Project Risk Management: Analysis and Contingency Plan

This project assignment focuses on risk management within a project context. The solution begins by identifying five key project risks, prioritizing them based on their impact and likelihood. It then delves into a detailed risk assessment for three of these risks, evaluating their severity, probability, and criticality to determine appropriate risk levels. Following the assessment, the assignment outlines risk response and contingency plans for the selected risks, specifying triggers and responsible parties for each plan. Finally, the project addresses the management of project delays by outlining processes such as setting realistic deadlines, utilizing scheduling software, acknowledging delays promptly, and ensuring stakeholder communication to minimize potential disruptions. The assignment draws on academic sources to support its analysis and recommendations.

Running head: RISK MANAGEMENT
Risk Management
Name of the Student:
Name of the University:

1RISK MANAGEMENT
1. List of five risks and priority levels for impact and likelihood
Following are the risks which are listed below:
Risk 1: The QA testing manager is always over estimated the time which is required to
complete the project tasks.
Risk 2: The Company has changed their vendor for the hardware. After conducting reference
checks, they indicated that the orders are being delayed by up to a week.
Risk 3: The logistics manager is complaining of quality of the reports they are received from
the current system. There is very little control over quality of data which is an input in the
system.
Risk 4: The amount of customization required is underestimated as the stakeholders are
trying to add new features.
Risk 5: The management team tries to reduce the project time and it is critical to balance
hitting the timelines.
Type of risk Impact Likelihood
Risk 1 High High
Risk 2 Medium Medium
Risk 3 High Medium
Risk 4 Low Medium
Risk 5 Low Low

2RISK MANAGEMENT
2. Risk assessment for three risks
Risk
ID
Potential risk Result of
occurrence
Severity Probability Critically
number
Risk level Further
action
required
R1 Over- estimated
of the time
Cause increase
in the cost of
the project
4 3 12 Medium Supervisor
monitoring
R2 Change of
vendor for the
hardware
Lack of quality
of the
materials
4 5 20 High Control
training is
required
for the
vendors.
R3 Poor quality of
the reports
Delay in the
project work
3 3 9 High Supervisor
monitoring
Probability Severity
Insignificant-5 Minor-4 Moderate-3 Significant-2 Catastrophic-1
Certain-5 Medium High-R2 Extreme Extreme Extreme
Likely-4 Medium High High Extreme Extreme
Possible-3 Low Medium -R1 High-R3 Extreme Extreme
Unlikely-2 Low Low Medium High Extreme
Remote-1 Low Low Medium High High
Table 1: Risk Assessment

3RISK MANAGEMENT
3. Risk response and contingency plan for three risks, trigger and responsible
person for the risk plan
Type of risk Risk
response
Contingency plan Trigger Responsible
person
Over- estimated
of the time
Accept The project manager is
required to use project
management tools for
scheduling of the project
activities (Schwalbe 2015).
The project
scheduling tool is
not used at the
project planning
stage.
Project
Manager
Change of
vendor for the
hardware
Mitigate The company should select
the vendor based on their
skills and knowledge to
handle the hardware required.
At the last
moment, there is
changing of the
project vendor leas
to change in entire
project plan.
Project
Manager
Poor quality of
the reports
Mitigate The quality manager should
maintain the quality of the
reports required to complete
the project (Kerzner and
Kerzner2017).
There is no project
documents are
prepared at the
initiation stage of
the project plan.
Quality
Manager

4RISK MANAGEMENT
4. Manage the process to minimize project delays
The project delay is the main risk in a project plan due to not estimate the project
activities start and finish date accurately. In order to manage the project delay risks into the
project, following are the processes which are used to manage it such as:
 The project manager and the team members should start the project with realistic
deadlines. For the project client, they expect to set a strict project deadlines for the
project delivery (Harrison and Lock 2017). Therefore, the team member should work by
setting deadlines for work efforts plus performance.
 The project manager should follow knowledge of the project goals, project priorities and
team dynamics to manage the pending project delays. They should schedule unexpected
delays which can minimize throughout using scheduling software (Fleming and
Koppelman 2016). Each of the project delay is managed with tested procedures for
timely and status reporting. It should provide information to identify missed deadlines
plus potential delays into the project plan.
 The project manager should acknowledge the missed project deadlines plus resulted
delays as soon as possible. In order to manage the project delays, the project manager
should require allocating the project tasks to right human resources based on their skills
and expertise to handle the project activities. Based on the project plus nature of project
delay, the resources are project sponsor, steering committee, vendors, technical expertise
and customers.
 The project stakeholders should be notified of the project status plus change requests so
that there is low possibility of project changes.

5RISK MANAGEMENT
References
Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management.
Project Management Institute.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach.
Routledge.
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.