PROJECT RISK AND

ISSUES MANAGEMENT
MGMT8370-18F-SEC2

NAME –
DATE – 27-OCT-2018
Risk Management Plan –
Company ABC Widget
Production & Sales

Project Manager: Patel

 DOCUMENT ACCEPTANCE and RELEASE NOTICE

This is version 1.0 of the Company ABC widget production and sale Risk
Management Plan.

The Risk Management Plan is a managed document. For identification of

amendments each page contains a release number and a page number. Changes
will only be issued as complete replacement. Recipients should remove superseded
versions from circulation. This document is authorised for release once all signatures
have been obtained.

PREPARED
(For acceptance)

ACCEPTED, Project Sponsor on behalf of ABC Production and Sales of Widgets

Steering Committee
DATE: 10/27/2018
(For release)
BUILD STATUS (With Most Recent Amendment First):
Version Date Author Reason Sections
1.0 27-Oct-2018 Initial Release All

 The version number starts at one and increases by one for each release. It
shows the release number and a revision letter if in draft. The original draft is
0.A and subsequent drafts are 0.B, 0.C etc. The first accepted and issued
document is Version 1.0. Subsequent changes in draft form are 1.0A, 1.0B etc.
The accepted and issued second version is 1.1 or 2.0, depending on the
magnitude of the change.

2. DISTRIBUTION:

Type of Version Issue Date Issued To

Distribution
1. Electronic 1.0 27-0ct-2018 Edward Snowden, ABC
Copy Company
2. Software 1.0 5-Nov-2018 Engineering Department
design
3. IT 1.0 10-Nov-2018 Vendor
Resources
 Table of Contents

Risk Management Plan – Company ABC Widget Production & Sales...........................1

Project Manager: Ronak Patel...........................................................................................1

1 Executive Summary..........................................................................................................5

1.1 Steering Committee................................................................................................5

1.2 Project Manager......................................................................................................5
1.3 Project Team...........................................................................................................6

2 Introduction.......................................................................................................................6

3 Risk Assessment..............................................................................................................6

3.1 Identification............................................................................................................6
3.2 Analysis and Evaluation..........................................................................................7
 Including which project team members were involved in the
decision....................................................................................................7

4 Risk Control and Monitoring...................................................................................7

Appendix A: Company ABC Widget Prodution And Sales Risk

Register 8

Appendix B: Risk Identification Techniques…….9

 Company ABC Widget Production & Sales - Risk Management Plan

1 Executive Summary
The purpose of this document is to provide a management framework to ensure that
levels of risk and uncertainty are properly managed for the remainder of the project.
As risk management is an ongoing process over the life of a project, the Risk
Register must be considered a ‘snap shot’ of relevant risks at one point in time.

This document will achieve this by defining the following:

 the process that will be/has been adopted by the Project to identify, analyse and
evaluate risks during the remainder of the project;

 how risk response strategies will be developed and deployed;

 how often risks will be reviewed, the process for review and who will be involved;

 roles and responsibilities for risk management;

 how reporting on risk status, and changes to risk status, will be undertaken
within the Project and to the Steering Committee;

 a complete Risk Register containing all risks identified for the Project.

1.1 Steering Committee

The Steering Committee will review the high impact risks on a bi-weekly basis via
updated information provided in the Project Status Reports and at the monthly
steering committee meetings. The Steering Committee will also be provided with an
updated Risk Register for consideration, as required, when additional threats emerge
or the likelihood or potential impact of a previously identified risk changes.

1.2 Project Manager

The Project Manager will be responsible for:

 Development (with the project team) and implementation of a Project Risk

Management Plan;

 Organization of regular risk management sessions with the project team so that
risks can be reviewed and new risks identified;

 Assessment of identified risks and developing strategies to manage those risks

for each phase of the project, as they are identified;

 Ensure that risks given a high risk rating are closely monitored; and
 Company ABC Widget Production & Sales - Risk Management Plan

 Providing regular Status Reports to the Steering Committee noting any high risks
and specifying any changes to the risks identified during each phase of the
project and the strategies adopted to manage them.

1.3 Project Team

All members of the Project Team will be responsible for assisting the Project
Manager in the risk management process. This includes the identification, analysis
and evaluation of risks and continual monitoring throughout the project life cycle .

2 Introduction
The objectives of the risk management approach in the Company ABC widget
production and sale Project are to identify, assess and mitigate risks where possible
and to continually monitor risks throughout the remainder of the project as other risks
or threats emerge or a risk’s impact or likelihood changes.

As risk management is an ongoing process over the life of a project, this Risk
Management Plan and Risk Register must be considered a ‘snap shot’ of relevant
risks at one point in time.

Where required, the process of risk identification, assessment and the development
of countermeasures will involve consultation with the Steering Committee members,
other relevant stakeholders and Project team members .

3 Risk Assessment
3.1 Identification

The identification section specifies the:

 Risk event;
 Cause of the risk;
 Effect or impact of the risk and technique used to identify the risk.

Risk Event Cause Effect Technique

ID or Used
Impact

1. System failure Due to the lack of skilled High Delphi

because of lack resources the workers may technique.
of skilled face problem in using the
resources due system because of lacking
to lack of technical requirements and
technical use the system for the
requirements. purpose it is not designed
for, then it may cause
system failure even after
Company ABC Widget Production & Sales - Risk Management Plan

the system upgradation.

2. Business Planning is very important High Cause and

analyst is not in any project and effect
there in the especially in this project diagram.
project for with a restricted time
planning. period it becomes very
important for a project to
have a proper business
analyst for planning and
analysing crucial steps in
the project.

3. Absence of The ABC Company’s High Brainstorming.

Quality project managers and
Standards vendor’s managers should
Measure. finalize on the quality
standards of the software
in terms of performance,
speed and space
consumption. In this way,
the Vendor’s project
managers would be able to
properly monitor and
control quality in the
execution phase.

4. Lack of If the project team fails to High Delphi

business and understand the application technique.
technical accurately then it may lead
requirements. to different outcome or
unacceptable quality due
to the lack of various
business and technical
requirements.

5. Quality The project after being Medium Fishbone

constraint completed should come up diagram.
with good quality as per
the requirements of the
stakeholder.

6. Loss of With no proper High Cause and

previous data documentation of the effect diagram
and any record project changes or
of the project. requirements of the
project, it would create a
high level of
Company ABC Widget Production & Sales - Risk Management Plan

communication issues and

chaos during the
execution.

7. Finalized Scope Since, there is no formal High Fishbone

Statement agreement of scope diagram
missing from between the ABC
the project. Company and the Vendor,
it is going to lead to a
scope creep. A formal
scope statement should be
created and signed off by
both parties. This avoids
any misconceptions for the
project team on the work
to be done.

8. Project failure As the expected project High Brainstorming

timeline by the vendors is
more than the defined
timeline of 1 year and also
the project schedule is
lacking behind due to
failure in proper planning
and executing may effect
in project failure.

9. Issues during The whole project is going Medium Delphi

Software to be a fail if there are Technique
Installation problems occurring during
the installation of the
software. Vendor should
ensure that no issues are
identified while installing
the new programming
languages and no network
issues with the servers
occur during the project
phase.

10. Dispute As some of the important Medium Cause and

between documents like effect
stakeholders communication plan, diagram.
and Project status report and project
Manager. plan are missing from the
project it may cause a
possible dispute between
the project manager and
the stakeholders.
 Company ABC Widget Production & Sales - Risk Management Plan

3.2 Analysis and Evaluation

The analysis and evaluation section identifies the likelihood/seriousness of the risk (see
appendix for grade), risk response strategy and contingency:

Ri Likeli Risk Strategy Contingency Owner Cost Date &

sk hood Respon Reasoning* Update
ID & se
Serio Strategy
usne
ss
1. High Transfe The company Assign skilled Engin $50 Novem
r workers which associates eers. 0 ber 15,
lack in skills due according to 2018
to the lack of required technical
skilled and specifications.
technical
requirements will
be responsible for
the system
failure.
2. High Mitigate To fulfil the Planning of the Projec $50 Novem
customer’s project will be t 0 ber 15,
requirement for prepared according mana 2018
the proper to the customers ger.
execution and requirement.
project.
3. High Mitigate The risk of failure Application Vendo $40 Novem
to maintain the developed by r 00 ber 15,
appropriate people with less 2018
quality of technical expertise
standards cannot leads to poor quality
be avoided but standards. Also,
can only be improper testing of
reduced. The the application leads
following to poor quality
contingency plan standards.
can be used to Therefore, clear
reduce this. definition of
business
requirements and
appropriate testing
of all cases of the
application can
largely help in
reducing the risk.
4. High Avoid The complex Defining the Projec $45 Novem
design is due to business t 00 ber 15,
lack of clear requirements clearly mana 2018
business avoids conceptions ger.
requirement and on the business
it can be requirements and
Company ABC Widget Production & Sales - Risk Management Plan

completely the application

avoided by the design is based on
appropriate the business
contingency plan. requirements.
Hence, this risk can
be avoided
completely by clear
business
requirements.
5. Medi Avoid There is a major Quality Projec $20 Novem
um impact and management pan t 00 ber 15,
probability of the and quality mana 2018
risk to happen standards must be ger.
therefore it is met to ensure the
better to avoid quality of all the
this risk with right deliverables
contingency plan. throughout the
project.
6. High Mitigate It has a very Make sure that all Projec $50 Novem
serious impact on the records and data t 0 ber 15,
the project as it are properly mana 2018
creates a prepared and stored ger.
communication in an orderly manner
gap and many avoiding any issues
serious issues and confusion in the
during execution. future.
7. High Mitigate As it is in the The project scope Projec $20 Novem
yellow zone, it is statement must be t 00 ber
better to mitigate prepared at the start mana 15,201
with a back up of the project and it ger 8
plan if this risk must be signed by
happens. the vendor to
mitigate this risk.
8. High Avoid The success of Creation of bottom Vendo $30 Novem
the project up WBS for project r. 00 ber 15,
depends directly time estimation. 2018
on successful
completion of the
project within the
customers
deadline and
requirements.
9. Medi Mitigate The system is The people installing vendo $20 Novem
um very complex and the software should r 00 ber 15,
failing to install it make sure it is 2018
in the proper way properly installed
could cause and the software
issues during runs properly and
software the employees are
installation. able to understand it
properly and use it.
10 Medi Avoid By giving proper By preparing the Projec $15 Novem
. um communication status report and t 00 ber 15,
plan and also sending them to the mana 2018
 Company ABC Widget Production & Sales - Risk Management Plan

putting stakeholders and ger

stakeholder on making sure every and
primary need. documents are team
signed off by them. memb
ers.

Including which project team members were involved in the decision

4 Risk Control and Monitoring

This section specifies:

 The frequency of reviewing the Risk Registers - <Indicate Frequency>

 Names of individuals involved in the risk reviews found in the table below;

 Frequency of risk monitoring found in the table below;

 Risk review technique(s) and reasoning for selecting it;

Risk ID Review Reviewers Risk Review Risk Review Technique Reasoning

Frequency Technique(s)
APPENDIX A: COMPANY ABC WIDGET
PRODUTION AND SALES RISK
REGISTER

Impact rating cost Time Scope Quality

1. Very low 5% cost <5%very 5% Scope Very
increase insignificant changes – Very insignificant
increase in time insignificant quality
changes degradation
2 Low 10% Cost 5% Time 10% Scope Minor
increase increasec changes – degradation in
minor changes the quality
in scope
3 Medium 15% Cost 10% Time 20% Scope Major
increase increase Changes – degradation in
Major changes the quality
in scope. standards.
4 High 25% Cost 15% Time 25% Scope 10% - Quality
Increase increase Changes – reduction is
Unacceptable unacceptable to
to the sponsor sponsor.
5 Very High 30% Cost 20% Time 35% Scope 15% -
Increases increases Changes – Deliverables
Deliverables are useless.
unaccepted

Risk ID Probability Impact Overall

Ranking
Scope Time Cost Quality
1 5 5 5 5 4 95
2 5 4 4 3 5 80
3 4 3 4 3 3 52
4 3 2 3 1 4 30
5 3 4 5 1 2 36
6 3 3 4 2 2 33
7 5 2 5 3 3 65
8 3 2 3 2 4 33
9 4 3 4 1 5 52
10 3 2 5 2 3 36

Fig. Impact Rating

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 <Project Title> - Risk Register (as at dd/mm/yy)

probabilit 90% Risk Risk 1,2

y 6,7,10
75% Risk 3
50% Risk 4,9

25% Risk 5,8

10%
10% 25% 50% 75% 90%

Fig. Probability and Impact Matrix

APPENDIX B: RISK IDENTIFICATION TECHNIQUES

Delphi Technique: This technique is used to identify the likelihood of future events by a group of experts who express their perspective individually.
An assistant prepares a summary of all the views of experts. Using this technique, following risks are identified.

I. Software Installation
II. Resource allocation
III. External factors

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 <Project Title> - Risk Register (as at dd/mm/yy)
Fishbone Diagram: Fishbone diagram is also called as the cause and effect diagram. As per the case study, project failed as the vendor couldn’t finish
the project within timeline and budget. The causes for this effect are identified using the fishbone diagram.

I. Improper scope statement leads to scope creep and impacts cost and schedule.
II. No proper communication among stakeholders leads to misconceptions on the status of the project as well as on the scope, cost and
budget.
III. Quality assurance contract assists both the parties to monitor the quality of software that is being developed.
IV. Milestone list assists in tracking the customer’s requirements and the project’s current status.

Brainstorming: Brainstorming technique is an approach to generate ideas on a problem, from a group of people within short period of time. People
who have some programming knowledge formed as a group and identified the following risks.

I. Application Knowledge – If the developers don’t have precise knowledge on the functioning of application, development cannot be done
within stipulated cost and schedule.
II. Application Design complexity – Design of the application could be simple to understand and develop. More complexity leads to more time
and work which impacts on the cost and schedule.

Application programming language – Appropriate programming language should be chosen to develop the application which avoids training
resources on new languages and spending time and cost on tr

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