Risk Management on a Satellite Development Project- Dr. Stephen Castellese

Running Head: RISK MANAGMENT

Suggest the issues that could have developed had the team not had a risk plan.

Having a risk plan is extremely important. Risk management helps to identify, assess and prioritize any issue within a project. By doing so, you identify anything that could keep you're your project from being delayed or completed. Identifying risk also helps the company save money because you have already planned for any additional financial setbacks that could occur. Risk management also helps you determine if the project is feasible. After reviewing the risk involved a company could come to the conclusion that the project is not worth risk. Risk is not always bad sometimes taking risk are good, however, the important thing is that this is identified for the company to decide.

I think financial, technical and compliance are the biggest issues that could develop if the team does not develop a risk plan. Financial risks encompass events that will have a financial impact on the organization such as the investing of company cash into the project or obtaining investors to financially support the project. A company has to first identify if the project is affordable to do and how it will be financed. The financial risk aspect as well as any financial risk involved in the project is important to be assessed in the beginning. It is important to have a budget and staying within the budget is even more crucial. Once issues start arising that causes a project to go over budget, you are costing the company time and money. Once you go over budget the project will be delayed because you have to now get approval to continue outside of the agreed budget. If the company is not willing to go over budget or if sponsors are not willing to pay for the over budgeted amount, then the project may be canceled. This also cost the company time and money. Technical risks are associated with the operation of applications or programs including computers or security devices. Additional equipment or software may need

Running Head: RISK MANAGMENT 3

to be ordered as well as longer hours for IT employees. Compliance risk occurs when a company does not comply with mandated federal regulations, which often results in fines or legal sanctions.

Justify the value of risk plan considering the time, effort, cost, and resources it took to develop such a plan.

Risks can damage a project. They can also increase project costs by setting projects back. By having a risk management plan in place, project management teams can be prepared to deal with risks if they occur and attempt to mitigate the risks before they can damage the project. If a risk management plan is done successfully, most issues that come up will already be planned for and should not cause