Project Management: Health System Implementation Project

This paper discusses the recovery planning for project scope with the help of requirements traceability matrix, work breakdown structure and responsibility assignment matrix for Health System Implementation Project. It also includes cost benefit analysis, TCO, budgeted vs. actual costs, key performance indicators of quality, and risk planning and control.

Running head: PROJECT MANAGEMENT
Project Management: Health System Implementation Project
Student Name:
University Name:

1PROJECT MANAGEMENT
Table of Contents
A. Recovery Project Scope Planning...............................................................................................2
1. Requirements Traceability Matrix...........................................................................................2
2. Work Breakdown Structure.....................................................................................................3
3. Responsibility Assignment Matrix..........................................................................................5
B. Recovery Project Cost Planning and Control.............................................................................5
1. Cost benefit analysis................................................................................................................5
2. TCO (Total cost of ownership)................................................................................................7
3. Budgeted vs. actual costs.........................................................................................................8
4. The earned value of the recovery project..............................................................................11
C. Recovery Project Quality Planning...........................................................................................11
1. Key performance indicators of quality..................................................................................11
2. Important factors in defining quality.....................................................................................12
3. Measurement of quality.........................................................................................................12
D. Recovery Project Schedule Planning........................................................................................13
E. Recovery Project Risk Planning................................................................................................19
1. Amount of uncertainty in the project.....................................................................................19
2. Threats associated with the project........................................................................................20
Table 9: Identification of threats................................................................................................20
3. Mitigation of threats..............................................................................................................20
F. Recovery Risk Control..............................................................................................................21
1. Appropriate quantification of the risks (probability vs. impact)...........................................21
2. Contingency funding or time buffers in place to handle threats............................................22
Bibliography..................................................................................................................................23

2PROJECT MANAGEMENT
A. Recovery Project Scope Planning
This segment of the paper focuses on the recovery planning for project scope with the
help of requirements traceability matrix, work breakdown structure and responsibility
assignment matrix. The aspects that have been considered for the recovery planning of project
scope to design and implement the Health system for Healthcare are illustrated in the below
sections.
1. Requirements Traceability Matrix
This is a tool that can be used by validation team for ensuring the requirements are not
missing during validation of the project and auditors can use it to review the documentation of
validation. The Requirements Traceability Matrix ensures that the defined requirements for a
particular system are being tested with valid test protocols. The Requirements Traceability
Matrix for the project on implementation of Health System is illustrated as below:
ID Requiremen
t
Design
Specificatio
n
Requestor Business
Justification/Nee
d
Technical
Specificatio
n
Test
case
Number
Req
1
Login and
Logout
functionality
The system
has proper
functionality
of login and
logout.
Developer,
Business
Owner
The users are able
to login and
logout of the
system easily.
There is
proper
validation of
username
and
password for
login
TS#01:
Logging
Module

3PROJECT MANAGEMENT
process.
Req
2
Enquiry The system
must be able
to provide
quick
response to
queries
being made
by users.
Business
Analyst,
Customer
The involvement
of customer care
for every query
being raised by
customers will
require additional
cost or resource.
The system
processes
the requests
of users
quickly and
with
accuracy.
TS#02:
Respons
e
Module
Req
3
Access of
medical
records
The medical
records of
properly
arranged and
can be easily
accessed.
Administrator
, Customer
It is required for
eliminating the
issue of data
replication or
improper
management of
medical records.
The database
is secure and
can be
accessed
easily.
TS#03:
Records
Module
Table 1: Requirements Traceability Matrix for the project
2. Work Breakdown Structure
The work breakdown Structure for the project on Health system implementation is
presented in a tabular format as below:
WBS Task Name
0 Medical IS Vendor Project
1 Initiation
2 Planning

4PROJECT MANAGEMENT
2.1 Communication
3. Project Kickoff
4. Execution
4.1 Vendor Medical IS DB Tables
4.2 Final Code Review-Module 1
4.3 Final Code Review-Module 2
4.4 Final Code Review-Module 3
4.5 Medical IS Vendor Reporting
4.5.1 Requirements
4.5.2 Requirements Approved
4.5.3 Report Development
5. Oversight
6. Go-Live
7. Monitor and Control
7.1 Support
8. Closing
Table 2: Work Breakdown structure for the project
Medical IS Vendor Project
Initiation Planning
Communication
Project Kickoff Execution
Vendor Medical IS
DB Tables
Final Code
Review-Module 1
Final Code
Review-Module 2
Final Code
Review-Module 3
Medical IS Vendor
Reporting
Requirements
Requirements
Approved
Report
Development
Oversight
Go-Live
Monitor and Control
Support
Closing
Figure 1: Work Breakdown Structure for the project
(Source: Created by Author)

5PROJECT MANAGEMENT
3. Responsibility Assignment Matrix
Task Name Project
Manager
IS
Manager
Busines
s Owner
SME DBA
1
Business
Analyst
Developer Report
Dev 1
QA
Initiation R C I I
Planning R
Communication
R
Project Kickoff R
Execution R
Vendor
Medical IS DB
Tables
C I R R,A
Final Code
Review-Module 1
I C C A R
Final Code
Review-Module 2
R
Final Code
Review-Module 3
A I C R
Medical IS
Vendor Reporting
I C I C R A
Requirements
I C A R
Requirements
Approved
C I A R R
Report
Development
A I C R R
Oversight R A I C
Go-Live R C A I
Monitor and
Control
R A I C R
Support I R C A
Closing R A I C
Table 3: Responsibility Assignment Matrix for the project

6PROJECT MANAGEMENT
B. Recovery Project Cost Planning and Control
1. Cost benefit analysis
The cost benefit analysis in context to the project of Health System Implementation is
illustrated as below:
Costs and Benefits for the recovery project
Category Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Value of benefits $65,000 $52,500 $35,570 $57,500 $45,260
Development costs ($90,000)
Annual expenses ($12,500) ($13,150) ($11,250) ($13,570) ($10,230)
Net benefit/costs ($80,000) $52,500 $39,350 $24,320 $43,930 $35,030
Discount factor $1 0.9091 0.8264 0.7513 0.6830 0.6209
Net present value ($55,000) $47,727 $32,521 $18,272 $30,005 $21,751
Cumulative NPV ($35,000) $12,727 $45,248 $63,520 $93,525 $115,276
Cost/Benefit Analysis for the Recovery project
Year of Project
year 0 year1 year 2 year 3 year 4 year 5 TOTA
LS
Net economic benefit $45,50
0.00
$35,65
0.00
$42,65
0.00
$32,56
0.00
$36,25
0.00
Discount Rate 6% 1 0.9434 0.8900 0.8396 0.7921 0.7473
PV Of Benefits $0.00 $42,92
4.53
$31,72
8.37
$35,80
9.76
$25,79
0.57
$27,08
8.11
NPV of all BENEFITS $0.00 $42,92
4.53
$74,65
2.90
$110,4
62.66
$136,2
53.23
$163,3
41.34
$163,3
41.34
One Time Costs ($90,0
00.00)
Recurring Costs $0.00 ($11,2
50.00)
($14,5
70.00)
($13,2
50.00)
($10,25
0.00)
($9,750
.00)
Discount Rate 6% 1.0000 0.9434 0.8900 0.8396 0.7921 0.7473
PV Of Recurring Costs $0.00 ($10,6 ($12,9 ($11,1 ($8,118 ($7,285

7PROJECT MANAGEMENT
13.21) 67.25) 24.96) .96) .77)
NPV Of All Costs ($60,0
00.00)
($70,6
13.21)
($83,5
80.46)
($94,7
05.41)
($102,8
24.37)
($110,1
10.14)
($110,1
10.14)
Overall NPV $53,23
1.20
ROI 0.48
Breakeven analysis
Yearly NPV Cashflow ($90,0
00.00)
$32,31
1.32
$61,68
5.65
$99,33
7.71
$128,1
34.27
$156,0
55.58
Overall NPV Cashflow ($90,0
00.00)
($57,6
88.68)
$3,996
.97
$103,3
34.68
$231,4
68.96
$387,5
24.53
Project Breakeven occurs
between year 1 and 2
1.94
Table 4: Cost benefit analysis for the project
2. TCO (Total cost of ownership)
The calculation for the TCO in terms of the Health System Implementation project is
provided as below:
On-Premises cost breakdown summary
Category Cost
Compute $157,935
Hardware $132,986
Software $18,521
Electricity $6,428
Data center $11,207
Networking $45,488
Storage $2,662

8PROJECT MANAGEMENT
IT labor $2,429
Total cost $377,656
Table 5: Cost summary for existing system
Health System cost breakdown summary
Category Web Direct cost
Compute $42,426
Data center $0
Networking $0
Storage $921
IT labor $915
Total $44,262
Table 6: Cost summary for implementing Health System
Figure 2: Total On-premises vs Health System cost over time
(Source: Created by Author)
The estimated cost savings could be as much as $333,395 (88%) over 3 year(s) by
implementation of the Health system in Healthcare.

9PROJECT MANAGEMENT
3. Budgeted vs. actual costs
Task Name Budgeted Cost Actual Cost
Medical IS Vendor Project $230,892.00 $233,452.00
Initiation $7,680.00 $7,680.00
Budget dollar service request $3,800.00 $3,800.00
Project Charter $1,600.00 $1,600.00
Obtain Approvals $2,280.00 $2,280.00
Planning $9,360.00 $9,360.00
Project Plan $4,800.00 $4,800.00
Resource allocation approvals $1,800.00 $1,800.00
Communication $2,760.00 $2,760.00
Develop Communication Plan $600.00 $600.00
Review/Approve
Communication Plan $2,160.00 $2,160.00
Project Kickoff $0.00 $0.00
Execution $197,764.00 $197,764.00
Vendor Medical IS DB Tables $36,320.00 $36,320.00
Create Tables $33,200.00 $33,200.00
Create/Modify vendor
database tables $28,800.00 $28,800.00
Promote tables to QA $1,440.00 $1,440.00
Validate tables $2,160.00 $2,160.00
UAT $800.00 $800.00
Promote Tables to
Production $3,120.00 $3,120.00
Create production ticket SR# $1,200.00 $1,200.00
Deploy Tables $720.00 $720.00
Validate Tables $1,200.00 $1,200.00
Final Code Review-Module 1 $9,200.00 $9,200.00

10PROJECT MANAGEMENT
Module 1 code review $7,200.00 $7,200.00
Validate data accuracy $2,000.00 $2,000.00
Final Code Review-Module 2 $9,124.00 $9,124.00
Module 2 code review $7,524.00 $7,524.00
Validate data accuracy $1,600.00 $1,600.00
Final Code Review-Module 3 $1,600.00 $1,600.00
Module 3 code review $0.00 $0.00
Validate data accuracy $1,600.00 $1,600.00
Medical IS Vendor Reporting $141,520.00 $141,520.00
Requirements $41,600.00 $41,600.00
Define Business Rules $16,640.00 $16,640.00
Data Mapping $11,440.00 $11,440.00
Report mockups $4,160.00 $4,160.00
Documentation and Current
Mockup Layouts $9,360.00 $9,360.00
Requirements Approved $0.00 $0.00
Report Development $99,920.00 $99,920.00
Report file layout data
mapping $11,520.00 $11,520.00
Report UAT $5,760.00 $5,760.00
Reports Approved by
Business Owner/Vendor $3,120.00 $3,120.00
QA $79,520.00 $79,520.00
Test Case Creation $8,800.00 $8,800.00
Test Case Execution $11,200.00 $11,200.00
Deploy Reports to
Production $1,440.00 $1,440.00
UAT $58,080.00 $58,080.00
Testing Support $10,560.00 $10,560.00
Remediation $10,560.00 $10,560.00

11PROJECT MANAGEMENT
Production Support $36,960.00 $36,960.00
Oversight $11,408.00 $11,408.00
Project Manager $5,888.00 $5,888.00
Architect $5,520.00 $5,520.00
Go-Live $0.00 $0.00
Go-Live Milestone $0.00 $0.00
Module Reports in Production-
Go live $0.00 $0.00
Monitor and Control $4,680.00 $4,680.00
Support $4,680.00 $4,680.00
Define Support Process $2,280.00 $2,280.00
Review Support Process $2,400.00 $2,400.00
Support Process Approved $0.00 $0.00
Closing $2,560.00 $2,560.00
Lessons Learned $2,560.00 $2,560.00
Table 7: Budget vs Actual costs for the project
4. The earned value of the recovery project
The earned value is a technique for measuring the performance of a project in context to
the project baseline. The earned value for the project is calculated as below:
Earned Value = % of completed work X BAC (Budget at Completion)
= 26% of BAC (Since, the project is completed 26%)
= 26% of 230,892.00 (USD) = 0.26 x 230,892.00 (USD)
= 60,031.92 USD
Hence, earned value for the recovery project is 60,031.92 USD.

12PROJECT MANAGEMENT
C. Recovery Project Quality Planning
1. Key performance indicators of quality
The performance indicators of quality in context to this particular project on
implementation of Health system are described as below:
Customer Satisfaction/Loyalty: This involves determining whether the client and users
are satisfied in context to a particular system.
Number of Errors: This involves analyzing that how often there is a need for correction
of things during the project.
Customer Complaints: It has to be considered that the customer of a project maybe
internal so it is should be taken into account that no one complains about the same from the
organization.
2. Important factors in defining quality
The important factors for defining quality for the recovery project of implementing
Health system are provided as below:
Proper planning: The cycle Plan, Do, Check, Act is essential for achieving quality of a
project. The project plan should include planning for maintaining of quality standards.
Proper measurement: It is essential for identifying the key outcomes as well as outputs
that will be achieved from the project.
Constant reviewing of project progress: The regular review on progress of the project
will help to maintain and achieved the desired quality along with meeting requirements of the
client.

13PROJECT MANAGEMENT
3. Measurement of quality
The quality of the project can be measured with the help of metrics as discussed below:
Schedule and Effort/Cost Variance: This metrics is essential as it is the base for
measuring profitability from a project. It is used for measuring performance along with progress
of project in context to baselines.
Productivity vs Resource Utilization: This metric is focused at measuring the
productivity of resources that are associated with the project and allow the Project manager to
assess the resources that are under or over allocated.
Change requests to Scope of work: This metric is required for Project manager so that
they can keep track of the number of requested changes from client in context to scope of work
in terms of the project.
Quality and Customer Satisfaction: This metric relates to quality assurance and
satisfaction of customers in terms of the project. The customer satisfaction depicts the number of
defects that are delivered through the lifecycle of a project.
D. Recovery Project Schedule Planning
The schedule for the project on Health System Implementation is developed as below:
ID Task Name Duration Work Start Finish Predecessors Resource
Names Cost
1 Medical IS
Vendor Project 414 days 3,230.8
hrs
Mon
04-
05-
15
Thu
01-12-
16
$233,452.00
2 Initiation 24.6
days 80 hrs
Mon
04-
05-
15
Fri
05-06-
15
$7,680.00

14PROJECT MANAGEMENT
3 Budget dollar
service request 5 days 40 hrs
Mon
04-
05-
15
Fri 08-
05-15 IS Manager $3,800.00
4 Project
Charter 2 days 16 hrs
Wed
03-
06-
15
Thu
04-06-
15
3 Business Owner $1,600.00
5 Obtain
Approvals 3 days 24 hrs
Tue
02-
06-
15
Fri 05-
06-15 4 IS Manager $2,280.00
6 Planning 39 days 128
hrs
Thu
11-
06-
15
Tue
04-08-
15
$9,360.00
7 Project Plan 8 days 64 hrs
Wed
15-
07-
15
Tue
04-08-
15
Project Manager $4,800.00
8
Resource
allocation
approvals
3 days 24 hrs
Thu
11-
06-
15
Tue
16-06-
15
7FS-1 day Project Manager $1,800.00
9 Communication 4 days 40 hrs
Wed
29-
07-
15
Mon
03-08-
15
$2,760.00
10
Develop
Communication
Plan
1 day 8 hrs
Wed
29-
07-
15
Wed
29-07-
15
8 Project Manager $600.00
11 Review/Approve
Communication
Plan
2 days 32 hrs
Fri
31-
07-
15
Mon
03-08-
15
10SS-2 days Project
Manager, SME $2,160.00
12 Project Kickoff 1 day 8 hrs
Wed
05-
08-
15
Wed
05-08-
15
11 All stakeholders $0.00
13 Execution 148 days 2,779.6
hrs
Mon
10-
08-
15
Wed
02-03-
16
$197,764.00
14 Vendor 54 days 432 Mon Thu $36,320.00

15PROJECT MANAGEMENT
Medical IS DB
Tables hrs
10-
08-
15
22-10-
15
15 Create
Tables 47 days 376
hrs
Mon
10-
08-
15
Tue
13-10-
15
$33,200.00
16 Create/Modify
vendor database
tables
40 days 320 hrs
Mon
10-
08-
15
Fri 02-
10-15 12 DBA1 $28,800.00
17 Promote
tables to QA 2 days 16 hrs
Mon
12-
10-
15
Tue
13-10-
15
16FS-5 days DBA1 $1,440.00
18 Validate
tables 3 days 24 hrs
Mon
05-
10-
15
Wed
07-10-
15
17 DBA1 $2,160.00
19 UAT 2 days 16 hrs
Mon
05-
10-
15
Tue
06-10-
15
18 Business
Analyst $800.00
20
Promote
Tables to
Production
27 days 56 hrs
Wed
16-
09-
15
Thu
22-10-
15
$3,120.00
21
Create
production ticket
SR#
3 days 24 hrs
Wed
16-
09-
15
Fri 18-
09-15 19 Business
Analyst $1,200.00
22 Deploy
Tables 1 day 8 hrs
Mon
19-
10-
15
Mon
19-10-
15
21 DBA1 $720.00
23 Validate
Tables 3 days 24 hrs
Tue
20-
10-
15
Thu
22-10-
15
22 Business
Analyst $1,200.00
24
Final Code
Review-Module
1
30 days 120
hrs
Mon
07-
09-
15
Fri
16-10-
15
$9,200.00
25 Module 1
code review
21 days 80 hrs Mon
07-
Mon
05-10-
23 Developer $7,200.00

16PROJECT MANAGEMENT
09-
15 15
26 Validate
data accuracy 5 days 40 hrs
Fri
09-
10-
15
Fri 16-
10-15 25 Business
Analyst $2,000.00
27
Final Code
Review-Module
2
30 days 115.6
hrs
Mon
07-
09-
15
Fri
16-10-
15
$9,124.00
28 Module 2
code review 21 days 83.6
hrs
Mon
07-
09-
15
Mon
05-10-
15
26 Developer $7,524.00
29 Validate
data accuracy 4 days 32 hrs
Fri
09-
10-
15
Fri 16-
10-15 28 Business
Analyst $1,600.00
30
Final Code
Review-Module
3
16 days 128
hrs
Mon
19-
10-
15
Mon
09-11-
15
$1,600.00
31 Module 3
code review 12 days 96 hrs
Mon
19-
10-
15
Tue
03-11-
15
29 All stakeholders $0.00
32 Validate
data accuracy 4 days 32 hrs
Wed
04-
11-
15
Mon
09-11-
15
31 Business
Analyst $1,600.00
33
Medical IS
Vendor
Reporting
87 days 1,984
hrs
Tue
03-
11-
15
Wed
02-03-
16
$141,520.00
34 Requirements 29 days 640
hrs
Tue
03-
11-
15
Fri
11-12-
15
$41,600.00
35 Define
Business Rules 16 days 256 hrs
Tue
03-
11-
15
Tue
24-11-
15
32FS-5 days
Business
Analyst, Project
Manager
$16,640.00
36 Data
Mapping
11 days 176 hrs Thu
05-
11-
Thu
19-11-
15
35FF-3 days Business
Analyst, Project
Manager
$11,440.00

17PROJECT MANAGEMENT
15
37 Report
mockups 4 days 64 hrs
Wed
25-
11-
15
Mon
30-11-
15
36
Business
Analyst, Project
Manager
$4,160.00
38 Documentation
and Current
Mockup Layouts
9 days 144 hrs
Tue
01-
12-
15
Fri 11-
12-15 37
Business
Analyst, Project
Manager
$9,360.00
39 Requirements
Approved
2 days 0 hrs
Mon
14-
12-
15
Tue
15-12-
15
38 $0.00
40 Report
Development 74 days 1,344
hrs
Fri
20-
11-
15
Wed
02-03-
16
$99,920.00
41
Report file
layout data
mapping
16 days 128 hrs
Mon
14-
12-
15
Mon
04-01-
16
38 Report Dev 1 $11,520.00
42 Report
UAT 8 days 64 hrs
Tue
05-
01-
16
Thu
14-01-
16
41SS-2 days Report Dev 1 $5,760.00
43
Reports
Approved by
Business
Owner/Vendor
2 days 32 hrs
Fri
15-
01-
16
Mon
18-01-
16
42 IS Manager,
Business Owner $3,120.00
44 QA 74 days 1,120
hrs
Fri
20-
11-
15
Wed
02-03-
16
$79,520.00
45 Test
Case Creation 22 days 176 hrs
Fri
20-
11-
15
Mon
21-12-
15
36 QA $8,800.00
46 Test
Case Execution 28 days 224 hrs
Tue
22-
12-
15
Thu
28-01-
16
45 QA $11,200.00
47
Deploy
Reports to
Production
2 days 16 hrs
Fri
29-
01-
16
Mon
01-02-
16
46 Developer $1,440.00

18PROJECT MANAGEMENT
48 UAT 22 days 704
hrs
Tue
02-
02-
16
Wed
02-03-
16
$58,080.00
49 Testing Support 4 days 128 hrs
Tue
02-
02-
16
Fri 05-
02-16 47
ETL Dev
1,Report Dev
1,ETL Dev
2,Report Dev 2
$10,560.00
50 Remediation 4 days 128 hrs
Mon
08-
02-
16
Thu
11-02-
16
49
ETL Dev
1,Report Dev
1,ETL Dev
2,Report Dev 2
$10,560.00
51 Production
Support
14 days 448 hrs
Fri
12-
02-
16
Wed
02-03-
16
50
ETL Dev 1,ETL
Dev 2,Report
Dev 1,Report
Dev 2
$36,960.00
52 Oversight 184 days 147.2
hrs
Thu
03-
03-
16
Tue
15-11-
16
$11,408.00
53 Project
Manager 92 days 73.6
hrs
Thu
03-
03-
16
Fri 08-
07-16 51 Project
Manager[10%] $5,888.00
54 Architect 92 days 73.6
hrs
Mon
11-
07-
16
Tue
15-11-
16
53 Architect[10%] $5,520.00
55 Go-Live 2 days 8 hrs
Wed
16-
11-
16
Thu
17-11-
16
$0.00
56 Go-Live
Milestone 1 day 0 hrs
Wed
16-
11-
16
Wed
16-11-
16
54 $0.00
57
Module
Reports in
Production- Go
live
1 day 8 hrs
Thu
17-
11-
16
Thu
17-11-
16
56 $0.00
58 Monitor and
Control 6 days 48 hrs
Fri
18-
11-
16
Fri
25-11-
16
$4,680.00
59 Support 6 days 48 hrs Fri Fri $4,680.00

19PROJECT MANAGEMENT
18-
11-
16
25-11-
16
60 Define
Support Process 3 days 24 hrs
Fri
18-
11-
16
Tue
22-11-
16
57 IS Manager $2,280.00
61 Review
Support Process 3 days 24 hrs
Wed
23-
11-
16
Fri 25-
11-16 60 Business Owner $2,400.00
62 Support
Process Approved 0 days 0 hrs
Fri
25-
11-
16
Fri 25-
11-16 61 IS Manager,
Business Owner $0.00
63 Closing 4 days 32 hrs
Mon
28-
11-
16
Thu
01-12-
16
$2,560.00
64 Lessons
Learned 4 days 32 hrs
Mon
28-
11-
16
Thu
01-12-
16
62 Project Manager $2,560.00
Table 8: Schedule for the project
E. Recovery Project Risk Planning
1. Amount of uncertainty in the project
The uncertainty in a project refers to lack of complete certainty where the outcome of an
event is totally unknown as well as it cannot be measured or estimated. There is complete lack of
background information on an event if there is uncertainty.
The uncertainty in project can be reduced with the following steps:
 Completion of proper Stakeholder Analysis
 Development of project charter.
 Proper identification of requirements.

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 Proper estimation of project budget.
 Developing of schedule for project.
2. Threats associated with the project
Risk
ID
Risk Influence Priority Description
R01 Lack of
resources
High Mediu
m
This refers to the absence of resource in
between execution of the project.
R02 Lack of
technical
expertise
Medium High The lack of technical skills or knowledge may
hamper the implementation as there will be
issues while operating the system.
R03 Improper
budgeting
High Low The lack of proper budgeting may lead to
delay or even failure of project.
R04 Conflict
between team
members
Medium High Any conflict arising among the team members
may lead to lack of resources thus resulting
into failure of project.
Table 9: Identification of threats
3. Mitigation of threats
Risk
ID
Risk Priority Mitigation Strategy
R01 Lack of resources Mediu
m
The project execution must be followed only after
allocation of additional resources to the required
activities.
R02 Lack of technical High The skills and knowledge of the employees as well as

21PROJECT MANAGEMENT
expertise users must be evaluated and proper training have to be
provided to the members.
R03 Improper
budgeting
Low The budget for the project have to be evaluated
properly prior to execution.
R04 Conflict between
team members
High The issues arising among the team members during
execution of the project must be resolved with
immediate effect.
Table 10: Management of threats
F. Recovery Risk Control
1. Appropriate quantification of the risks (probability vs. impact)
Risk ID Risk Impact Probability Risk Rating
R01 Lack of resources High High 28
R02 Lack of technical
expertise Moderate Low 8
R03 Improper budgeting Very High Moderate 30
R04 Conflict between
team members Low High 8
Risk Matrix
Probability Rating
5 - Very High 5 10 20 35 50
4 - High 4 8 16 28 40
3 - Moderate 3 6 12 21 30
2 - Low 2 4 8 14 20
1 - Very Low 1 2 4 7 10
1 2 4 7 10
Very Low Low Moderate High Very High

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Impact Rating
Table 11: Probability vs. impact matrix for risks
2. Contingency funding or time buffers in place to handle threats
The contingency funding for handling of threats are discussed below:
Funds for covering risks in project: The size of the funds can reflect upon overall risks
associated with a project.
Budget reserves: These reserves are linked to the risks that have been identified in
specific work packages.
Management reserves: These reserves are large funds that can be used for covering
major risks associated with the project.
The time buffers is defined as the amount of time that is required for compensating
unplanned delays in the schedule of a project.

23PROJECT MANAGEMENT
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