Risk Management Report: A&D Hitech Online Store Project
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AI Summary
This report provides a comprehensive analysis of risk management within the context of A&D Hitech, a computer product supplier aiming to expand its business through an online store. The report details the benefits of risk management, including financial considerations and resource protection, and outlines the project's goals and objectives. It identifies potential risks, such as technical challenges, and discusses risk management strategies including qualitative and quantitative analysis, risk matrix development, and mitigation plans. The report emphasizes the importance of stakeholder roles, budgeting, and communication in the risk management plan. It also analyzes the expected monetary value (EMV) to demonstrate the potential financial impact of unmanaged risks, concluding with recommendations for corrective strategies and actions to ensure project success. The report covers aspects of risk identification, assessment, and resolution in the context of a new online marketing initiative and its associated risks, and the strategies to mitigate them.
Running head: RISK MANAGEMENT
Project Risk Management
Name of the Student:
Name of the University:
Author’s Note:
Project Risk Management
Name of the Student:
Name of the University:
Author’s Note:
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2RISK MANAGEMENT
Executive Summary
This current report gives a brief account of the risk management plan in the context of A&D
Hitech. However, it a computer product suppliers and provides accessories. Due to huge
competition, this organization has developed an online store project to mitigate this process.
However, risk management is crucial for any project to develop a safety technique. On the other
hand, technical risk is the main issue of such organization as it is going to develop an online
marketing process. It is essential for an organization to use corrective strategy and action to
review the risk. Bothe quantitative and qualitative risk analysis processes have been conducted in
this study.
Executive Summary
This current report gives a brief account of the risk management plan in the context of A&D
Hitech. However, it a computer product suppliers and provides accessories. Due to huge
competition, this organization has developed an online store project to mitigate this process.
However, risk management is crucial for any project to develop a safety technique. On the other
hand, technical risk is the main issue of such organization as it is going to develop an online
marketing process. It is essential for an organization to use corrective strategy and action to
review the risk. Bothe quantitative and qualitative risk analysis processes have been conducted in
this study.
3RISK MANAGEMENT
Table of Contents
Introduction......................................................................................................................................5
Section 1..........................................................................................................................................6
1.1 Benefits of the process involves in risk management............................................................6
1.2 Goals and Objectives of the Project.......................................................................................6
1.3 Background of the company..................................................................................................7
1.4 Identification of the Risk.......................................................................................................8
Section 2..........................................................................................................................................8
2.1 Scope of the risk management approach...............................................................................8
2.2 Components of risk management plan..................................................................................9
2.3 Discussion of the expected monitory value.........................................................................10
Section 3........................................................................................................................................11
3.1 Determination of the risks...................................................................................................11
3.2 Evaluation and the assessment of the risk...........................................................................12
3.3 Qualitative and quantitative risk analysis............................................................................13
Section 4........................................................................................................................................14
4.1 Identification of major and minor risk associated with the project.....................................14
4.2 Probability of the risk..........................................................................................................15
4.3 Risk Matrix template...........................................................................................................16
Table of Contents
Introduction......................................................................................................................................5
Section 1..........................................................................................................................................6
1.1 Benefits of the process involves in risk management............................................................6
1.2 Goals and Objectives of the Project.......................................................................................6
1.3 Background of the company..................................................................................................7
1.4 Identification of the Risk.......................................................................................................8
Section 2..........................................................................................................................................8
2.1 Scope of the risk management approach...............................................................................8
2.2 Components of risk management plan..................................................................................9
2.3 Discussion of the expected monitory value.........................................................................10
Section 3........................................................................................................................................11
3.1 Determination of the risks...................................................................................................11
3.2 Evaluation and the assessment of the risk...........................................................................12
3.3 Qualitative and quantitative risk analysis............................................................................13
Section 4........................................................................................................................................14
4.1 Identification of major and minor risk associated with the project.....................................14
4.2 Probability of the risk..........................................................................................................15
4.3 Risk Matrix template...........................................................................................................16
4RISK MANAGEMENT
Risk Matrix:...............................................................................................................................16
Project Name: Online store project............................................................................................16
4.4 Strategy of risk Data quality analysis..................................................................................18
4.5 Review of the risk................................................................................................................18
Section 5........................................................................................................................................20
5.1 Tolerance of risk..................................................................................................................20
5.2 Mitigation of risk.................................................................................................................20
5.3 Corrective strategy of risk management..............................................................................21
5.4 Corrective action process.....................................................................................................22
Section 6........................................................................................................................................23
6.1 Results..................................................................................................................................23
6.2 Follow up.............................................................................................................................23
Conclusion.....................................................................................................................................23
References......................................................................................................................................25
Risk Matrix:...............................................................................................................................16
Project Name: Online store project............................................................................................16
4.4 Strategy of risk Data quality analysis..................................................................................18
4.5 Review of the risk................................................................................................................18
Section 5........................................................................................................................................20
5.1 Tolerance of risk..................................................................................................................20
5.2 Mitigation of risk.................................................................................................................20
5.3 Corrective strategy of risk management..............................................................................21
5.4 Corrective action process.....................................................................................................22
Section 6........................................................................................................................................23
6.1 Results..................................................................................................................................23
6.2 Follow up.............................................................................................................................23
Conclusion.....................................................................................................................................23
References......................................................................................................................................25
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5RISK MANAGEMENT
Introduction
Risk management approach sheds light on the importance of risk management during
conduction of a project. However, during the implementation of a project risks encounter thus it
is crucial to forecast the risks and to manage them properly (Sadgrove, 2016). Identification of
the risk is a vital part of the risk management planning. Risk can take place at any stage of the
project life cycle. The risk management plan should be updated in periodical manner and needs
to expand throughout the project life cycle. During the enhancement of the complexity of the
project, risk identification becomes rapid. Identification of risk, assessment of risk and resolution
of the risk are the main phases of the risk management in a project (MacLeod, 2016). It has been
received that when a new project is started risks are associated with it that hamper the success of
the project.
The risk is considered as the main contributor of the uncertainty in an organization. For
this reason, the organization focuses on the risk identification and development of the action plan
to mitigate the risks (Hopkin, 2017). The ability of the organization to manage risk enables to
take their business decision confidently. This current study deals with the risk management of
the project in the context of A&D, which is going to explore their business via online marketing.
However, risks are also associated with this project that needs to reduce by this organization.
Hence, an action plan will be developed to deals with the encountered risks during the
implementation of this project. For this organization establishment of the online marketing will
be effective to reduce the competition that had faced by this organization in 2002.
Introduction
Risk management approach sheds light on the importance of risk management during
conduction of a project. However, during the implementation of a project risks encounter thus it
is crucial to forecast the risks and to manage them properly (Sadgrove, 2016). Identification of
the risk is a vital part of the risk management planning. Risk can take place at any stage of the
project life cycle. The risk management plan should be updated in periodical manner and needs
to expand throughout the project life cycle. During the enhancement of the complexity of the
project, risk identification becomes rapid. Identification of risk, assessment of risk and resolution
of the risk are the main phases of the risk management in a project (MacLeod, 2016). It has been
received that when a new project is started risks are associated with it that hamper the success of
the project.
The risk is considered as the main contributor of the uncertainty in an organization. For
this reason, the organization focuses on the risk identification and development of the action plan
to mitigate the risks (Hopkin, 2017). The ability of the organization to manage risk enables to
take their business decision confidently. This current study deals with the risk management of
the project in the context of A&D, which is going to explore their business via online marketing.
However, risks are also associated with this project that needs to reduce by this organization.
Hence, an action plan will be developed to deals with the encountered risks during the
implementation of this project. For this organization establishment of the online marketing will
be effective to reduce the competition that had faced by this organization in 2002.
6RISK MANAGEMENT
Section 1
1.1 Benefits of the process involves in risk management
Risk management program enables the organization to define the possible risks that are
associated with a project (Cicmil et al., 2017). In the context of A&D, they have implemented
online marketing in order to expand their business and to gain competitive advantages. Hence,
risk management plan will bring benefits for such organization to define the risk regarding such
specific project. On the other hand, financial consideration is another benefit of the risk
management process. During the development of a project, financial risk encounters (Hopkin,
2017). In the context of A&D implementation of a risk management approach is helpful for them
to estimate the cost of the financial risk in this online marketing project.
Development of the business culture is another advantage of the risk management
process. A&D can enhance their reputation by implementing risk management plan. As for
example, the preparation of the perfect project operation starts when this organization anticipates
risk, as a result, the unexpected incidents disappear. Resource protection is a crucial outcome of
risk management (Harris, 2017). In the context of A&D Hitech, the risk management approach
allows this organization to identify the key risks. They are able to plan to resist the loss of
resources such by protecting the employee hours and equipment.
1.2 Goals and Objectives of the Project
The main goal of this project is to identify the risk and the management process during
the implementation of online marketing in the context of A&D Hitech.
Section 1
1.1 Benefits of the process involves in risk management
Risk management program enables the organization to define the possible risks that are
associated with a project (Cicmil et al., 2017). In the context of A&D, they have implemented
online marketing in order to expand their business and to gain competitive advantages. Hence,
risk management plan will bring benefits for such organization to define the risk regarding such
specific project. On the other hand, financial consideration is another benefit of the risk
management process. During the development of a project, financial risk encounters (Hopkin,
2017). In the context of A&D implementation of a risk management approach is helpful for them
to estimate the cost of the financial risk in this online marketing project.
Development of the business culture is another advantage of the risk management
process. A&D can enhance their reputation by implementing risk management plan. As for
example, the preparation of the perfect project operation starts when this organization anticipates
risk, as a result, the unexpected incidents disappear. Resource protection is a crucial outcome of
risk management (Harris, 2017). In the context of A&D Hitech, the risk management approach
allows this organization to identify the key risks. They are able to plan to resist the loss of
resources such by protecting the employee hours and equipment.
1.2 Goals and Objectives of the Project
The main goal of this project is to identify the risk and the management process during
the implementation of online marketing in the context of A&D Hitech.
7RISK MANAGEMENT
Objectives
To identify the possible risk associated with the implementation of online shops in
context of A&D Hitech.
To evaluate the action plan to manage the risk associated with online marketing
To discuss the implementation of the risk management strategies in context of A&D
Hitech
To evaluate the benefits of the risk management process in context of A&D Hitech
The above goal and the objectives will be helpful for the selected organization to carry out its
risk management planning regarding their online marketing. Based on these objectives the action
plan is discussed below.
1.3 Background of the company
A&D Hitech is an organization that supplies computer products and accessories and
services to the customers and other businesses. This organization established in Lincoln,
Nebraska. Ted Walter was the founder of such organization. In the year 2000, their fiscal
property was $400 that ensures their rapid growth in business. Before the year of 1999, the
orders came via call center and were written in the paper, which took more time to pass the order
and highlights on the poor efficiency. In the year 2001, they have implemented successful ERP.
At previous such organization did not use the technology for its business operation and cost
reduction. Chris Jhonson is it project manager for last 12 years and his project planning
technique is considered as good practice in the computer product companies those are based in
St. Louis. Due to not selling the products via online, this organization had been facing massive
competition in the market. After realizing it, the project manager recognized that online store
Objectives
To identify the possible risk associated with the implementation of online shops in
context of A&D Hitech.
To evaluate the action plan to manage the risk associated with online marketing
To discuss the implementation of the risk management strategies in context of A&D
Hitech
To evaluate the benefits of the risk management process in context of A&D Hitech
The above goal and the objectives will be helpful for the selected organization to carry out its
risk management planning regarding their online marketing. Based on these objectives the action
plan is discussed below.
1.3 Background of the company
A&D Hitech is an organization that supplies computer products and accessories and
services to the customers and other businesses. This organization established in Lincoln,
Nebraska. Ted Walter was the founder of such organization. In the year 2000, their fiscal
property was $400 that ensures their rapid growth in business. Before the year of 1999, the
orders came via call center and were written in the paper, which took more time to pass the order
and highlights on the poor efficiency. In the year 2001, they have implemented successful ERP.
At previous such organization did not use the technology for its business operation and cost
reduction. Chris Jhonson is it project manager for last 12 years and his project planning
technique is considered as good practice in the computer product companies those are based in
St. Louis. Due to not selling the products via online, this organization had been facing massive
competition in the market. After realizing it, the project manager recognized that online store
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8RISK MANAGEMENT
project would be helpful for the success of their business (Hbr.org, 2017). This new project
planning includes determination of the business requirement, process flow, and development of
prototype and management of resources. However, a risk management planning was undertaken
by this organization to manage their online store project.
1.4 Identification of the Risk
Identification of the risk is a vital process of the risk management approach as based on it
the action is taken in an organization (Qazi et al. 2016). Feedback collection form the
stakeholders are crucial to identifying a project risk. In the context of A&D Hitech, they
implemented the online store project, which is associated with the risks. Hence, this organization
conducted meeting regarding their project where the project managers Jhonson felt more
comfortable to discuss the risks and the possible solution regarding them. Preparation of the
checklist is a useful strategy to identify the potential risk in a project. In the context of A&D
Hitech implementation of this strategy would be beneficial for their new project to assess the
common risks of online store project. Analysis of the assumptions is significant to detect the
project risk (Wang et al., 2016). The mangers of A&D Hitech could ask their employees about
their assumptions regarding this project as assumptions are considered as the sources of risks.
Based on these assumptions the risks are documented.
Section 2
2.1 Scope of the risk management approach
Risk management approach is an essential technique for the project management to make
the project safe from the potential risks (Qazi et al., 2016). The major scope of the risk
management is to interpret the product benefit and its associated risk. In the context of A&D
project would be helpful for the success of their business (Hbr.org, 2017). This new project
planning includes determination of the business requirement, process flow, and development of
prototype and management of resources. However, a risk management planning was undertaken
by this organization to manage their online store project.
1.4 Identification of the Risk
Identification of the risk is a vital process of the risk management approach as based on it
the action is taken in an organization (Qazi et al. 2016). Feedback collection form the
stakeholders are crucial to identifying a project risk. In the context of A&D Hitech, they
implemented the online store project, which is associated with the risks. Hence, this organization
conducted meeting regarding their project where the project managers Jhonson felt more
comfortable to discuss the risks and the possible solution regarding them. Preparation of the
checklist is a useful strategy to identify the potential risk in a project. In the context of A&D
Hitech implementation of this strategy would be beneficial for their new project to assess the
common risks of online store project. Analysis of the assumptions is significant to detect the
project risk (Wang et al., 2016). The mangers of A&D Hitech could ask their employees about
their assumptions regarding this project as assumptions are considered as the sources of risks.
Based on these assumptions the risks are documented.
Section 2
2.1 Scope of the risk management approach
Risk management approach is an essential technique for the project management to make
the project safe from the potential risks (Qazi et al., 2016). The major scope of the risk
management is to interpret the product benefit and its associated risk. In the context of A&D
9RISK MANAGEMENT
Hitech risk management would be beneficial for this organization to design and implement the
intervention process, which is associated with the project risk. On the other hand, risk
management project enables an organization to evaluate the intervention method by utilizing the
light of new knowledge (Fleming & Koppelman, 2016). The limitations of theses project scope
highlight on the poor communication. However, in order to utilize the scope of the project a
proper communication is required in the context of A&D Hitech. On the other hand, the
financial resource is another barrier of the project scope as to implement the intervention process
of the risk management strong financial resource is needed for this organization otherwise it is
difficult to manage the risk. Adoption of proper strategy is a big barrier for the project
management scope, as specific strategies are required to identify the scope of risk management
process.
2.2 Components of risk management plan
Roles and responsibilities of the stakeholders are major components of the risk
management plan. In the context of A&D Hitech Jhonson has the major responsibility to manage
the risk as the project manager carries on the major responsibility of risk management program.
The project manager does team coordination. Budgeting is another component of the risk
management plan (Fenner-Crisp & Dellarco, 2016). However, it is important for A&D Hitech to
make a proper budget to implement intervention plan based on their identified risks. Based on
the action plans of the risk management the budget is established. Therefore, the timing is a
crucial component of the risk management plan. Often the risk management plan is conducted
throughout the project lifecycle thus time is the big factor in such planning.
Communication is essential to conduct a risk assessment as it involves the stakeholders
by taking their feedbacks in the risk management process. The communication level was not
Hitech risk management would be beneficial for this organization to design and implement the
intervention process, which is associated with the project risk. On the other hand, risk
management project enables an organization to evaluate the intervention method by utilizing the
light of new knowledge (Fleming & Koppelman, 2016). The limitations of theses project scope
highlight on the poor communication. However, in order to utilize the scope of the project a
proper communication is required in the context of A&D Hitech. On the other hand, the
financial resource is another barrier of the project scope as to implement the intervention process
of the risk management strong financial resource is needed for this organization otherwise it is
difficult to manage the risk. Adoption of proper strategy is a big barrier for the project
management scope, as specific strategies are required to identify the scope of risk management
process.
2.2 Components of risk management plan
Roles and responsibilities of the stakeholders are major components of the risk
management plan. In the context of A&D Hitech Jhonson has the major responsibility to manage
the risk as the project manager carries on the major responsibility of risk management program.
The project manager does team coordination. Budgeting is another component of the risk
management plan (Fenner-Crisp & Dellarco, 2016). However, it is important for A&D Hitech to
make a proper budget to implement intervention plan based on their identified risks. Based on
the action plans of the risk management the budget is established. Therefore, the timing is a
crucial component of the risk management plan. Often the risk management plan is conducted
throughout the project lifecycle thus time is the big factor in such planning.
Communication is essential to conduct a risk assessment as it involves the stakeholders
by taking their feedbacks in the risk management process. The communication level was not
10RISK MANAGEMENT
good among the stakeholders of A&D Hitech. Hence, it would be helpful for such organization
to establish a good communication to carry out the risk assessment plan. Risk interpretation
should be done based on the quantitative and qualitative analysis method. This would be
beneficial for A&D Hitech to interpret the common risks regarding the online store project.
Apart from these auditing and tracking is an essential component of risk assessment planning
(Knechel & Salterio, 2016). This would allow A&D Hitech to document the ways to record the
risk activities and the future needs of the project. Therefore, the risk method would be audited
based on the risk assessment.
2.3 Discussion of the expected monitory value
Expected monetary value analysis is a statistical process that focuses on the possible
outcomes of the business operation. However, if an organization fails to manage the risk then
they may face a huge loss in their business (Wright & Eppink, 2016). In order to evaluate the
different actions in the risk assessment plan Expected monetary value analysis is crucial. In the
context of A&D Hitech they need to manage the project risk otherwise, they might face the
economic loss.
Project expected monetary value (EMV) = Cost of Project+ value of expected risk-
Expected value of opportunity
In the context of A&D Hitech, the cost of their new project was $500 and their value of
expected risk was $300. On the other hand, the expected value of the opportunity was $200.
Thus, the EMV was $500+ $300- $200=$600
Hence, this organization would lose approx $600 for not managing the risk in their project.
However, based on this expected monetary value it can be said that A&D Hitech needs to
good among the stakeholders of A&D Hitech. Hence, it would be helpful for such organization
to establish a good communication to carry out the risk assessment plan. Risk interpretation
should be done based on the quantitative and qualitative analysis method. This would be
beneficial for A&D Hitech to interpret the common risks regarding the online store project.
Apart from these auditing and tracking is an essential component of risk assessment planning
(Knechel & Salterio, 2016). This would allow A&D Hitech to document the ways to record the
risk activities and the future needs of the project. Therefore, the risk method would be audited
based on the risk assessment.
2.3 Discussion of the expected monitory value
Expected monetary value analysis is a statistical process that focuses on the possible
outcomes of the business operation. However, if an organization fails to manage the risk then
they may face a huge loss in their business (Wright & Eppink, 2016). In order to evaluate the
different actions in the risk assessment plan Expected monetary value analysis is crucial. In the
context of A&D Hitech they need to manage the project risk otherwise, they might face the
economic loss.
Project expected monetary value (EMV) = Cost of Project+ value of expected risk-
Expected value of opportunity
In the context of A&D Hitech, the cost of their new project was $500 and their value of
expected risk was $300. On the other hand, the expected value of the opportunity was $200.
Thus, the EMV was $500+ $300- $200=$600
Hence, this organization would lose approx $600 for not managing the risk in their project.
However, based on this expected monetary value it can be said that A&D Hitech needs to
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11RISK MANAGEMENT
manage the potential risks of their new project. Otherwise, it would lead them to face a financial
loss in their organization, which might affect their business profitability.
Section 3
3.1 Determination of the risks
Project scope risk is a big type of risk that encounters during a project. A&D Hitech
may face this type of risk while establishing the online store project to reduce the high
competition. For this reason, hardware and software defect is a very common risk associated
with this project (Turner, 2016). Scheduling risk is another type risk encounter in the project
management. However, often the delays in taking the action plan within a project management
may occur in the context of A&D Hitech. Resource risk takes place due to the personnel-related
issue and the outsourcing issue. Every project includes workforce and a high investment. In the
context of A&D Hitech, attrition challenges and the personnel leaving may be the major resource
issues during the project management. One of the most important is the technological risk in the
context of online marketing as it is completely based on the technology (Chen, Lin & Chuang,
2016). A&D Hitech is going to introduce their new online store project to gain the competitive
advantages in the market. Thus, software and hardware related risks might occur in their project,
which can affect the business.
Many people are associated with the online marketing project, which may cause issues in
the decision-making process (Aven, 2017). Such decision-making process related risk may
take place in the context of A&D Hitech. Apart from this, communication risk is a big issue in
the project management process. According to the given scenario, the communication level
manage the potential risks of their new project. Otherwise, it would lead them to face a financial
loss in their organization, which might affect their business profitability.
Section 3
3.1 Determination of the risks
Project scope risk is a big type of risk that encounters during a project. A&D Hitech
may face this type of risk while establishing the online store project to reduce the high
competition. For this reason, hardware and software defect is a very common risk associated
with this project (Turner, 2016). Scheduling risk is another type risk encounter in the project
management. However, often the delays in taking the action plan within a project management
may occur in the context of A&D Hitech. Resource risk takes place due to the personnel-related
issue and the outsourcing issue. Every project includes workforce and a high investment. In the
context of A&D Hitech, attrition challenges and the personnel leaving may be the major resource
issues during the project management. One of the most important is the technological risk in the
context of online marketing as it is completely based on the technology (Chen, Lin & Chuang,
2016). A&D Hitech is going to introduce their new online store project to gain the competitive
advantages in the market. Thus, software and hardware related risks might occur in their project,
which can affect the business.
Many people are associated with the online marketing project, which may cause issues in
the decision-making process (Aven, 2017). Such decision-making process related risk may
take place in the context of A&D Hitech. Apart from this, communication risk is a big issue in
the project management process. According to the given scenario, the communication level
12RISK MANAGEMENT
between the stakeholders was not good in A&D Hitech. This highlights on the poor
communication during the planning of their project.
3.2 Evaluation and the assessment of the risk
Technical, organizational, external and project management are the major four
components of the risk breakdown structure. Hardware and software issues are categorized under
the technical risk. On the other hand, organizational risks include high cost and the resource
issues. External components include the political pressure (Linkov et al., 2017). In the context of
A&D Hitech, they may face issues during their new project management as without the green
signal of the government this organization may fail to give shape their new project. Hence, the
rules and regulation of the government may affect the establishment of the online store project.
On the other hand, supplier issue is another aspect of the external component. Poor planning and
control are the vital aspects of project management component.
Risk leaves a big impact on the project outcomes as different risks like technical,
resource, scheduling and so on hinder the success of the project (Abrahamsson et al., 2017).
A&D Hitech may face difficulties due to the potential risk factors that are associated with their
online store project. However, the technical risks create barrier in the accessing of the websites
that can affect the significant outcome of the online project. Therefore, the risk may affect the
brand image of the organization due to the failure of the new project. Stand-alone risk and the
contextual risk are the major risk analysis techniques that are associated with the risk
breakdown structure. Sand alone risk analysis technique is associated with sensitivity analysis
while contextual risk analysis focuses on the corporate risk analysis.
between the stakeholders was not good in A&D Hitech. This highlights on the poor
communication during the planning of their project.
3.2 Evaluation and the assessment of the risk
Technical, organizational, external and project management are the major four
components of the risk breakdown structure. Hardware and software issues are categorized under
the technical risk. On the other hand, organizational risks include high cost and the resource
issues. External components include the political pressure (Linkov et al., 2017). In the context of
A&D Hitech, they may face issues during their new project management as without the green
signal of the government this organization may fail to give shape their new project. Hence, the
rules and regulation of the government may affect the establishment of the online store project.
On the other hand, supplier issue is another aspect of the external component. Poor planning and
control are the vital aspects of project management component.
Risk leaves a big impact on the project outcomes as different risks like technical,
resource, scheduling and so on hinder the success of the project (Abrahamsson et al., 2017).
A&D Hitech may face difficulties due to the potential risk factors that are associated with their
online store project. However, the technical risks create barrier in the accessing of the websites
that can affect the significant outcome of the online project. Therefore, the risk may affect the
brand image of the organization due to the failure of the new project. Stand-alone risk and the
contextual risk are the major risk analysis techniques that are associated with the risk
breakdown structure. Sand alone risk analysis technique is associated with sensitivity analysis
while contextual risk analysis focuses on the corporate risk analysis.
13RISK MANAGEMENT
Project management
Technical ExternalOrganizational
Software and Hardware issue
Control and communication
Planning
Political
Resources
Cost
Risk Analysis Techniques
Contextual Risk
Stand Alone Risk
Elements of risk break down structure
Figure 1: Risk Breakdown Structure associated with Risk Analysis Techniques
(Source: Abrahamsson et al., 2017)
3.3 Qualitative and quantitative risk analysis
Risk can be analyzed via qualitative and quantitative method. However, in the
qualitative method the emergence rate of the risk can be determined in terms of low, medium
and high (Azim et al., 2016). According to the given scenario, A&D Hitech is in the low medium
level of risks that are associated with their new project. On the other hand, the quantitative
analysis highlights on the probability of the risk events (Marcelino-Sádaba et al., 2014). As for
Project management
Technical ExternalOrganizational
Software and Hardware issue
Control and communication
Planning
Political
Resources
Cost
Risk Analysis Techniques
Contextual Risk
Stand Alone Risk
Elements of risk break down structure
Figure 1: Risk Breakdown Structure associated with Risk Analysis Techniques
(Source: Abrahamsson et al., 2017)
3.3 Qualitative and quantitative risk analysis
Risk can be analyzed via qualitative and quantitative method. However, in the
qualitative method the emergence rate of the risk can be determined in terms of low, medium
and high (Azim et al., 2016). According to the given scenario, A&D Hitech is in the low medium
level of risks that are associated with their new project. On the other hand, the quantitative
analysis highlights on the probability of the risk events (Marcelino-Sádaba et al., 2014). As for
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14RISK MANAGEMENT
example, in the case of A&D Hitech the probability of the technical risk is 60% and the
probability of the resource risk is 25% in their project.
Sensitivity analysis is useful to understand the technical risks in a project as it focuses on
the relationship of the input and output variables. Therefore, expected monetary analysis reveals
the high cost that may encounter due to not managing the risk in A&D Hitech. The amount of
EMV is $600 according to the above calculation. Decision tree analysis is a support tool
consists of a tree like model uses in the decision analysis (Emanuel, 2016). A&D Hitech, may
use this decision tree analysis to take decision regarding the risk management for their new
project. Application of Monte Carlo simulation can be used by A&D Hitech to understand the
numerical analysis of the cost of risk management approach in context of their new project.
Apart from this PERT tree, analysis is related to the review technique and the program
evaluation. This will help A&D Hitech to analyze the time that is required for their risk
management process during the development of online store project.
Section 4
4.1 Identification of major and minor risk associated with the project
Several risks are associated with the project of A&D Hitech from which the technical risk
is a major risk. However, in the online marketing technical risk is very common. Damage to
hardware and software often occurs in the online store project (Feng, Wang & Li, 2014). This
may affect the business of A&D Hitech. On the other hand, accessing of the website is another
issue in online marketing. Due to the software difficulties, it often occurs in the online store
project. Another major issue of the online store project is the resource issue. However, the
software is costly that highlights on the risk. Management of the financial resources often makes
example, in the case of A&D Hitech the probability of the technical risk is 60% and the
probability of the resource risk is 25% in their project.
Sensitivity analysis is useful to understand the technical risks in a project as it focuses on
the relationship of the input and output variables. Therefore, expected monetary analysis reveals
the high cost that may encounter due to not managing the risk in A&D Hitech. The amount of
EMV is $600 according to the above calculation. Decision tree analysis is a support tool
consists of a tree like model uses in the decision analysis (Emanuel, 2016). A&D Hitech, may
use this decision tree analysis to take decision regarding the risk management for their new
project. Application of Monte Carlo simulation can be used by A&D Hitech to understand the
numerical analysis of the cost of risk management approach in context of their new project.
Apart from this PERT tree, analysis is related to the review technique and the program
evaluation. This will help A&D Hitech to analyze the time that is required for their risk
management process during the development of online store project.
Section 4
4.1 Identification of major and minor risk associated with the project
Several risks are associated with the project of A&D Hitech from which the technical risk
is a major risk. However, in the online marketing technical risk is very common. Damage to
hardware and software often occurs in the online store project (Feng, Wang & Li, 2014). This
may affect the business of A&D Hitech. On the other hand, accessing of the website is another
issue in online marketing. Due to the software difficulties, it often occurs in the online store
project. Another major issue of the online store project is the resource issue. However, the
software is costly that highlights on the risk. Management of the financial resources often makes
15RISK MANAGEMENT
difficulties in the project of A&D Hitech. Apart from the major risk, some minor risks are
associated with the new project of A&D Hitech. As per the given scenario, there is lack of
communication in this organization during the implementation of the project (Aven, 2015). This
focuses on the communication risk as poor communication hampers the success of a project.
Therefore, risks related to the decision-making process is another minor risk may encounter in
the new project of A&D Hitech. Due to the involvement of many stakeholders often make the
decision complex, which is a big challenge for this organization.
4.2 Probability of the risk
Quantitative and qualitative risk analysis methods are used to underpin the methodology
to evaluate the severity of the risk associated with the projects (Goerlandt & Montewka, 2015).
However, the quantitative method focuses on the numerical value in order to evaluate the
probability of the risk. Based on this scenario, it can be assumed that the probability of the
technical risk may be 60% and 25% in the context of resource risk. Collection of numerical data
based on the scenario analysis would be beneficial to understand the probability of the risk in the
context of A&D Hitech. Hence, scenario, the analysis is a vital method that is used in the
quantitative method to evaluate the risk. Identification of the severity of the impact of the project
is an important method that is used in the qualitative analysis to evaluate the risk. According to
the case study, it can be said that probability of the technical risk is medium while probability of
the resource risk is low. Estimation of the risk probability is another method of qualitative risk
analysis to evaluate the major and minor risks (Pappas, 2016). In the context of A&D Hitech it
has been addressed that technical risk and the resource risk are the vital areas of their project that
need to be managed.
difficulties in the project of A&D Hitech. Apart from the major risk, some minor risks are
associated with the new project of A&D Hitech. As per the given scenario, there is lack of
communication in this organization during the implementation of the project (Aven, 2015). This
focuses on the communication risk as poor communication hampers the success of a project.
Therefore, risks related to the decision-making process is another minor risk may encounter in
the new project of A&D Hitech. Due to the involvement of many stakeholders often make the
decision complex, which is a big challenge for this organization.
4.2 Probability of the risk
Quantitative and qualitative risk analysis methods are used to underpin the methodology
to evaluate the severity of the risk associated with the projects (Goerlandt & Montewka, 2015).
However, the quantitative method focuses on the numerical value in order to evaluate the
probability of the risk. Based on this scenario, it can be assumed that the probability of the
technical risk may be 60% and 25% in the context of resource risk. Collection of numerical data
based on the scenario analysis would be beneficial to understand the probability of the risk in the
context of A&D Hitech. Hence, scenario, the analysis is a vital method that is used in the
quantitative method to evaluate the risk. Identification of the severity of the impact of the project
is an important method that is used in the qualitative analysis to evaluate the risk. According to
the case study, it can be said that probability of the technical risk is medium while probability of
the resource risk is low. Estimation of the risk probability is another method of qualitative risk
analysis to evaluate the major and minor risks (Pappas, 2016). In the context of A&D Hitech it
has been addressed that technical risk and the resource risk are the vital areas of their project that
need to be managed.
16RISK MANAGEMENT
4.3 Risk Matrix template
Risk Matrix:
Project Name: Online store project
Risk
#
Risk Probability Importance Response to
Risk
Action Plan Person
Responsible
Statu
s
01 Project
Scope risk
Low Affects the
goal of the
project and
damages of
the
equipments
Establishmen
t of the clear
vision and
mission
regarding the
project
Regular
conference
among the
stakeholders
of A&D
Hitech
Internal and
external
stakeholders
of the
organization
Redu
ction
of the
proje
ct
scope
risk
in
futur
e
02 Scheduling
risk
Low Delays in
taking the
exact plan
during the
project
Implementati
on of the
quick action
plan to
reduce the
risk
Adoption of
risk
management
strategies
such as risk
identification
and
mitigation
Manager of
the
organization
Actio
n
plan
can
be
taken
quick
ly
regar
ding
the
risk
03 Technologic
al risk
Medium to
High
Damages of
hardware
and
software
Recruitment
of the
employees
having high
technological
skill.
Therefore,
use of
advanced
equipment
Providing
training
program to
the
employees to
develop their
skill
Project
managemen
t manager
Redu
ction
of the
techn
ical
risk
4.3 Risk Matrix template
Risk Matrix:
Project Name: Online store project
Risk
#
Risk Probability Importance Response to
Risk
Action Plan Person
Responsible
Statu
s
01 Project
Scope risk
Low Affects the
goal of the
project and
damages of
the
equipments
Establishmen
t of the clear
vision and
mission
regarding the
project
Regular
conference
among the
stakeholders
of A&D
Hitech
Internal and
external
stakeholders
of the
organization
Redu
ction
of the
proje
ct
scope
risk
in
futur
e
02 Scheduling
risk
Low Delays in
taking the
exact plan
during the
project
Implementati
on of the
quick action
plan to
reduce the
risk
Adoption of
risk
management
strategies
such as risk
identification
and
mitigation
Manager of
the
organization
Actio
n
plan
can
be
taken
quick
ly
regar
ding
the
risk
03 Technologic
al risk
Medium to
High
Damages of
hardware
and
software
Recruitment
of the
employees
having high
technological
skill.
Therefore,
use of
advanced
equipment
Providing
training
program to
the
employees to
develop their
skill
Project
managemen
t manager
Redu
ction
of the
techn
ical
risk
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04 Resource
risk
Medium Issues in
managing
financial
resource and
workforce
Proper
budget
allocation
and
involvement
of more
employees
Partnership
working to
enhance the
funding and
providing
reward to
increase the
employee
engagement
CEO of the
organization
Secur
e
finan
cial
resou
rces
and
avail
abilit
y of
the
work
force
that
mitig
ate
the
risk
05 Decision-
making risk
Low Affects the
success of
the project
Involvement
of the
specific
person in the
decision
making
Identification
of the
effective
stakeholders
to make
decision
CEO of the
organization Exec
ution
of the
appro
priate
decisi
on
06 Communicat
ion risk
Medium Hampers the
collaborativ
e work
during the
establishme
nt of online
store project
Collaborative
work
between the
stakeholders
Sharing of
information
among the
stakeholders
Project
manager of
the
organization
Estab
lishm
ent of
effect
ive
com
muni
catio
n in
the
risk
04 Resource
risk
Medium Issues in
managing
financial
resource and
workforce
Proper
budget
allocation
and
involvement
of more
employees
Partnership
working to
enhance the
funding and
providing
reward to
increase the
employee
engagement
CEO of the
organization
Secur
e
finan
cial
resou
rces
and
avail
abilit
y of
the
work
force
that
mitig
ate
the
risk
05 Decision-
making risk
Low Affects the
success of
the project
Involvement
of the
specific
person in the
decision
making
Identification
of the
effective
stakeholders
to make
decision
CEO of the
organization Exec
ution
of the
appro
priate
decisi
on
06 Communicat
ion risk
Medium Hampers the
collaborativ
e work
during the
establishme
nt of online
store project
Collaborative
work
between the
stakeholders
Sharing of
information
among the
stakeholders
Project
manager of
the
organization
Estab
lishm
ent of
effect
ive
com
muni
catio
n in
the
risk
18RISK MANAGEMENT
mana
geme
nt
plann
ing
Table 1: Risk matrix template
(Source: Researcher)
4.4 Strategy of risk Data quality analysis
It is important to analyze the data quality of the risk management approach. One of the
most important tools, to measure the data quality data quality audit is an important tool
(Anderson et al., 2015). The external audit team is involved in the measurement of the data
quality during the risk assessment of the A&D organization. Hence, it will be helpful to measure
the qualitative and quantitative data in the risk management process of the new project of A&D
organization. Therefore, routine data quality assessment or RDQA is another tool of measuring
the data quality. Preparation of the check sheet is a vital process to analyze the quality of data
during the risk management approach. This is a structure that can be made by A&D organization
to analyze the data of the risk management. Stratification is another process to measure the
quality of the data in an organization (Marcelino-Sádaba et al., 2014). However, this process will
enable A&D organization to separate the collected data from different sources through a
systematic manner. Such differentiation can be useful to measure the quality of data in the risk
management in the context of A&D organization.
mana
geme
nt
plann
ing
Table 1: Risk matrix template
(Source: Researcher)
4.4 Strategy of risk Data quality analysis
It is important to analyze the data quality of the risk management approach. One of the
most important tools, to measure the data quality data quality audit is an important tool
(Anderson et al., 2015). The external audit team is involved in the measurement of the data
quality during the risk assessment of the A&D organization. Hence, it will be helpful to measure
the qualitative and quantitative data in the risk management process of the new project of A&D
organization. Therefore, routine data quality assessment or RDQA is another tool of measuring
the data quality. Preparation of the check sheet is a vital process to analyze the quality of data
during the risk management approach. This is a structure that can be made by A&D organization
to analyze the data of the risk management. Stratification is another process to measure the
quality of the data in an organization (Marcelino-Sádaba et al., 2014). However, this process will
enable A&D organization to separate the collected data from different sources through a
systematic manner. Such differentiation can be useful to measure the quality of data in the risk
management in the context of A&D organization.
19RISK MANAGEMENT
4.5 Review of the risk
Controlling, monitoring and reporting are the major three steps of risk review throughout
the entire project life cycle. Random monitoring and controlling of the potential risks provide
assurance about the effectiveness of the risk treatment action plan that has been implemented
(Taylor, 2014).A&D Hitech needs to use the risk continuous monitoring and controlling of the
risks that are associated with their business. They should be included the risk review process as a
regular agenda in their project meetings. This will ensure a better management of the
implemented change and continuous betterment. Risk assessment, the audit of the risk, analysis o
resource and measurement of the technical performance are the major tools of monitoring and
controlling risk. Through such tools, the risks can be reviewed in A&D Hitech. The prioritized
risks are identified via continuous observation during the monitoring and controlling the risk.
Such controlling and monitoring process is associated with the treatment action and the risk
responding (Marcelino-Sádaba et al., 2014). Risk watch is important in controlling and
reviewing risk in a project. Project schedule, cost, performance data and the deliverable status
are the major components of the risk watch list.
Reporting of the risk includes the communication process with the stakeholders to
evaluate the risk report of the project (Zwikael et al., 2014). Risk reporting will help the
stakeholders that are the project owner, project manager and the clients to identify the existing
risks and opportunities associated with the risk in A&D Hitech. Risk reporting is considered as
the summary of project risk and its opportunity. The main purpose, of the risk reporting, is to
encourage the stakeholders to fully involved in the risk management process to get rid of from
any unpleasant incident during the project. Risk reporting is essential to review the risk as it
enables the organization to make an effective communication with the stakeholders to keep the
4.5 Review of the risk
Controlling, monitoring and reporting are the major three steps of risk review throughout
the entire project life cycle. Random monitoring and controlling of the potential risks provide
assurance about the effectiveness of the risk treatment action plan that has been implemented
(Taylor, 2014).A&D Hitech needs to use the risk continuous monitoring and controlling of the
risks that are associated with their business. They should be included the risk review process as a
regular agenda in their project meetings. This will ensure a better management of the
implemented change and continuous betterment. Risk assessment, the audit of the risk, analysis o
resource and measurement of the technical performance are the major tools of monitoring and
controlling risk. Through such tools, the risks can be reviewed in A&D Hitech. The prioritized
risks are identified via continuous observation during the monitoring and controlling the risk.
Such controlling and monitoring process is associated with the treatment action and the risk
responding (Marcelino-Sádaba et al., 2014). Risk watch is important in controlling and
reviewing risk in a project. Project schedule, cost, performance data and the deliverable status
are the major components of the risk watch list.
Reporting of the risk includes the communication process with the stakeholders to
evaluate the risk report of the project (Zwikael et al., 2014). Risk reporting will help the
stakeholders that are the project owner, project manager and the clients to identify the existing
risks and opportunities associated with the risk in A&D Hitech. Risk reporting is considered as
the summary of project risk and its opportunity. The main purpose, of the risk reporting, is to
encourage the stakeholders to fully involved in the risk management process to get rid of from
any unpleasant incident during the project. Risk reporting is essential to review the risk as it
enables the organization to make an effective communication with the stakeholders to keep the
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20RISK MANAGEMENT
consistency of the risk management process in A&D Hitech. It is important to submit the risk
report on the regular basis as it will enable the management to carry out a standard online store
project.
Section 5
5.1 Tolerance of risk
Risk tolerance is two types that are organizational and the departmental. The methods
that are applied by an organization to avoid the risks are considered as the risk tolerance
approach (Feng, Wang & Li, 2014). In the organizational risk tolerance process, A&D Hitech
needs to include risk identification and taking the action to mitigate the risk. In the context of
A&D Hitech, implementation of the rules and regulation regarding the risk assessment are
crucial to tolerate the future risk in their project. On the other hand, departmental risk tolerance is
another effective method to avoid the risk. A&D Hitech is going to establish online store project,
for this reason, ensuring the security can be effective to establish the risk tolerance. Therefore,
use of the advanced equipment will be beneficial for such organization to avoid the risk
regarding the online marketing project. Apart from this, every employee should be participated
in the risk identification process to get a preliminary idea about the risk (Zwikael et al., 2014).
5.2 Mitigation of risk
Root cause analysis is an important risk mitigation technique that enables an
organization to identify the exact cause of the potential risk (Verner et al., 2014). Identification
of the risk at the earlier of the project life cycle will enable an organization to resists the risk by
taking possible action. As for example, resource risk is a big risk for A&D Hitech. Hence,
managing of the financial resources properly can be helpful for this organization to mitigate the
consistency of the risk management process in A&D Hitech. It is important to submit the risk
report on the regular basis as it will enable the management to carry out a standard online store
project.
Section 5
5.1 Tolerance of risk
Risk tolerance is two types that are organizational and the departmental. The methods
that are applied by an organization to avoid the risks are considered as the risk tolerance
approach (Feng, Wang & Li, 2014). In the organizational risk tolerance process, A&D Hitech
needs to include risk identification and taking the action to mitigate the risk. In the context of
A&D Hitech, implementation of the rules and regulation regarding the risk assessment are
crucial to tolerate the future risk in their project. On the other hand, departmental risk tolerance is
another effective method to avoid the risk. A&D Hitech is going to establish online store project,
for this reason, ensuring the security can be effective to establish the risk tolerance. Therefore,
use of the advanced equipment will be beneficial for such organization to avoid the risk
regarding the online marketing project. Apart from this, every employee should be participated
in the risk identification process to get a preliminary idea about the risk (Zwikael et al., 2014).
5.2 Mitigation of risk
Root cause analysis is an important risk mitigation technique that enables an
organization to identify the exact cause of the potential risk (Verner et al., 2014). Identification
of the risk at the earlier of the project life cycle will enable an organization to resists the risk by
taking possible action. As for example, resource risk is a big risk for A&D Hitech. Hence,
managing of the financial resources properly can be helpful for this organization to mitigate the
21RISK MANAGEMENT
deficit of the resources during their new project. Therefore, this organization should check the
hardware and the software properly before developing their online website, which may mitigate
the accessing issue of the website. Risk avoidance is another technique to mitigate the risk in an
organization. However, A&D Hitech can avoid the risks related to their new project by removing
the risk exposure. It is a very costly process. On the other hand, risk acceptance is another
process to discard the risk. This strategy will help A&D Hitech to reduce the high cost of risk
management.
Use of the updated version of the software includes high risk in the online marketing
project. Hence, such risk acceptance strategy will be helpful for A&D Hitech to manage the risk
in this organization. On the other hand, risk transference is a crucial mitigation process. The
third party is involved in handling the potential risk of an organization (Anderson et al., 2015). In
the context of A&D Hitech, the external agencies can be involved in risk management process.
By auditing the project the external agencies can handle the risk in this organization. In order to
reduce the communication risk, regular interaction between the employees is necessary for A&D
Hitech. This will reduce the communication barrier in the new project. Apart from this
identification of the new risk during the risk mitigation process is another risk reduction process.
5.3 Corrective strategy of risk management
Documentation of the organizational policies and procedures is a good example of
corrective risk management strategy (Mamoghli, Goepp & Botta-Genoulaz, 2015). Compliance
with the Resource Conservation and Recovery Act in 1976 will be helpful for such organization
to deal with the potential risk that may encounter during their online store project.
deficit of the resources during their new project. Therefore, this organization should check the
hardware and the software properly before developing their online website, which may mitigate
the accessing issue of the website. Risk avoidance is another technique to mitigate the risk in an
organization. However, A&D Hitech can avoid the risks related to their new project by removing
the risk exposure. It is a very costly process. On the other hand, risk acceptance is another
process to discard the risk. This strategy will help A&D Hitech to reduce the high cost of risk
management.
Use of the updated version of the software includes high risk in the online marketing
project. Hence, such risk acceptance strategy will be helpful for A&D Hitech to manage the risk
in this organization. On the other hand, risk transference is a crucial mitigation process. The
third party is involved in handling the potential risk of an organization (Anderson et al., 2015). In
the context of A&D Hitech, the external agencies can be involved in risk management process.
By auditing the project the external agencies can handle the risk in this organization. In order to
reduce the communication risk, regular interaction between the employees is necessary for A&D
Hitech. This will reduce the communication barrier in the new project. Apart from this
identification of the new risk during the risk mitigation process is another risk reduction process.
5.3 Corrective strategy of risk management
Documentation of the organizational policies and procedures is a good example of
corrective risk management strategy (Mamoghli, Goepp & Botta-Genoulaz, 2015). Compliance
with the Resource Conservation and Recovery Act in 1976 will be helpful for such organization
to deal with the potential risk that may encounter during their online store project.
22RISK MANAGEMENT
Apart from this auditing is the most important corrective strategy. Auditing refers to the
inspection process that is done by the external agencies to ensure the quality of a risk
management approach (Feng, Wang & Li, 2014). A&D Hitech requires complying with the
external agencies during their audit process by providing proper information of their risk
management approach as well as the new project. However, auditing process includes the
inspection of each area of risk management process. The audit may be internal that inform the
employees about the risk. This includes the audit process of the risk management framework in
A&D Hitech. Development of the risk management framework, implementation of the risk
management framework, allocation for the risk control, and establishment of the mentor in the
risk management process are the main components of internal audit.
5.4 Corrective action process
The corrective action plan refers to the accumulation of certain actions in the risk
management process (Pedreschi, 2014). This eliminates the risks that are associated with the
project. The first step of the corrective action plan or CAP is to develop the criteria to initiate the
CAP. Next, the root cause analysis is the second step of the corrective action plan. Therefore,
acquiring the input from the different relevant sources is the next step of CAP. Establishment of
the communication and a thorough plan are the major steps of such process. It is important for
A&D Hitech to give quick response against a CAP. Finally, documentation, record retention and
verification are the last three stages of CAP (Abrahamsson et al., 2017). According to the online
store project of A&D Hitech CAP should be developed for the audit process as it is the
corrective strategy for their risk management process. To implement such strategy
documentation is needed to inform the employees about the risk. Therefore, communication is
Apart from this auditing is the most important corrective strategy. Auditing refers to the
inspection process that is done by the external agencies to ensure the quality of a risk
management approach (Feng, Wang & Li, 2014). A&D Hitech requires complying with the
external agencies during their audit process by providing proper information of their risk
management approach as well as the new project. However, auditing process includes the
inspection of each area of risk management process. The audit may be internal that inform the
employees about the risk. This includes the audit process of the risk management framework in
A&D Hitech. Development of the risk management framework, implementation of the risk
management framework, allocation for the risk control, and establishment of the mentor in the
risk management process are the main components of internal audit.
5.4 Corrective action process
The corrective action plan refers to the accumulation of certain actions in the risk
management process (Pedreschi, 2014). This eliminates the risks that are associated with the
project. The first step of the corrective action plan or CAP is to develop the criteria to initiate the
CAP. Next, the root cause analysis is the second step of the corrective action plan. Therefore,
acquiring the input from the different relevant sources is the next step of CAP. Establishment of
the communication and a thorough plan are the major steps of such process. It is important for
A&D Hitech to give quick response against a CAP. Finally, documentation, record retention and
verification are the last three stages of CAP (Abrahamsson et al., 2017). According to the online
store project of A&D Hitech CAP should be developed for the audit process as it is the
corrective strategy for their risk management process. To implement such strategy
documentation is needed to inform the employees about the risk. Therefore, communication is
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23RISK MANAGEMENT
required to share the information related to risk. Record retention and verification are vital for
the external audit agencies.
Section 6
6.1 Results
Result data is collected by the qualitative and quantitative process. Therefore, the
qualitative process is done by measuring the severity of the risk while quantitative measuring
process includes the collection of numerical data (Emanuel, 2016). These two types of data
collection methods are associated with the determination of the corrective action. These data
collection methods are effective for the development of corrective risk management strategy in
the context of A&D Hitech.
6.2 Follow up
Regular monitoring is essential to follow up the risk management process. However,
check of the risk management process on daily basis is useful to identify the issues in the
implemented risk management process (Linkov et al., 2017). Maintenance of the check list on
daily basis is a crucial to follow up the risk management process. In the context of A&D Hitech,
a follow up by using the continuous monitoring process the entire risk management approach can
be followed up.
Conclusion
The entire study is based on the risk management approach in the context of A&D
Hitech. Many approaches are involved in the risk management planning. Risk management
approach includes the detection of risks and the mitigation approach of such risk. However, it
required to share the information related to risk. Record retention and verification are vital for
the external audit agencies.
Section 6
6.1 Results
Result data is collected by the qualitative and quantitative process. Therefore, the
qualitative process is done by measuring the severity of the risk while quantitative measuring
process includes the collection of numerical data (Emanuel, 2016). These two types of data
collection methods are associated with the determination of the corrective action. These data
collection methods are effective for the development of corrective risk management strategy in
the context of A&D Hitech.
6.2 Follow up
Regular monitoring is essential to follow up the risk management process. However,
check of the risk management process on daily basis is useful to identify the issues in the
implemented risk management process (Linkov et al., 2017). Maintenance of the check list on
daily basis is a crucial to follow up the risk management process. In the context of A&D Hitech,
a follow up by using the continuous monitoring process the entire risk management approach can
be followed up.
Conclusion
The entire study is based on the risk management approach in the context of A&D
Hitech. Many approaches are involved in the risk management planning. Risk management
approach includes the detection of risks and the mitigation approach of such risk. However, it
24RISK MANAGEMENT
has been identified that technical risk and resource risk is the major risks of such organization
and communication risk and decision making risk are the minor risks. In the context of online
store project, technical risk occurs due to dispute of hardware and software. On the other hand,
corrective strategy, as well as the actions are taken for the risk management. However, A&D
Hitech can use this strategy to manage their organizational risk. Compliance with the policies of
their organization will enable them to mitigate the risk. This organization should comply with the
government rules to develop corrective risk management strategy. Auditing is the most important
corrective strategy that includes documentation action. In the organizational risk tolerance
process, both internal and external stakeholders are associated while in the departmental risk
tolerance process the internal stakeholders are involved. Apart from this risk monitoring process
is crucial to follow up the risk. For this reason, regular check up list should be prepared for this
organization.
has been identified that technical risk and resource risk is the major risks of such organization
and communication risk and decision making risk are the minor risks. In the context of online
store project, technical risk occurs due to dispute of hardware and software. On the other hand,
corrective strategy, as well as the actions are taken for the risk management. However, A&D
Hitech can use this strategy to manage their organizational risk. Compliance with the policies of
their organization will enable them to mitigate the risk. This organization should comply with the
government rules to develop corrective risk management strategy. Auditing is the most important
corrective strategy that includes documentation action. In the organizational risk tolerance
process, both internal and external stakeholders are associated while in the departmental risk
tolerance process the internal stakeholders are involved. Apart from this risk monitoring process
is crucial to follow up the risk. For this reason, regular check up list should be prepared for this
organization.
25RISK MANAGEMENT
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qualitative inquiry of information technology managers (Doctoral dissertation, Capella
University).
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approach for the mitigation and monitoring of the “Misalignment Risk” in Enterprise
Resource Planning projects. Computers in Industry, 70, 1-12.
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risk management methodology for small firms. International Journal of Project
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behaviour. Journal of Retailing and Consumer Services, 29, 92-103.
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formation, mitigation and risk assessment. Journal of the Science of Food and
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28RISK MANAGEMENT
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relationship between planning and success. International Journal of Project
Management, 32(3), 435-441.
Qazi, A., Quigley, J., Dickson, A., & Kirytopoulos, K. (2016). Project Complexity and Risk
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construction projects. International Journal of Project Management, 34(7), 1183-1198.
Sadgrove, K. (2016). The complete guide to business risk management. Routledge.
Taylor, L. (2014). Practical enterprise risk management: How to optimize business strategies
through managed risk taking. Kogan Page Publishers.
Turner, R. (2016). Gower handbook of project management. Routledge.
Verner, J. M., Brereton, O. P., Kitchenham, B. A., Turner, M., & Niazi, M. (2014). Risks and
risk mitigation in global software development: A tertiary study. Information and
Software Technology, 56(1), 54-78.
Wang, T., Wang, S., Zhang, L., Huang, Z., & Li, Y. (2016). A major infrastructure risk-
assessment framework: Application to a cross-sea route project in China. International
Journal of Project Management, 34(7), 1403-1415.
Wright, W. C., & Eppink, F. V. (2016). Drivers of heritage value: A meta-analysis of monetary
valuation studies of cultural heritage. Ecological Economics, 130, 277-284.
Zwikael, O., Pathak, R. D., Singh, G., & Ahmed, S. (2014). The moderating effect of risk on the
relationship between planning and success. International Journal of Project
Management, 32(3), 435-441.
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