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I NTRODUCTION
As organizations begin new projects they begin operating in an area of uncertainty that comes along with developing new and unique products or services. By doing so, these organizations take chances which results in risk playing a significant part in any project. The purpose of the risk management plan is to establish the framework in which the project team will identify risks and develop strategies to mitigate or avoid those risks. However, before risks can be identified and managed, there are preliminary project elements which must be completed. These elements are outlined in the risk management approach. This project is considered a high risk project as it has an overall risk score of 79.2 on a scale from 0 to 100. The project risk score is the average of the risk scores of the most significant risks to this project. A risk score below 16 is low risk project, a score between 16 and 45 is a medium risk project and a score above 45 is a high risk project.
Before risk management begins it is imperative that a foundation is established for providing structured project information, thus, the following project elements were completed and defined prior to developing this Risk Management Plan:
Define work scope, schedule, resources, and cost elements o Develop project WBS/WBS dictionary o Develop master schedule and detailed schedules o Estimate project cost and finalize budget o Identify required and available resources o Establish performance measurement metrics
Define minimum and maximum baseline thresholds o Schedule o Resources o Cost
Baseline reporting requirements o Format o Frequency of distribution o Distribution list
Define Risk Management Roles and Responsibilities o Project Manager chairs the risk assessment meetings o Project team participates in risk assessment meetings and members serve as meeting recorder and timekeeper o Key stakeholders participate in risk assessment meetings o Project Sponsor may participate in risk assessment meetings
TOP RISKS
- To meet the objectives and the completion of this project, following assumptions has been made :
− The project will be completed on estimated schedule. − The amount of budget is in accordance to the project sponsor. − Project sponsor will provide the resources for hardware testing. − Quality of the project will be based of the percentage completion of the project. − Altium and Express PCB are the soft wares to be used for the simulation of the project.
R ISK MANAGEMENT APPROACH
The approach we have taken to manage risks for this project included a methodical process by which the project team identified, scored, and ranked the various risks. The most likely and highest impact risks were added to the project schedule to ensure that the assigned risk managers take the necessary steps to implement the mitigation response at the appropriate time during the schedule. Risk managers will provide status updates on their assigned risks in the bi-weekly project team meetings, but only when the meetings include their risk’s planned timeframe. Upon the completion of the project, during the closing process, the project manager will analyze each risk as well as the risk management process. Based on this analysis, the project manager will identify any improvements that can be made to the risk management process for future projects. These improvements will be captured as part of the lessons learned knowledge base.
R ISK IDENTIFICATION
For this project, risk identification was conducted in the initial project risk assessment meeting. The method used by the project team to identify risks was the Crawford Slip method. The project manager chaired the risk assessment meeting and distributed notepads to each member of the team and allowed 10 minutes for all team members to record as many risks as possible.
Expert judgment
Two Expert Interviews were held for this project. The interviews revealed several risks which were then mitigated by making changes to the project plan. The remaining risks are included in the Risk Register.
affect this triple constraint. The project manager, with the assistance of the project team, will determine the best way to respond to each risk to ensure compliance with these constraints.
In extreme cases it may be necessary to allow flexibility to one of the project’s constraints. Only one of the constraints for this project allows for flexibility as a last resort. If necessary, funding may be added to the project to allow for more resources in order to meet the time (schedule) and scope constraints. Time and scope are firm constraints and allow for no flexibility. Again, the cost constraint is flexible only in extreme cases where no other risk avoidance or mitigation strategy will work.
R ISK REGISTER
The Risk Register for this project is a log of all identified risks, their probability and impact to the project, the category they belong to, mitigation strategy, and when the risk will occur. The register was created through the initial project risk management meeting led by the project manager. During this meeting, the project team identified and categorized each risk. Additionally, the team assigned each risk a score based on the probability of it occurring and the impact it could potentially have. The Risk Register also contains the mitigation strategy for each risk as well as when the risk is likely to occur.
Based on the identified risks and timeframes in the risk register, each risk has been added to the project plan. At the appropriate time in the plan—prior to when the risk is most likely to occur—the project manager will assign a risk manager to ensure adherence to the agreed upon mitigation strategy. The each risk manager will provide the status of their assigned risk at the bi-weekly project team meeting for their risk’s planned timeframe.
The Risk Register will be maintained as an appendix to this Risk Management Plan.
SPONSOR ACCEPTANCE
Approved by the Project Sponsor.
Creative Electronics and Automation Dated : 07/09/
