Develop and implement risk mitigation plan: (Case Study- Development of cloud-based ERP system in Studer Group, Australia)

This paper focuses on the risk management plan developed for the project “development of cloud-based ERP system within Studer Group, Australia”. It identifies, assesses, and monitors the risks of the project and provides a risk mitigation plan. The stakeholders of the project also play an important role in mitigating the project risk and challenges.

Running head: RISK MITIGATION PLAN
Develop and implement risk mitigation plan: (Case Study- Development of cloud-based ERP
system in Studer Group, Australia)
Name of the Student
Name of the University
Author’s Note

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RISK MITIGATION PLAN
Table of Contents
Task 1- Risk mitigation plan......................................................................................................2
Risk management plan...........................................................................................................2
1. Executive Summary.......................................................................................................2
2. Introduction....................................................................................................................2
3. Risk assessment..............................................................................................................2
4. Risk mitigation...............................................................................................................6
5. Risk monitoring..............................................................................................................9
6. Roles and responsibilities.............................................................................................10
Bibliography.....................................................................................................................12
Appendix: Risk Register..................................................................................................14

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Task 1- Risk mitigation plan
Risk management plan
1. Executive Summary
The paper mainly focuses on the risk management plan that is undertaken for the
project “development of cloud-based ERP system within Studer Group, Australia”. It is found
that the risk management plan is mainly developed in order to analyze as well as assess the
risks as per their likelihood and impact so that the risks can be prioritized as per their impact
on the project. The risk management plan that is developed generally identifies, asses as well
as monitors the risk of the project. In addition to this, the stakeholders of the project also play
an important role in mitigating the project risk and challenges.
2. Introduction
The paper mainly reflects on the risk management plan that is generally developed for
analyzing the risks that are generally associated with the project “development of cloud-based
ERP system in Studer Group, Australia”. It is found that the main purpose of developing the
risk management plan is to analyze the level of risks and challenges which are related with
the project in order to manage the risks in a very much structured way so that the threats that
are associated with the project can be managed. The main approach of risk management
within the project “development of cloud-based ERP system in Studer Group, Australia” is to
asses, monitor as well as mitigate the risks of the project by analyzing their likelihood and
impact.
3. Risk assessment
3.1 Risk identification
Risk identification is one of the process that helps in determining the risks or threats
that can impact the project negatively. In this project “development of cloud-based ERP

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system within Studer group”, it is found that all the risks that are associated with the project
are identified. In order to identify the risks, the methods that are generally used by the
project managers includes brainstorming, session with the staffs and well as by scanning
which is done with the help of the project managers. The risks that are generally identified
are mainly listed in the table that is given below:
Risks Identification
process
Categories of
risk
Time of
occurrence of
risk
identification
Stakeholder
involved
Improper
scheduling
Scanning by
project manager
Project risk During project
progress
Project
manager
Budget shortfall Session with
staffs
Financial risk During progress
of the project
Financial
manager
Improper testing
of infrastructure
Session with
staffs
Technical risk After
development
phase
Tester
Inappropriate
management
Brainstorming Operational
risk
During the
project progress
Operational
manager
Hiring
inexperienced
team members
Scanning by
project manager
Human
resource risk
During the
project progress
Hr. manager
3.2 Analysis and evaluation
It is found that after the risks that are associated with the development of cloud-based
ERP system is identified then the likelihood of the risks are identified for analyzing their
impact on the project. It is found that the impact of the project risks is properly analyzed for

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evaluating their impacts successfully so that the project related risks and challenges can be
resolved quite effectively. The table that is provided below mainly analyzes the impact of the
risks that are associated with the project.
Risk Impact Likelihood Seriousness
Improper
scheduling
Improper schedule
generally increases
the time of the
project which further
enhances the budget
that is associated
with the project.
Extreme Extreme
Budget shortfall The storage of
budget creates
construction within
the progress of the
project
Extreme Extreme
Improper testing of
infrastructure
Inappropriate
testing can cause
reduce the outcomes
of the entire project
and generally
minimizes the
quality of the project
Extreme Extreme
Inappropriate
management
Due to inappropriate
management, the
Medium Medium

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outcomes of the
project are delayed
and the timeframe of
the project get
extended which can
further increase the
cost of the project.
Hiring inexperienced
team members
Due to recruitment
of inexperienced
team members
within the project,
the output of the
projects gets
reduced.
High High
It is analyzed that with the help of risk analysis method, the risks that are associated with
the project are prioritized. As per the prioritization it is identified that the risks that are
provided below are high level risks and thus the risks should be mitigated effectively for
minimizing negative impact of the risks on the project. The identified high-level risks are as
follows:
 Improper schedule
 Budget shortfall
 Improper testing of infrastructure

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4. Risk mitigation
After the analysis and proper evaluation of identified risks that are associated with
the project, it is necessary to mitigate the challenges and risks. Risk management strategies
are the steps that are required to be undertaken for reducing the chance that a risk will be
realized. The table that is given below helps in providing steps that are helpful in mitigating
the risks and challenges that are associated with the risk. The risk mitigation plan is given
below:
Risk Proportion of
risk mitigation
that are
preventive
Preparation of
risk mitigation
that are
contingency
Key
stakeholders
and actions
that are
undertaken
Any budgetary
implications
Improper
scheduling
60% 40% Project planner
engages in
managing the
schedule of the
project
effectively.
Due to
inappropriate
scheduling, the
project related
risk increases.
Budget shortfall 30% 70% Financial
manager
engages in
keeping record
of the money
that is spend on
the project
The chances of
enhancing
project budget
is high.

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activities.
Improper
testing of
infrastructure
90% 10% Tester are
mainly
responsible of
testing the
system for
making sure
that whether the
system will
work effectively
or not.
No, the budget
of the project
does not get
affected.
Inappropriate
management
70% 30% Operational
manager is
mainly
responsible of
implementing
strategies for
managing the
project
effectively.
Due to
inappropriate
management,
the schedule of
the project
extended which
further
increases the
project budget.
Hiring
inexperienced
team members
70% 30% Hr. manager is
mainly
responsible of
hiring
stakeholders
Recruitment of
experienced
team members
generally assists
in increasing the

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within the
project who are
experienced.
budget of the
project.
Risk mitigation for identified A grade risks
Risk Type of mitigation
action
Responsible person
and undertaking
action
Cost implications
Improper scheduling Contingency Project planner
generally engages in
making the schedule
of the project
effective so that by
following that
project schedule, the
time of the project
can increase.
Due to
inappropriate
scheduling, the
budget of the project
can increase.
Budget shortfall Contingency The budget shortfall
must be reduced by
managing the budget
of the project very
much effectively.
It generally creates
major implications
on the project
budget.
Improper testing of
infrastructure
Preventive Tester must
undertake proper
testing for making
Due to testing, the
chances of
increasing the

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sure that the testing
is done with the help
of proper testing
infrastructure are
helpful
budget of the project
generally increases.
5. Risk monitoring
Risk monitoring is defined as one of the iterative procedures that is generally built
into the management process for any project. The table that is given below generally
monitors the risks that are generally identified from the project “development of cloud-based
ERP system within the organization Studer group”.
Risk Frequency of
identification
Involved
stakeholder
Frequency of
monitoring
Maintenance of
risk
management
plan
Improper
scheduling
Weekly Project
manager
Weekly Risk register is
maintained
Budget
shortfall
Monthly Financial
manager
Monthly Another
document is
maintained
Improper
testing of
infrastructure
Once Tester Once Another
document is
maintained.
Inappropriate
management
Weekly Operational
manager
Weekly Risk register is
maintained
Hiring Monthly Hr. manager Monthly Risk register is

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inexperienced
team
members
maintained
It is found that the steering committee of the project or the project sponsor are mainly
provided with updated risk register once in a month so that they can be able to take proper
actions in order to resolve the risks and challenges of the risks.
The risk status will generally be reported in the report of project status for the steering
committee, sponsors as well as project managers so that the A and B grade risks that are
identified can be resolved quite effectively with the help of proper risk mitigation plans.
6. Roles and responsibilities
6.1 Steering committee
The steering committee of the project are mainly responsible of reviewing the A and
B grade risks that are associated with the development of cloud-based ERP system within the
organization Studer group on a monthly basis. They generally review the risks with the help
of the information and data that are generally present within the project status reports. They
generally engage in providing advice as well as proper direction to the project managers. In
addition to this, the steering committee helps in providing updated register when additional
threats or impact of the projects are generally identified.
6.2 Project manager
The project managers are mainly responsible of implementing as well as developing
the risk management plan so that the risks that are identified within the project can be
mitigated quite easily. They generally involve in organizing risk management sessions on a
regular basis for reviewing both the new risks that are mainly associated with the project. It is
found that the assessments of project risks as well as development of appropriate strategies

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for managing the project related risks are mainly recommended by the project manager.
Additionally, assists in giving project status report to the steering committee of the project so
that they can be able to adopt proper methods and techniques for managing the risks and
challenges.
6.3 Project team
The team members who are mainly associated with the project are helpful in assisting
the project managers in the procedure of risk management so that the challenges and risks
which are associated with the project can be resolved quite effectively. The risk management
procedure mainly includes identification of risk, risk analysis as well as continual monitoring
of project risks within the entire lifecycle of the project so that the risks which are associated
with the project can be effectively resolved.

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Bibliography
Aven, T. (2016). Risk assessment and risk management: Review of recent advances on their
foundation. European Journal of Operational Research, 253(1), 1-13.
Badewi, A. (2016). The impact of project management (PM) and benefits management (BM)
practices on project success: Towards developing a project benefits governance
framework. International Journal of Project Management, 34(4), 761-778.
Bromiley, P., McShane, M., Nair, A., & Rustambekov, E. (2015). Enterprise risk
management: Review, critique, and research directions. Long range planning, 48(4),
265-276.
Cole, S., Giné, X., & Vickery, J. (2017). How does risk management influence production
decisions? Evidence from a field experiment. The Review of Financial Studies, 30(6),
1935-1970.
Conforto, E. C., Salum, F., Amaral, D. C., da Silva, S. L., & de Almeida, L. F. M. (2014).
Can agile project management be adopted by industries other than software
development?. Project Management Journal, 45(3), 21-34.
Joslin, R., & Müller, R. (2015). Relationships between a project management methodology
and project success in different project governance contexts. International Journal of
Project Management, 33(6), 1377-1392.
Kerzner, H. (2017). Project management metrics, KPIs, and dashboards: a guide to
measuring and monitoring project performance. John Wiley & Sons.
Marcelino-Sádaba, S., Pérez-Ezcurdia, A., Lazcano, A. M. E., & Villanueva, P. (2014).
Project risk management methodology for small firms. International journal of
project management, 32(2), 327-340

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McNeil, A. J., Frey, R., & Embrechts, P. (2015). Quantitative Risk Management: Concepts,
Techniques and Tools-revised edition. Princeton university press.
Paolella, M. S., & Polak, P. (2015). Portfolio Selection with Active Risk Monito
Todorović, M. L., Petrović, D. Č., Mihić, M. M., Obradović, V. L., & Bushuyev, S. D.
(2015). Project success analysis framework: A knowledge-based approach in project
management. International Journal of Project Management, 33(4), 772-783.
Too, E. G., & Weaver, P. (2014). The management of project management: A conceptual
framework for project governance. International Journal of Project
Management, 32(8), 1382-1394.

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Appendix: Risk Register
I
D
Description Impact L S G Chan
ge
Review
date
Mitigation Responsib
le
stakehold
er
Co
st
Time
neede
d
WB
S
1 Improper
scheduling
Triggering
include:
The problem of
improper
scheduling occurs
due to
development of
unrealistic
schedule
Improper
scheduling
of the
project can
increase the
project
timeframe
and as a
result the
cost of the
project
generally
enhances.
H H A New 16.09.18 Contingency:
Earned value
analysis must
be undertaken
for developing
the schedule
of the project.
Project
manager
Yes 2
mont
hs
Y
2 Budget shortfall
Triggering
include:
Shortage of
budget mainly
happens when the
money is not used
Shortage of
budget can
cause delay
or
minimizatio
n in the
project
H H A New 11.09.18 Preventive:
Proper
management
of project fund
Cutting off
extra cost of
the projects
Financial
manager
No 1
mont
h
N

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in a managed way
When the prices
of required
resources
increase.
outcomes
which
further
reduce the
quality and
extends the
timeframe
of the
project.
3 Improper testing
of infrastructure
Triggering
include:
Improper testing
mainly occurs due
to inappropriate
testing skills
among the testers
Improper
testing
generally
delays and
reduces the
output of
the project.
In addition
to this, the
quality of
the project
also gets
affected
due to
improper
testing.
H H A New 12.09.18 Preventive:
Proper testing
must be
undertaken
after the
development
phase
Tester No 1
mont
h
N

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4 Inappropriate
management
Triggering
include:
The problem in
managing the
project occurs
due to
inexperienced
project managers.
Improper
managemen
t will
extend time
timeframe
of the
project
which
enhances
the budget
of the
project.
M M B No
chang
e
13.09.18 Contingency:
Experienced
project
managers
must be hired
within the
project for
mitigating the
problem.
Hr.
manager
Yes 1
mont
h
N
5 Hiring
inexperienced
team members
Triggering
include:
Inexperienced
team members are
hired when the hr.
manager does not
have clear ideas
about the project
and the work that
will be undertaken
Due to
inexperienc
ed team
members
there are
chances of
extending
the
timeframe,
reduced
quality of
the project,
delay in
M M B No
chang
e
16.09.18 Contingency:
Experienced
team members
must be hired
after testing
their technical
skills.
Hr.
manager
Yes 1
mont
h
N

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by the
stakeholders.
project
outcomes
as well as
increase in
budget of
the project.