Impact of Risk

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INTRODUCTION

Risk is defined as an event that has a probability of occurring, and could have either a positive or negative impact to a project should that risk occur. A risk may have one or more causes and, if it occurs, one or more impacts. 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.

TOP THREE RISKS

The top three high probability and high impact risks to this project are:

Delay in Server Equipment
Due to a manufacturer’s production backlog, the servers are not available for large scale application testing causing a delay in the project schedule. The project manager will mitigate this risk by using servers from the backup data center if needed.

Fiber Optics Connection Not Completed
Due to construction delays in installing the fiber optic cable between the data center and the headquarters facilities users will not have a high speed connection between their site and the datacenter resulting in slow responses from the application making it unusable. The Project Manager will implement a site to site broadband Ethernet radio network between the data center and headquarters facility.

Network Operations Center (NOC) Not Appropriately Staffed
Due to lead times associated with hiring and training additional staff, the NOC does not have the necessary staff to monitor the additional bandwidth associated with the project resulting in a delay to the project schedule. The project manager...
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