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PROJMGNT1002 Project Risk Management
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PROJMGNT1002 Project Risk Management
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Course Code: PROJMGNT1002
University: The University Of Adelaide
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Country: Australia
Question:
Information on Risk Management Report
Select a topic of your project from the list. Every project/business is different – you need to use project
management concepts to manage your selected project and need to think through the hazards and
controls required in your project/business for yourself. Develop a risk management plan and risk management policies relevant to your project/business.
With this in mind you should consider having the following in your report:
Description of your project – project details (background, benefits, objectives, constraints, key assumptions, expected outcome).
A scope, a start and finish date and a monetary value associated with your project/business.
Work Breakdown Structure (WBS) and work Schedule
A Gantt chart
Stack holder analysis
Communication planning
Risk management plan and risk management policies relevant to your Document potential risks, a planned response to each risk, and allocate responsibility to specific team members for implementing the response and timeframes for the responses.
Allocate ratings to each potential risk according to your project’s risk management Structure/Format of Management Report:
Please note these sections are a guide, and your report might have more or less of these suggested.
However, the management report is a professional report and so has to have the following:
Assignment sheet (Make your own Assignment Cover Sheet)
Introduction to the group
Executive Summary
Table of Contents
Introduction
Body (Broken up into sections as suggest above)
Conclusion
References (Harvard Style of referencing is to be used, and your referencing should be inline)
Answer:
Introduction
The project management is considered as a tool that helps in managing the project in an easier manner and meeting the requirements of the project. The project manager is responsible for managing the project and accomplishing the project to deliver it on time with the help of the human resources and the required physical resources. The project management plan is developed by the project manager so that all the tasks related to the project can be accomplished in an effective manner (Duncan, 1993). There are various areas in the project management that should be considered by the project manager. The key deliverables of the project are the major element for which the project manager has to coordinate all the resources so that the he can deliver the key deliverables in an effective and efficient manner. The project team is the important elements that contribute in accomplishing the project (APM, 2018). The support of the senior management and the owner is important for initiation and completion of the project. In establishing the new business, the risks are always there for the companies. It is important for the companies to take risks to develop and to grow the business (POPA et al., 2010). It is important to manage the risks in order to minimize their impact or to reduce the threats for the further functions of the company. The risks management involves the analysis, understanding and analyzing the risks so that company can attain the objectives (Smulders & Collins, 2002). Risk management is a continuous process which includes risk management planning, identification, analysis, monitoring and risk controlling. The main aim behind the risk management is to reduce the probability of the adverse events (Khatta, 2008). In this report, the project management and risk management plan for the launch of an online business is presented in the report. The report includes the information about the project, key deliverables, objective of the project, assumptions, constraints, project scope, project budget, work break down structure of the project Gantt chart, risk management plan and the risk management policy.
Description of the project
Background
The project management is an area that helps in accomplishing the project in a systematic and effective manner. In this report, the project related to the launch of an online business is managed through the project management. The risk management plan is prepared in order to reduce the effect of the risks in the launch of the online business. The key deliverables of the project is successful launch of the online business.
Benefits
The benefits of launching an online business are:
It will provide the ability to the stakeholders to attain the profit through the online business.
Managing the project will help in the launching of the online business in an effective and successful manner.
The project will help in increasing the sales of the business.
Objectives
The main objective of the project is the launch of the online business
To increase the number of the customers
Increase the sales of the online business
Spread the awareness about the online business among the people.
Constraints
Constraints
Limitations
Document production
The documents for the launch of online business should be produced so that the acceptance for the project can be achieved by the top management in the first review without any delay.
Product deliverables
The online website for the business and the launch of the online business should be delivered on time in order to increase the number of customers for the business.
Budget
The project should be managed with the budget of the project and the resources should be allocated in a proper manner so that all the tasks related to the project can be accomplished within the budget and on time.
Permits
The failure in securing the needed permits or the approvals according to the schedule of the project can result in the delay of the project completion and successful launch of online business.
Tight schedule
The schedule for the project is specified and the project should be accomplished on time in order to reduce the consumption of the extra time, money and efforts.
Key assumptions
The project will be delivered on time.
The estimated budget for the project will be sufficient for the project.
The approval will be obtained from the senior management on time.
Expected outcome
The successful launch of the online business on time and within the estimated budget
Awareness about the online business among the people
Proper support of the senior management for the launch of the online business.
Project scope
The project will help in launching of the online business in an efficient and effective manner and the owners of the business will be able to achieve higher profits through it. Now a days more number of customers like to buy products or services from the online platform hence, launch of the online business will help in increasing the number of customers of the business. The increase in the customers will eventually increase the sales of the products or the service which will help in satisfying the stakeholders of the business. The influence of the customers towards the online business can be identified through their activity on the website of the business.
Start and finish date
The start date of the project is 17th march 2018. The finish date of the project is 13th December 2018. The start and the finish date of the project is estimated with the help of the Gantt chart for the project.
A monetary value associated with the project
The financial resources are important for the initiation of the project. Below is the estimation of the budget for the project. The estimated budget for the project of the launch of the online business is $ 162800.
S. No.
Particulars
Cost
1.
Software, hardware and other related machines, server
$ 145500
2.
Project team
$ 1000
3.
Project manager
$ 5000
4.
Website developer
$ 2000
5.
Trainers
$ 1200
6.
Documentation
$ 100
7.
Financial manger
$ 2000
8.
Risk manager
$ 1500
9.
Testing team
$ 1500
10.
Technical team
$ 2000
11.
Auditor
$ 1000
Total
$162800
Work Breakdown Structure (WBS) and work Schedule
The work break down structure is a tool that is used in the project management in order to break the activities of the project into simpler parts. WBS help in establishing the understanding among the people associated with project in an easier manner. It is a kind of flow chart that helps in demonstrating the sequence of the tasks or the activities of the project. The planning and the execution of the project management plan are easier with the help of the WBS. It mainly demonstrates the hierarchy of the tasks or the activities of the projects and the subdivisions of the activities (workbreakdownstructure.com, 2018). The responsibilities and the roles are delegated to the team members of the project through developing WBS. The team members can view the information related the activities of the project at any time. It can be said that WBS help in reducing the complexity and managing the tasks related to the project (Tutorial Point, 2018). Below is the work break down structure of the launch of the online business. The main activities in the project are initiation, planning, implementation, controlling and closing.
A Gantt chart
Gantt chart is a tool that is used by the project managers in order to manage and control the project. It illustrates the graphical form of the schedule of the project which helps in tracking the tasks of the project, plan and coordinate (ProjectManager.com, 2018). The Gantt chart allows to demonstrate the start and the finish date of the every activity and sub activity of the project. It also includes the different elements such as mile stones of the project, tasks, dependencies and the resources of the project and the project tasks (Mindtools, 2018). Below is the Gantt chart for the launch of the online business. The main activities in the Gantt chart are initiation, planning, implementation, controlling and closing (Gantt.com, 2018). Under the main activities, the sub activities are presented in the Gantt chart. The Gantt chart is defining the link and the sequence of the different activities and sub activities.
Stakeholder analysis
Stakeholder analysis is considered as the first step in the management of the stakeholders of the project. It is an important process that is followed for the purpose to attain the support from the key people of the project (Best Project Management Software Reviews, 2017). The stakeholder’s analysis is helpful as:
It helps in structuring the project into shape and defines the project in the initial stage. The stakeholders support the project and also help in improving the quality of the project.
It helps in winning the resources for the project like money, time and people and this helps in accomplishing the project successfully.
It helps in building the understanding as the project manager can communicate with the stakeholders in the initial stage of the project. They will be able to understand the project and the benefits of the project in an effective manner. The understanding about the project will increase their interest in the project they will be able to support the project more effectively(Mindtools, 2018).
Below is the stakeholder analysis for the project.
Stakeholder Name or Group Name.
Internal
Or External
Stakeholder
Unaware, Resistant, Neutral, Supportive, or Leading?
Role and Responsibility
Level of Influence (1-5, with 5 being the lowest)
Ability to Impact Resources
(1-5)
What does this stakeholder need? Stakeholder’s greatest concerns?
What is needed from this stakeholder?
What is the risk if this stakeholder is not engaged? (add to risk plan)
Bob Henri and troy Bennett
Project sponsor and owner
External
Supportive
Approval for the launch of online business and financial support
5
5
To increase the customers of the business
The support and the approval from these stakeholders is important for the accomplishment of the project
No further activity of the project can be initiated without the support and the approval from the stakeholders
Mathew James
Project manager
Internal
Leading and Supportive
Manage the project in all the stages of the project till the completion of the project.
5
5
Accomplishing the project on time.
Support in managing the project for completion of the project on time.
The successful launch of the online business is not possible.
George Watson
Risk manager
Internal
Supportive and leading
Managing the risks in the project
4
4
Safety of the people associated with the project
Identification of the risks in the project
Elimination of the risks is not possible with the risks manager’s support.
Richard Johnson
CFO
Internal
Supportive
Updating the roles of the people of the project team.
4
4
Provide support and guidance to the project manager
Accomplishment of the project on time and effectiveness of the project
The effectiveness of the project cannot be identified without the guidance.
–
Project team
Internal
Supportive
Accomplish all the activities of the project on time by the guidance of project manager.
5
5
Accomplishing tasks as per the schedule
Involvement in accomplishing the activities as per the project schedule.
The activities of the project cannot be performed and delay in the project completion.
Communication planning
The communication planning is a part of the project management the process of communication planning helps in delivering the information and defining it. Along with this, it helps in identifying who will receive the information and what will be the format for the communication of the information (Mindtools, 2018). The distribution and the time of the release of the information are also decided in the communication plan. The project manager is responsible for the communication of the information and he makes sure that all the people associated with the project will get the right information at right time (Bpayne & Watt, 2018).
The purpose of the communication planning is:
To update and communicate the plan with the stakeholders about the project
Discuss the responsibilities and the roles of the project team and the other members
Modify and update changes in the communication plan after the completion of the activities of the individuals in the project
Communicate the information to the people associated with the project.
Establish the clarity among the individuals associated with the project.
Below is the communication plan for the launch of the online business.
Key Reports / meetings
Who to receive
Frequency
Medium
Initiation and planning meeting
Project manager
At the time of initiation phase of project and only once
Discussion session and meeting
Weekly progress report meeting
CFO for concerned authority
On Weekly basis
Meeting
Discussion sessions for major deliverables
Project Team
On Weekly basis
Discussion session
Weekly update regarding risks and issues
Stakeholders and project manager
On Weekly basis
Meeting
Reporting and modification sessions
Project stakeholders
On Monthly Basis
One-on-one session
Change management meetings
CFO of concerned authority
On Weekly basis
Meeting
Post Implementation Review meeting
Project Team
After the completion of the project
Meeting
Risk management plan
Risk management is considered as a process that helps in identifying, evaluating, responding to the risks, monitoring and the reporting of the risks (Microsoft, 2018). The risks management plan helps in defining the method for identifying the risks associated with the project, analyze them and manage the risks so that the effect of the risk will not occur upon the activities of the project (Grey Campus, 2018). The risk management activities are performed recorded as well as monitored during the each phase of the project and the practices for the prioritizing and recording of the risks are initiated. The risk management plan is developed by project manager and this plan is developed for the management of the risks and to present it to the project team and project sponsor.
The risks management includes:
Risk identification: for the risk management, it is important to identify the risks that could harm the various functions of the organization. In order to reduce the negative effect of the risks and meet the goals and objectives, the identification of risks is necessary (The University of the Sunshine Coast , 2018). The root cause of the risks and the drivers of the risks are identified. The different techniques are used for identification of risks such as brain storming, SWOT analysis, self assessment, interviews, surveys and facilitated workshops. The assessment of the wrong list of the risk can result in the waste of time (Solarwinds msp, 2018).
Risk assessment: The assessment of the risk includes the understanding about the different identified risks and to determine the level of risk. The identified risks are assessed for the purpose to take the corrective actions in reducing the effect of the risks upon the project or mitigating the risks. The likelihood and the significance of the risks are determined along with the consequence of the each of the risks. Basically, the nature of the risks and the effect of the risk upon the goals and the objectives are determined through the assessment (Culp, 2002).
Risk control: after the evaluation of the risks. It is important to control the risks. The immediate actions are taken for the purpose to prevent the risks and eliminating the risks. The risks are controlled on the basis of the importance of the risks and the need of the elimination of the risks. The different solutions are identified for the risks of different level. Mainly the solution for the risks is developed to accept the risks, avoid the risks, reduce the risks and transfer the risks (EDUCBA, 2018). After the implementation of the control measures, the documentation is important. There are many of the benefits from the documentation like it helps in establishing the understanding about the way to handle the risks and develop different measures to minimize or eliminate the risks (Andresen, 2007).
Monitoring and reviewing the risks: the final step in the risk management is monitoring and review. This step includes understanding about the effect of control mechanism upon the risks (Continuing Professional Development, 2014). The evaluation of the control mechanism is done to determine whether the similar type of risk is posed after the implementation of the control mechanism or not. In case, when the similar type of risk is not posed after implementation of control mechanism then it is considered as successful and if it pose similar risk then it is considered as unsuccessful. The failure of the control mechanism to eliminate the similar type of risk means that the need of developing a different control mechanism is there. The follow up of the risks is important to make sure that the risk and the similar mistake will not occur again in future. The monitoring of the risks that cannot be changed is important so that it will not create further problem for the organization (Management Study HQ , 2018).
All the risks in the launch of the online business are identified and treated by the project manager and project team. The identified risks in the project are product risk, technical risk, execution risk, financial risk and team risk. Below is the risk management plan for the identified risk in the launch of the online business.
ID
Risks and Consequences
Probability
Impact (1-5)
Priority (Rank 1-5)
Mitigation response
1.
Product Risk – offering the product or the service that is not able to meet the expectations of the customers can reduce the sales of the business
30 percent
4
3rd
It is important do the market research in order to understand the needs of the customers and establish the competitive advantage in comparison to the other online business.
2.
Team Risk – the launch of the project could delay and the quality of the project can reduce.
50 percent
5
2nd
Keeping the people in the project who believe in the product and support the project in all the situations. It is important to keep the trustworthy members in the team as it will help in reducing the risk of backing out of the individuals.
3.
Financial Risk – inability to accomplish the project on time.
20 percent
3
4th
Keeping the surplus finance through coordinating with the finance manager will help in reducing the financial risk.
4.
Execution Risk – failure in accomplishing the different activities of the project as per the plan.
10 percent
3
5th
Providing proper information about the different activities of the task before the initiation of the project activities will help in reducing the risk. During the project, clearing out the doubts of the project team members will help in mitigating this risk.
5.
Technical risk – can risk the launch of online business on time and consumption of extra cost.
50 percent
5
1st
Keeping the back up of the online business and the data can reduce the risk. Having a trained technical team will help in reducing the risk.
(Bright Hub Inc., 2016; Entrepreneur Media, Inc., 2018)
Risk Management Policies
Risks are inherent to any type of project. It is important for the project manager to recognize the risks so that it can be managed and controlled for the successful accomplishment of the project on time (Murray Goulburn Co-operative Co. Limited, 2015). The risk management policies are developed in order to manage the risks through considering the guidelines. The risk guidelines provide the support to manage the risks of all the areas in the project (Alkem, 2015).
Purpose
The purpose of the risk management policy is to manage the risks in the launch of the online business. It is important to manage the risks so that the activities of the project can be performed without any problem.
Areas of risk
The identified risks in the project are:
Product Risk
Team Risk
Financial Risk
Execution Risk
Technical risk
Risk management policy
For the project of the launch of the online business, the risk management is considered as an integral part of the project. It is important for ensuring that all the activities of the project are conducted without any hindrance. The risk management allows to meet the goals and the objectives of the project through planning and management. The potential risks in the project are identified and the mitigation plan is developed so that the effect of the risk can be reduced (Institute of Risk Management, 2018). Fulfilling all the legal requirements for the risk management policy is considered. The policy will provide guidance and support to meet the objectives of the project in an effective and efficient manner.
The risk management policy includes:
The risks management plan should be aligned with the identified risks in the project
The risks management plan should be embedded in to the day to day activities or the tasks.
The management and the board should understand and commit to the risk management.
All the information about the activities or the tasks of the project should be communicated to the team and the other members of the projects through the right channel of communication.
The progress of the project should be reported to the owner and the key managers
The monitoring and the review of the risks should follow a structured mechanism so that the effectiveness of the strategies, processes and the plan for the management of the risks can be measured.
The emerged risks should be reported immediately. It should be categorized as per their consequences and should be investigated so that failures can be determined.
The mitigation responses should be decided so that the likelihood of the harm can be reduced.
The financial resources for the project should be allocated in a proper manner so that all the activities of the project can be accomplished in an effective manner.
The risk management processes should be followed in an effective manner so that no such new risk will occur in the future or during the activities of the project. The preventive measures should be developed for each of the identified risks so that the effect of the risks can be minimized(Cope Foundation, 2014).
Potential risks
Planned response
Responsibility
Timeframe for the response
Product Risk
Conduct market research before the launch of the online business to understand the needs and the demands of the customers
Project team
10 days
Team Risk
Include the individuals in the team who believe in the project and the product and the individual who are also trustworthy.
Project Manager
6 days
Financial Risk
Coordinate with the financial manager so that the surplus finance can be obtained at the time of need.
Project Manager
6 days
Execution Risk
The project team provided with the right information at the right time so that they will be able to understand how to accomplish the activity within the available time.
Project Manager
4 days
Technical risk
Keeping the backup of all the information and the data related to online business and keeping a trained technical team ready to fix the problems at the time of need.
Technical Team
3 days
Ratings to each potential risk according to project’s risk management policy
Potential risks
Rating
Product Risk
4
Team Risk
5
Financial Risk
3
Execution Risk
3
Technical risk
5
Conclusion
The project management is the practice that is followed for the initiation, planning, implementation, controlling and closing of the project by the guidance of the project manager and the support of the project team in order to attain the specific goals and the objectives. Defining the objectives of the project allows the stakeholders of the project to understand the project and support the project. The launch of the online business can be successful when the project manager manages all the team members and attains the support of the stakeholders. The planning for the management of the risks in the project is important in order to accomplish the project in the estimated time and budget. The Gantt chart is developed which helps in identifying link between the different activities and sub activities. The WBS helps in providing with the diagrammatical overview of all the activities of the project. The Gantt chart and WBS are the two of the tools that helps in enhancing the understanding about the project activities. It is essential to identify the potential risks in the project so that the risks can be minimized or mitigated. The risks can bring problems in preceding the other activities of the project as all the activities of the project are linked with each other. The risk management policy is considered as an important element as it helps in providing the guidance and the support to manage the various identified risks according to the conduct of the business. The mitigation responses are developed on the basis of the level of the risks which helps in minimizing or mitigating the risks from the project. This can be said that in order to accomplish the project on time, the effective management of the project is important along with the support of the project team.
Bibliography
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Andresen, M.A.C. (2007) The Process of Risk Management for Projects. GRIN Verlag.
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Best Project Management Software Reviews (2017) What is Stakeholder Analysis? [Online] Available at: https://project-management.com/what-is-stakeholder-analysis/ [Accessed 16 May 2018].
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Bright Hub Inc. (2016) Risk Management Plan: Example [online]. Available from: https://www.brighthubpm.com/risk-management/5141-risk-management-plan-examples/.
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Case Overview:
The project owner of the Signed, sealed, delivered courier service is facing the problems of managing order of couriers in the synchronised manner. The project manager is incapable of managing central warehouse for the dispatching of products. The important information can be lost with the passage of time. The inventory management of the warehouse is the major concern for the owner of the company. He is looking forward …
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OPS 935 Project Management
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11
Course Code: OPS935
University: University Of Wollongong
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Country: Australia
Answer:
Introduction
This essay explores the impacts of digital technologies on project management. It explores how adoption of digital technologies by companies for managing their project have affected their, project managers, human resource, business processes, timelines, deliverables, and practices of risk management, people management and quality management.
Impact of Digital technologies on Project Management Practices
Digital te…
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Australia Saint Kilda Management International Management University of New South Wales Masters in Business Administration
ITC505 ICT Project Management
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10
Course Code: ITC505
University: Charles Sturt University
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Country: Australia
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Case Study- Social Media Research Center
Task-1: Project Charter
Project Objectives
The main objective of the project is to develop a web-based system within the organization “Social Media research Center”. It is analyzed that the Social Media research center wants to develop the web based system in order to connect people with the organization for promoting its research center. The web-based system that is developed conta…
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Australia Alfredton Management IT Network Security University of New South Wales Masters in Business Administration
ITC505 ICT Project Management
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7
Course Code: ITC505
University: Charles Sturt University
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Country: Australia
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Part One- Project Name / Team / Description
Project Name:
RALS Solution
Team Name:
Consultants for RALS
Project Description:
RALS organizes show for the farmers and other related small business persons to display their latest technology equipment for betterment in the field of agriculture and crop production. The show has different types of stalls and other facilities for which many volunteers …
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