Capella University PM -FPX5334-ASST3_Risk_Identification

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Risk Management Plan Project Name: Lithuanian Construction Project Learner Name: Gaylon Barcom Course Name: PM-FPX5334 Date: November 11, 2019 Table of Contents Section 1 – Introduction to the... Plan______________________________________________________________________________3 1.1 Benefits of Risk Management________________________________________________________________________________________3 1.2 Project Goals and Objectives_________________________________________________________________________________________4 1.3 Company Background______________________________________________________________________________________________4 1.4 Risk Identification_________________________________________________________________________________________________5 Section 2 – Risk Scope, Components, and Value_____________________________________________________________________5 2.1 Scope of the Risk Management Plan__________________________________________________________________________________5 2.2 Risk Management Plan Components__________________________________________________________________________________8 2.3 Expected Monetary Value___________________________________________________________________________________________9 2.4 Determine the Risks_______________________________________________________________________________________________11 2.5 Evaluate and Assess the Risks_______________________________________________________________________________________12 2.6 Qualitative and Quantitative Processes_______________________________________________________________________________13 Section 3 – Risk Analysis and Assessment________________________________________________________________________16 3.1 Major and Minor Risks____________________________________________________________________________________________16 3.2 Risk Probability__________________________________________________________________________________________________16 3.3 Risk Matrix Template______________________________________________________________________________________________16 13.4 Risk Data Quality Strategy__________________________________________________________________________________________16 3.5 Risk Reviews_____________________________________________________________________________________________________17 Section 4 – Corrective Action and Monitoring_____________________________________________________________________17 4.1 Risk Tolerance___________________________________________________________________________________________________17 4.2 Risk Mitigation___________________________________________________________________________________________________17 4.3 Corrective Risk Management Strategy________________________________________________________________________________17 4.4 Corrective Action Plan_____________________________________________________________________________________________17 Section 5 – Postmortem Plan___________________________________________________________________________________18 5.1 Results_________________________________________________________________________________________________________18 5.2 Follow Up_______________________________________________________________________________________________________18 Section 6 – References________________________________________________________________________________________18 Pritchard, C. L., PMP, PMI-RMP, EVP. Risk Management. [Capella]. Retrieved from https://capella.vitalsource.com/#/books/9780429798566/_____________________________________________________________18 Templates__________________________________________________________________________________________________20 Risk Matrix Legend Example___________________________________________________________________________________________20 Risk Matrix Example_________________________________________________________________________________________________20 Risk Monitoring and Control Example___________________________________________________________________________________21 2Section 1 – Introduction to the Plan 1.1 Benefits of Risk Management According the Project Management Institute (PMI), Risk is one of the Nine (9) process areas that are considered. Sound Stratagems for Risk Management is paramount for the project manager (PM) to be effective in determining those areas that will be pitfalls to the project as well as those areas that will bring about opportunities and showcase the strength of the organization. By preparing a plan that accounts for the unknown, the project team can build in reactivity to mitigate or ward off these events should the arise. Additionally, this plan will allow the team to maintain separation from these issues if deemed necessary. Meeting the project objectives requires that the project be planned, prepared and evaluated in such a manner that the results align with the strategic goals of the project. Risk management planning examines, identifies and lists risk factors that are both internal and external to the project thus, adding to the success of the project. Provisions within the risk management plan (RMP) identify the plausibility of incident, the potential consequences, and perceived mitigations. Risk events are usually classified as having a Low, Moderate or High impact on the team’s performance within the budget or schedule. These events usually carry the following descriptors: (Pritchard, 2015)  Low probability and low impact equal low risk  High probability and high impact equal high risk  High probability and low impact equal low risk (to the project’s overall success) Moderate risk is usually a mixed group of the above that is something more than Low but does not meet the criteria to be considered High. Identifying and implementing the use of the proper techniques and toolset increases the level of performance of the risk management plan in the delivery of a project that meets the goals and objectives laid out by the stakeholders. There is a plethora of tools and techniques that can be used to manage risk within the construction industry. When choosing the tools and techniques to be used the team must ensure that they align with the project goals and objectives. Some of these tools are appropriate for all project phases. The trick to risk management is the identification, analysis and reaction to risks within a single process most methods are not able to do this. The simple use of checklist and brain dumping events will not allow for the risks and consequences to be properly identified and prioritized. Using a decision tree does not identify the result of risk occurrence. SWOT and PERT also lack the ability to be a one size fits all solution as well .By utilizing bits and pieces of all the approaches such as risk register, checklists, hazard assessments and develop a group charette geared toward risk management allows for a more contemporary and progressive approach, This charette fits the bill for planning, identification and analysis while giving the team the ability to respond to the risk. Charettes are a great way to get opinions and buy in from all stakeholders, it also gives the greatest opportunity to identify and mitigate all risks [Show More]

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