MSPM1-GC4000: Project Risk Management Plan for Four Seasons

This project presents a detailed risk management plan developed for a technological augmentation project at the Four Seasons Hotel. The plan begins with an introduction to risk management, defining risks and the importance of a proactive risk management strategy. The methodology includes a logical sequence of risk management activities: risk identification, assessment, response planning, application, reporting, review, and lessons learned. The core of the project is a comprehensive risk assessment table, which identifies potential risks (e.g., budget overruns, technical failures, customer dissatisfaction), categorizes them, and assesses their probability and impact. For each risk, the plan outlines a specific response strategy, assigns an owner, and details the impact type. Risks are prioritized using a rating system, and appropriate mitigation strategies are proposed. The document concludes with sections on risk documentation, budget and schedule estimates, and roles and responsibilities, emphasizing the importance of approvals from key stakeholders such as the project manager and executive sponsor.

Enterprise Project Management
MSPM1-GC4000
Edward Kleinert
The Project Risk Management Plan
The Project Title
The Organization Name or Business Unit Name or Department Name
The Project Solution
Authors Name:
Date:
Student Name:
Course Name:
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Enterprise Project Management
MSPM1-GC4000
Edward Kleinert
Introduction and Purpose
Risks are defined as the probable events that may have negative impact on the project during
any of its phases. Risk management plan is defined as a document that is used to document the
identified risks and also develop suitable mitigation plan for the risks based on their priorities.
The purpose of a risk management plan is to identify and prioritize the risks such that suitable
mitigation plan can be developed and implemented.
In this project, technological augmentation is to be implemented in the Four Seasons hotel as a
part of its major project. This project contains a number of risks that must be identified and
suitable risk management plan must be developed in order to minimize the chances of
occurrence of these risks.
Risk Management
Risk management is defined as the process by which the identified risks are prioritized based on
their chances of occurrence and probable impact on the project and suitable mitigation plans
are being implemented to ensure the risks do not occur in the project or the chances of
occurrence of the risks are minimized.
The logical sequence of risk management activities is listed as follows.
 Risk Identification – The probable risks are identified.
 Risk Assessment – The risks are assessed for their chances of occurrence and possible
impact on project.
 Risk Response Planning – Possible options of responses against the risks are identified.
 Risk Response Application – The responses are applied in the project.
 Risk Reporting – The identified risks are reported in the form of a document.
 Risk Review – The risks are reviewed after application of response.
 Risk Lessons Learned – Reflection is made based on the lessons learnt from risk
mitigation.
Methodology
Risk Categories
Risk Communications and Impact
Probability and Impact Matrix
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Enterprise Project Management
MSPM1-GC4000
Edward Kleinert
Risk Description Impact Type Probability
Rating
Impact
Rating
Priority
Rating
Risk Response Owner
Possible budget
overshoot due to
overspending
Cost 4 4 16 Avoid Develop
proper cost
management
plan and
penalize any
stakeholder
for
unnecessary
overspending
Finance
Manager
Faulty technical
devices resulting in
poor performance
during
implementation
Technical 3 3 9 Mitigate Place
complaint to
the vendor
and demand
replacement
and / or
penalty
payment
Procurement
Manager
Customers may not
be satisfied with
the technological
augmentation at
the resort
Business 2 3 6 Accept Request
customers to
provide
feedback and
ideas and
technical and
non-technical
changes can
be made
accordingly
Customer
Relations
Manager
Scope creep may
occur during the
course of the
project
Scope 3 3 9 Avoid Scope creep
always need
to be avoided
in a project
and suitable
changes may
be introduced
to ensure
scope creep
does not
occur
Project
Manager
The
implementation of
the technology
augmentation may
not be successful
due to lack of basic
infrastructure setup
Technical 4 4 16 Mitigate Implement
basic technical
infrastructure
setup and
recruit
advanced
technical
experts to
conduct the
integration
process
Technical
Supervisor
Untested
technology may
produce significant
risk – the company
may try to
implement
technology that are
not yet completed
tested, resulting in
undesirable
outcomes
Technical 3 4 12 Avoid It is
recommended
to avoid
untested
technology
and
implement
only well
tested and
established
technology
Technical
Supervisor
3

Enterprise Project Management
MSPM1-GC4000
Edward Kleinert
Due to expensive
nature of the
project and
changing market
prices, budget
might exceed the
initially estimated
amount resulting in
financial troubles
and risk
Cost 3 4 12 Transfer Transfer the
risk to the
Business
Accounts
Manager who
will interact
with potential
sponsors for
investing in
the project
Business
Accounts
Manager
The schedule of the
project may not be
fulfilled and the
final delivery of the
project may get
delayed due delay
of work by workers,
delay in delivery by
vendors and other
factors
Schedule 4 3 12 Avoid Missing
deadlines and
late delivery
must be
avoided in
order to
prevent
budget
overshoot and
other
problems
Project
Manager
The required
technological
devices may not be
available in any of
the nearby /
national vendors’
stocks and these
devices may need
to be procured
from other
countries
Resources 2 4 8 Mitigate Import the
resources at
lowest prices
Procurement
Manager
During installation
works, some
workers may get
injured due to short
circuits, falling from
height and others
Schedule,
Resources
2 3 6 Avoid Provide
workers with
safety gears
Project
Manager
4

Enterprise Project Management
MSPM1-GC4000
Edward Kleinert
Risk Description Impact Type Probability
Rating
Impact
Rating
Priority
Rating Owner
Business 1 - None 1 - None Accept
Scope 2 - Low 2 - Little Avoid
Technical 3 – Medium 3 - Moderate Mitigate (P)
Schedule 4 – High 4 - Heavy Mitigate (I)
Resources 5 - Certain 5 - Devastate Transfer
Cost
1
2
3
4
5
6
7
8
9
10
Risk Response
Probability x
Impact
Identify and Describe Risk
Response
Risk Documentation
Budget and Schedule Estimates
Risk Plan Roles and Responsibilities
Approvals
Prepared by__________________________________
Project Manager
Approved by__________________________________
Project Sponsor
5

Enterprise Project Management
MSPM1-GC4000
Edward Kleinert
___________________________________
Executive Sponsor
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