Effective Risk Management for Organizational Projects - Desklib

This assignment covers the risk factors and their impact on the 8 IT projects of Acme Medical Device Company. The report includes risk factors such as equipment failure, lack of pre-information, technical issues, and lack of support from improved functional development. The assignment also discusses change management and quantitative and qualitative risk assessment. Learn more with Desklib's online library.

Running head: RISK MANAGEMENT ASSIGNMENT
Risk Management Assignment
Name of the Student:
Student ID:
Name of the University:
Author’s note:

1RISK MANAGEMENT ASSIGNMENT
Executive Summary
The assignment had been made for ensuring the use of the effective risk management
process for the organizational projects. The alignment would be helpful for easing the
simplification of the factors deploying the utilization of the factors aligning the simplification
process. The usefulness of the factors would be helpful for easing the simplification of the
various risk factors defining the utilization of the processes. The support and development of the
factors would help the use of the successive development of the improved functional
development. The following assignment had covered the risk factors and their impact on the 8 IT
project of Acme Medical Device Company. The company had needed this report for ensuring
that the project implementation can be successfully implied. The various risk mentioned in the
report were equipments failure, lack of pre information, technical issues, and lack of support
from the improved functional development. It had been developed for forming the useful
implication of the project management concepts for easing the utilization of the factors aligning
the successful implication of the factors. The success and development of the factors would be
helpful for successful integration of the operations. The risk analysis had been based on the
deployment of the improved factors. The 8 IT projects were Upgrade of the infrastructure,
security system upgrade, ESB implementation, MIS upgrade, ERP upgrade, Establishment of
Project Management Office, IT operation management, and IT recognition.

2RISK MANAGEMENT ASSIGNMENT
Table of Contents
1. Background..................................................................................................................................3
2. Change Management...................................................................................................................4
3. Risk Management........................................................................................................................6
3.1 Quantitative and Qualitative Risk Assessment......................................................................6
3.2 Monte Carlo Simulation of the Risk Impact on Projects.......................................................7
Conclusion.....................................................................................................................................12
References......................................................................................................................................14
Appendices....................................................................................................................................16
Appendix I: Updated Risk Register...........................................................................................16
Appendix II: Reflection.............................................................................................................17

3RISK MANAGEMENT ASSIGNMENT
1. Background
The project is a large scale IT project defining the implication of the factors successfully
integrating the alignment of the factors. The utilization of the improved factors would be helpful
for easing the utilization of the improved functional development (Walker, 2015). The 8 IT
projects were Upgrade of the infrastructure, security system upgrade, ESB implementation, MIS
upgrade, ERP upgrade, Establishment of Project Management Office, IT operation management,
and IT recognition. The usefulness of the factors would be helpful for easing the simplification
of the various risk factors defining the utilization of the processes. The support and development
of the factors would help the use of the successive development of the improved functional
development of Acme Medical Device Company. The company needed the projects to be
successful completed in the time duration for easing the utilization of the factors. The Acme
Medical Device Company wants to develop their product range by including the Insulin pump
for the diabetic patients. They are also in need for the IIPP transformation program status update.
The program management would be helpful for easing the simplification of the factors defining
the success of the key implementation process. The utilization of the factors would be helpful for
easing the utilization of the effective alignment of the improved communication.
Moreover the Acme Medical Device Company also wants to put focus on the factors of
program management, financing activities, sales and marketing, distribution channel
optimization, clinical trials, manufacturing optimization, manufacturing plant renovation, and
information systems upgrade (Kerzner & Kerzner, 2017). The technology upgrade is the most
effective alignment for the projects and it would also be helpful for the successful development
of the implication model. The support and development of the information would be helpful for
easing the utilization of the improved communication process. The implication of the projects

4RISK MANAGEMENT ASSIGNMENT
would be in the responsibility of the key stakeholders of the organization like CEO, COO, CFO,
CIO, Infrastructure Director, and IT team of Acme Medical Device Company.
2. Change Management
The change management is the most crucial factor aligning the simplification of the
factors aligning the inclusion of the change management process (Verzuh, 2015). The change
management is the most effective utilization of the factors aligning the utilization of the factors
developing the simplification of the activities. The change management is shown in the diagram
below,
Figure 1: Change Management Process
(Source: Mir & Pinnington, 2014, pp-205)
The change management is helpful for developing the significant inclusion of the factors
aligning the utilization of the improved functional and development process (Heagney, 2016).
The change management is the most effective process that can be used for easing the utilization

5RISK MANAGEMENT ASSIGNMENT
of the factors. The development of the factors would be helpful for easing the implication of the
factors aligning the improved operations for the clients. The change management process for the
projects of Acme Medical Device Company is explained below,
Request for change: The request for change is the primary factor defining the
implication of the improved functional and development process (Harrison & Lock, 2017). In
this phase the request for changes in IT projects would be easily developed. The change request
would be generated for easing the development of the factors aligning the development of factors
using the profitable development of the factors.
Impact Analysis: The impact analysis would be eased with the utilization of the factors
aligning the impact of the change. The change development would be eased with the significant
development of the alignment (Amster & Bohm, 2016). The change analysis would be eased
with the utilization of the factors. The analysis of the impact would be utilized for forming the
alignment of the factors. The impact analysis would be successfully utilized for easing the
implication management process.
Approval/Rejection: The approval or rejection of the project phase would be aligned for
developing the management of the factors. The management of the project approval is developed
for signifying the process of developing the alignment of the activities. The utilization of the
effective formation management would be eased by the significant formation management.
Implement Change: The implementation of the change is the next step for the
management of the factors (Marchewka, 2014). The change development would be eased with
the formation management process. The implementation change development would be eased for

6RISK MANAGEMENT ASSIGNMENT
the listing the utilization process. The change implementation process would be eased for listing
the formation process.
Review/Reporting: The review of the project reporting would be based for easing the
management process. The review of the changes is important for forming the supplement
development process. The reporting of the factors would be helpful for forming the development
of the factors. The review and reporting for inclusion management process management.
3. Risk Management
The risk management process for the IT projects of Acme Medical Device Company
would comprise of easing the process of system updates and development of the successful
implication of the factors. The use of the effective risk management would be based on the
simplified analysis of factors like technology, finance, operations, quality, and people.
3.1 Quantitative and Qualitative Risk Assessment
The quantitative and qualitative risk assessment would be done for considering the
simplification of the factors aligning the successful implication of the improved communication
and development. The effective utilization of the factors would be helpful for easing the
development of smart configuration model. The risk management for the IT projects has been
shown in the following table,
IT Project Risk Probability
(P)
(1-5)
Severity
(S)
(1-5)
Impact
(I)
(P*S)
Infrastructure Upgrade Lack of Construction Materials 4 5 20
Security System Upgrade Obsolete Security Framework 3 5 15
ESB Implementation Delay in Completion 5 2 10
MIS upgrade Lack of Servers for Installation 4 5 20
ERP Upgrade Issues in Design Phase 2 4 8

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Establishment of Project
Management Office
Lack of Proper Documents and
Quality Issues
3 2 6
IT Operation Management Time Consuming Activities 5 3 15
IT Reorganization Lack of Training 4 3 12
SEVERITY
PROBABILITY
Negligible
1
Low
2
Moderate
3
Significant
4
Catastrophic
5
Frequent 5 5 10 15 20 25
Probable 4 4 8 12 16 20
Occasional 3 3 6 9 12 15
Remote 2 2 4 6 8 10
Improbable
1 1 2 3 4 5
3.2 Monte Carlo Simulation of the Risk Impact on Projects
The Monte Carlo Simulation of the Risk Impact on Projects would be done by
considering each of the projects at a time. The following section would show the data collected
for the risk impact and the simulated data result using the @Risk function for the data.
Summary by PLO: The following data is collected for the risk impact on the project of
PLO of Acme Medical Device Company,
Team Calc
Estimate Perfect Likely Outrageou
s Sample
PMO 106.0 77.0 106.0 135.0 103.0028226
MIS 194.0 102.0 191.0 298.0 216.9356082
Finance 74.0 41.0 74.0 107.0 63.44347031
ESB 136.0 68.0 136.0 204.0 149.3566269
Security 128.0 70.0 128.0 186.0 101.690182
Infrastructur
e 80.0 47.0 80.0 113.0 83.21550263
Total 718.0 405.0 715.0 1,043.0 717.6442127
The Monte Carlo Simulation Value (using @Risk) of the data values is shown below,

8RISK MANAGEMENT ASSIGNMENT
Probability of meeting the value
718
57.39% 718.0
Total Budget required for 95% 798.0 95.00%
Contingency required for 95% 80.0
Summary by Phase: The following data is collected for the risk impact on the project of
PLO of Acme Medical Device Company,
Team Pla
n Design Buil
d Test Roll Out Close
Out Total % of Total
PMO 30 20 20 20 12 4 106.0 15%
MIS 10 74 53 36 19 2 194.0 27%
Finance 10 10 8 28 16 2 74.0 10%
ESB 10 10 54 36 24 2 136.0 19%
Security 8 32 34 32 20 2 128.0 18%
Infrastructure 6 20 20 14 18 2 80.0 11%
Total 74 166 189 166 109 14 718.0 100%
PMO: The following data is collected for the risk impact on the project of PMO of Acme
Medical Device Company,
Phase Calc
Estimate
Perfect Likely Outrageou
s
Sample
Planning 30.0 20 30 40 26.08747466
Design 20.0 15 20 25 23.04742456
Build 20.0 15 20 25 24.08131566
Test 20.0 15 20 25 21.568568
Roll Out 12.0 10 12 14 12.59125961
Close Out 4.0 2 4 6 3.77576103
106.0 77.0 106.0 135.0 111.1518035
The Monte Carlo Simulation Value (using @Risk) of the data values is shown below,
Probability of meeting the value
106
53.14% 106
Total Budget required for 95% 115.373268 95%
Contingency required for 95% 9.4

9RISK MANAGEMENT ASSIGNMENT
MIS: The following data is collected for the risk impact on the project of MIS of Acme
Medical Device Company,
Calc
Estimate
Perfect Likely Outrageou
s
Sampled
10.0 5 10 15 11.35772757
20.0 10 20 30 21.50421359
20.0 15 20 25 20.71641629
20.0 10 20 30 20.10775466
10.0 5 10 15 8.134186711
4.0 2 4 6 4.153857366
20.0 10 20 30 15.28065287
20.0 10 20 30 27.18080723
4.0 2 4 6 3.990893814
4.0 2 4 6 4.351301007
5.0 2 4 12 8.206806654
10.0 5 10 15 10.38758497
10.0 5 10 15 6.21294121
4.0 2 4 6 3.495475672
4.0 2 4 6 4.56517246
4.0 2 4 6 5.18552298
4.0 2 4 6 4.575187257
10.0 4 8 24 13.02065356
9.0 6 9 12 8.754668033
2.0 1 2 3 1.279764835
194.0 102.0 191.0 298.0 202.4615887
The Monte Carlo Simulation Value (using @Risk) of the data values is shown below,
Probability of meeting the value
194
49.75% 194
Total Budget required for 95% 212.416783
4
95%
Contingency required for 95% 18.4
Finance: The following data is collected for the risk impact on the project of Finance of
Acme Medical Device Company,
Calc
Estimate
Perfect Likely Outrageou
s
Sampled

10RISK MANAGEMENT ASSIGNMENT
10.0 5 10 15 11.93537
10.0 5 10 15 10.90266
8.0 4 8 12 7.234071
4.0 2 4 6 3.663763
4.0 2 4 6 3.98896
4.0 2 4 6 5.350393
4.0 2 4 6 4.287148
4.0 2 4 6 4.34087
4.0 2 4 6 3.949709
4.0 2 4 6 5.181502
6.0 4 6 8 4.761422
10.0 8 10 12 9.895374
2.0 1 2 3 1.923014
74.0 41.0 74.0 107.0 77.4
The Monte Carlo Simulation Value (using @Risk) of the data values is shown below,
Probability of meeting the value
74
52% 74
Total Budget required for 95% 80.5
5
95.00%
Contingency required for 95% 6.55
ESB: The following data is collected for the risk impact on the project of ESB of Acme
Medical Device Company,
Calc
Estimate
Perfect Likely Outrageou
s
Sampled
10.0 5 10 15 12.66570403
10.0 5 10 15 9.703503249
4.0 2 4 6 4.623301511
10.0 5 10 15 9.725299627
10.0 5 10 15 11.32447478
10.0 5 10 15 10.29946632
10.0 5 10 15 9.972217675
10.0 5 10 15 11.27249207
6.0 3 6 9 5.465130329
6.0 3 6 9 6.470552614
6.0 3 6 9 5.623122314
6.0 3 6 9 5.429846855
6.0 3 6 9 5.704015954
6.0 3 6 9 4.226563507

11RISK MANAGEMENT ASSIGNMENT
4.0 2 4 6 4.315333866
20.0 10 20 30 16.83704068
2.0 1 2 3 2.233406433
136.0 68.0 136.0 204.0 135.8914718
The Monte Carlo Simulation Value (using @Risk) of the data values is shown below,
Probability of meeting the value 136 50.28% 136
Total Budget required for 95% 147.8054278 95%
Contingency required for 95% 11.8
Security: The following data is collected for the risk impact on the project of Security of
Acme Medical Device Company,
Calc
Estimate
Perfect Likely Outrageou
s
Sampled
8.0 4 8 12 8.972624293
8.0 4 8 12 7.690924705
8.0 4 8 12 7.301248221
8.0 4 8 12 8.726969041
8.0 4 8 12 9.886080349
4.0 2 4 6 3.752889166
2.0 1 2 3 1.893480565
16.0 8 16 24 11.38415354
12.0 8 12 16 9.722294582
8.0 4 8 12 6.466534234
8.0 4 8 12 6.732488808
8.0 4 8 12 6.555530043
8.0 4 8 12 6.329509565
8.0 4 8 12 5.115010221
12.0 10 12 14 12.38599225
2.0 1 2 3 2.429888933
128.0 70.0 128.0 186.0 115.3456185
The Monte Carlo Simulation Value (using @Risk) of the data values is shown below,
Probability of meeting the value
128
57.24% 128
Total Budget required for 95% 138.7613462 95%

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Contingency required for 95% 10.8
Infrastructure: The following data is collected for the risk impact on the project of
Infrastructure of Acme Medical Device Company,
Calc
Estimate
Perfect Likely Outrageou
s
Sampled
6.0 2 6 10 5.589225222
10.0 5 10 15 10.40029311
10.0 5 10 15 13.14246331
10.0 5 10 15 10.79094479
10.0 5 10 15 9.538634069
10.0 8 10 12 10.98163733
4.0 2 4 6 4.406464817
6.0 4 6 8 4.278096877
12.0 10 12 14 13.31954712
2.0 1 2 3 1.526791267
80.0 47.0 80.0 113.0 84.0
The Monte Carlo Simulation Value (using @Risk) of the data values is shown below,
Probability of meeting the value 80 51.59% 80
Total Budget required for 95% 86.60697545 95%
Contingency required for 95% 6.6
Conclusion
The following assignment had covered the risk factors and their impact on the 8 IT
project of Acme Medical Device Company. The company had needed this report for ensuring
that the project implementation can be successfully implied. The various risk mentioned in the
report were equipments failure, lack of pre information, technical issues, and lack of support
from the improved functional development. The support and development of the factors had help
the use of the successive development of the improved functional development of Acme Medical

13RISK MANAGEMENT ASSIGNMENT
Device Company. The company needed the projects to be successful completed in the time
duration for easing the utilization of the factors. The Acme Medical Device Company wants to
develop their product range by including the Insulin pump for the diabetic patients. They are also
in need for the IIPP transformation program status update. The program management had been
helpful for easing the simplification of the factors defining the success of the key implementation
process. The utilization of the factors had been helpful for easing the utilization of the effective
alignment of the improved communication.

14RISK MANAGEMENT ASSIGNMENT
References
Amster, R., & Böhm, C. (2016). Improving intercultural competency in global IT projects
through recognition of culture-based behaviors. IJISPM-International Journal of
Information Systems and Project Management, 4(2), 5-20.
Binder, J. (2016). Global project management: communication, collaboration and management
across borders. Routledge.
Dhar, S., & Bose, I. (2015, December). Framework for Using New Age Technology to Increase
Effectiveness of Project Communication for Outsourced IT Projects Executed from
Offshore. In Workshop on E-Business (pp. 207-211). Springer, Cham.
Fleming, Q. W., & Koppelman, J. M. (2016, December). Earned value project management.
Project Management Institute.
Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach.
Routledge.
Heagney, J. (2016). Fundamentals of project management. Amacom.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Larson, E. W., Gray, C. F., Danlin, U., Honig, B., & Bacarini, D. (2014). Project management:
The managerial process (Vol. 6). Grandview Heights, OH: McGraw-Hill Education.

15RISK MANAGEMENT ASSIGNMENT
Lee, H. K., Keil, M., Smith, H. J., & Sarkar, S. (2017). The roles of mood and conscientiousness
in reporting of self‐committed errors on IT projects. Information Systems Journal, 27(5),
589-617.
Marchewka, J. T. (2014). Information technology project management. John Wiley & Sons.
Meredith, J. R., Mantel, S. J., Shafer, S. M., & Sutton, M. M. (2014). Project management in
practice. Wiley.
Mir, F. A., & Pinnington, A. H. (2014). Exploring the value of project management: linking
project management performance and project success. International journal of project
management, 32(2), 202-217.
Nicholas, J. M., & Steyn, H. (2017). Project management for engineering, business and
technology. Routledge.
Rodríguez, A., Ortega, F., & Concepción, R. (2016). A method for the evaluation of risk in IT
projects. Expert Systems with Applications, 45, 273-285.
Schönberger, M., & Čirjevskis, A. (2017). Successful IT/IS Projects in Healthcare: Evaluation of
Critical Success Factors.
Turner, J. R. (2014). Handbook of project-based management(Vol. 92). New York, NY:
McGraw-hill.
Verzuh, E. (2015). The fast forward MBA in project management. John Wiley & Sons.
Walker, A. (2015). Project management in construction. John Wiley & Sons.

16RISK MANAGEMENT ASSIGNMENT
Appendices
Appendix I: Updated Risk Register
IT Project Risk Probability
(P)
(1-5)
Severity
(S)
(1-5)
Impact
(I)
(P*S)
Mitigation
Strategy
Mitigation Plan
Infrastructure
Upgrade
Lack of
Construction
Materials
4 5 20 Transfer Hiring a
contractor
Security System
Upgrade
Obsolete
Security
Framework
3 5 15 Avoid Security
Framework
should be
modified
ESB
Implementation
Delay in
Completion
5 2 10 Accept Delay in
completion
should be
compensated
by improved
quality
MIS upgrade Lack of
Servers for
Installation
4 5 20 Avoid Provisional
Planning
should be done
ERP Upgrade Issues in
Design Phase
2 4 8 Avoid Design
Framework
should be
modified
Establishment of
Project
Management
Office
Lack of
Proper
Documents
and Quality
Issues
3 2 6 Transfer Hiring a
contractor
IT Operation
Management
Time
Consuming
Activities
5 3 15 Accept Delay in
completion
should be
compensated
by improved
quality
IT
Reorganization
Lack of
Training
4 3 12 Mitigate Proper Training
should be given

17RISK MANAGEMENT ASSIGNMENT
Appendix II: Reflection
I was appointed the project manager for the project of the organization and as the
company needed the projects to be successful completed in the time duration for easing the
utilization of the factors, I used effective project management principles and techniques. The
Acme Medical Device Company wants to develop their product range by including the Insulin
pump for the diabetic patients. I was involved in all of the 8 IT projects namely Upgrade of the
infrastructure, security system upgrade, ESB implementation, MIS upgrade, ERP upgrade,
Establishment of Project Management Office, IT operation management, and IT recognition.
Moreover the Acme Medical Device Company also wants to put focus on the factors of program
management, financing activities, sales and marketing, distribution channel optimization, clinical
trials, manufacturing optimization, manufacturing plant renovation, and information systems
upgrade. I implied change management and risk management for ensuring the successful
completion of the projects. The change management is the most effective utilization of the
factors aligning the utilization of the factors developing the simplification of the activities. My
aim was to ensure that risk management could be completed successfully with the help of
effective plan development.