Risk Response Planning

<Project Name>

Risk Management Plan

Version Number: 1.0, 5/22/19

Version Date: <mm/dd/yyyy>

Note: Remember to include your project description.

<Project Name> Risk Management Plan Version: 1.0

[Insert appropriate disclaimer(s)]

Revision Date: 5/22/2019 9:27:00 AM Page 2 of 7

EPLC_Risk_Management_Plan_TemplateT.doc

Notes to the Author

This document is a template of a Risk Management Plan document for a project. The template includes instructions for the proper preparation of your complete risk management plan. Failure to address all of the sections will result in a deduction of points.

Project

Description

Skincare products are staples that are taking more space (literally) and being shown increased interest as more people seem to be paying more attention to the way they look. The only problem with what seems to be a booming industry (skincare) is that when it comes to skincare, one size does not fit all. Customers are of different age, different income background but most importantly have different skin concerns they need addressed. However, with the amount of products available on the market nowadays, people do not always know what to choose and worse, when they do, the products do not always seem to work. Lumos is a startup company which role as a third party is to facilitate the process for customers when it co to buying skincare products. The premise behind the creation of the company is the use of artificial intelligence to provide customers with products that best fit their needs. The company‘s application is powered by a complex algorithm that provides customers with the best products for them based on their age, gender, skin concerns, lifestyle as well as products that have worked for them in the past. As a startup company looking for capital to launch to the purpose of this project is to analyze the risks associated with launching the company, creating a solid customers fanbase and meeting projections for sales and return on investment.

VERSION HISTORY

Provide information on how the development and distribution of the Risk Management Plan will be controlled and tracked. Use the table below to provide the version number, the author implementing the version, the date of the version, the name of the person approving the version, the date that particular version was approved, and a brief description of the reason for creating the revised version.

TABLE OF CONTENTS

The purpose of the Risk Management plan is to document the identified potential problems that can occur, or the opportunities that can be leveraged. To mitigate risks to prevent from triggering is much more cost effective than to address them when they arise. This document describes how to deal with the identified risks and the risk managing actions that need to be taken. The Risk management plan provides the team members of the project team the idea of the actions that can be taken to identify, analyze and manage risks. “The Plan Risk Management process should begin when a project is conceived and should be completed early in the project. It may be necessary to revisit this process later in the project life cycle, for example at a major phase change, or if the project scope changes significantly, or if a subsequent review of risk management effectiveness determines that the Project Risk Management process requires modification” (PMBOK 2017).

1. Identify the risks

2. Create a risk register

3. Perform risk analysis and develop a probability and impact table

4. Create a risk response strategy

5. Update risk regularly and revising during project life cycle

6. Communicate with the project Stakeholders

7. Mitigate Risks

In this section, you are to complete the roles and responsibilities chart, by describing the roles of the key players in your projects risk management program – i.e. Business SME, Project Manager, etc. and describe their responsibilities with respect to risk management on your project.

[In this section, you are to identify who will be responsible for identifying risk, and provide a description of what information will be used to help to identify project risk – such as environmental factors, cost estimates, etc. a complete list should be included. ]

Financial risks: Requirements not met to get approved for a loan to start a small business . best and worst source of capital to get the business funded (Line of credit? Crowd fund? Private investment) no outside investment available/ insufficient capital, low ROI, Poor sales, costs are higher than anticipated

Commercial/market risks: customers fanbase lower than anticipated, Poor brand visibility due to competition, limited or unavailable brand partnership/collaboration, significant change in the skincare market landscape limited access to the platform for users outside of the US, limited products availability outside of the US, limited alternative options for certain products within the US and outside,

Technology risks: issues with algorithm writing, patenting delays, scope creep, intellectual property, website crashing down due to high traffic

External risks: unforeseeable circumstances (pandemic)

In this section, you are to identify who will be responsible for identifying risk, and provide a description of what information will be used to help to identify project risk – such as environmental factors, cost estimates, etc. a complete list should be included.

[In this section, you are to identify what specific methods will be used to assist in the identification of risks associated with your project. A complete list should be included. ]

The following methods will be used to assist in the identification of risks associated with Lumos skincare company launch:

Data gathering it is the most comprehensive one because it brings together brainstorming, checklists, and interviews. The brainstorming session will broaden the horizon in terms of ideas and perspectives from a panel of experts both from the team and outside of the team. The checklists on the other hand will serve as a reference to get back to in order monitor as well as have a better roadmap to navigate the risks identified in the past and reoccurring in our project. Finally, the interviews will have a role pretty similar to the brainstorming: experts will weight in on the project based on their past experience and allow use to not only know the risks associated with out project, but also help us come up with a contingency that is appropriate and at the measure of the project that we are developing. The interviews at the difference. Each methods will bring a different category of people on boards.

For the brainstorming and the checklists I would be turning to the Stakeholders and the team members because both not only heavily influence the rate of success of a project but the concerns that they have might not be as obvious to either party. While for the stakeholders the risks and concerns might be less practical and more theoretical, the opposite it true for the team members: because they are at the forefront of the project, the practicality of the project will bring on a different set of risks for them, a new set of challenges and/or constraints that can potentially hinder and/or impact the project in a major way. Due to the fact that the project is geared towards customers, the interviews will include customers on top of the experts and the team members. The input of the Customers is important they are the driving force behind the creation and launch of the company. So it would make sense to also interview them in order to deliver value but also to know how to make the application more accessible to them and tailor a more personalized approach of skincare for them

In this section, you are to generally describe how risks will be analyzed and describe how risks will be prioritized by their level of importance.

· Risk Analysis activities will be documented in the respective FMEA’s (use, design, or process).

· The date of the risk analysis activities, as well as the individuals who approved the FMEA, can be found on the electronic approval of the respective FMEA type within Master Control.

· The description, identification (product codes), and intended use for the device shall be documented in the Design Input Requirements (DIR).

· The Risk Analysis is used to identify potential hazards for Use FMEA, Design FMEA and Process FMEA.

· FMEAs shall be used to capture hazardous situations and harms associated with hazards, as well as reasonable and foreseeable misuse.

· Risk management will include analysis activities to characterize all the identified

circumstances or all the identified hazardous situations that could lead from a potential

hazard to an actual harm, the severity of that harm, and the probability of occurrence

of that harm.

Qualitative and quantitative characteristics that could affect the safety of the device and the damage done to the device shall be identified, and where appropriate any defined

Risk management will entail evaluation of acceptability of the characterized risks based on established risk acceptability criteria once risk controls are determined. In this section, you are to describe how you will use Qualitative Risk Analysis to conduct an analysis of potential risks to your project. You are to provide a description of who will conduct this analysis, who will assess the results of the analysis, and describe how you will define Probability and Impact – i.e. what scales will you use? You should also describe the priority level of risks that will require a risk response and contingency plan.

Probability

Impact

In this section, you are to describe how you will use Quantitative Risk Analysis to conduct an analysis of potential risks to your project. You are to provide a description of who will conduct this analysis, who will assess the results of the analysis, and describe how you will define Probability and Impact – i.e. what scales will you use? You should also describe the priority level of risks that will require a risk response and contingency plan.

In this section, you are to describe how you will conduct risk response planning. This should include how and to whom risks will be assigned, the approach(es) to be used to address each risk.

In this section, describe the methods and metrics that will be used to track the project’s risk status throughout the lifecycle as well as how this status will be reported to the stakeholders/ management. List factors that would need to be escalated to management. Examples: documented mitigation actions are not effective or producing the desired results; the overall level of risk is rising. This section should also include a description of how and where risk activities will be recorded and who will have access to this information.

In this section, you are to provide the appropriate information to effectively outline and define the budget associated with the Risk Management activities on the project. You should identify the total budget allocated to risk management and identify how the budget can be accessed. You should also describe who has the authority to authorize expenditures.

In this section, you are to describe what tools and techniques will be used to record and track risks and who will be responsible for maintaining the information. You should also describe the process to be used in reviewing risks.

In this section, you are to describe the criteria associated with determining when a risk can be closed and identify who has the authority to close a risk.

In this section, you are to describe how lessons learned will be identified and recorded and where this information will be stored.