Risk Management Plan for Corwin Corporation

This report depicts the roles and importance of implementing project risk mitigation plan for identifying, prioritizing and mitigating all potential identified risks. The project undertaken for the project is Corwin Corporation’s contract taken for the Peter’s new project. Before signing the contract of the project proper risk management plan is needed o be taken by the project manager.

Running head: RISK MANAGEMENT PLAN
Project Execution and Control: Risk Management Plan
Corwin Corporation case scenario
Name of the Student:
Name of the University:

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Part B
Introduction
This report depicts the roles and importance of implementing project risk mitigation plan
for identifying, prioritizing and mitigating all potential identified risks. The project undertaken
for the project is Corwin Corporation’s contract taken for the Peter’s new project. Before
signing the contract of the project proper risk management plan is needed o be taken by the
project manager. A detail of risk identification and impact assessment for Corwin Corporation is
elaborated in this report along with that a risk probability assessment matrix and risk register are
also elaborated in this report. In addition to that, appropriate risk management strategies are also
elaborated in this report.
1. Risk management Report
1.1 Risk identification and impact assessment
Successful study of the Corwin Corporation’s project implementation failure cases study
it is identified that while taking the project contract of PETER’s company the Corwin faced
major operational and functional challenges. The company faced challenges because of project
handling errors. Different project selection processes are there such as economic model, payback
period, discounted cash flow, cost benefit ratio etc, but the project manager of Corwin
Corporation failed to identify and adopt the most suitable project selection method while taking
the contract. Apart from that, the new product development approach was not fit into the
conservations, adverse market expansion focus etc. The decision making approach followed by

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the company was also not accurate from the project management perspectives. The company
does not have any exact development policy.
While signing the contract the Peter’s company gave a fixed price contract which was
again not accurate for Corwin Corporation. The actual price needed for the project was higher
than the estimated value. Corwin Corporation faced over running budget challenge. For this
particular project, the vendors took on the majority of finance risk. The rough draft produced
with Corwin Corporation was not accurate but though Peter’s Company approved that. Due to
wrong approval Corwin Corporation progressed with the project which causes major risk for the
project. If initially it was blocked then may be theses risks would not have been occurred. As per
the complexity of the project the time that has been estimated for the successful accomplishment
of the project was not appropriate. It results major cost oriented challenge for Corwin
Corporation. The senior manager assigned for the project was not enough skilled and as a result
the manager failed to keep the other project associates engaged to their responsibilities and
duties.
1.2 Risk register
Ri
sk
ID
Risk
Statement
Probabilit
y
Score
Response
Revised
Probabil
ity
Responsi
ble Party
Status
R1 Fixed budget
contract
high 13
Risk
accepted Medium
Finance
Departme
nt
Under
progress
R2 Inexperienced high 12 transferred Medium Project Under

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senior
manager manager
progress
R3 Improper
presentation
of rough
project draft
low 8
mitigated Low
Line
manager
Under
progress
R4 Too much late
line managers
in decision
making
medium 11
mitigated Low
Line
manager
Under
progress
R5 Improper
structured
change
management
plan
low 10
controlled Low
Project
manager
Under
progress
R6 Improper
procurement
decision
high 13
mitigated Medium
procureme
nt
manager
Under
progress
1.3 Risk probability matrix
Risk probability Matrix is used by the project managers to identify, prioritize and analyze
the impact of that particular risk in the project progress. The two different aspects that are

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considered for measuring project associate risks are probability and impact. The risk probability
matrix is used as a tool to aid in prioritizing various risks. It helps to determine the negative
impact of each risk. Based on the complexity of each risk proper risk mitigation strategies are
also needed to be developed by the project managers and other team members. The Probability
risk matrix that is generally used is a 3X3 matrix (High, medium and low) or a 5X5 matrix (low,
high, medium, very low, extreme). The risk probability matrix developed or measuring risks are
elaborated in the below section:
Impact
Probability
Trivial Minor Moderate Major Extreme
Rare Low Low Low Medium Medium
Unlikely Low Low Medium Medium Medium
Moderate Low Medium Medium Medium High
Likely Medium Medium Medium High High
Very likely Medium Medium High High High
2. Risk management and reporting
2.1 Developing appropriate risk response strategies
Different kinds of risk response strategies are available and based on the complexity,
probability and impact of the risks the project managers are needed to select and apply the most
suitable risk response strategies for the nominated case scenario. The risks identified for the
Corwin Corporation are also needed to be resolved using appropriate risk response strategies.
The details of the response strategies are illustrated in the below section:

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Use of proper project selection method: Different risk responses strategies are
available and in order to improve the project status proper project selection method is needed to
be adopted by the project manager before initiating he project. For this project the most suitable
selection method or selection process that is applicable is calculating net payback period. With
the help of payback period the project manager will be able to measure the net time that would
be required to regain the investment that has been done by the investor for implementing the
project.
Proper contract: It has found that before analyzing the complexity of the project a fixed
contract has been signed by Corwin Corporation while undertaking the Peter’s company project.
In order to resolve this issue the company should have understand the complexity and efforts
required for the project completion first. After that a feasibility study is required to be conducted
by the finance manager to measure whether in the estimated budget the project can be
implemented successfully or not.
Team engagement program: It is found that the line manager ad senior manager
assigned for the project were failed to engage the project team members to their duties and job
roles. In order to keep them engaged o their responsibilities motivation, leadership, support are
very essential. It would help the project team members to work in a collaborative manner. The
other actions that make the efforts easier are implementation of incentives and reward programs.
2.2 Identification and description of associate stakeholders for the risk management
activities
Stakeholders description Interest
Project Must monitor and control the project To accomplish the project within

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manager assigned time and budget
Finance
manager
To conduct feasibility study To complete the project within
assigned budget
Line manager To cooperate and collaborate team
members
Keep the employees engaged to
their responsibilities and roles
Senior
manager
To motivate all the assigned project team
members including the project manager
To make sure that the project will
be implemented successfully
Conclusion
The above discussion concludes that, risk management plan is very much essential for
managing and executing any project successfully within assigned time and estimated budget.
While executing the contract taken for Peter’s company, Corwin Corporation failed to consider
all the effective project management aspects. The stakeholders assigned for managing the risks
are elaborated in this report. Along with that, based on risks response strategies are also
elaborated in this report.

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