Risk Management

[Name of the Institute]

Risk Management

Question 1

A risk plan is a necessity for any operation in the traditional business environment; however it becomes even more significant for specialized projects. In this satellite development project, the working team had to develop a comprehensive risk aversion strategy, which would ensure that the project is completed as per the schedule. It is mentioned that the team was working on a strict timeline, and also had budget constraint, hence any malfunction or operational could have led to very negative consequences. In a mega project in which the development of a satellite is occurring, the team had to ensure that any possible risk factor was adequately highlighted and also alleviated. In these projects there are numerous risks factors which can have an impact on the entire operation (Zwikael & Ahn, 2011). In the satellite development program there are several high tech and advanced machineries, which are very sensitive in nature. A malfunction may occur due to the smallest of miscalculations or operational activities; hence in the context of this mega project the development of a risk plan is a crucial activity. If such an initiative would not have adopted by the team members on the project, there were risks that could have had a negative impact on the entire satellite development project.

Question 2

As mentioned the risk plan in eth satellite development project, was highly relevant to the nature of the activity. It is true that in order to develop a comprehensive risk aversion strategy the team members allocated a vast amount of resources and also effort. The team could have used these time and discussion efforts in to other important tasks of the project. However it is also important to consider the fact that the team had to ensure that the risk associated with the project ...