/08/2019 at 1159 hrs.

Expertise

            Essentially, you should be able to run all the necessary operations in the absence of a key engineer, thus training is necessary to train your staff to acquire the necessary technical skills. On the contrary, untrained staff may interfere with the basic operations of the project thus compromise it.

Repercussions

            15% of the agreed upon payments will be deducted if the new deadlines are not met. Moreover, if your staff lacks technical skills you must hire a third party to perform all the tasks as stipulated in the contract.

Changes to the Project and Their Implications

            Risks can be defined as uncertain occurrences, which can positively or negatively affect a project. I would reduce the project duration without interfering with the quality of the activities. I could hire more vendors and distribute different activities rather than have one vendor complete all the tasks. As per Vaughan, distributing work is likely to will lessen the burden of a vendor to promote the timely delivery of prototypes (The current vendor has already demonstrated inability to complete tasks in time, hence distributing work is necessary to ensure timely delivery. Additionally, working with different vendors may promote innovation because of their different ways of approaching activities. Ultimately, the mentioned change is a risk. As such, managerial skills are needed to identify the impact of the risk.

Opportunity management skills are essential in the process of identifying opportunities to be implemented to boost the project economically. The opportunity management approach focuses on evident results, which promotes teamwork and collaboration among team members. Additionally, managing opportunities promotes the generation of ideas, monitoring, and distinguishing opportunities, all of which are promote a project.

Fast-tracking some activities is a positive risk, which can be referred to as an opportunity because if the project is completed faster than anticipated, it would be cheaper than if it were completed on schedule or late because of the reduced operational costs. Indeed, longer project duration lead to the usage of more resources as opposed to the shorter ones. Moreover, through opportunities, innovations can be realized, which in turn promotes the success of a project (Liberman & Woodruff, 2017). Essentially, if a project manager can recognize an opportunity, he/she can offensively manage it instead of resorting to defensive mechanisms in case of a hazard in a project.

I believe that the likelihood of fast-tracking the project through hiring more vendors is high. Moreover, as mentioned, the impact of the mentioned change would be the early arrival of prototypes and saving some resources. The new addendum shall ensure that the extra vendors have the minimum requirements to undertake their tasks to enhance the efficiency of the project and increase the probability of the mentioned opportunity. The change is likely to have positive effects on the reject irrespective of the risk associated as long as the risks are well assessed to determine their impact on the project.

Regardless of the opportunities associated with increasing the number of vendors to reduce the project’s duration, some adverse risks may be allied with this type of change. For example, the increase in vendors may lead the salary budget to increase if the change is not managed well. Nevertheless, since the original vendor’s workload would be significantly reduced, I would work out a new contract with him/her to accommodate the new vendors’ payments. That way, the project will be completed faster and I would not incur significant additional costs. Another adverse risk is the failure of the project, which is unlikely since all the factors that may derail it have been considered and mitigated.

. I would inform the vendor in writing about the need to review our contract and addendums. The addendums shall be attached to the contractual documents to clarify the new aspects of the plan. If the vendor needs further clarify and discuss all the contentious issues. Effective communication is likely to lead to an understanding between the vendor and I, which would allow the project to proceed. However, if we do not agree on the new terms, I will be forced to hire another vendor who can help me to achieve the project goals.

Conclusion

Risks can be catastrophic, but they also provide an opportunity if they are managed well. The mentioned vendor’s inability to deliver prototypes on time exposed the project to the risk of failure thus there is a need to mitigate the issue. Hiring more vendors is an excellent opportunity to solve the mentioned issue as it would save time and promote innovation to enhance the efficiency of the project. I believe that the change will not be costly because I would not need to use additional funds to complete it. Although the new plan comes with risks, I believe that they are all manageable.

 

References

Liberman, A., & Woodruff, M. J. (2017). Risk management. Minneapolis: Fortress Press.

Vaughan, E. J. (2018). Risk management. New York: John Wiley.