Risk Management Plan

Running head: RISK MANAGEMENT PLAN
Risk management plan
Name of the student
Name of the university
Author note

1RISK MANAGEMENT PLAN
Introduction
Risk management and identification is important for the business organizations in
mitigating the probability and impact of emergence of risks. The organizations should have the
proper and suitable mechanism for identification of the risks and assessing them on the basis of
their probability and impacts. In this case, the risk impact and probability matrix is beneficial for
rating and prioritizing the risks (Cardona, 2013). This report will discuss about the major risks
being faced by Corwin international and will use the risk matrix in prioritizing it. On the basis of
the risks identified, responses strategies in mitigating the risks and the communication strategies
to be involved with the involved stakeholders will also be discussed in this report.
Risk
Category Risk Description Risk Cause Impact Likelihoo
d Rating
Finance Overrun of financial
resources
Financial limitation 4-Major 5-Almost
Certain Extreme
Commercial Lack of rightly skilled
employees
lack of properly trained
employees
3-
Moderate 4-Likely High
Safety Lack of R&D expertise lack of prior experienece 4-Major 3-Possible High
Commercial lack of coordination with
the client
no proper channel 3-
Moderate 3-Possible Medium
Identification of the risks
One of the major risks identified for Corwin Corporation is the overrun of the financial
resources. This is due to the reason that in the case study it is stated that Corwin Corporation is
investing their own capital for the standards tests as their cost gone beyond the contracted
budget. Moreover, as the contract was signed based on fixed cost, the client Peter was not
responsible for paying for the added capital. Thus, it caused financial burden for Corwin
Corporation (Hopkin, 2018). The more impact of the financial burden will be the lack of funds
for other business activities of Corwin Corporation. This is due to the reason that there are
number of other activities especially the production activities are done by Corwin Corporation

2RISK MANAGEMENT PLAN
and the added financial cost got added from the allocated annual budget of the from. Thus,
outflow of the fund from the allocated budget will cause financial pressure on the development
of other activities (Bolton, Chen & Wang, 2013).
On the other hand, it is also identified that lack of rightly skilled and expert employees
from the engineering department is another risk for Corwin Corporation. This is due to the
reason that marketing department of Corwin Corporation is only having the skilled employees
who can deal with the customers. This is a major gap for Corwin Corporation. Lack of skilled
and expert employees is causing issues in the project. In the case study, it is identified that west
is selected based on his expertise in the engineering department but not on the basis of dealing
with the customers. Thus, he was not able to manage the undue requirements of the customer.
Thus, the major impact from this identified risk will be the dissatisfaction of the employees along
with the loss for the company (Bromiley et al., 2015). If the customers cannot be managed well,
then they will get dissatisfied and will not be loyal to the company. In the case study, it is
reported that Corwin Corporation also faced the termination of the contract from Peters due to
the dissatisfaction. In the future, Corwin Corporation will face more loss if the customers cannot
be managed well.
Another risk identified is the lack of R&D expertise. In the case study, it is reported that
Corwin Corporation is not having expertise in research and development needed prior to the
production process. Thus, accepting the business deal of initiating research and development
activities is also a major risk for Corwin Corporation (Aven & Zio, 2014). This risk will involve
non-controllable financial loss and safety issues. As Corwin Corporation is not having prior
expertise in this area, the safety aspects of the involved stakeholders might get compromised.