Risk Management Plan for Corwin Corporation

This document provides a risk management plan for Corwin Corporation, including identification and analysis of possible risks, risk mitigation strategies, and stakeholder management.

Running head: RISK MANAGEMENT
Assessment 2: Risk Management
Case study on Corwin Corporation
Name of the Student:
Name of the University:

1RISK MANAGEMENT
Table of Contents
Part B: Risk Management Plan........................................................................................................2
1. Risk identification and impact of possible risks in Corwin Corporation.....................................2
1.1 Identification and critical analysis on impact of possible risks in Corwin Corporation........2
1.2 Risk identified in the risk register..........................................................................................3
1.3 Risk probability and impact matrix.......................................................................................5
2. Risk management and reporting..................................................................................................6
2.1 Development of appropriate risk response strategies for managing risks in Corwin
Corporation..................................................................................................................................6
2.2 Stakeholders will be apprised for managing project ongoing risks.......................................7
Bibliography....................................................................................................................................8

2RISK MANAGEMENT
Part B: Risk Management Plan
1. Risk identification and impact of possible risks in Corwin Corporation
1.1 Identification and critical analysis on impact of possible risks in Corwin
Corporation
Risk management plan is referred to as an essential project knowledge area which
requires special focus from the project team members and project managers as well. The case
study that has been nominated for presenting the risk management plan is based on Corwin
Corporation’s out of scope acceptance of project of Peter’s Company for developing speciality
product. The project was accepted by Corwin Corporation without checking the rough draft
report and risk analysis. The company initiates the project before the contract was signed. Apart
from that some other factors, norms and policies were also not properly adopted by the project
managers. The project contract that was signed by the project manager was a fixed 5 years
contract that is out of scope. As a result the company faced issues of over running cost and the
complexity was not primarily analyzed.
The project manager assigned for the project was also not skilled and experienced
enough. Though, one of the senior project managers showed concern about assigning an
inexperienced project lead but his concern was ignored. The project manager failed to identify
proper project selection method while conducting the project. The Request for Proposal (RFP)
presented for Peter Company’s product development project was not accurate In order to prepare
the proposal Royce used unskilled and inaccurate resources. Apart from that the risk
management plan developed for the project was also not accurate. The change management plans

3RISK MANAGEMENT
requested for the project were also not applied professionally during the project development
period. The organizational structure and culture were also not supportive for product
development project. The functional organizational structure used by Corwin Corporation was
maintaining since 15 years as a result was not reliable for the new project. Another major risk
that impacted the project and company negatively is a poor communication. Due to lack of
communication the project managers failed to communicate with the project executives on time.
The Research and Development (R&D) department of Corwin Corporation was very weak and
as a result they failed to maintain the Peter’s new product development project within assigned
time and budget.
1.2 Risk identified in the risk register
Risk
Id
Risk description Impact Possibilities Score Risk mitigation
strategies
R1 Inappropriate
project selection
method
Major 4 Possible 3 High 12 Based on project
complexity, size and
expected outcomes the
project manager needs to
adopt the most suitable
project selection method
R2 Fixed budget
project contract
Catastrophic
5
Highly
possible 5
Extreme
25
Before initiating the
project, manager needs to
estimate the budget.
Respectively the project
manager should conduct a

4RISK MANAGEMENT
feasibility study as well.
R3 Lack of managerial
support
Major 4 Unlikely 2 High 8 Based on significance,
features of the project the
project manager must
design the managerial
supporting structure of
the company to make sure
its success
R4 Lack of
infrastructure
availability in
research and
Development of
Corwin
Corporation
Major 4 Remote 1 Low 4 The Research and
Development (R&D)
department of Corwin
Corporation should have
improved the
infrastructure based on
the project specification
R5 Inexperienced
senior manager and
line manager
Minor 2 Unlikely 2 Low 4 Before assigning senior
manager to the project
their experience and skills
should measured through
performance
measurement matrix.
R6 Lack of
communication or
Insignificant
1
Highly
possible 5
Moderate
5
The project manager
needs to use open

5RISK MANAGEMENT
poor
communication
approaches
communication while
sharing information to
each other. The
communication platform
will allow the project
team members share
information in a much
easier way.
1.3 Risk probability and impact matrix
The probability risk matrix is a tool used by the project team members to identify,
analyze and prioritize risks based on its impact and possibilities of occurrences. The risk
probability and impact matrix is elaborated in the below section:
Impact
Probability
Insignificant
1
Minor 2 Moderate
3
Major
4
Catastrophic/
Extreme
5
Remote 1 Low Low Moderate High High
Unlikely 2 Moderate Moderate High High High
Possible 3 Moderate High High High Extreme
Probable
4
High High High Extreme Extreme
Highly High High Extreme Extreme Extreme

6RISK MANAGEMENT
probable
5
2. Risk management and reporting
2.1 Development of appropriate risk response strategies for managing risks in
Corwin Corporation
After analyzing the case study of Corwin Corporation different risks have been identified
those are needed to be resolved or mitigated respectively. Based on the risks, response strategies
that should be developed are elaborated in the below section:
Implementing open communication: The project manager is required to implement
open communication approach while sharing information to each other successfully. It will give
a wider opportunity to the project associate to share proper information.
Performance analysis: Before assigning members to the project, their performance
should be critically analyzed by the project managers with performance measurement matrix.
Before assigning line manager and senior project manager also their performances should have
been analyzed.
R&D infrastructure improvement: The infrastructure of the R&D department is needed
to be improved.
Assigning proper project contract: In order to design and develop the project instead of
fixed price contract the project manager should have followed design build bid contract.

7RISK MANAGEMENT
Design of proper draft proposal: considering each project development activities and
specifications the draft report should be developed and approved accordingly by the project
manager.
2.2 Stakeholders will be apprised for managing project ongoing risks
Stakeholders Roles Risks to be managed
Senior project
manager
Internal To check the project proposal draft before initiating the
project.
Line manager Internal To keep the project team members engaged to their roles
and responsibilities with proper communication
Finance manager Internal Should avoid fixed cost contract and instead of that must
conduct a feasibility analysis
R&D department
head
Internal and
external
The company should arrange on job training and
development program to improve the infrastructure

8RISK MANAGEMENT
Bibliography
Elbaz, A. E. M., & Spang, K. (2018). Mapping the success dimensions of the infrastructure
projects in Germany. International Project Management Association Research
Conference 2017, UTS ePRESS, Sydney: NSW.
Fleming, Q. W., & Koppelman, J. M. (2016, December). Earned value project management.
Project Management Institute.
Hopkin, P. (2018). Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Nohria, N. (2017). Fast forward: The best ideas on managing business change. Business
Review, 9, 10.
Olson, D. L., & Wu, D. D. (2015). Enterprise risk management(Vol. 3). World Scientific
Publishing Company.
Sadgrove, K. (2016). The complete guide to business risk management. Routledge.
Schwalbe, K. (2015). Information technology project management. Cengage Learning.
Sorunke, O. A., Omojola, O. S., & Adeleke, E. O. (2016). The Imperative of Risk Management
Plan in Curbing Corruption in Public Procurement System in Nigeria. International
Journal of Academic Research in Accounting, Finance and Management Sciences, 6(2),
134-139.