Risk Analysis and Risk Management

The assignment has many parts. Right now we gonna do Part 1, tasks A and B. I will send it in 2 files. Part A and Part B. Parte A, 750 words. Parte B, 500 words Total references including A and B = 10 The reference list should be in Harvard style. Part A, there are some tips to help you to complete the tables. Also, you must creat the budget table. Part B, I already add the Diagram that you should use.

Running head: RISK MANAGEMENT
PROJECT MANAGEMENT ASSIGNMENT – TASK 3
Name of the Student:
Name of the University:

1RISK MANAGEMENT
Table of Contents
A) Risk Register..........................................................................................................2
B) Risk Management Analysis....................................................................................6
References...................................................................................................................7

2RISK MANAGEMENT
A) Risk Register
The risk register is a tool to document the project risks as well as actions for
managing risk. It is required for managing of project risks. After the project risks are
identified, they are logged on risk register as well as actions are to be taken to
respond to the identified risk. The below table shows the list of 15 documented
project risks based on developing mobile application. The risks are documented
based on five functions- human resource, operational, reputational, marketing and
sales and financial.

3RISK MANAGEMENT
Type of Risk Severity prior to mitigation Severity after mitigation
Human
Resource Likelihood Impact Rating Mitigations Likelihood Impact Rating Contingency Plans Status Owner
HR1 Lack of availability of the project
personnel having technical skills
3 4 12
• Hiring of project personnel
based on their educational
qualifications
• Conducting recruitment and
selection process
3 3 9
• Support and guidance to project
staffs
• HR Management plan
Monitor the
actions
HR Manager
HR2 Lack of regulatory and
compliance of the labour laws
3 3 9
• Understanding international
labour laws to follow the HR
principles
• Regular audit of the HR
processes
• Reporting on finances on
quarterly basis
2 2 4
• Contingency based approach is
effective to manage HR risk.
Actions in
progress
HR Manager
HR3 Lack of training and
development on information
technology 3 2 6
• Organizing training and
development programs to
enhance their technical skills
• Regular performance
measurement process
2 2 4
• Develop training program for 15
days
New HR Manager
Operational Likelihood Impact Rating Mitigations Likelihood Impact Rating Contingency Plans Status Owner
O1 The stakeholders are not
involved in the project as they
think that the mobile application
is not best solution for MMMM
campus.
3 2 6
• Implementing communication
plan
• Stakeholder management plan
• Demonstrating stakeholder's
benefits and interest on this
project
3 2 6
• Manage stakeholder's
expectations
• Stakeholder management plan
Actions in
progress
Project Team

4RISK MANAGEMENT
O2 Technical failure of the mobile
application due to insecure
storage of data and poor
authentication 3 3 9
• Strong encryption strategy for
the mobile app development
• Secured cryptographic storage
of data 2 3 6
• Alert the users through user
interface if the mobile app detects
invalid certificate
Actions in
progress
IT Manager
O3 Inadequate growth plan of the
university
2 2 4
• Proper workplace planning
• Hiring of right team
• Keep the project finances on
check on regular basis
• Research and development
2 2 4
• Clear understanding of roles
and responsibilities
Actions in
progress
Project Owner
Reputational Likelihood Impact Rating Mitigations Likelihood Impact Rating Contingency Plans Status Owner
R1 Bad outcomes of mobile app can
damage reputation of the
university and result in loss of
business revenue
3 3 9
• Change in marketing tactics
• Understanding profit of the
business
• Managing incoming and
outgoing cash flow
1 2 2
• Decisions taken at right level
and communicated effectively
For approval of
project board
Steering
Committee
R2 Sales and value of the mobile
application is declined due to its
unreliability
4 3 12
• Providing education to
customers on why the app is
worth for the university
• Listen to customers and
innovate
• Understand the market and
customer's needs
3 2 6
• Protect sales revenue, profits
and customer relationships by
preparing for unexpected
marketing events
Actions in
progress
Marketing
Manager
R3 High profile criticism of the
mobile app
3 2 6
• Installation of encryption
technology
• Security certificates
• Implement mobile device
management policy to manage
end users
2 3 6
• Minimize inconveniences of the
customers
Actions to be
agreed
Project Team
Marketing Likelihood Impact Rating Mitigations Likelihood Impact Rating Contingency Plans Status Owner

5RISK MANAGEMENT
and Sales
M1 Lack of marketing planning for
promotion of mobile application
outside the university 4 4 16
• Increase in promotion of the
mobile application
• Develop relationships with
customer
• Increase in customer retention
3 3 9
• Effective promotional strategies Approval of the
marketing officer
Marketing
Manager
M2 Lack of market research on the
competitors exist in the market
with same featured product 2 2 4
• Performing market research by
examining size of the market
• Investigate on the competitors
• Clarify an unique value
proposition
1 1 1
• Effective coordination and
communication channels
Actions in
progress
Marketing
Manager
M3 Low price provider of mobile app
develops poor quality and strong
price orientation in market 3 2 6
• Better pricing strategies for the
mobile application 2 3 6
• Cost differentiation strategy New Marketing
Manager
Financial Likelihood Impact Rating Mitigations Likelihood Impact Rating Contingency Plans Status Owner
F1 Overrun of the project cost
results in liquidity crisis 4 4 16
• Proper estimation of project cost
• Consider all project expenses
• Bottom up cost estimation
technique
3 3 9
• Cost contingency in the budget Actions in
progress
Financial
Officer
F2 Lack of funding for the project
3 3 9
• Communication will help to
manage funds for project
• Establish the cost controls
• Update on cost forecasting
2 2 4
• Timely action to support project
sponsorship
Actions in
progress
Project
Sponsor
F3 Higher interest rate of the loans
taken for the project 2 1 2 • Fixed income investment with
interest rate swaps 1 1 1 • Secure the insurance of the
business
Closed Financial
Officer

6RISK MANAGEMENT
B) Risk Management Analysis
The risk register is crucial part of the risk management plan as it is used to
document project risks and take actions to manage risks. The risk management is a
process to identify, analyze, mitigate and communicate the risks. By documenting
the risks in risk register, the risk manager attempts to reduce likelihood of occurred
risk and its impact if the risk does happen. The responses are documented in risk
register and it should be reviewed on daily basis to monitor its progress. The risk
register is reviewed in each team meetings. Risk management is a constant process
with the project team to raise risks with risk manager. The risk manager is
responsible for log the risks and identify the actions taken to mitigate it (Giannakis
and Papadopoulos 2016). In order to respond to the risks, the risk manager is
required to understand the actions taken to lessen its likelihood and impact on
project success. The risk register contains: risk id, type of risk, severity prior to
mitigation, mitigation strategies, severity after mitigation, contingency plan, status
and owner.
If the project risks are not properly managed on the project, then it can slow down
the project as it takes long time to understand the project requirements, analyze as
well as prepare the management plan to monitor the risks. Project delays are caused
when the risk management activities take long time than it is expected, and pushed
other project activities on project schedule (Hopkin 2018). When the project risks are
not managed properly, then it can provide negative impact on benefits of the project.
The risk management can cost extra money. The overrun of project cost happens
when the risks as well as associated actions are related to manage the project work.
The project clients are not satisfied with what is to be perceived lead to high risk.
Risk analysis is stated as a way to identify and assess factors which could
provide negative effect on project success. It allows the risk manager to examine the
project risks that the project faces and help to decide whether they would move
forward or not. Risk analysis is important for the project as it prevents the project
business from costly decisions result in huge loss of the organization (Lathrop and
Ezell 2017). The risk analysis will help the users to avoid security breaches while
developing the mobile phone app for the university students. By performing the risk
analysis, the project manager can increase the project profits due to implementation
of mobile app. In this project scenario, the risk functions are categorized as:
Human Resource: In this risk function, people are source for the risk, for
example, lack of resource availability, lack of HR compliance and lack of staff
training.
Operational: The operational risk function is uncertainties as well as hazards that
a business faces when it attempts to do daily business activities. The business
operational risk is prospect of loss resulted from lack of support from stakeholders,
technical failure and inadequate business growth (Paté‐Cornell et al. 2018).
Reputational: It is referred to potential of bad outcomes of developed products,
decline in business sales and high profile criticism of mobile app. Those risks provide
adverse effect on reputation of the university, therefore it leads to provide effect on
business revenue (Choi, Chan and Yue 2016).
Marketing and sales: It is the potential of loss as well as failure of marketing
activities included risk related to lack of promotion, pricing and market research.

7RISK MANAGEMENT
Financial: This risk is associated with financing of the business included cost
overrun, lack of project funding and high rate of interest for loan.
References
Choi, T.M., Chan, H.K. and Yue, X., 2016. Recent development in big data analytics
for business operations and risk management. IEEE transactions on
cybernetics, 47(1), pp.81-92.
Giannakis, M. and Papadopoulos, T., 2016. Supply chain sustainability: A risk
management approach. International Journal of Production Economics, 171, pp.455-
470.
Hopkin, P., 2018. Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Lathrop, J. and Ezell, B., 2017. A systems approach to risk analysis validation for
risk management. Safety Science, 99, pp.187-195.
Paté‐Cornell, M.E., Kuypers, M., Smith, M. and Keller, P., 2018. Cyber risk
management for critical infrastructure: a risk analysis model and three case
studies. Risk Analysis, 38(2), pp.226-241.