ITC505 Project Management Task 2022

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COURSE CODE: ITC505
TASK: Project Management

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4.1 RISK PLANNING
(a) introduction
Risk planning is the process of identifying potential threats or risks to a particular system or
project, assessing the impact that could result from such a risk happening and identifying
mitigation strategies to curb those threats. A risk can be defined as potential occurrence of
damage or loss caused by either internal or external events that affect operations.
Technology is an enabler in most operations today. In businesses, transactions are carried out
both onsite and remotely utilizing the technology in place. Networks have improved how daily
business transactions are carried out. In school environments, technology has improved how
operations are carried out. For instance, automation in finance has seen great welcoming by most
education institutions. In Australian Universities, students finance operations are done
electronically mitigating potential mismanagement of funds by students and university staff.
Providing accommodation among universities has also seen a great impact in the use of
technology. Students can book residential halls online and may apply for other services at the
comfort of their homes.
Risk planning is an important process with regards to University operations. There is a
relationship between risk planning and profit realization. In this project planning, an assessment
into potential risks associated with system for entry and exit into dining café and kitchen
recording system is presented.
Previous company proposal
A company had previously been contracted to deliver the systems aforementioned. The proposal
was as follows;
Swipe card readers (Model A) and system has been ordered.
Cost: $12,000
Time to remove/re-order and re-install new system: 4 weeks
Re-order of special access cards (Model A)
Cost: $5,000
Time to re-order: 8 weeks
Different access cards are needed from accommodation access cards due to security and charging
model. A student could pay for accommodation and would self-cook. Some students might pay
for an evening meal but prefer to self-cook breakfast. The current system allows for these
flexibilities. The cards also operate via fingerprint recognition. This is to ensure that cards are
not passed on or exchanged among students. An alternative method is to hire staff to handle
checks at the door. This will be cumbersome, expensive and difficult to handle after-hours (at
night).
Technology has improved during the last three months. The new technology (Model B) encoded
with these cards will trigger a red light on the counter, if a student with food allergies try to pick

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up food that contains that allergen. Setup, training and orientation to the new system will take
another $30,000.
Our own solution to the problem
 Oder new technology model B cards
 Set up train and orient students to its use
 Acquire ,install and orient the kitchen recording system and control
 The kitchen recording and control system should possess a polling feature
(b) The approach
We developed a strategic aspect of planning the project and the risks anticipated, either tangible
or intangible were evaluated. Risks that are ordinary to the normal running of the project will be
evaluated and also those that are anticipated to be from extraordinary circumstances.
(c) Methodology
The methodology used in risk management for this project will aim to have flexibility even in
identifying risks that have been omitted during the initial stages. We developed a risk based
project assessment approach, where iterative processes were done. These processes however
have some degree of uncertainties. A methodology was developed to help curb the possibility of
these uncertainties, to help review ongoing research and various methodologies. We therefore
arrived at a systematic approach to assess and manage potential threats that could arise during
project implementation process. Highlighted below were the most important aspects of the
methodology;
 Preliminary risk assessment and scope of the risks
 Elicitation of the risks in detail
 Residual risks identification and communication
To enable us carry out preliminary risk assessment, it was important to take into consideration
two main mechanisms. These included;
Preliminary project risk session
We carried out a number of workshops to enable us brainstorm into the potential risks that would
arise in the implementation of the proposed systems. As part of the activities of the workshops,
an identification and categorization of the activities of the project process was done. Besides, the
different phases of implementation and commissioning were highlighted in which associated
impact could result.
After identification of each project activity, potential risks associated with that particular activity
was identified and a range assigned. The range identified the degree to which that risk would
impact the project. Risks were categorized as high level, moderate and low level. Knowledge
gaps were also identified and uncertainties were highlighted to influence the project design
during the initial phase of design.

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Key activities were carried out during this phase. They include, risk identification,
brainstorming, interviews, checklist analysis and diagramming. SWOT analysis was also done
and ultimately the risks were analyzed.
Qualitative risk analysis
A number of techniques for qualitative risk analysis were employed. These are;
i. Risk probability/impact evaluation
For any identified risk, an investigation into possibility that that particular risk will occur was
done. Potential impact of a risk with regards to the project implementation was also done. The
risks associated with costs, scheduling and performance quality were categorized in this
technique. The negative impacts of the threats and the opportunities were assessed and defined in
levels. A documentation of the results was then drafted.
ii. Probability and impact matrix method
The likelihood of the occurrence of a risk was written quantitatively. The impact range was also
quantified in order to evaluate the importance associated with mitigation of that particular risk.
iii. Categorizing risks
It was important to categorize the risks to enable in determining the degree of attention that has
to be given to that particular threat. Risks were categorized as:
a. High possibility, high impact
With these risks, a lot of attention has to be provided. Since they have high probability of
occurrence and high impact associated, their occurrence has detrimental effects on the project
design and implementation.
b. High possibility, low impact
These risks have to be mitigated and contained at all costs
c. Low possibility, high impact
d. Low possibility, low impact
Less attention was given to these particular risks.
Risk urgency assessment
Risk sensitivity has to be assessed. It is a matter that project managers take this into
consideration for proper mitigation of the threats that could negatively impact the project
planning and implementation. The response time for those highlighted risks was derived,
enabling timely responses and timely contention of the risks.
Expert judgment