Risk Management

Running head: RISK MANAGEMENT
Risk Management
Name of the Student:
Name of the University:

1RISK MANAGEMENT
1. List of five risks and priority levels for impact and likelihood
Following are the risks which are listed below:
Risk 1: The QA testing manager is always over estimated the time which is required to
complete the project tasks.
Risk 2: The Company has changed their vendor for the hardware. After conducting reference
checks, they indicated that the orders are being delayed by up to a week.
Risk 3: The logistics manager is complaining of quality of the reports they are received from
the current system. There is very little control over quality of data which is an input in the
system.
Risk 4: The amount of customization required is underestimated as the stakeholders are
trying to add new features.
Risk 5: The management team tries to reduce the project time and it is critical to balance
hitting the timelines.
Type of risk Impact Likelihood
Risk 1 High High
Risk 2 Medium Medium
Risk 3 High Medium
Risk 4 Low Medium
Risk 5 Low Low

2RISK MANAGEMENT
2. Risk assessment for three risks
Risk
ID
Potential risk Result of
occurrence
Severity Probability Critically
number
Risk level Further
action
required
R1 Over- estimated
of the time
Cause increase
in the cost of
the project
4 3 12 Medium Supervisor
monitoring
R2 Change of
vendor for the
hardware
Lack of quality
of the
materials
4 5 20 High Control
training is
required
for the
vendors.
R3 Poor quality of
the reports
Delay in the
project work
3 3 9 High Supervisor
monitoring
Probability Severity
Insignificant-5 Minor-4 Moderate-3 Significant-2 Catastrophic-1
Certain-5 Medium High-R2 Extreme Extreme Extreme
Likely-4 Medium High High Extreme Extreme
Possible-3 Low Medium -R1 High-R3 Extreme Extreme
Unlikely-2 Low Low Medium High Extreme
Remote-1 Low Low Medium High High
Table 1: Risk Assessment