Project Management Risks Assessment for Security Technologies Firm

This article provides a risk assessment analysis and mitigation plan for a security technologies firm relocating its US headquarters on schedule and $3M under budget. It includes a list of stakeholders, challenges, and in-scope activities. The article also discusses the qualitative and quantitative methodologies used for measuring the risks associated with the project.

Project Management Risks Assessment

Contents
1) Part A.............................................................................................................................................2
Overview...........................................................................................................................................2
Aim....................................................................................................................................................2
Objective...........................................................................................................................................2
Scope.................................................................................................................................................2
Budget...............................................................................................................................................3
Time..................................................................................................................................................3
Rationale............................................................................................................................................3
Challenges.........................................................................................................................................4
List of Stakeholder............................................................................................................................4
Conclusion.........................................................................................................................................5
2) Part 2.............................................................................................................................................5
Risk assessment analysis...................................................................................................................5
Risks Matrix......................................................................................................................................7
3) Part 3.............................................................................................................................................9
Risk Mitigation Plan and Strategy.....................................................................................................9
Risk Analysis:..................................................................................................................................13
4) References:..................................................................................................................................14

Case study: Security Technologies firm relocates US headquarters on schedule and $3 M
under budget
1) Part A
Overview
The company which is taken under research study deals with the supply of military
equipment such as threat detection technologies security of homeland, and resilience
applications and technologies. The company is looking forward to transform their
headquarters which involves the relocation of the employees, and others. The company wants
to complete the project within the approved budget by making use of project management
techniques.
Aim
The aim of this project is to minimise the cost spent on relocation of the US head quarter of
the company so as to provide the improved services to the customers.
Objective
The objective of this project is to resolve the challenges associated with the project due to the
transformation of organization environment. The focus should be given on minimizing the
operating cost, facilitating legal requirement, open job opportunities for the employees,
providing enhanced services to the customers, managing the operational plan of the
enterprise. The PM solution should be used for resolving the challenges associated with the
company by developing proactive plan for communication management system, resources
management system, quality management system, risks management system, and
development of the operational program.
Scope
The scope of the project is to implement Project management techniques in for providing
preferred solution to the challenges faced by the company in the relocation of their
Headquarter. The synchronization of the project activities helps in eliminating the problem of
over budgeting (Balley and Riffel, 2010). The project management techniques help in
preplanning the activities related to scope management system, setting of company’s mission,
scheduling of process, allocation of resources, communication management plan,
procurement management plan, quality management plan and others.

In-scope activities
 Checking out the legal requirement of the project
 Complying the human resource management notification in regards to the new
policies of the state government
 Financial management by providing required changes in the SAP system
 Providing new opportunities to the employees
 Preparing the cost estimation plan of the enterprise
 Creating new programs for employees retention
 Analysing the critical path of activities
 Identifying risk associated with the project
 Identifying risk mitigation plan
 Controlling the quality of service provided to the customers
 Division of role and responsibilities for relocation
Out of scope:
× Training and development program arranged for the employees
× Approval from the government agencies
Budget
The budget allocated for completing the project of relocation of company’s head quarter is
about 12 Million dollar.
Time
The time required for the relocation of the head quarter is about 8 months.
Rationale
The development of the project management techniques helps in synchronizing the schedule
of the processes undertaken(Embric, 2016). The work breakdown structure developed for the
relocation procedures helps in completing the project on time and under the required budget
because it focuses on preparing the process schedule with approximate time of completing
the activities. The analysis of the critical activities makes the project to be completed on time.
The cost estimation of the budget helps in completing the project under budget because the
estimated cost of the project is always more than the actual cost of the project (EY
Publication, 2012).

Challenges
The challenges which company faces in the program of relocation is of company headquarter
are increasing operating cost of the system, required changes in the human resource
according to the state laws, transformation of the working culture of the enterprise, insecurity
in the employees regarding their job, loss of productive work from the employees,
incapability in providing efficient services to their customers, security associated with the
relocation of explosive products, and changes in the SAP software regarding the account and
financial statement of the enterprise (Bekefi, Epstein, and Yuthas, 2008).
List of Stakeholder
Name Position Responsibilities
KW Wuest Owner Requirement specification
plan
Problems encountered in the
traditional working
Requirement of renovation
Details of new site location
RS Agarrwal Sponsor Analysis of the cost
estimation plan
Approval of the budget on
the basis of estimated cost
R. S. Liang Financial Manager Updating the SAP system
according to the new
program
Upgrading the database of
the employees for retention
K. Leo Accountant Prepares cost estimation plan
of the project by focusing on
the scheduled activities
F. Thomson Quality manager Focuses on services provided

to the customers
T. D. Davies Procurement Manager Focuses on the supply of
resources, equipment, threat
detecting system, and others
on the different location of
the headquarter
L. Chiang Project Manager Prepares a project schedule
for the relocation of the
hedquarter to different site
location
Analysis of the critical
elements and processes of the
project which can cause
delay to the project
B. Baggie Risks Manager Prepares the risk register
Prepares risk analysis matrix
Risk identification and
mitigation plan
Conclusion
The planning and scheduling of the project activities helps in completing the project on time
and within the approved budget. The cost of underbudget can be utilized for other fruitful
purposes like deployment of the training and development program for sharpening the skills
and expertise of the working employees according to the legislation of the new state
government policies framework for human resource management.
2) Part 2
Risk assessment analysis
The analysis of the project helps in determining the risk associated with the operational plan
of the enterprise. The expertise and the capability of the project manager are the major risks
which is associated with the project completion. The high skills, experience, and capabilities
helps in completing the project on time, under budget, and good quality output (Gosnik,

2015). The efforts of the project manager in the development of technical plan, scheduling of
the processes, procurement plan, communication plan and others can be measured with the
effectiveness and efficiency of the project manager. The deployment of project management
tactics helps in analysing the probability and the frequency associated with different risks
(Morris, 2013). The setting of priority on the basis of risks occurrence helps in removing and
eliminating all the risks factors proactively. The qualitative and quantitative methodologies
should be used for measuring the risks associated with the proposal of the project
(Passenheim, 2015).
Qualitative measure
The qualitative techniques which are used for analysing the risk associated with the
relocation of the headquarter are categorised as interview, questionnaire, observation, and
survey.
Interview: The interview is organised with the owner of the company to know the
requirement of relocation of the headquarters because it will affect the complete functioning
of the enterprise. The specification of the requirement helps in analysing the risks associated
with the project such as resistance from the employees, inclusion of change management,
effects to the organization culture, inefficiency of the employees, and others. During the
discussion, it is noticed that the project owner is looking forward for good project
management techniques which are efficient for managing the state legislation
Questionnaire: The focused group is organised for the deployment of questionnaire to predict
the challenges and problems which the employees face due to the relocation of the
headquarter (Michalko, Malpas, and Arcolio, 2010). From the analysis, we have examined
that the employees are cope up with some insecurity regarding their job due to the relocation
process of the company which directly have an impact on their performance and productivity.
The insecurity of the job arises due to the new policy framework of the state for human
resource manager. The employees have raised the point of retention that they will not be
provided with adequate amount due to the inefficiency in upgrading the SAP system.
Observation:
The working structure of the organization helps in analysing the technical issues which exist
with the enterprise. The operational risks associated with the working plan of the enterprise
can be predicted through the observation of working culture

Quantitative Measure
Sampling: The sampling method is used for analysing the changes in the organization culture
due to the transformation of the head quarter to the new location. It helps in analysing the
problem faced by the employees due to the relocation of the processes.
Risks Matrix
Risk Consequences Likelihood Probability
Financial risks The over budgeting
of the project can
cause inefficiency in
the project activity
schedule (Gultie,
2013)
Possible High
Technical Risk The risk associated
with the relocation of
the technical
equipment and
expertise of the
employees to handle
it
Probable Highly probable
Expertise Labour
Risk
The new state is
inefficient in
providing expert
labour for the
organization due to
poor education
system (Kotonen,
2015)
Probable Low
Operational risk Employees are not
able to carry out the
organization plan
efficiently (Lavell,
2014)
Possible High

Inaccuracy in the
cost estimation plan
Over budgeting of
the cost will result in
financial risks
associated with the
organization
Probable Low
Inaccuracy in the
project scheduling
activities
Inefficiency in
completing the
project on time
without any delay
Possible Low
Change in
Organization culture
Opposition from the
employees due to
diversification in the
culture (Sirkin,
Keenan, Jackson,
2015)
Probable Medium
Inclusion of new
policy structure of
the state government
on human resource
management
program
Insecurity of job in
the employees
Possible High
Data loss The loss of data can
occur due to the
relocation of the
operational working
structure of the
enterprise
Highly probable High
Loss of
confidentiality of the
information
Relocation result in
the data leakages
from the database
and the SAP system.
Probable High
Cultural
diversification
Inclusion of new
employees can
increases the
Possible Medium

diversification of the
culture which can
affect the working
plan of the enterprise
Unethical behaviour
of the employees
Effects the cultural
aspect of the
employees
Possible Medium
Time Delay in the project Probable High
Legal Issues Change of state put
their own rules and
regulation for
completing the
operational plan of
the enterprise
Probable High
3) Part 3
Risk Mitigation Plan and Strategy
Risk Consequences Risks management
and Mitigation
Strategies
Consequences
Financial risks The over budgeting
of the project can
cause inefficiency in
the project activity
schedule
The scheduling of the
project and
development of the
associated cost
estimation plan helps
in completing the
project on time and
within the cost
The project is
completed under
budget of 3 million
dollar which can be
used for arranging
training and
development
program for the
working employees
to enhance their
expertise and skills to
carry out their given

task (Sanremo, 2014)
Technical Risk The risk associated
with the relocation of
the technical
equipment and
expertise of the
employees to handle
it
The use of ICT
technology helps in
providing facility of
easy relocation of
activities without any
loss of data
The operational plan
of the enterprise will
not be disturbed
The customers are
provided with quality
of service
Expertise Labour
Risk
The new state is
inefficient in
providing expert
labour for the
organization due to
poor education
system
Arranging training
and development
program for the
working employees
to enhance their
expertise and skills to
carry out their given
task
Increased the
working ability of the
new employees
Operational risk Employees are not
able to carry out the
organization plan
efficiently
Arranging training
and development
program for the
working employees
to enhance their
expertise and skills to
carry out their given
task
The operational
efficiency of the
enterprise can be
improved by
enhancing the
expertise of the
working employees
Inaccuracy in the
cost estimation plan
Over budgeting of
the cost will result in
financial risks
associated with the
organization
Analysis of the
market cost of
resources and
equipment before
estimating the cost
with the scheduled
process
Helps in completing
the project under
budget because the
estimated cost
calculated for
completing the
scheduled project
activities is more
than the actual cost
incurred on

completing the
project
Inaccuracy in the
project scheduling
activities
Inefficiency in
completing the
project on time
without any delay
Experienced project
manager should be
given responsibility
of scheduling the
processes, regular
meetings should be
arranged for knowing
the requirement of
the project, and
preparing minutes of
meeting for analysis
Completion of the
project within the
budget and time
Change in
Organization culture
Opposition from the
employees due to
diversification in the
culture
Arranging training
and development
program for the
working employees
to enhance their
expertise and skills to
carry out their given
task
Increasing the
compatibility of the
employees motivate
the employees to
give their best for the
organization growth
Inclusion of new
policy structure of
the state government
on human resource
management
program
Insecurity of job in
the employees
Retention bonus
should be awarded
New jobs should be
created for the
existing employees
Providing adequate
knowledge about
policies and structure
of the new state
Increasing the
productivity of the
working employees
Data loss The loss of data can
occur due to the
Back up data should
be kept for
On time retrieval of
the required

relocation of the
operational working
structure of the
enterprise
overcoming the
disaster
information
Loss of
confidentiality of the
information
Relocation result in
the data leakages
from the database
and the SAP system.
Use of encryption
procedures and
development of
cipher text
Deployment of the
firewall
No chance of data
leakages
Cultural
diversification
Inclusion of new
employees can
increases the
diversification of the
culture which can
affect the working
plan of the enterprise
Training program for
the ethical code of
conduct which the
employee should
follow during the
work place
It generates the
feeling of respect to
the culture of other
employees
Unethical behaviour
of the employees
Effects the cultural
aspect of the
employees
Training program for
the ethical code of
conduct which the
employee should
follow during the
work place
It generates the
feeling of respect to
the culture of other
employees
Time Delay in the project Experienced project
manager should be
given responsibility
of scheduling the
processes, regular
meetings should be
arranged for knowing
the requirement of
the project, and
preparing minutes of
Completion of the
project within the
budget and time

meeting for analysis
Legal Issues Change of state put
their own rules and
regulation for
completing the
operational plan of
the enterprise
Providing adequate
knowledge about
policies and structure
of the new state
Developing good and
healthy relationship
with the
governmental
agencies
The legal obligation
of the state
government can be
resolved by signing
the agreement of
policies and
procedures
Risk Analysis:
During the course plan, we have analysed that the implementation of the project management
techniques for transforming and relocation of the company US headquarter to different site
location increases the effectiveness of the project to be competed with in time and under
budgeted cost. The inclusion of project management techniques helps in predicting risks
associated with the project at the initiation phase of the project which helps in mitigating at
an early stage of the project so that no distraction occurred due to the new policy structure
laid down by the state government in which head quarter is going to be transferred. The
smooth functioning of the operational plan can be laid down by motivating the employees
towards the work forum and demolish the threat of insecurity from their psychological
attitude by providing them retention for relocation of their work place. The satisfied
employees are able to show their full calibre and talent in the relocation procedures of the
enterprise (Rothe, Christersson, Heywood, Sarasoja, 2015). The training and development
program should be arranged for the employees so that they can sharpen their working tactics
according to the requirement of the new project and human resource policies of the new state.
The deployment of project management tactics helps in analysing the probability and the
frequency associated with different risks. The setting of priority on the basis of risks
occurrence helps in removing and eliminating all the risks factors proactively. The privilege
should be given to the expertise and experience of the project manager because the
implication of the risks can be reduced by deploying the effective schedule of processes with
associated cost and time. The focus should be given on the requirement specification plan

provided by the project owner because lots of risks can be predicted by analysing the
requirement report. The specification of the requirement helps in analysing the risks
associated with the project such as resistance from the employees, inclusion of change
management, effects to the organization culture, inefficiency of the employees, and others.
The strategic approach for eliminating the risks associated with the project helps in
completing the project on time and within the expected cost incurred with the project
activities. The analysis of the critical activities which are highlighted in the project activity
schedule should be given priority over other processes so that it does not affect the working
of the other undertaken process.
4) References:
Balley, M., and Riffel, M. (2010). Understanding and mitigating IT project risks. Retrieved
from http://www.gfoa.org/sites/default/files/GFR_JUN_10_30.pdf
Bekefi, T., Epstein, M., and Yuthas, K. (2008). Managing opportunities and risks. 1st ed.
Retrieved from
http://www.cimaglobal.com/Documents/ImportedDocuments/cid_mag_managing_op
portunities_and_risk_march08.pdf.pdf
Embric. (2016). Detailed risk management plan. Retrieved from
http://www.embric.eu/sites/default/files/deliverables/D1.2_Risk%20Mgmt%20Plan
%20.pdf
EY Publications. (2012). External Risks. Retrieved from
http://www.ey.com/Publication/vwLUAssets/external-risks/$FILE/ey-insights-on-
GRC-external-risks.pdf
Gosnik, D. (2015). Extended model of managing risks in new product development project.
1st ed. Retrieved from http://www.fm-kp.si/zalozba/ISSN/1581-6311/9_015-037.pdf
Gultie, E. (2013). Supply chain risks associated with relocating a production system in a
foreign market. Retrieved from
https://www.diva-portal.org/smash/get/diva2:621142/FULLTEXT01.pdf

Kotonen, T. (2015). Managing operational risksduring warehouse relocation project.
Retrieved from https://www.theseus.fi/bitstream/handle/10024/136432/Thesis_with
%20appendices.pdf?sequence=1&isAllowed=y
Lavell, A. (2014). Reducing relocation risks. Retrieved from
https://www.ucl.ac.uk/bartlett/development/sites/bartlett/files/wp4_closure_rep_flacso
_eng.pdf
Michalko, J., Malpas, C., and Arcolio, A. (2010). Research Libraries, Risks, and Systematic
change. Retrieved from
https://www.oclc.org/content/dam/research/publications/library/2010/2010-03.pdf
Morris, P. (2013). Research and the future of project management. Retrieved from
https://www.emeraldinsight.com/doi/abs/10.1108/17538371011014080
Passenheim, O. (2015). Project management. Retrieved from
http://home.hit.no/~hansha/documents/theses/projectmanagement.pdf
Rothe, P, Christersson, M., Heywood, C., Sarasoja, A. (2015). Relocation management-
challenges and service opportunities. Retrieved from
http://www.prres.net/papers/ROTHE_Relocation%20management.pdf
Sanremo. (2014). Planned relocation disaster and climate change. Retrieved from
http://www.unhcr.org/54082cc69.pdf
Sirkin, H., Keenan, P., Jackson, A. (2015). The hard side of change management. Retrieved
from https://hbr.org/2005/10/the-hard-side-of-change-management