Project Management: Risk Response Plan Analysis and Strategies

This project management assignment focuses on developing a risk response plan for a company aiming to go paperless through an information system implementation. The assignment delves into the purpose of a risk response plan, identifying risk owners and their roles, and the responsibilities of project managers in assessing and handling risks. It explores common areas where risks originate, including financial, project, operational, and technical aspects, discussing at least two types of risks within each area. The solution provides detailed tables outlining specific risks, their descriptions, potential impacts, probabilities, responsible parties, and mitigation strategies. The assignment concludes with a review of the risks and the implemented mitigation strategies, referencing relevant literature on risk management and response.

Running head: PROJECT MANGEMENT
Project management
Name of the Student
Name of the University
Author’s Note

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PROJECT MANGEMENT
Table of Contents
1. Purpose of the risk response plan................................................................................................2
2. Risk owner...................................................................................................................................2
3. Responsible person for resolving risk on a project......................................................................2
4. Role of the risk owner..................................................................................................................3
5. Roles of project managing in assessing and handling risk..........................................................3
6. Description of the common area where risk can originate..........................................................4
7. Discussing at least two type of risk in each area........................................................................4
8. Reviewing risk will proper elaboration.......................................................................................9
References......................................................................................................................................11

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1. Purpose of the risk response plan
The main purpose of the risk response is to determine proper ways for reducing as well
as eliminating the threats that are associated with the project and also the opportunities for
increasing the impact. It is found that the risk response plan for the ABC company is mainly
developed in order to eliminate the challenges that the project managers generally faces while
handling the project that aims to go paperless with the implementation of information system
(McNeil, Frey & Embrechts, 2015). In addition to this, it is found that the risk response plan
must be properly developed for properly reviewing the risks that occur within the project by
implementing proper eliminating strategies so that the challenges that are linked with the project
can be easily resolved.
2. Risk owner
Risk owner is the individual who is mainly responsible for properly monitoring the risks
and properly executing the risk responses when they are appropriate. The risk owner helps in
effectively deigning the entire risk response plan in order to perform a number of qualitative risk
analysis as well as quantitative analysis for analyzing the project risk effectively (Ho et al.,
2015). The risk owner is quite necessary for the project such that the challnges which are linked
with the project can be easily analyzed so that the risk manager can be able for implementing
appropriate steps which are helpful in mitigating the project risks and challenges.
3. Responsible person for resolving risk on a project
A person who is mainly appointed to be the owner of the risk is the one that have proper
knowledge on those specific risks so that they can be able to assess the risk for properly
understanding the root cause of the risks for mitigating it effectively. The risks that are linked

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with the project can be within the permit of the individuals that is mainly concerned with the
responsibilities as well as duties for successful risk management (Bromiley et al., 2015). They
must generally have proper capability and with proper position for managing the challenges
which are linked with the project. It is the responsibility of the project manager to take the entire
responsibility off successfully assigning the project risks to the different individual risks such
that challenges and project risks can be effectively mitigated.
4. Role of the risk owner
The role of the risk owner within the risk response plan is to properly monitor, manage as
well as control the risks which are generally linked with the project risk. The risk owners are the
individuals who generally take the entire responsibility of processing different types of risks such
that the challenges which are linked with the project can get mitigated quite effectively. The risk
owners take the responsibilities of undertaking both the qualitative and quantitative research in
order to determine the risks which are generally creating negative impact on the project so that
the project risks can be resolved quite effectively.
5. Roles of project managing in assessing and handling risk
It is found that proper as well as effective management of project risks are very much
important for the project success. With all the project stakeholders as well as project team, the
project manager is also responsible for properly managing the risks and challenges such that it
generally create a negative impact of the project risk can be reduced (Cole, Gine & Vickery,
2017). The project manager takes the responsibility of seeking proper advice on the proper risk
treatment strategies. They also help in managing the risk register for updating it with the new
risks that occurs within the project. In addition to this, the project manager is also responsible of

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determining the potential risks which are generally linked in the entire project with the project in
a timely manner so that the risks can be resolved effectively. Moreover, proper coordination for
the implementation of appropriate risk management related strategies.
6. Description of the common area where risk can originate
It is found that while making the human resource department of the ABC company
paperless, there are some common types of risks that can occur in financial area, project area,
operational area as well as technical area. It is found that the financial risk is an important area
that generally can obstruct the project progress because project fiancé is generally considered as
the project backbone (Tupa, Simota & Steiner, 2017). If a project generally creates risks in
context to the financial department then the organization can face budget related issues that
further can cause delay due to the absence of proper budget to complete the project effectively.It
is found that project related risks can occur if the entire project is generally not managed
effectively (Leveson, 2015). In addition to this, it is found that technical risk can also create
negative impact on the progress of the entire project and it generally obstructs the project in
accomplishing the project objectives and goals. Moreover, operational risks can generally occur
if the operators of the information system are not much experienced.
7. Discussing at least two type of risk in each area
Common
area
Risk Description Impact Probabilit
y
Responsibl
e
Mitigation

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Financial
risk
Improper
budget
managemen
t
If the
budget of
the project is
not managed
effectively
then budget
related
problem
occurs.
High High Financial
manger
Managing or
tracking the
budget from
the initial
step is
necessary.
Lack of
budget
If the budget
estimation is
not done
properly
then there
will be high
chance that
lack of
budget
related issue
can occur.
High High Financial
manager
Estimation of
the budget
must be done
with the help
of
experienced
staffs.
Project
risk
Improper
managemen
t
Due to
improper
management
Mediu
m
Medium Manager With the
help of
management

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, it is quite
difficult to
complete the
project on
time.
strategies,
the entire
project must
be managed.
Lack of
experienced
team
members
If the team
members are
not
experienced
then they
face a lot of
issues as
well as
challenges
in properly
finishing the
work within
the expected
time.
Mediu
m
Medium HR
Manager
The team
members
must be
provided
with training
facility so
that they can
be able to
manage the
project
effectively.
Operationa
l risk
Lack of
proper
operation
If the
operation
with the
help of the
High High Operational
manager
It is quite
necessary to
test the entire
system quite

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new system
in
appropriate
then it can
be
considered
that the
undertaken
project is
not
successful.
effectively so
that the
information
system can
function
appropriately
.
Lack of
skills in
staffs
If proper
skills is not
present
within the
staff then
the HR
department
will not be
able to
operate the
new system
for making
Mediu
m
Medium HR manger Skilled and
experienced
members
must be
hired who
can be able
to handle the
new system
and can work
effectively
for managing
the HR

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the AB
company
paperless
department.
Technical
risk
Improper
testing
If testing is
not
conducted
properly
then it
generally
can occur a
number of
issues and
challenges
related with
the
operation of
the new HR
system that
airs to make
the ABC
company
paperless.
High High Tester It is quite
important to
undertake
testing quite
effectively
for managing
the entire
task quite
properly.
Improper If the High High Designer It is quite

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developmen
t of
prototype
prototype
for the entire
system is
not
effectively
developed
then it
generally
can arise a
number of
issues as
well a
problems in
developing
the main
system
properly for
making the
company
paperless.
necessary to
hire
experienced
designer so
that they can
be able to
develop the
prototype
effectively.
In addition to
this, review
must be done
on the
prototype for
making sure
that the
developed
prototype
must fulfil
the
requirements
of the clients.

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8. Reviewing risk will proper elaboration
After reviewing the risks in Week 1, we have analyzed that the risks which are linked
with the entire project are generally mitigated by undertaking proper risk mitigation strategies.
Proper risk owner is assigned for the risk who will take the responsibility of accessing the risks
on the basis of impact and probability. The risk owner generally undertakes proper risk
mitigation strategies for resolving the issues and project challenges which are associated with the
risk.

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References
Bromiley, P., McShane, M., Nair, A. and Rustambekov, E., 2015. Enterprise risk management:
Review, critique, and research directions. Long range planning, 48(4), pp.265-276.
Cole, S., Giné, X., & Vickery, J. (2017). How does risk management influence production
decisions? Evidence from a field experiment. The Review of Financial Studies, 30(6),
1935-1970.
DeAngelo, H., & Stulz, R. M. (2015). Liquid-claim production, risk management, and bank
capital structure: Why high leverage is optimal for banks. Journal of Financial
Economics, 116(2), 219-236.
Ho, W., Zheng, T., Yildiz, H., & Talluri, S. (2015). Supply chain risk management: a literature
review. International Journal of Production Research, 53(16), 5031-5069.
Leveson, N. (2015). A systems approach to risk management through leading safety indicators.
Reliability Engineering & System Safety, 136, 17-34.
Li, G., Fan, H., Lee, P. K., & Cheng, T. C. E. (2015). Joint supply chain risk management: An
agency and collaboration perspective. International Journal of Production Economics,
164, 83-94.
McNeil, A. J., Frey, R., & Embrechts, P. (2015). Quantitative Risk Management: Concepts,
Techniques and Tools-revised edition. Princeton university press.
Rampini, A. A., & Viswanathan, S. (2016). Household risk management (No. w22293). National
Bureau of Economic Research.
Tupa, J., Simota, J., & Steiner, F. (2017). Aspects of risk management implementation for
Industry 4.0. Procedia Manufacturing, 11, 1223-1230.