Project Management: Risk Analysis and Mitigation Strategies Report

This report analyzes a case study concerning the implementation of new software within a business context. The assignment focuses on project risk management, specifically addressing the challenges faced by a new project manager, George, in a project with significant budget constraints and pre-existing issues such as outdated infrastructure, political sensitivities, and lack of a formal risk management plan. The report addresses the benefits of a risk management plan, identifies both positive and negative risks, assesses the scale of identified risks (including software redesign, data migration, and employee expertise), and proposes controlling strategies. It further explores the importance of shared responsibility and the limitations of risk treatment in ensuring project success, emphasizing the need for proactive management and adaptability to unforeseen risks. The report references several academic sources to support its analysis and recommendations.

Running head: DIPLOMA OF PROJECT MANAGEMENT
Diploma of Project Management
Name of the Student
Name of the University
Author Note

1DIPLOMA OF PROJECT MANAGEMENT
Question 1
With the help of the risk management plan several benefits will be received. The main benefits
that will be received are as follows: -
 Spotting the project that will be in trouble: With the help of the risk management
process, the main benefit that will be received is that the issues that might be affecting
the project in a negative manner will be understood. With the help of the risk
management proper audits can be made. This will be improving the performance of the
project.
 All the events that will be performed in the process will be well known and hence wise
this will benefit the estimation process. Early awareness helps in increasing awareness
in the task completion process.
 Decision making process will also be getting better. It can be stated that the data that are
generated during the risk management process will help in performing better analysis of
the project. With better decision making issues that might arise in the process might get
eliminated.
 Expected success can be estimated. It can be stated that success of the project is
completely dependent on the decision making process. Hence with proper risks
assessment the issues that might arise will get eliminated and hence success of the
project will be higher.
These are the ways that will be changing the endemic culture in both the business and the project
aspect.

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Question 2
The positive risks are beneficial in the processing of the projects. The major positive risk
that is considered in the process is that the budget of the project have been decided in the initial
section. However in case the project gets completed within the stated budget, it acts as a positive
risk.
The negative risks that are present in the project is that three might be presence of
political sensitivities in the process along with the obsolete XP platforms. Improper planning also
might acts as a major negative risk that might occur in the process.
Question 3
Scale of the risks
The risks that are to be considered in the process are as follows: -
 Failure in redesigning the business as per the new software: The scale of the risk is very
high. This section ensures that due to the implementation of the new software, the main
issue that is to be considered is that the new software might not fit well with the
operational process of the organization.
 Improper senior management support and improper working environment is another issue
that might be faced in the operational process. It have been seen that the working
environment of the entire work place have not been very positive as the project team is
not ready to take any kind of risks.
 Another risk that can be considered is that the employees of the organization might not be
having enough expertise to use the newly implemented software. This will be again
reducing the efficiency of the working process of the software that is being implemented.

3DIPLOMA OF PROJECT MANAGEMENT
 Data Migration issues: Data migration is yet another issue that might arise in the
operational process of the new software implementation. It can be considered that the
data that are to be transferred from one platform to another platform acts as an issue. The
scale of the entire situation is high.
 Lack of flexibility in the working process might also affect the functioning process. As
the new software is implemented the main issue that is faced is that the flexibility of the
entire operational process decreases. This issue is needed to be mitigated for proper
assessment of the project. The scale of the project is high as well.
Question 4
The controlling strategies that are to be implemented are as follows: -
 For mitigating the issue regarding the redesigning of the software as per the requirement
of the working process requires proper research process. In case proper research is
performed in the initial stage of the project, this issue could have been eliminated. In case
proper data is collected regarding the working process, the entire designing of the
software must be performed in a manner that the software will be full be aligned with the
working process.
 Proper communication is needed to be established. For this process a communication
plan is to be made. This will be one of the major aspect that is to be considered for
performing proper understanding of the objective of higher board members. With proper
understanding of objective of the other 2 project managers, George will be having a
better insight to the entire situation.
 Providing proper training to the employees have been one of the major aspect that will be
helping in performing better usage of the new software. In case the software that have

4DIPLOMA OF PROJECT MANAGEMENT
been implemented is not used to the fullest extent, efficiency received in the process will
be much lower in nature.
 Taking proper backup of the data acts important in the process. In case of data migration,
there might be instances that will lead to improper data transferring process. In case data
transferring is not performed in a proper manner, the entire business process will be
getting effected. There might be instances where the data that are transacted gets lost or
gets breached.
 Bettering of the architecture of the software as per the alignment of the working process
will provide the desired flexibility. This increase in flexibility ensures that proper
management of the working process can be made.
Question 5
The main reasons that increases the importance of the shared responsibility are as follows: -
 There is an increase in team morale in case responsibility is shared. This will be
increasing the bonds in between the employees.
 This strategy will also be helping George in visualizing a vast vision regarding the new
software implementation.
Question 6
No, even if the risk treatment have been assigned, George cannot be at ease as there
might be unforeseen risks that might arise. Proper steps are required for completion of the
project. This is the main reason that proper functioning of the risk assessment will not be the
only way to complete the project without any issue.

5DIPLOMA OF PROJECT MANAGEMENT
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