Risk Management: Implementation of an Information system in a retail industry

This report discusses the implementation of an Information System in the retail industry and the risk management plan associated with it. It covers various risk categories such as marketing and strategic risks, communication risks, security risks, time and cost management risks, and lack of skills and knowledge related risks. The report also provides risk response strategies for each category.

Running head: RISK MANAGEMENT
Risk Management: Implementation of an Information system in a retail industry
Name of the student:
Name of the University:

1RISK MANAGEMENT
Risk management plan
Risk category is referred to as a broad category that an organization may face while
designing and implementing any project. For this specific report the project that has been
nominated is implementation if an Information System in the retail industry. It is much crucial
for the project managers to identify the possible risks at the project initiation phase, then
respective risks mitigation approaches are also to be evolved by the project managers. Two risks
categories available in this project are threats and opportunities. Risks can either be positive or it
can be negative as well. The positive risks offers opportunities to the business organization on
the other hand, the negative risks can create threats to the retail industry.
Possible risk categories
Category 1: Marketing and strategic risks
Cause Risk Effect Trigger Response Plan
THREATS
Improper allocation
of resources for the
IS development
project
It will result
over allocation
of cost
Rate of
production will
diminish by
30%
At the project
initiation
phase, based
on the project
details proper
resources are
to be chosen
by the project
Proper identification of
resources at the project
initiation phase

2RISK MANAGEMENT
manager and
other
associates
Improper use of
market strategies
Increase the
numbers of
competitors
Overall sales
rate can be
decreased by
40%
If proper
marketing
strategies are
not being
used by the
project
manager then,
the expected
cost will
exceed
Current market
analysis
OPPORTUNITIES
Positive risks with
supply chain
logistics
Help to build
secured
relationship
between the
consumers and
service
providers
increase
competitive
advantages
If the external
market is not
analyzed
professionally
then supply
chain
logistics will
be interrupted
PESTLE analysis or
external market
analysis
Lack of skills and It will help the Increase the Before hiring Current market

3RISK MANAGEMENT
knowledge among
the business
associates
business
associates to
attend technical
training and
development
program
business
operational
efficiency
the
employees if
self
assessment is
not done
analysis
Category 2: Communication risks
Cause Risk Effect Trigger Response Plan
THREATS
Lack of professional
communication
skills
will occur intra
project team
conflicts
It will cause
internal team
conflict
Cultural
barriers
and
cultural
gaps
The project head should
use open
communication while
interacting to each
project team members
OPPORTUNITIES
Incorrect approach
towards
communication
The project
head will fail to
collaborate the
project team
members
It will impact
the expected
activities of
the project
associates
Cultural
barriers
The project team
members must use
proper communication
channel to avoid the
unwanted interruptions

4RISK MANAGEMENT
Category 3: Security risks
Cause Risk Effect Trigger Response Plan
THREATS
Hacking of
confidential
information from
the server
The hacked
information
can be misused
by the
unwanted users
It will
negatively
impact the
company's
confidentiality
If accurate
encryption
mechanism is
not used then
the
confidential
hacking can be
used
The project manager
should use encryption
mechanism
OPPORTUNITIE
S
Unwanted user
access
All information
will be
accessed by the
users even
though who are
not authorized
Unwanted
users will be
misused by
the users
Inaccurate
encryption and
security
mechanism
Must use application
firewall to restrict the data
access

5RISK MANAGEMENT
Category 4: Time and cost management risks
Cause Risk Effect Trigger Response Plan
THREATS
Inaccurate
time
management
If the project
timeline is
not properly
designed
then, it will
cause over
allocation of
time
Over
allocation of
time
If proper timeline
is not managed
then the project
timeline will
exceed
At the project initiation
phase, the timeline pr
schedule must be prepared
Improper
cost
management
It will cause
overrunning
project
budget
Overrunning
project
budget
If skills and
efforts of the
employees are not
professionally
surveyed
A project feasibility study
should be prepared at the
project initiation phase
Category 5: Lack of skills and knowledge related risk
Cause Risk Effect Trigger Response Plan
THREATS
Lack of skills
among IS
project
If the project
manager and other
team members fail to
Commercial
profit will be
impacted
Inquiry
regarding
selected IS
Arrangement of
professional
training and

6RISK MANAGEMENT
development
team
ideate the
professional skills
and knowledge then
it will cause failure
in project outcomes
design outline development
program
Lack of
experience
Lack of experience
among the team
associates will
negatively impact
the project
objectives
Interrupt the
expected market
competitiveness
If the hired
employees
lacks enough
technical
knowledge
and skills
Proper assessment
before hiring any
employee
These are the above risks categories must be resolved with a risk matrix:
Risk id Risk description Impact Probability Score
1 Marketing and
strategic risks
High Likely High
2 Communication
risks
High Unlikely Extreme
3 Security risks Moderate Possible Low
4 Time and cost
management
Extreme Most likely Moderate

7RISK MANAGEMENT
risks
5 Lack of skills
and knowledge
related risk
Low Rare High
Risk response strategies
In order to avoid risks in terms of functions and operations certain risk mitigation
approaches are also there such as risk mitigation, risk acceptance, risk transfer, risk avoidance
are available. Based on type of risk the most suitable risk mitigation mechanism needs to be
developed by the project manager and approved by the sponsors. Apart from this, some of the
risks categories for this project are external risks, internal risks, technical risks, security risks,
unforeseeable risk, risks with resources, cost and time etc.
Based on the impact, probability and scores of the risks the project managers should plan
accurate risk response strategies. The risk response strategies those are to be used for this
specific nominated project are as follows:
Risks avoidance: The risk avoidance is referred to as an approach that is used to
eliminate the cause of risks. Elimination of these risks can eventually eliminate the possible
threats as well.

8RISK MANAGEMENT
Risk mitigation: It has been determined that there are certain risks those cannot be easily
or directly mitigated by the project associates but their impacts can be reduced. This approach is
known as risk mitigation approach.
Risk transfer: This risk response strategy is also applicable for those risks that are
difficult to eliminate during the project progress period. In this approach the risks are transferred
to insurance purchases, warranties and guarantees etc.
The choices of response strategies for the opportunities are as follows:
Exploit: This strategy helps to add work or change a project completely to ensure
successful project opportunities.
Enhancement: It helps to enhance the positive impact and probabilities of the risks
events
Risk share: It helps to allocate opportunity ownership for the third parties.

9RISK MANAGEMENT
References
Arena, F. and Pau, G., 2019. An Overview of Vehicular Communications. Future Internet, 11(2),
p.27.
Barabba, V., 2019. Assessing General Motors’ innovation strategy over three decades using the
“Three Box Solution”. Strategy & Leadership.
Coombs, W.T., Holladay, S.J. and Tachkova, E., 2019. Crisis Communication, Risk
Communication, and Issues Management. Public Relations Theory: Application and
Understanding, p.31.
Dow, S.B. and Ellis, N.S., 2019. A New Look at Criminal Liability for Selling Dangerous
Vehicles: Lessons from General Motors and Toyota. Hastings Business Law Journal, 15(1), p.1.
Edgeman, R., 2019. Performance Management and Enterprise Excellence through Sustainable
Business Models. In Sustainable Business Models (pp. 317-359). Palgrave Macmillan, Cham.
Murphy, F., Pütz, F., Mullins, M., Rohlfs, T., Wrana, D. and Biermann, M., 2019. The impact of
autonomous vehicle technologies on product recall risk. International Journal of Production
Research, pp.1-14.
Okul, Ş., Aydin, M.A. and Keleş, F., 2019. Security Problems and Attacks on Smart Cars. In
International Telecommunications Conference (pp. 203-213). Springer, Singapore.
Sohel, S.M., Rahman, A.M.A. and Uddin, M.A., 2014. Competitive profile matrix (CPM) as a
competitors’ analysis tool: A theoretical perspective. International Journal of Human Potential
Development, 3(1), pp.40-47.