Question: Step 1: Complete the Risk Management Plan Template below. Step 2: Read the Fast Delivery Parts Store scenario below. Then, : a). Three risks have
Step 1: Complete the Risk Management Plan Template below.
Step 2: Read the Fast Delivery Parts Store scenario below. Then, :
a). Three risks have been identified below. Identify two additional risks to the project in addition to the three identified below. Note: You may use some creative license while identifying additional risks.
b). Using the Risk Management Plan Template, fill out the Risk Assessments for each of the five risks identified. Be sure to provide complete information for each of the risks associated with this project. Note: You may use some creative license while completing the risk assessments.
c). Fill out a Probability Impact Matrix for each of the risks identified in the previous steps by identifying the risk impact level for cost, schedule, scope, and quality. Use the Risk Impact Chart below.
d). Based on your analysis, rank the risks based on their probability of occurrence (from Step 3) and their impact (from Step 5).
SCENARIO:
Fast Delivery Parts Store Scenario Addition
For the Fast Delivery Parts project, (i) you are worried that you do not have trained IT personnel to complete the information system development and changes to the existing information systems. This is definitely a risk that you have planned for. Another risk is (ii) lack of coordination from the suppliers. Despite the earnestness of Shanghai Auto Parts and Rio Parts Company, they are facing resource constraints and have not been able to commit dedicated personnel to the project you are managing. Their involvement is the key for addressing the data inconsistency problem. Yet another risk is that (iii) Fast Delivery Parts has a matrix organizational structure, and there has not been much commitment of resources from functional managers to your project. Without the resource assurances, you may be unable to complete the project in a timely manner.
Risk Impact Chart The following chart shows risk impact definitions across cost, schedule, scope, and quality. During risk analysis, the potential impact of each risk should be analyzed, and an appropriate impact level (e.g., 0.05, 0.10. 0.20, 0.40, or 0.80) should be selected from the chart below (see definitions below).
Project ObjectiveVery Low 0.05Low 0.10Moderate 0.20High 0.40Very High 0.80CostInsignificant cost impact< 10% cost impact1020% cost impact2040% cost impact> 40% cost impactScheduleInsignificant schedule impact< 5% schedule impact510% schedule impact1020% schedule impact> 20% schedule impactScopeBarely noticeableMinor areas impactedMajor areas impactedChanges unacceptable to sponsorProduct becomes effectively uselessQualityBarely noticeableOnly very demanding applications impactedSponsor must approve quality reductionQuality reduction unacceptable to sponsorProduct becomes effectively useless
Risk Management Plan :
Risk #1 Assessment
Risk Description: you do not have trained IT personnel to complete the information system development and changes to the existing information systems.
Reasons for this risk (i.e., what are the origins of this risk?):
Likelihood of risk occurring (express this as a probability between 0 and 1):
Potential impact on the project:
Ways to address this risk:
Risk #1 Probability Impact Matrix
Project ObjectiveVery Low
0.05
Low
0.10
Moderate
0.20
High
0.40
Very High
0.80
Cost
Schedule
Scope
Quality
Risk #2 Assessment
Risk Description: lack of coordination from the suppliers.
Reasons for this risk (i.e., what are the origins of this risk?):
Likelihood of risk occurring (express this as a probability between 0 and 1):
Potential impact on the project:
Ways to address this risk:
Risk #2 Probability Impact Matrix
Project ObjectiveVery Low
0.05
Low
0.10
Moderate
0.20
High
0.40
Very High
0.80
Cost
Schedule
Scope
Quality
Risk #3
Risk Description: Fast Delivery Parts has a matrix organizational structure, and there has not been much commitment of resources from functional managers to your project.
Reasons for this risk (i.e., what are the origins of this risk?):
Likelihood of risk occurring (express this as a probability between 0 and 1):
Potential impact on the project:
Ways to address this risk:
Risk #3 Probability Impact Matrix
Project ObjectiveVery Low
0.05
Low
0.10
Moderate
0.20
High
0.40
Very High
0.80
Cost
Schedule
Scope
Quality
Risk #4
Risk Description:
Reasons for this risk (i.e., what are the origins of this risk?):
Likelihood of risk occurring (express this as a probability between 0 and 1):
Potential impact on the project:
Ways to address this risk:
Risk #4 Probability Impact Matrix
Project ObjectiveVery Low
0.05
Low
0.10
Moderate
0.20
High
0.40
Very High
0.80
Cost
Schedule
Scope
Quality
Risk #5
Risk Description:
Reasons for this risk (i.e., what are the origins of this risk?):
Likelihood of risk occurring (express this as a probability between 0 and 1):
Potential impact on the project:
Ways to address this risk:
Risk #5 Probability Impact Matrix
Project ObjectiveVery Low
0.05
Low
0.10
Moderate
0.20
High
0.40
Very High
0.80
Cost
Schedule
Scope
Quality
Rank Project Risks Base
Rank Project Risks Based on their probability of occurrence and their impact.
- [Risk needing the greatest amount of attention]
- [Risk needing the least amount of attention]
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