BSBPMG517 Diploma Project Management: E-commerce Risk Analysis

This report provides a comprehensive analysis of risk management in the development of an e-commerce portal, covering risk identification, assessment, and response strategies. It begins by educating stakeholders on risk management principles and their relation to project scope, schedule, and budget, utilizing communication and training methods. The report identifies project risks within the context of information security laws and ethical codes, involving project team members in risk planning. It explores risks as opportunities, analyzes consequences and likelihood, and employs quantitative techniques like SWOT and decision-tree analysis. The prioritization of risks is based on combined ratings, leading to the development of risk response strategies and a detailed risk register with action plans. The report also addresses monitoring and controlling project risks, assessing risk management outcomes, and identifying problems encountered during the project. The appendices provide supporting documentation and further insights into the risk management process.

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

Risk Management
obligations and punishments
Health & Safety Issues 5 The resources may suffer from
temporary or permanent injuries
Risk Likelihood rating Explanation of likelihood rating
Schedule Overrun 4 There may be changes in the project
as demanded by the client or technical
faults that may lead to unwanted
delays.
Technical Faults 3 There are several technical tools that
will be used in the project and may
show certain errors and faults.
Security Attacks 5 There will be too many access points
available to the attackers which may
allow them to easily give shape to
network-based attacks, malware
attacks, data breaches and leakage.
Market Risks 2 The market inflation rate is low and
the chances of the risk will also be
low as a result6.
Resource Risks 2 The assignment of resources has been
done on the basis of their skill sets and
the effort required. It is less likely to
change during the project timeline.
Quality Risks 1 There will be reviews and audits done
by the management on the aspect of
project quality and therefore, the
likelihood of this risk is very low.
6 Daranee Pimchangthong and Veera Boonjing, "Effects Of Risk Management Practice On The Success Of IT
Project", Procedia Engineering 182 (2017): 579-586, doi:10.1016/j.proeng.2017.03.158.
6

Risk Management
Ethical Risks 1 There will be reviews and audits done
by the management on the aspect of
project ethics and therefore, the
likelihood of this risk is very low.
Scope Inflation 3 There may be changes in technology,
customer expectations, and
requirements that may come u and
alter the project scope at regular
intervals
Legal Risks 1 There will be reviews and audits done
by the management on the aspect of
legal compliance and therefore, the
likelihood of this risk is very low.
Health & Safety Issues 1 The company has a healthy work
environment, work culture and
atmosphere developed and
implemented so the chances of the
risk are very low
Quantitative Risk Analysis
List: SWOT (Strengths, Weaknesses, Opportunities, Threats) Analysis, Decision-tree
analysis
Description: SWOT analysis of the risks will provide the severity levels of the risks and the
ability of the organization to deal with these risks. Decision-tree analysis will provide
clarity on the likelihood and impact levels involved with the risk7.
Reflection Prioritization of Risks
Risk Combined Rating Total Risk Priority Rationale for
Prioritisation
Schedule
Overrun
16 2 On the basis of the risk
rating calculated as per
7 Juliane Teller, "Portfolio Risk Management And Its Contribution To Project Portfolio Success: An Investigation
Of Organization, Process, And Culture", Project Management Journal 44, no. 2 (2013): 36-51,
doi:10.1002/pmj.21327.
7

Risk Management
consequence and likelihood
scores
Technical
Faults
9 4 On the basis of the risk
rating calculated as per
consequence and likelihood
scores
Security
Attacks
25 1 On the basis of the risk
rating calculated as per
consequence and likelihood
scores
Market Risks 6 6 On the basis of the risk
rating calculated as per
consequence and likelihood
scores
Resource
Risks
6 5 On the basis of the risk
rating calculated as per
consequence and likelihood
scores
Quality Risks 5 9 On the basis of the risk
rating calculated as per
consequence and likelihood
scores
Ethical Risks 5 10 On the basis of the risk
rating calculated as per
consequence and likelihood
scores
Scope
Inflation
12 3 On the basis of the risk
rating calculated as per
consequence and likelihood
scores
Legal Risks 5 8 On the basis of the risk
rating calculated as per
8

Risk Management
consequence and likelihood
scores
Health &
Safety Issues
5 7 On the basis of the risk
rating calculated as per
consequence and likelihood
scores
Risk Response Strategies
Risk Option Explanation of treatment Rationale for
treatment
Schedule
Overrun
Avoidance &
Mitigation
Audits, reviews, and
inspections
Risk Management
approach using
PMBoK methodology
Technical
Faults
Transfer To third-party vendors Risk Management
approach using
PMBoK methodology
Security
Attacks
Avoidance &
Mitigation
Administrative, technical,
and physical security
controls
Risk Management
approach using
PMBoK methodology
Market Risks Acceptance Accepted since positive risk Risk Management
approach using
PMBoK methodology
Resource
Risks
Acceptance Accepted since positive risk Risk Management
approach using
PMBoK methodology
Quality Risks Avoidance &
Mitigation
Quality audits, reviews, and
inspections
Risk Management
approach using
PMBoK methodology
Ethical Risks Avoidance &
Mitigation
Ethics audits, reviews, and
inspections
Risk Management
approach using
PMBoK methodology
Scope
Inflation
Share Communication with project
sponsor as the risk will
Risk Management
approach using
9

Risk Management
occur due to changes laid
out by the sponsor
PMBoK methodology
Legal Risks Avoidance &
Mitigation
Legal audits, reviews, and
inspections
Risk Management
approach using
PMBoK methodology
Health &
Safety Issues
Avoidance &
Mitigation
Health and safety audits,
reviews, and inspections
Risk Management
approach using
PMBoK methodology
Risk Register & Action Plan
Ris
k
No
Risk
Category
Risk Explanation
including existing Risk
Controls
Likelihood
Impact
Rating
Mitigation
Approach/Reaction
Likelihood
Impact
Rating
Initial Residual
1 Schedule
Overrun
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
market8.
Daily and weekly
meetings
4 4 16 Avoidance & Mitigation 2 2 4
2 Technical
Faults
There may be unwanted
delays that the team
may have to go through
because of the technical
3 3 9 Transfer 2 3 6
8 Satyendra Kumar Sharma and Niranjan Swain, "Risk Management In Construction Projects", Asia Pacific
Business Review 7, no. 3 (2011): 107-120, doi:10.1177/097324701100700310.
10

Risk Management
Ris
k
No
Risk
Category
Risk Explanation
including existing Risk
Controls
Likelihood
Impact
Rating
Mitigation
Approach/Reaction
Likelihood
Impact
Rating
Initial Residual
faults ad failures.
Technical reviews
3 Security
Attacks
The security and
privacy of the
information and data
sets may be negatively
impacted which may
lead to legal obligations
as well along with the
deteriorate end user
satisfaction.
Intrusion detection
systems
5 5 25 Avoidance & Mitigation 3 4 12
4 Market
Risks
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.
Market studies
2 3 6 Acceptance 2 3 6
5 Resource
Risks
The resources may be
able to finish the project
2 3 6 Acceptance 2 3 6
11

Risk Management
Ris
k
No
Risk
Category
Risk Explanation
including existing Risk
Controls
Likelihood
Impact
Rating
Mitigation
Approach/Reaction
Likelihood
Impact
Rating
Initial Residual
activities before the due
dates and the
improvements and
quality enhancements
activities may be done
in a better manner.
One on One discussions
with resources
6 Quality
Risks
Non-adherence to the
project quality
standards will lead to
poor customer
satisfaction and will
also negatively impact
the goodwill of the
organization.
Quality management
plan
1 5 5 Avoidance & Mitigation 1 4 4
7 Ethical
Risks
Non-adherence to the
project ethical standards
will lead to poor
customer satisfaction
and will also negatively
impact the goodwill of
1 5 5 Avoidance & Mitigation 1 4 4
12

Risk Management
Ris
k
No
Risk
Category
Risk Explanation
including existing Risk
Controls
Likelihood
Impact
Rating
Mitigation
Approach/Reaction
Likelihood
Impact
Rating
Initial Residual
the organization9.
Compliance checks
8 Scope
Inflation
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.
Weekly meeting with
sponsor of the project.
3 4 12 Share 2 3 6
9 Legal
Risks
Non-adherence to the
project legal standards
will lead to poor
customer satisfaction
and may also lead to
legal obligations and
punishments.
Compliance checks
1 5 5 Avoidance & Mitigation 1 4 4
10 Health & The resources may 1 5 5 Avoidance & Mitigation 1 5 5
9 Leena Pekkinen and Kirsi Aaltonen, "Risk Management In Project Networks: An Information Processing
View", Technology And Investment 06, no. 01 (2015): 52-62, doi:10.4236/ti.2015.61005.
13

Risk Management
Ris
k
No
Risk
Category
Risk Explanation
including existing Risk
Controls
Likelihood
Impact
Rating
Mitigation
Approach/Reaction
Likelihood
Impact
Rating
Initial Residual
Safety
Issues
suffer from temporary
or permanent injuries.
Audits and reviews
Risk Categories
Risk Rating Scales and Overall Rating
Risk Action Plan 1
Risk No/Item No: 1 Risk Description:
Schedule Overrun
Risk Rating: 16 Risk
Category:
Schedule
Risks
Risk Treatment: Avoidance &
Mitigation:
Action Plan:
Proposed Action: Audits, reviews, and inspections on project progress
Resource Requirements : Project Manager
14

Risk Management
Responsibilities: Project Manager
Scope Impact: Project scope unaltered
Time Impact: Project time unaltered
Cost Impact: project costs unaltered
Reporting and Monitoring: Risk review report, risk closure report, audit report
Prepared by:
Project Manager
Date: 30-08-2018 Reviewed by:
Project Sponsor
Date: 30-08-2018
Risk Action Plan 2
Risk No/Item No: 3 Risk Description:
Security Attacks
Risk Rating: 25 Risk
Category:
Security
Risks
Risk Treatment: Avoidance &
Mitigation
15

Risk Management
Action Plan:
Proposed Action: Administrative, technical, and physical security controls
Resource Requirements: Web Developer, Tester
Responsibilities: Web Developer, Tester
Scope Impact: Unaltered
Time Impact: Unaltered
Cost Impact: Cost of technical security tools and controls
Reporting and Monitoring: Risk review report, risk closure report, security audit report
Prepared by:
Project Manager
Date: 30-08-2018 Reviewed by:
Project Sponsor
Date: 30-08-2018
16

Risk Management
Monitor & Control Project Risks
Monitor Risk Atmosphere
The monitoring of the risk environment has been done through the risk reviews and control
processes. There is a risk status report that is submitted every week that indicates the
percentage of activities completed to treat the risk and the ones pending.
There is also a weekly meeting that is organized by the Project Manager with all the team
members to obtain and monitor the project risks.
Outcome of Review & Management of Changes
The review outcomes have shown that there is a change in the risk likelihood and impact that
will change the risk management approach as well. There are newer risks, such as operational
errors that are also observed. The risks will be managed by using a phased approach covering
change identification, execution, management, and closure10.
Assess Risk Management Outcomes
Project Performance in terms of Risk Management - Effectiveness of the Procedures
The project is performing well in terms of risk management as the majority of the risks are in
their closure state.
The procedures will be considered as the project is on-track in terms of schedule, budget,
scope, ethics, quality, and regulatory policies.
Risk Management Problems
Date Description of
problem/opportunity
Recommended Action for
next time/project
Lesson Learnt
Raised By
28-08-
2018
Communication
problems while
information gathering for
risk identification
Development of
communication management
plan in advance
Project Manager
10 Hans Thamhain, "Managing Risks In Complex Projects", Project Management Journal 44, no. 2 (2013): 20-35,
doi:10.1002/pmj.21325.
17

Risk Management
Date Description of
problem/opportunity
Recommended Action for
next time/project
Lesson Learnt
Raised By
30-08-
2018
Difficulty in analysis of
the huge data sets
Use of data analytics tools Project Manager
18

Risk Management
References
Ahmed, Ammar, 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.
Carvalho, Marly Monteiro de, 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.
Pekkinen, Leena, and Kirsi Aaltonen. "Risk Management In Project Networks: An
Information Processing View". Technology And Investment 06, no. 01 (2015): 52-62.
doi:10.4236/ti.2015.61005.
Pimchangthong, Daranee, and Veera Boonjing. "Effects Of Risk Management Practice On
The Success Of IT Project". Procedia Engineering 182 (2017): 579-586.
doi:10.1016/j.proeng.2017.03.158.
Rabechini Junior, Roque, 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.
Sanchez, Hynuk, Benoit Robert, Mario Bourgault, and Robert Pellerin. "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.
Serpella, Alfredo Federico, Ximena Ferrada, Rodolfo Howard, and Larissa Rubio. "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.
Sharma, Satyendra Kumar, and Niranjan Swain. "Risk Management In Construction
Projects". Asia Pacific Business Review 7, no. 3 (2011): 107-120.
doi:10.1177/097324701100700310.
19

Risk Management
Teller, Juliane. "Portfolio Risk Management And Its Contribution To Project Portfolio
Success: An Investigation Of Organization, Process, And Culture". Project
Management Journal 44, no. 2 (2013): 36-51. doi:10.1002/pmj.21327.
Thamhain, Hans. "Managing Risks In Complex Projects". Project Management Journal 44,
no. 2 (2013): 20-35. doi:10.1002/pmj.21325.
20

Risk Management
Appendix
21