BSBPMG517 Manage Project Risk: Australian Hardware CRM Implementation

This report assesses the importance of project risk management, particularly within Australian Hardware's CRM implementation project. It details relevant legislation like the Work Health and Safety Act, the creation of a risk register, and the consultation process used to identify and address risks. The report covers risk probability and impact assessment using a risk matrix, emphasizing adherence to organizational policies and effective communication methods. It explores various risk categories (communication, finance, quality), key components of a risk management plan, and industry-standard risk frameworks. The report differentiates between qualitative and quantitative risk management techniques, offering strategies to minimize physical risks during CRM implementation. This document, contributed by a student, is available on Desklib, a platform offering AI-based study tools and resources.

ASSESSMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
SECTION A.....................................................................................................................................3
Piece of legislation and how it directly relates to Australian Hardware store and its working. .3
Complete a risks register for CRM project.................................................................................3
Consultation process and the outcomes .....................................................................................4
Risk probability and impact assessment for CRM project and then record the findings in a risk
and impact matrix........................................................................................................................5
Adhere to organisational policies and procedures and how this impacts contribution to the
wider goals of the organisation...................................................................................................5
Appropriate communication methods to seek and share information with a range of people....5
Identify and develop an appropriate method for risk management.............................................6
SECTION B.....................................................................................................................................6
Risk for upcoming project...........................................................................................................6
Key components of a risk management plan .............................................................................7
Use the risk matrix below to identify three different risks..........................................................7
Summarise the industry standard risk framework.......................................................................7
Characteristics, techniques and appropriate applications of quantitative and qualitative risk
management................................................................................................................................8
SECTION C.....................................................................................................................................8
Apply specific risk management techniques and strategies to minimise the chance of physical
risk...............................................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
This report is based on importance of effective project management in an organisation
and how it help organisation in achieving its goals and objectives effectively and efficiently. This
report help in understanding importance of project management and help in understanding risk in
project management. There are several risk included in project management and in order to
effectively complete the project managers of every organisation focus on developing appropriate
plan to resolve issues which come project management. Identifying project risk help in
formulation of objectives which are effective. This report is based on Australian Hardware which
operates in market of Australia and there are 10 stores of hardware in Australia. This report is
based on issues faced by managers during implementation of CRM system in organisation and
how risk included in implementing new system can be analysed and evaluated. Risk analysis
help Australian Hardware store in managing their resources effectively and efficiently
(Apostolou, 2019).
SECTION A
Piece of legislation and how it directly relates to Australian Hardware store and its working
There are several laws which are followed by organisation and which help in smooth
functioning of organisation. This part of report focuses on the legislation implemented by
organisation for its smooth and effective working. Every organisation depends on effective
performance of their employees and effective performance depends on environment of
organisation which help in boosting their morale. Work health and safety act help employees in
working in a safe and sound environment. Australian Hardware also implemented this law in the
organisation as it help in boosting employees morale to work hard towards organisation goal and
objectives. Health and safety act help in adhering organisation with providing healthy
environment to employees. Australian Hardware stores make sure that every employee should
feel safe in organisation premises and organisation environment should be healthy. Healthy and
safe environment help in employees motivation which positively affects productivity and
profitability of organisation (Behzadi and et. al., 2018).
Complete a risks register for CRM project
CRM is explained as Customer Relationship management which help in creating
effective coordination among departments of organisation and help in managing consumer

associated with organisation. This part of report is based on accessing the risk faced by manager
of Australian Hardware store in implementing CRM project. CRM implementation needed to be
effective and efficient and in order to implement effective CRM project manager should focus on
analysing risk involved in implementation of CRM project. There are several risk associated with
implementation of CRM project which are mentioned below:
Expenses
CRM is very expensive and accurate research help in selecting appropriate CRM system for
organisation according to their need and also help in reducing the cost (Di Ludovico and Di
Lodovico, 2020.).
Implementation problem
CRM is difficult to implement as there are many difficulties faced by organisation which is
influenced by several factors such as:
 Need effective planning
 Inaccurate data results in inefficiency
 Needed skilled employees to operate
Consultation process and the outcomes
Above part of report helped in identifying risk in implementation of CRM in Australian
Hardware. This part of report focuses on taking necessary steps to overcome the risk involved in
CRM implementation and how it can help Australian Hardware store in managing their
consumers. Consultation process to overcome the risk includes framing of objectives which help
employee of Australian Hardware store in understanding need of implementation of CRM and
how it can assist in achieving their goals and objectives. Consultation process should include the
aim and objectives of organisation, expenses needed for organisation, strategies which should be
implemented in organisation, position in market, assessing risk factors involved in
implementation of CRM in organisation. These factors are considered during consultation as it
help in achieving goals and objectives of organisation and these factors help overcoming the
barriers involved in growth of organisation (Hillson and Simon, 2020).
Risk probability and impact assessment for CRM project and then record the findings in a risk
and impact matrix
Risk probability and impact assessment help organisation in analysing the risk involved
in project and help in analysing the possibility of risk occurring in the future. Risk probability

help in determining occurrence of risk in future and how much it can affect organisation in terms
of development. Australian Hardware Store focuses on analysing risk involved in CRM project
which can be analysed by the help of risk probability and impact assessment. There are several
risk factors included in implementation of CRM project such as cost, time, scope and quality.
These are some risk factors involved in implementation of CRM in Australian Hardware Store.
Risk and impact matrix is used to analyse the findings of risk probability and help organisation in
analysing impact of these factors on organisation (Ibrahim and Esa, 2018).
Risks Negligible Minor Moderate Significant Severe
Management
Risk Very likely
Low
Medium
Technological
risk Likely
Longevity
risk Possible
Economy risk Unlikely
Legal risk Very Unlikely
Adhere to organisational policies and procedures and how this impacts contribution to the wider
goals of the organisation
Every organisation focuses on boosting their profits as it help in maximizing productivity
and profitability of organisation. Organisation objectives is to achieve desired goals by effective
utilisation of resources. Australian Hardware Store manager focuses on achieving goals and
objectives by implementing effective strategies. Organisation policies and procedures play vital
role in setting goals as policies help in determining need of resources to achieve goals and help
in understanding mission and vision of organisation. Policies and procedures help Australian
Hardware store organisation in understanding norms and values of organisation and help in
expansion of business. Policies and procedures in Australian Hardware store help manager in
decision making of organisation for implementing changes in organisation and it also assist in
day to day operations within an organisation. Policies and procedures help employees in
understanding their roles and responsibilities which help them in achieving their goals and
objectives.

Appropriate communication methods to seek and share information with a range of people
This part of report focuses on communicating within an organisation effectively and
efficiently. This part of report focuses on effective implementation of CRM in Australian
Hardware Store and appropriate communication method to share information regarding CRM
system. Communication help in sharing information among employees of organisation and
effective communication help in understanding roles and responsibilities. There are several
communication method which can used by Australian Hardware store manager for effective
implementation of CRM system:
 Open Meeting
 Emails
 Presentation
 Written Communications
Identify and develop an appropriate method for risk management
Appropriate method for risk management is to develop effective risk management plan
which help in controlling consequence of risk and it help in determining occurrence of risk in an
organisation. Australian Hardware store manager focus on developing risk management plan
which includes information about life cycle of project, organisation risk, organisation system and
risk, summary outcome of risk process. Risk management plan help in reducing the occurrence
of risk by planning resource utilisation and managing personnel of organisation effectively
(Naude and Chiweshe, 2017).
SECTION B
Risk for upcoming project
This part of report focuses on risk which is involved in implementation of CRM in
Australian Hardware store. There are three different categories under which these risk fall which
are mentioned below:
 Communication
 Finance
 Quality
Ineffective communication causes chaos in the organisation and ineffective communication leads
to dispute and conflict in the organisation.

CRM need heavy financial resources and organisation have to focus on effective utilisation of
their financial resources as ineffective planning of financial resources leads to loss for
organisation.
CRM result depends on accurate data and quality data is needed for effective and efficient
results. Ineffective data will lead to inaccurate results for organisation.
Key components of a risk management plan
Risk management plan includes various components which are mentioned below:
 Audit trail for risk management over project life cycle
 Format of information
 Organisation systems and risk methods
 Manual and computerised systems
 Risk register
 Summary outcome of risk processes
These components help in developing effective risk management plan and it help in planning the
course of project and these components help in reducing occurrence of risk in an organisation.
Above components of risk management plan help in assessing risk factors and help in
determining effectiveness of risk management plan (Okonofua and Rahman, 2018).
Use the risk matrix below to identify three different risks
Risk matrix help in analysing risk factor involved in project of organisation and help in
assessing its impact on the project of organisation.
Risks Negligible Minor Moderate Significant Severe
Technological
risk Likely
Longevity
risk Possible
Economy risk Unlikely

Legal risk Very Unlikely
Summarise the industry standard risk framework
Industry risk framework help organisation in identifying risk and its impact on
organisation., Industry risk framework consists of five components such as:
 Risk identification
 Risk Assessment
 Risk mitigation
 Risk reporting
 Risk governance
Risk identification stage involves identifying risk involved in the project. Risk identification help
organisation in selecting risk which is affecting organisation performance.
Risk assessment is explained as providing information on the risk which can affect the
performance of organisation and risk which will make more impact on productivity of
organisation.
Risk mitigation explained as process in which organisation decides on which risk should be
minimized and eliminated.
Risk reporting is explained as process in which risk is monitored by organisation manager to
keep risk at minimal level.
Risk governance is explained as process in which every employee should understand their roles
and responsibilities in accordance with risk framework (Saleh, Ibrahim and Rahman, 2019).
Characteristics, techniques and appropriate applications of quantitative and qualitative risk
management
Qualitative risk management have various techniques which are mentioned below:
 Risk probability and impact assessment
 Probability and impact matrix
 Risk data quality assessment
 Risk categorization
 Risk urgency assessment
 Expert judgement
Quantitative risk management have various techniques which are mentioned below:

 Risk management plan
 Cost management plan
 Schedule management plan
 Risk register
 Organisational process assets
Qualitative and quantitative analysis are based on facts and statistical risk calculations and help
in occurrence of risk in an organisation (Seebauer and et. al., 2019).
SECTION C
Apply specific risk management techniques and strategies to minimise the chance of physical
risk
In implementation process of CRM software in organization, there are some significant
risks that management confronts, some of them are explained below:
 Difficult implementation: The CRM initiative is tough to analyse and also
implementation is as difficult. This is due to the fact that data obtained for the purpose of
implementation can be inaccurate and it is also distributed over a wide place. Technology
infrastructure requirements were underestimated. Phased approaches are highly
recommended, concentrating on priority requirements first.
 Expense: There are two ways in which this software can be installed in the place, one is
to build an in-house system or in the other option, it can also be purchased from outside
vendors. In both cases, the cost is high. This is due to high maintenance, intensive
research and also security measures (Tupa, Simota and Steiner, 2017).
 Web Dependency: there is high dependency on internet, therefore, before installing the
software, scalability should be considered. It is to ensured that before implementing the
modern software, technological infrastructure should be made strong. Traditional
applications may have served a thousand or more internal users. Commercial Web
applications may be required to support hundreds of thousands of transactions per day. If
a company becomes too dependent on the Web and the system or network goes down,
significant revenue may be lost. Customer satisfaction can spiral down rapidly.
Companies should strike a proper balance in leveraging Web technology in a CRM
initiative and invest wisely to minimize risk.

CONCLUSION
This report help in conclude about importance of risk management plan in organisation
and by the use of risk management plan risk in organisation can be reduced. Every organisation
faces different type of risk when managers focus on implementing changes in organisation and
risk management plan help in reducing the level of risk. There are several techniques to measure
risk level and different analysis are used by organisation in order to reduce risk level. This report
concludes about importance of analysing impact of risk on the organisation functioning.

REFERENCES
Books and Journals
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private healthcare organisation, after a manager change.
Behzadi, G., and et. al., 2018. Agribusiness supply chain risk management: A review of
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Di Ludovico, D. and Di Lodovico, L., 2020. The Regional Management Risk Plan. Knowledge,
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Disaster Risk Reduction. 45. p.101465.
Hillson, D. and Simon, P., 2020. Practical project risk management: The ATOM methodology.
Berrett-Koehler Publishers.
Ibrahim, F. S. and Esa, M., 2018. The implementation of risk management plan: towards safer
hillside development project. Malaysian Construction Research Journal (MCRJ), p.1.
Naude, M. J. and Chiweshe, N., 2017. A proposed operational risk management framework for
small and medium enterprises. South African Journal of Economic and Management
Sciences. 20(1). pp.1-10.
Okonofua, H. and Rahman, S., 2018, August. Evaluating the risk management plan and
addressing factors for successes in government agencies. In 2018 17th IEEE
International Conference On Trust, Security And Privacy In Computing And
Communications/12th IEEE International Conference On Big Data Science And
Engineering (TrustCom/BigDataSE) (pp. 1589-1592). IEEE.
Saleh, N., Ibrahim, I. and Abd Rahman, F., 2019. Determine the factors of influence the
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Seebauer, S., and et. al., 2019. Bottom‐up citizen initiatives as emergent actors in flood risk
management: Mapping roles, relations and limitations. Journal of flood risk
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Tupa, J., Simota, J. and Steiner, F., 2017. Aspects of risk management implementation for
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