Risk Management

A risk
is an event or condition that, if occurs, could have a positive or negative
effect on a project’s objectives. Therefore, Risk Management is the vital
process of identifying, assessing, responding to, monitoring, and reporting
risks. In this section, Risk Management Plan defines how risks associated with
the TWF project will be identified, analyzed, and managed.

 

The
project manager working with the project team and project sponsors will ensure
that risks are actively detected, analyzed, and controlled throughout the life
of the project. Risks will be identified as early as possible in the project to
minimize their impact via constantly reviewing and reflecting by project team.

The
steps for accomplishing this are outlined in the following sections. The
project manager, Sudesh Gabale, will undertake the majority of the tasks of the
Risk Manager for this project.

 

Risk identification section will involve related personnel including
the project team, appropriate stakeholders. It will contain an evaluation of
environmental factors, organizational culture and the project management plan.
Careful attention will be given to the project deliverables, assumptions,
constraints, work breakdown structure (WBS), cost/effort estimates, resource
plan, and other key project documents.

All
risks identified will be assessed to identify the range of possible project
outcomes. Qualification will be used to determine which risks are the top risks
to pursue and respond to and which risks can be ignored.

The
probability and impact of occurrence for each identified risk will be assessed
by the project manager, with input from the project team using the following
approach:

Probability

The
percentage of occurrence of a certain event. Usually an event with 70% of
occurrence can be defined as high probability.

Impact

This
factor identifies the extent the event could affect the whole project. Usually
a high risk means that it has the potential to greatly impact project cost,
project schedule or performance

Performance

Risks
that fall within either high probability or high impact will have risk response
planning which may include both a risk mitigation and a risk contingency plan.

 

Analysis of risk events that have been prioritized using the
qualitative risk analysis process and their effect on project activities will
be estimated, a numerical rating applied to each risk based on this analysis,
and then documented in this section of the risk management plan.

 

Each major risk will be assigned to a project team member for
monitoring purposes to ensure that the risk will not “fall through the cracks”.

For
each major risk, one of the following approaches will be selected to address
it:

· Avoid
– eliminate the threat by eliminating the cause

·
Mitigate – Identify ways to reduce the probability or the impact of the risk

·
Accept – Nothing will be done

For
each risk that will be mitigated, the project team will identify ways to
prevent the risk from occurring or reduce its impact or probability of
occurring. This may include prototyping, adding tasks to the project schedule,
adding resources, etc.

For
each major risk that is to be mitigated or that is accepted, a course of action
will be outlined for the event that the risk does materialize in order to
minimize its impact.

The
level of risk on a project will be tracked, monitored and reported throughout
the project lifecycle.

The
most noticeable events will be maintained by the project team and will be kept
as part of the project status reporting process for this project.

Management
will be notified of significant changes to risk status as a component to the
Executive Project Status Report.