Risk Management for Development of E-commerce Portal

Risk Management
Development of E-commerce Portal
8/30/2018

Risk Management
Table of Contents
Task 1 – Written Responses.....................................................................................................................2
Educate Stakeholders on Risk Management........................................................................................2
Relation of Risk Management with Scope, Schedule, and Budget.....................................................2
Tools & Techniques for Risk Management.........................................................................................2
Task 2 – Portfolio of Evidence................................................................................................................3
Identify Project Risks...........................................................................................................................3
Risk Context....................................................................................................................................3
Approach to Identify the Risks........................................................................................................3
Involvement of Project Team Members in Establishing Risk Context and Risk Planning.............3
Analysis of the Project.........................................................................................................................4
Risks as Opportunities.....................................................................................................................4
Consequences & Likelihood............................................................................................................4
Quantitative Risk Analysis..............................................................................................................7
Reflection Prioritization of Risks....................................................................................................7
Risk Response Strategies.................................................................................................................9
Risk Register & Action Plan..........................................................................................................10
Monitor & Control Project Risks.......................................................................................................17
Monitor Risk Atmosphere.............................................................................................................17
Outcome of Review & Management of Changes..........................................................................17
Assess Risk Management Outcomes.................................................................................................17
Project Performance in terms of Risk Management - Effectiveness of the Procedures................17
Risk Management Problems..........................................................................................................18
References..............................................................................................................................................19
Appendix................................................................................................................................................21
1

Risk Management
Task 1 – Written Responses
Educate Stakeholders on Risk Management
The project of development of an e-commerce portal for the organization involved numerous
internal and external stakeholders. It was necessary to educate and inform the stakeholders
about the risk management processes and activities being followed and applied in the project.
For this purpose, communication and training methods were utilized. There is a weekly
meeting that the Project Manager carries out with all of the project stakeholders. In this
meeting, an overview of the risk management approach and methodology was discussed with
the stakeholders. The use of web-based trainings was then done to educate the stakeholders
about the details of the steps that were to be used and implemented. The project team was
open to the changes and recommendations provided by the stakeholders.
Relation of Risk Management with Scope, Schedule, and Budget
Risk management is one of the knowledge areas under project management. It is closely
linked with the other knowledge areas, such as scope management, schedule management,
and budget management1.
The identification of the project risks are required to be done for each of these three areas so
that the estimates are adequately made. The inclusion of the risks and uncertainties while
defining the project scope or while preparing the project schedule and budget would provide
the project team with the ability to handle and mitigate the risks in case of their occurrence.
Tools & Techniques for Risk Management
There are qualitative and quantitative tools and techniques used in planning, analysing, and
managing the project risks.
The techniques used for risks identification include information gathering techniques, such as
observations, interviews, domain analysis, brainstorming, and group discussions. The
analysis of the risks is done using the quantitative techniques, such as SWOT analysis and
decision-tree analysis. The mitigation of the risks is done using varied set of tools as per the
1 Roque Rabechini Junior and Marly Monteiro de Carvalho, "Understanding The Impact Of Project Risk
Management On Project Performance: An Empirical Study", Journal Of Technology Management &
Innovation 8 (2013): 11-12, doi:10.4067/s0718-27242013000300006.
2

Risk Management
nature of the risks; for example, technical tools are used to control the security risks and
attacks.
Task 2 – Portfolio of Evidence
Identify Project Risks
Risk Context
It is required for the project to adhere to the Information Security and Privacy laws &
regulations, such as Data Protection Act, Intellectual Property Rights and IT Law to maintain
the privacy and security of the information on the e-commerce portal. The risks have also
been defined keeping the ethical and professional codes of conduct implemented in the
organization2.
The expectations, level of interests, and involvement of the internal and external stakeholders
is also considered. The schedule and budget of the project can be varied by 6% as the
tolerable limits.
Approach to Identify the Risks
The risks will be identified and managed for the project as per the risk management
knowledge area defined under Project Management Body of Knowledge (PMBoK). The
identification of the risks will be done using information investigation and gathering
processes covering the techniques as observations, interviews, domain analysis,
brainstorming, and group discussions. The analysis of the risks is done using the quantitative
techniques, such as SWOT analysis and decision-tree analysis3. The next set of steps includes
evaluation, mitigation, control, and closure of the risks.
Involvement of Project Team Members in Establishing Risk Context and Risk Planning
The team members involved in the project include Project Manager, Web Developer, Content
Developer, Tester, and Graphic Designer. These resources will play a significant role in
establishment of risk context, risk planning, and management.
2 Marly Monteiro de Carvalho and Roque Rabechini Junior, "Impact Of Risk Management On Project
Performance: The Importance Of Soft Skills", International Journal Of Production Research 53, no. 2 (2014):
321-340, doi:10.1080/00207543.2014.919423.
3 Hynuk Sanchez et al., "Risk Management Applied To Projects, Programs, And Portfolios", International Journal
Of Managing Projects In Business 2, no. 1 (2009): 14-35, doi:10.1108/17538370910930491.
3

Risk Management
Project Manager will take inputs from all the other resources on the regulations, policies, and
methodologies applicable to their set of activities and the risk context will be defined
accordingly. The risks specific to each of the project areas, such as project development,
portal testing, portal design and implementation will be provided and illustrated by the
resource assigned for the completion of the activity. The risk planning and management will
be carried out accordingly.
Analysis of the Project
Risks as Opportunities
 Market Risks: There may be certain fluctuations in the market that may bring down
the cost of the tools required to design, develop, test, and implement the project.
 Resource Risks: The effort and productivity estimation will be done for the resources
in the initiation and planning phase of the project. However, the resources may exceed
the expected levels4.
Consequences & Likelihood
Risk Consequence
rating
Description of possible consequences
Schedule Overrun 4 The delay in the due dates of project
deliverables will deteriorate the
customer trust and engagement and
will bring down the reputation of the
organization in the market.
Technical Faults 3 There may be unwanted delays that the
team may have to go through because
of the technical faults ad failures
Security Attacks 5 The security and privacy of the
information and data sets may be
negatively impacted which may lead to
4 Ammar Ahmed, Berman Kayis and Sataporn Amornsawadwatana, "A Review Of Techniques For Risk
Management In Projects", Benchmarking: An International Journal 14, no. 1 (2007): 22-36,
doi:10.1108/14635770710730919.
4

Risk Management
legal obligations as well along with the
deteriorate end user satisfaction
Market Risks 3 The budget of the project may come
down with the decrease in the costs of
the tools and the remaining cost may
be utilized in the betterment of other
project areas
Resource Risks 3 The resources may be able to finish the
project activities before the due dates
and the improvements and quality
enhancements activities may be done
in a better manner
Quality Risks 5 Non-adherence to the project quality
standards will lead to poor customer
satisfaction and will also negatively
impact the goodwill of the
organization
Ethical Risks 5 Non-adherence to the project ethical
standards will lead to poor customer
satisfaction and will also negatively
impact the goodwill of the
organization5
Scope Inflation 4 The budget and schedule of the project
will be negatively impacted with too
many changes and re-work. The
resource engagement and motivation
levels will also be poorly impacted.
Legal Risks 5 Non-adherence to the project legal
standards will lead to poor customer
satisfaction and may also lead to legal
5 Alfredo Federico Serpella et al., "Risk Management In Construction Projects: A Knowledge-Based
Approach", Procedia - Social And Behavioral Sciences 119 (2014): 653-662, doi:10.1016/j.sbspro.2014.03.073.
5