Risk management for Supplier Global Expansion Plan

Essay by shafaqkhanUniversity, Bachelor'sB+, May 2014

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Risk Management for Supplier Global Expansion Project






Risk Management for Supplier Global Expansion Project

Risk or threat is common and found in various fields of daily life and business. This concept of risk is found in various stages of development and execution of a project. Risks in a project can mean there is a chance that the project will result in total failure, increase of project costs, and an extension in project duration which means a great deal of setbacks for the company. The process of risk management is composed of identifying, assessing, mitigating, and managing the risks of the project. It is risk management that drives the decisions that may affect the development of the business capability and also the management of the project. . Issues differ from risks, as risks relate to the events that could be revealed or emerge and end up affecting the project's scope, budget, business performance, management objectives and schedule.

Risks are measured in accordance to their most probable chance or chances of occurrence and the way that they can impact the program (Hillson & Simon, 2007). Risk can be defined as any kind of trepidation that could significantly impact the capability of the project to meet its scope, budget, change management, business performance objectives, and schedule.

The Risk Management Plan is used as guidance to all the involved team members on managing the project wide risk levels and the team level risks. The process of risk management also allows the project to create strategies to efficiently and effectively attend to the potential obstacles that may arise to hinder the success of the project. When the project scope is clearly defined the foundations for developing...