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Risk Management Memo From a Project Manager

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Even though you are the project manager and the one ultimately responsible for planning and implementing the project plan, you believe that risk management is "everybody's business." Your team understands what risk management is; you want to take them a step further and have them integrate risk management into their roles and responsibilities. Draft a memo outlining your ideas how two of the following team members could integrate risk management into their jobs:

Nuclear scientist
Engineer
Technologist/programmer
Research associate
Facilities supervisor

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The response addresses the queries posted in 2006 words with references.

//The given paper is in the form of a memorandum. In this memorandum paper, the project manager requires the risk management process for the project. In the first section of the memo, I am describing the concept of risk and risk management to make the user understand the role of individuals perfectly. The essentialness of the risk management is also described.//

Memorandum

Date: September 5, 2007

To: XYZ Company.

From: Project Manager

Subject: INTEGRATING RISK MANAGEMENT

Risk management is essential part of an organization. It is integrated in the roles and responsibilities of the employees. Risk management is combined with the job.

Risk means the uncertainty of outcomes and in financial terms it is variability in returns. Risk management is the activity performed by humans that includes identifying risk, risk evaluation and developing a plan to manage the risk. Risk is minimized by utilizing the resources and expertise. Policy for risk management includes transferring of a risk, avoiding the bad outcomes of risk and hedging to avoid risk. Managing risk helps in smooth and efficient working of the business operations. In the present times, it has become a necessity for every organization to focus on risk management due to globalization. There is borderless world, no boundaries for business and changes in one developing country's economy affect all the world economies. For example, changes in Crude oil price have an impact on all the stock markets and oil companies of world.

//After analyzing the concept of risk and risk and risk management, in the next section of the discussion, I am providing the types of risks associated with the projects undertaken by different business organizations and the effect of these risks.//

There are various types of risks as political, legal, production, marketing, natural, environmental, and financial and personnel risk. Financial risk is managed through hedging in financial instruments, investment in different industries and markets. Goal of risk management is to minimize various risks bearing the dangers from competitive firms, society and technology. There is an increased risk in economies of countries and political risk is also vital to be considered. Financial markets are exposed to risk due to currency exchange rates as markets have become wider for firms. Companies provide their products in the international market, thus it is obvious to be affected by exchange rates. Top companies of world focus risk management and are safe from various risk losses. For a project manager, minimizing risk and developing appropriate measures to fight with it is a significant activity.

// After describing the various types of risks in the next section of the discussion, the effective steps taken by the project manager are described by me. This knowledge will help the reader to understand the importance of the risk management practices in the projects of the organizations.//

First activity for a project manager is to identify risk in a particular project. It includes what is the job in minimizing risk, financial resources and responsibilities. After identifying the risk, the manager is appointed to handle and manage specific job ...

Solution Summary

The given paper is in the form of a memorandum. In this memorandum paper, the project manager requires the risk management process for the project. In the first section of the memo, I am describing the concept of risk and risk management to make the user understand the role of individuals perfectly. The essentialness of the risk management is also described. This solution is 1750 words with six APA references.

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See Also This Related BrainMass Solution

Evaluating Vendor's Proposals for a Project

At times, a project manager must evaluate proposals from identified vendors and make decisions based on the project budget and schedule. It is essential to determine how the organization will determine the best response to the proposal's individual vendors?

IRTC has asked you to evaluate the customer service add-on the vendor offered while still in negotiations for this project. The add-on will cost $25,000 and take an additional 4 weeks to install. Your manager has asked for your opinion. The project is tracking along according to schedule and budget.

What do you need to consider before saying yes or no? Prepare a memo for your manager outlining how either decision would affect the project and factors that need to be discussed and agreed to by various parties involved in the project.

- What do you need to consider before accepting or denying the vendor proposal?
- How would your decision affect the overall project?
- Consider budget, schedule, and resources.
- What parties would need to be involved in this decision-making process?
- What important factors would need to be discussed and agreed upon by the various parties involved in the project?

You can do this by performing the following steps:
- Develop a project plan that covers all project groups and knowledge areas.
- Develop project plans that integrate project procurement and contracting activities across project groups.
- Separate tasks into sub-tasks, and a work package with stated durations and order of precedence.
Manage project scope throughout the project life cycle.

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