Risk Plan Development And Implementation In Project Management

The Major Inputs of the Risk Plan

The major inputs of the risk plan include the brainstorming of the ideas among the team members of the project, research process for forming the analysis of the impacts of the risk, analysis of the weaknesses of the plan, and formation of the strategies that could decrease the effect of the risk factors in the project.

The risk plan in the project can be developed by following four steps and they are analysis, planning, implementing, and evaluating. The processes can be helpful for the development of the project’s risk plan for dealing with the threats and issues of the project.

The stakeholders included in the project are project manager, customer/client, investors, team members, and budgeter. The consultation with the stakeholders can be done in several way. However, the project manager needs to consult with the budgeter, plan developer, and coordinator for evaluating the various risks and their impact on the project. The methods that can be used for consulting with the mentioned stakeholders are emails, face to face meeting, and reports.

The project risk plan can be developed by the use of project management concepts and strategies. The project’s risk mitigation strategies can be developed with the help of making a proper planning and estimation. The major inputs in the project risk plan include the understanding of the risk factors, developing the plans for dealing with the problems. The development of the contingency planning would be helpful for the development of sufficient plans for the issues of risk and developing obsolete risk mitigation plan. For example- the risk of shortage of resources can be dealt with the help of contingency planning and inclusion of new investors in the project.

It is the duty of a project manager to develop the planning along with the risk mitigation strategies and risk management plan. However, there are some companies that deal in formation of the risk assessment planning for projects and operations. Risk analyst and experts for large scale of business projects make the plan development.

The other stakeholders like investors and clients must be conveyed the risk management plan and assessment by the help of proper documentation and emails sent to them confidentially.

The risk identification is the process of identifying the factors of risk and analysing their impact on the operations of the project. The stakeholders that play and integral role for the development of the most suitable and effective risk identification are project managers, budgeter, plan developer, and coordinator.

The Four Steps of Risk Plan Development

The major inputs that is seen in the implementation of the risk identification processes are the classification of risk factors, assessing risk probability, forming and analysis of risk’s consequences, and defining their impact on the project operations.

Risk identification is done by the use of developing the plans and executing them in a systematic order. The risk identification can be done by Delphi technique, interviewing people, surveys, review of the last year’s/project’s documents.

  

 Figure 1: Risk Breakdown Structure for the Risk management plan

Source: Created by the author

The risk analysis is done for evaluating the process of the risk factors in the operations of the project. The use of risk analysis is done for the evaluating the factors of the risk assessment for the processing of the risk identification and mitigation the risk assessment. The project’s risk mitigation strategies can be developed with the help of making a proper planning and estimation. The major inputs in the project risk plan include the understanding of the risk factors, developing the plans for dealing with the problems. The development of the contingency planning would be helpful for the development of sufficient plans for the issues of risk and developing obsolete risk mitigation plan. The risk prioritization is done on the  basis of the impact analysis and formation of the planning methods on the basis of the risk priority. The risk priority would be based on the impact it has on the operations of the project. The project with high-risk impact would be dealt with higher priority.

The qualitative risk analysis is usually done for the discovery of the probability of the risk occurrence and the occurring of the event along with the impact of the risk on it. Risk is analysed with the help of probability and impact. The likelihood of the risk occurrence had a significant impact on the risk event. Brainstorming, historical data review, risk rating and Delphi scale had been useful for the qualitative risk analysis.

The quantitative risk analysis is done for the prioritization of the identified risk in the projects on the basis of the predefined scale for rating. The quantitative risk analysis is a further analysis of the risk and it is used for assigning a quantitative rating to the risk on the basis of the development of the probabilistic analysis.

Risk ID	Category	Description	Owner	Likelihood	Impact	Rating
00132	Technical risk	Design flaws in the software development projects can be termed as a technical risk	Software developer	Possible	Moderate	High
00153	Budget risk	Over budget of the risk and Shortage of the resources are included in the budget risk	Project Budgeter	Likely	Minor	High
00168	Organizational risk	The organizational risk are caused in forms of simple and minor threats to the design	Project manager	Almost certain	Moderate	Very high
00174	External risk	Theft of the data used in the project operations that slows the operations of the risk	Stakeholders	Unlikely	Severe	High
00182	Internal risk	The theft of the vital and confidential data and information are included in this type of risk	Coordinator	Possible	Major	High

The response to the risk can be done by using the risk assessment plan and risk mitigation strategies. The deployment of the risk mitigation would be helpful for the process of dealing with the risk factors and formation of the strategies of risk plan. The stakeholders that are required for agreeing with the risk assessment are project managers, budgeter, plan developer, and coordinator.

Stakeholders Involved in the Project

The risks are prioritized on the basis of their impact and likelihood for the project operations. The classification of the risk can be divided in terms of impact and likelihood. The risk can be classified into almost certain, certain, possible, unlikely, and rare on the basis of the likelihood. The risk is also classified as not significant, minor, moderate, major and severe. The quantitative risk analysis had resulted in providing the risk classification in low, medium, high and very high.

Risk ID	Category	Response Strategy	Priority
00132	Technical risk	Reviewing of the design flaws for keeping the design checked and successfully implemented	High
00153	Budget risk	Contingency planning for recruiting newer investors in the project for dealing with the issue of shortage of budget	High
00168	Organizational risk	Developing proper planning for the development of the organizational operations and formation of the contingency planning	Very high
00174	External risk	Developing strong security strategies for the prevention of the intrusion in the network	High
00182	Internal risk	Keeping the access of the data and information limited to a specific number of people of the project	High

The risk monitoring can be done for forming the analysis of the risk factors and developing contingency planning for dealing with the issues of the risk in the project operations. The risk assessment and the risk planning can be useful for the implementation of the strategies of risk mitigation. These practices can be used for developing a suitable plan for forming strategies against the various factors of the risk.

Risk monitoring is done by using evaluation method, risk management plan, risk priority matrix, and risk mitigation. All these processes includes the process of risk monitoring and classifying them for the implementation of the risk planning.

Risks are monitored during the phases of the evaluation and initializing of the project operations. Risk plan is updated by the use of the project management techniques and risk management plan.

 Making appropriate reference to your project time plan, address each section covering all points.

 Discuss what you would do if the following happened at execution phase:

 Consider the following scenarios:

Scenario 1: One of the risks that has the highest ranking in your risk log occurs

Scenario 2: One of the risks that have the lowest rating in your log occurs

Scenario 3: A risk that you did not identify in your risk plan could potentially occur

Indicate what risks you have chosen to discuss for scenario 1 and for scenario 2:

 Organizational risk has the highest ranking in terms of the risk log and internal risk has the lowest risk occurrence.

1. Analyse the impact of the risk in scenario 1 and 2 occurring on your project progress. Consider risks, resource requirements, interdependencies, cost, quality and so forth.

 Use the table below to record your analysis.

AREAS	ASSESSMENT OF IMPACT ON PROJECT SCENARIO 1	ASSESSMENT OF IMPACT ON PROJECT SCENARIO 2
Cost	Increase in costing	Loss of the profit that can be earned in the project
Time	More time is exhausted	No effect
Quality	Low quality of output	Delay of operational output
Risk	Very high risk as it affects all the operations of the project	Moderate effect on the operations of the project
HR	Requires management process by HR	People management is required
Resources	Human resources and management operations	Limited access to the other people

1. Discuss what process you would follow when faced with the possibility that a previously unidentified risk may occur (scenario 3).

 Use of project management concepts and tools would be useful for the formation of the contingency planning.

 2.Discuss how you would implement your risk management strategy for scenario 1 and 2. Record your answer in the table below:

Scenario	Implementation of risk management strategy
1	Use of risk mitigation strategies for the formation of strategies of risk management
2	Risk management plan would be helpful for dealing with the situations of the risk

1. Discuss how you would modify your risk plans if scenario 1, 2 and 3 happened.

The response to the risk can be done by using the risk assessment plan and risk mitigation strategies. The deployment of the risk mitigation would be helpful for the process of dealing with the risk factors and formation of the strategies of risk plan.

1. Discuss how you are informing relevant stakeholders (mention which ones based on your project) about the risks in scenario 1 occurring. Record your answer in the table below:

Stakeholder	Communication strategy (media, content, timing, frequency)
PROJECT MANAGERS	Emails, problems, after completion of each phase
BUDGETER	Report, expenses of the project, monthly
PLAN DEVELOPER	Emails and face to face meetings, issues in the plan, weekly basis
COORDINATOR	face to face meetings, progress of the project, initial phase of the plan

 The project required the analysis of the individual risk assessments and formation of the effective plan for the implementation of the risk management plan. The risks are prioritized on the basis of their impact and likelihood for the project operations. The classification of the risk can be divided in terms of impact and likelihood. The risk monitoring can be done for forming the analysis of the risk factors and developing contingency planning for dealing with the issues of the risk in the project operations. The risk assessment and the risk planning can be useful for the implementation of the strategies of risk mitigation.

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