Risk Management Plan
Risk Management Plan. Section 3 – Risk Analysis and Assessment 3.1 Major and Minor Risks 2 3.2 Risk Probability 2
3.3 Risk Matrix Template 3
3.4 Risk Data Quality Strategy 3
3.5 Risk Reviews 5
3.6 References 6
Section 3 – Risk Analysis and Assessment
The significant common risk identified in the four undertaken projects is culture risk; the minor common risks include safety risk, duration risk, Land acquisition risk, and change in drawing risk and environmental.
The project team determined the risks through qualitative and quantitative methods. After the project team took into account all the risks associated, risk determination offered a numeric risk value indicating that project AP was the riskiest. A Risk Score represents this numerical value. A risk score is calculated as follows: impact* likelihood.
The project used quantitative and qualitative methods in this project to estimate the overall impact of risk on the project’s cost and schedule goals. The findings are utilized to create a risk matrix and offer insight into the chances of project success. The most effective method applied is Expected Monetary Value (EMV)
3.2 Risk Probability
| High | Risk 1 | ||
| Medium | Risk 2 Risk 3 | ||
| Low | Risk 4 | ||
| Low | Medium | High | |
| IMPACT
|
The project will expand the use of probability, which significantly increases forecasting accuracy, and will incorporate calibration training, which has been shown to increase judgment accuracy. In addition, the project will Explore options to encourage individuals to think about different theories that can help increase judging accuracy. Finally, the project team will disintegrate the issue and divide each issue into more minor, simpler-to-estimate problems.
3.3 Risk Matrix Template
| Risk # | Risk | Probability | Impact | Response | Action Plan | Person Responsible | Status |
| AC BS BC | Safety risk
| High | Cost | Mitigate | Guaranteeing that everyone has received the proper training to minimize danger on-site is essential. It is a crucial practice to guarantee that your workers know what to do in the event of an accident. Organizing regular safety meetings and safety check-ups on-site | Project Manager | Closed diverted |
| AC BC | Duration risk Shortage of workers Contracts’ risk | High | Time | Avoid | The time frames should be practical, and The hiring company’s contracting standards should be explicit regarding the workers’ agreement and contractors. | The contractor | Open |
| AP BS | Environmental risk Site condition unknown | Medium | Quality | Avoid | To be aware of the site’s restrictions, have geographic information research that shows the area’s topography, including existing features, boundary lines, and contour lines. Then, examine the architectural drawings and, Conduct a thorough geotechnical analysis. | The architect | Closed |
| AP AC BS BC | Natural calamities risks | Low | Cost Time Quality | Avoid Mitigate Transfer | The company may insure against natural risks. However, be aware of the possible disaster, predict and prepare and put mitigation measures in place. | Project Managers | Pending Closed |
3.4 Risk Data Quality Strategy
The process of identifying project risk will be first to identify the risk, second to determine the risk criteria, third to assess the risk, and finally to prioritize the risk. The project manager will use a risk matrix to determine the likelihood and impact of the risk. This method rate risks according to their seriousness by combining their likelihood and impact scores. Each risk is thus recognized concerning the overall project. If any problem arises in the project’s life, there will be a timely response.
By focusing on the likelihood of prospective risks, a risk matrix is a reliable tool that aids in risk assessment. As a project manager, I will quickly determine the risk of a project using a risk assessment matrix. The risk assessment will enhance data reliability.
Project managers will use data that has been compiled for the risks they have identified. The Project manager will determine the degree to which information regarding the risk is pertinent to the project. It aids the project manager in comprehending the risk’s accuracy, dependability, validity, and authenticity of the information gathered about the risk (Sebastian-Coleman, 2012).
Evaluation of data quality mandates that the project manager analyzes the risk’s understanding level, gathers all relevant data, and assesses the data’s integrity, quality, and dependability. Then, the project team will give precise judgment after carefully considering these risk parameters.
The main goal of data quality is to guarantee the objectivity and reliability of the data used in the risk analysis. Therefore, it assumes that the findings are trustworthy and highly credible information.
3.5 Risk Reviews
| Continue Review and Action Plan | Owner | Time Estimate |
| Step 1: Determine the causes of the event. Step 2: Continue to look for new risks. Step 3: Analyze the success of your risk management strategy. | Project team | Throughout the project |
| Stage 1: Risk identification. Stage 2: Risk analysis Stage 3: Risk management Stage 4: Documenting the procedure Stage 5: Monitoring and reviewing. | Project team | 2-3weeks at each stage |
| The project manager will use Verbal communication, written communication, and visual methods in reporting to the stakeholders. | Project Manager | Throughout the life of the project |
The project manager will identify current threats to the company, division of operations, or project by establishing a risk response. Also, the PM will categorize identified risks in order of importance based on how serious of a threat they pose. Finally, the PM will evaluate the risk to establish the most appropriate course of action. Meetings with stakeholders are done to communicate the progress of risk assessment.
Project managers should strive to communicate the appropriate risk information through the risk matrix to stakeholders at the appropriate time. Communication should be kept simple to show stakeholders how to minimize risks and take advantage of opportunities.
References
Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK(R) Guide–Sixth Edition / Agile Practice Guide Bundle: Vol. Sixth edition. Project Management Institute.
Sebastian-Coleman, L. (2012). Measuring data quality for ongoing improvement: a data quality assessment framework. Newnes.
