Resource Management

Team A Risk Management Plan

Course Project

KG Internet Café

Risk Management Plan

Class: MGMT-404

Professor: Richardson

DeVry University

Oct 3rd, 2014

Team A:

Kent Grant Project Manager

Jacob Fejeran Café Design and setup

Heather Alton Permits and Real estate

Gabriel Cambambia Interior Design and Decor

Dave Williams Supplier and Venders.

Project Name:	KG Internet & Coffee Café
Project Description	This project is hoping to bring a first class internet café as well as a one of a kind international coffee and tea café in one. It will feature the highest bandwidth for blazing speeds. Or you can relax with your friends or make new ones while sitting in comfortable seating sipping world class coffees or teas from around the globe. People of all cultures will enjoy the diverse environment that plays tribute to all cultures worldwide with entertainment and events.
Project Manager	Kent Grant
Date:	Oct. 10th, 2014	Revision Number	1

A. Risk Identification

The following is a list of all risk in all areas that could or may cause a delay or disruption in this project. The risk will appear in the Risk Assessment Table.

1. Rental agreement conflict: If the rental agreement is not correct then it could not be signed, therefore delaying the start of the project.

2. Legal issues: This event could cause a delay in the starting of remolding and construction.

3. Permit delays: If not received in and reasonable amount of time this could delay the start date of the project.

4. Condition of the building: This event could increase the cost and time of the project if the building is not in a condition to fit the project’s remolding plan.

5. Labor Unions: In the event of a labor dispute or strike, It will start most major work on the project.

6. Loss of funding: Any loss of funding would result in a delay or stoppage of work brings the project to a stop.

7. Delay of material delivery: Any delay of materials could cause a delay with the step that required the materials, therefore causing a cascading effect for the whole project.

8. Installation of flooring: A delay in completing the installation of the flooring would delay the install of the equipment.

9. Delivery of damaged material: This event may slow the project until replacement pieces can be obtained.

10. Natural events: Depending on the event it could have an adverse effect on the project.

11. Bad communication: Instructions will not smoothly flow up and down the chain of command, resulting in misunderstanding with how things should be done.

12. Improper Preparation: Any misstep in preparations for any step in the projects could impact the timeline of the project.

13. Improper cost analysis: This event could cause a delay with the project as a whole while more funds are procured.

14. Multi-tasking: Lack of focus and incomplete work on assigned task.

15. Team Members: Additional tasks are assigned because a few members abort the project.

16. Building inspection: Not passing building inspection codes can cause a delay with the project timeline.

B. Risk Assessment

The following tables are an assessment of these risks in terms of the probability of project occurrence and the negative cost impact of project outcomes.

RISK SCORING MATRIX

Defined Conditions for Risk Management Analysis
Project	Relative or Numerical Scales
Objective	Very Low - 1	Low - 2	Moderate - 3	High - 4	Very High - 5
Cost	Insignificant	<5% Cost Increase	5-10% Cost	10-20% Cost	> 20% Cost
	Cost Increase		Increase	Increase	Increase
Time	Insignificant	Schedule Slippage	Overall Project	Overall Project	Overall Project
	Schedule		Slippage	Slippage		Slippage
		<5%
	Slippage		5-10%	10-20%	>20%
Scope	Scope	Minor Areas of	Major Areas of	Scope	Project End
	Decrease			Reduction	Item is
	Barely	Scope Affected	Scope Affected	Unacceptable	Effectively
	Noticeable			to Client	Useless
Quality	Quality	Only Very	Quality	Quality	Project End
	Degradation	Demanding	Reduction	Reduction	Item is
	Barely	Applications Are	Requires Client	Unacceptable	Effectively
	Noticeable	Affected	Approval	to Client	Unusable

Justification for use of risk scoring matrix

The risk scoring matrix bears benefits to the users. It encourages discussions while being developed. It is from these robust discussions that risks are presented and evaluated critically. The risk scoring matrix helps in prioritizing risks in a consistent manner. The most important benefit of the risk scoring matrix is drawing the attention of decision makers to the risks with the highest priorities.

RISK ASSESSMENT TABLE

Risk	Probability	Cost	Schedule	Scope	Quality	Risk Score
Rental agreement conflict	20%	1	2	2	1	6
Legal issues	10%	1	2	2	1	6
Condition of the building	40%	3	4	3	4	14
Labor Unions	30%	3	4	4	1	12
Permit delays	10%	1	2	2	1	6
Loss of funding	20%	5	5	5	1	16
Delay of material delivery	10%	3	3	3	2	11
Installation of flooring	20%	2	2	1	2	7
Delivery of damaged material	90%	5	4	3	4	16
Natural events	20%	1	1	1	1	4
Bad communication	30%	1	1	1	1	4
Improper Preparation	20%	2	2	1	4	9
Improper cost analysis	30%	5	3	2	1	11
Multi-tasking	20%	1	1	1	1	4
Team Members	10%	1	1	1	1	4
Building inspection	10%	2	3	2	1	8

C. Risk Response

For each risk we have determined the plan of action to be taken if the risk should occur:

accept, shape, reduce, or transfer the risk. The following risk response table identifies a

brief contingency plan for these risks.

RISK RESPONSE TABLE

Risk Event	Response: Accept, Reduce, Share, Transfer	Contingency Plan	Trigger	Who is Responsible
Loss of funding	Reduce	Be very strict with money allocations	Change in the economy	Heather Alton Kent Grant
Improper cost analysis	Reduce	Increase estimates by looking at past history projects/documentation	insignificant costs research	Heather Alton Kent Grant
Condition of the building	Accept	Have funds on stand-by in order to allocate resource to assist with the building	Building inspection and inventory	Kent Grant Jacob Fejeran
Labor Unions	Reduce	Negotiate independent contract with unions.	Contract termination or expires	Kent Grant
Broken or damaged Material	Share	Order extra items to cover damaged material, research other venders.	Careless handling, accidents in shipping	Dave Williams Kent Grant

Contingency Plans for the Two Highest Risks

First Highest Risk - Loss of funding for the project

The loss of funding for this project is a very high risk, since this is not a franchise or corporation but an individual endeavor the funding is limited. Any change in the economy or the stakeholders finance would impact the progress of the project. Before the start of the actual project the project manager and all stakeholders will need to meet and draw up strict guidelines as to how the project funds will be allocated so that any saving opportunities that arise can be fully taken advantage of. The methods of allocating any funds are in the below list.

1. Establish a reserve funds in case of any shortfalls.

2. Only the Project manager can release funds for all steps of the project.

3. All steps will be evaluated so that any money saving steps can be taken.

4. There will be no short cuts taken to save funds; all work will meet governmental and stakeholders guidelines.

5. If it looks like fund will run out or low on any steps in the project the Project manager will be notified immediately, He will then contact the stakeholders of the short fall and that money may have to be taken out of the reserve funds.

6. If any funds remain after the completion of a project step those funds will be added to the reserve funds.

Second Highest Risk - Delivery of damaged material

The second highest risk for the project is the delivery of broken or damaged materials. This could delay and alter the timeline in almost every step depending on if the material was for that step of the project. If it accrues then the project team will investigate to see if there can be a work around to another step and return to the step when correct material is obtained. The Supply manager will also be instructing all venders that have to ship material to the site to use the safest and secured method available. In order to help mitigate this risk a small amount of additional item may be ordered to help offset any breakage or damage to order materials. But keeping in mind the funding issues. The following is a list of steps the Supply manager may take to help ensure the safe delivery of all materials.

1. It is a fact that the Supply manager cannot be at every shipping point to inspect the material shipment beforehand, so therefore the Supply manager will be in constant communications with the vender.

2. Will obtain a tracking method and number in order to keep track of all material shipped.

3. Will contract with the vender adjustment to the invoice in the event any of the material arrives in a damaged condition.

4. Will generate a list of venders the carry similar or same material for expedited delivery, depending on the timeline of the step the material is used for.

5. Will arrange the return of any material in returnable condition.

D. Risk Assessment Matrix

All know risk have been analysis in the start of this report. Below is the Risk Assessment Matrix that will show and justify my reasoning to list the Loss of Funds as my first highest risk

					Loss of funding
					Broken or damaged Material
Likelihood			Condition of the building		Improper cost analysis
				Labor Unions
	1	2	3	4	5
			Impact

Statement of Participation

Kent Grant Project manager Entered data

Sign: Kent Grant

Heather Alton Legal / Finance Supplied Risk Analysis data

Sign: Heather Alton

Jacob Fejeran Café Design and setup Supplied Risk Management Plan data

Sign: Jacob Fejeran

Gabriel Cambambia Internet Design and Décor Supplied Risk Management Plan data

Sign: Gabriel Cambambia

Dave Williams Supplier and Venders. Supplied Risk Analysis data

Sign: Dave William

Version 1: 10/03/2014

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