Project Planning Helps in Minimizing Risks Case Study

Question: How project planning helps minimize risks, and give examples? Answer: Project planning is very important as simple risks within the business can affect the organization and can put the company out of the business. There are four important processes of project planning that help to minimize the risks. They are: Identification of the risks Quantification of the risks Development of risk response Controlling of risk response The risk management planning process is very important as it helps in identifying the risks within the business (Heagney, 2012). Then the planning process will help in formulating strategies to minimize the desired risks involved. The next will be the development of the risk response or the execution process for the formulated strategies in order to minimize the risks. In the risk identification process, the source of the risk is identified and then the risk breakdown structure will help to organize the risks that are identified (Kerzner, 2013). The example for the project risk management is shown below: Risks Mitigating the risks Probability Impact Insufficient local demand to run the project Group need to create demand in following areas: Running various types useful events for projects Running media campaigning Targeting specific group of people for business process Low Severe Key members leaving the project Making sure that there are incentive schemes in order to retain employees Low Moderate Irregularity or failing of employees to install equipment within the project Proper means of training top the employees by experts Medium Negligible Example Laptop up-gradation The IT section of major International Corporation was engaged in upgrading the workstations of all the employees to new platforms. The project manager eventually decided to issue various new laptops having the new platform, as the old laptops were end towards their lease. The primary motive of the project manager was to reduce the overall cost prices. Unfortunately the schedule got critical and the new software was not compatible with some of the software which was used by the sale divisional unit. This resulted in enormous loss in the production section for the overall organization. This happened due to improper project planning, therefore project planning is important to minimize the desired risks within the business processes. References Heagney, J. (2012).Fundamentals of project management. New York: American Management Association. Kerzner, H. (2013).Project management. Hoboken, New Jersey: John Wiley Sons, Inc.