Individual Project: Project Risk Management
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MPM344 Project Risk Management
Project Name
Your Name
Date
Table of Contents Project Outline Project Description Method (Agile or Waterfall) Overall Risk Management Strategy Risk Categories Project Risk Identification Project Risks Risk Register Project Risk Analyses Qualitative Risk Analysis Quantitative Risk Analysis Project Risk Response Strategy Risk Response Strategy Project Risk Controlling Plan for Reviewing Risk Responses Identification of New Risks Project Risk Communications Plan Communications Matrix Memo to the Project Sponsor References
Project outline
Project Description
Enterprise Resource Planning (ERP) system is the project to be implemented by the organization. The enterprise resource planning system is an integrated information system which manage all aspects of the organization while aligning al the resources in the organization towards the achievement of the objectives of the organization. Among the resources and the departments that are streamlined through the use f the information system includes supply chain management, huma resource, manufacturing, financial management with the core function of accounting.
Implementation of the enterprise resource planning (ERP) involves involve a series of steps such as installation of the software through which the process is to be coordinated through in the computer systems after which the financial and other data is transferred into the new systems. The users and the business processes in the organization are configured and the members of staff or the users trained on ways to use the software in carrying out their duties in the organization.
Method (Agile or Waterfall)
The enterprise resource planning system project is to be developed through the agile method which allows the demands and solutions to evolve through the collaborative efforts. The reason for the use of the agile method is due to its flexibility feature where it allows changes and evolutions in the business environments thus reducing the chances of obsolescence. Also, the method enhances increased customer satisfaction where the system adjusts quickly to refine the solutions that maximize customer solutions.
Overall Risk Management Strategy
There are two main techniques which will be used in identifying the risks that are likely to affect the project. One of the techniques is interview which involves conducting sessions with stakeholders to ask questions on the predict ad the likely risks. The questions will be used t collect data from the selected participants in the interview process. With the expected role and impact of the project in the operations and the performance of the organization, interviews will be conducted on the representatives of the users of the ERP system particularly the head of departments. The heads of departments to be involved in the interview process include head of finance department, managing accountant, head of human resource, supply management and the head of sales and marketing. Interviewing the outlined stakeholders will provide a clear outlook of the possible risks from the points of concerns raised in the interviews. Affinity as the second technique to be used in determining the overall risk of the project will focus on collecting data from the general users of the system or the members of staff in the organization. The participants will be requested to fill the structured note pads on probable risks that are exposed to the project. The affinity diagrams will be used in collecting the data from the end-users of the ERP system as well as determining their understanding on the risk planning of the system.
Risk category
Risks that are exposed to the implementation of the enterprise resource planning can be categorized into various categories based on their impact and likelihood of occurrence. The categories include: internal category which refers to the risks that are associated or caused by the internal business environment factors. The second category of the risk is vendor risk classification which involve the risks that are associated with the development process of the software or the designing of the process. The third classification of risks is technology which entails the risks that are associated with the technology changes that affect the resource planning systems. The fourth category of the risks that the ERP project is exposed to is the management risk which involve the ability of the management of the organization supporting the project or creating a conducive environment that allows the project to be implemented efficiently. Integration risk category is the fifth classification which is used in classifying the risks that are exposed to the project. The classification involves the risks that relate to the ability of the project to match its features with the business processes of the organization.
Project Risk Identification
Project Risk
The first risk that is likely to affect the project is failure of the organization to adjust the business process to suit the enterprise resource planning system. This can be issue to the business processes which cannot be accommodated by the customized enterprise resource planning system. The potential risk is caused by presence of rigid and lengthy processes in the organization in which some of the processes are old and outdated to match the software settings. The risk on the designing of the system or the business processes falls under the vendor risk as it is the duty of the software developer to develop ways to either customize the systems to fit all the business processes of the organization or provide alternatives to redesign the business processes to fit the enterprise resource planning (ERP) process. The second risk identified in the implementation of the enterprise resource planning system is insufficient training of the employees or the end-users of the software. The risk falls under the internal risk category as the end users or the employees are part of the internal business environment. Training of the employees or the end users is long and requires the organization to pool resources in ensuring that the are equipped with the necessary skills to perform their duties efficiently through the ERP system. The third risk is poor technology planning and infrastructure which falls under the technology classification. The causes of the risk include absence of already-existing technology platforms to suit the complex ERP systems. The fourth risk identified which falls under the management risk category is lack of senior management support which would cripple the implementation of the project due to absence of a conducive environment. Among the characteristics of poor environment for implementation of the project which is resulted by absence of management support is lack of budget allocations. The fifth risk is presence of a large gap in the time between project strategy and execution which can result into diversion from organization goals.
Reference
Project Management Institute. (2009). Practice standard for project risk management. [VitalSource version]. Retrieved from https://online.vitalsource.com/#/books/9781933890388/cfi/0!/4/4@0.00:0.00
Project Management Institute, A guide to the project management body of knowledge (PMBOK® guide), Fifth Edition, Project Management Institute Inc. 2013. [Vitalsource version]. Retrieved from https://online.vitalsource.com/#/books/9781935589815/cfi/0