RISK MANAGMENT ON A SATELLITE DEVELOPMENT PROJECT

Risk management on satellite development project Name: Institution: In project management, a risk plan is a vital tool as it can influence the success rate of a project (Kloppenborg, 2010). Identifying risks and incorporating them into the process of project delivery is essential in of risk planning. Project completion may not happen if there is inadequate planning or when teams set unrealistic goals. The cost, time and scope risks of a project are critical aspects for project completion, whereby the project team has to strike a balance between limited resources and maintaining quality in the project (Kloppenborg et al., 2012). Thus, the project team ought to integrate various risk assessment techniques which will eventually influence project outcome. In essence, risk assessment helps to highlight on the likelihood of risks occurring which necessitates adequate planning. Thus, incorporating risks in agreements and contracts ensure that the risk management plans are up to date and capture all the relevant information. Lack of risk plans may lead to delay in projects as the budgeted costs increase dramatically; the costs could include research costs on new technologies in satellite development or unforeseen risks after contract approval. In addition, the schedule estimation may also lead to increased costs as schedule delays increase the cost of the projects, the subcontractors involved in the satellite development ought to be chosen carefully to ensure that there are no unnecessary delays In most cases prices tend to go up over time and delay scheduling necessitate an upward review of the costs to match the current market prices. There is a possibility of scope impact when the team does not incorporate risk plan to the extent that the end result is different from that envisioned at the initial stages. Risk management plans are essential in minimizing the effects of uncertainties in projects; this is also accompanied with the application of re...