**Kim Woods** - Final Paper

Risk Management Plan

UOP

PM 584 – Project Risk Management

Twanna Perkins

Dr. Arnetra Arrington

Week 4

April 25, 2016

Risk Management Planning

Determine project risk management procedures and relay forms of risk management

Project Risk Management Procedures

Step 1: Risk Identification. The team should begin by identifying, uncovering and describing risks that could affect the project or the final results.

Step 2: Analyzing of risk. The team should then determine the possibility of the risk occurring and its consequences. The nature of the risk should be understood and its likelihood to affect the goals and objectives of the project.

Step 3: Ranking and Evaluation of the risk. This is done through the magnitude of the risk being determined which is a connection of probability to occur and consequences. This step should further be added in the Project Risk Register.

Step 4: Risk Treatment. This is the step where the risks that have been ranked highest are set aside and plans to treat or modify them are put in place. To minimizing the occurrence of risk, mitigation strategies are set as well as preventive plans.

Step 5: Monitoring and reviewing of the risk: This is a step where the project Risk Register is used to track, monitor and review the risks.

Forms of Risk Management

There are various forms of risk management. Enterprise risk management is a form of framework that checks on potential risks that could have negative impacts on enterprise. Operational Risk Management is also a form of risk management that deals with human errors and technical errors in enterprises. Financial Risk Management is a form of risk management that minimizes firm exposure to credit risk and market risk using different financial instruments. Lastly we have Market Risk Management where enterprises are made aware of risks in the market (Hubbard, 2009).

Responses to 15-20 identified risks

1. If purchasing of cell phones is delaying due to incomplete integration with the Inventory Information system, then customers could end up finding other alternatives from the competitors

2. If the supplier shipment delays the purchasing of cell phones the customers could end up going to the competitors shops

3. If the wrong hardware are delivered, then customers could end up asking for a refund while the company incur losses

4. If the employees are not well trained, then they will not be able to utilize systems in the right way

5. If there is incompatibility of software, then there will be communication problems between the online business and the store inventory system.

6. If there are SRM data transfer problems, then the store and online entities will not link properly.

7. If there is low electrical capacity, then there will be problems handling added electronic equipment

8. If there is incorrect identification of unneeded personnel for lay off, then the company will spend too much money on paying the workers

9. If there will be poor functionality of switches, routers and servers, then there will be great inconveniences during the work process.

10. If store signs especially in new stores are not properly made, there will be great time wastage while trying to locate them.

11. If the Fiber optic Cable fails or has bad quality, then internet and networking will greatly be distorted

12. If new store signs are delivered late, then there will be delivery delays.

13. If there will be insufficient staffing for store scheduling, then there will be delays of deliveries to the clients.

14. If the staffs online are not sufficient, then the online clients will not be effectively attended to

15. If there are issues between clouds based Instance and local SQL Server, then compatibility between hardware and software will be poor.

Risk Response Measures

After estimation of risk, then the risk level should be determined if it is acceptable through comparing it with the criteria that was determined in the stage of management planning. Here it should be determined how every major risk can be responded to. For the minor risks, they are dealt with through acknowledging they are there and dealing with them whenever they occur (Crockford, 2006).

A Risk Action Plan

There are a number of risks involved in my project. One example of the risks is delay of supplier shipment of cell phones.

Components of a Risk Action Plan

A risk action plan can be compared to a camping trip plan. Any time a person is taking a trip to the wild, he is required to take with him a sturdy tent so as to get protected from weather as well as get a place to store his belongings for the period when he will be in the wild. A risk action plan is in the same way important since it helps project managers in analyzing, planning and controlling potential risks. A risk action plan helps the users to set off on a business journey through helping them to put a number of emergency plans in to place.

To develop appropriately a risk action plan, a number of components must be incorporated in the plan. To begin with the risk is identified then evaluated. During the development of the plan, the organization puts into consideration the types of risks that are bound to occur and the costs that the company would incur incase the risk occurred. Besides that, the people creating the strategies of the action plan should also consider if the cost incurred when the risk occurs is higher or lower than that incurred when preventing the risk. The organization can always take its chances if the prevention cost is higher than the cost of dealing with the risk ones it occurs. A risk action plan should identify the actions and procedures that ought to be taken in the entire organizational arrangement to endeavor on reducing risk. If all the measures in the action plan are followed in the right way then they end up bringing positive impact as aspired on the lessening of risk (Bent, 2013).

References

Bent, B. (2013). Megaprojects and Risk: An Anatomy of Ambition. Cambridge University Press

Crockford, N. (2006). An Introduction to Risk Management (2 ed.). Cambridge, UK: Woodhead-Faulkner.

Hubbard, D. (2009). The Failure of Risk Management: Why It's Broken and How to Fix It. John Wiley & Sons