Risk Management Plan

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Risk Management Plan for Lectocomp Electronics

A risk management plan for the project to develop the integrated circuit boards for the medical device industry has been prepared by some of the members of the risk management team which include: (1) Joseph Lewis, Project Leader, (2) Dax Tahir, Project Team Member, (3) Ann Waye, Project Team Member, and (4)Autumn Ghattas, Project Team Member. In addition to these four individuals, the risk management team also includes all departmental team managers from Lectocomp. Our new quality manager has been appointed as the risk response tracking coordinator. The risks that threaten a business are constantly changing and increase in complexity. That is why it is so important to have a viable risk management plan not only for our project but for the business as well. It is important that in developing our plan that we: (1) identify the threats or events that may affect the continuity of the project, (2) prioritize and set risk thresholds, (3) evaluate the tactics and the costs associated with the various proposed treatment plans for preventing or reducing the risks, (4) establish processes that will make us ready for regulatory audits, and (5) make informed decisions on how best to mitigate the risks of the project (Risk Readiness Assessment, 2005). Risk identification, monitoring and resolution are key tools for successfully completing a project. Part of controlling a project during the management phase is to have an established risk management process. This process is a primary part of project planning and is kept current until project closeout. To be thorough and comprehensive our risk management plan must include the following items:

1. Risk methodology:

Risk methodology is the body of practices, procedures and rules that will be used to asses the risks of this project. The risk management process is used to ensure that the level, type and visibility of risk are identified to assure the success of the project. For our plan, we have used several techniques such as brainstorming, checklists, and reviewing past projects to identify the list of risks that need assessment. We then chose to use a qualitative method of ranking our risks to identify those risks that must be prevented, reduced, shared or accepted. Lastly, we developed specific risk action plans for those risks that were critical to the success of the project and required reduction of their impact.

2. Risk identification /categorization / response planning: Risk identification determines what events might happen that could affect the objectives of the project and how probable they are likely to occur. The risk identification process must be comprehensive, as risks that have not been identified cannot be assessed, and their emergence at a later time may threaten the success of the project and cause unpleasant surprises (Cooper, Grey, Raymond, and Walker, 2004). We used the following criteria for deciding how to actually rank the risks:

Low Risk Characteristics:

The scope of the project is well defined and understood. The business requirements are understood and straightforward. The project sponsor is identified, committed and enthusiastic. The readiness level within the project recipient and stakeholder departments for changes this project will create a high readiness (passionate and enthusiastic).

Moderate Risk Characteristics:

The project's major milestones and operational dates are firm, pre-established and missed dates may affect the business. The project's dependencies on linkage projects are somewhat dependent, without linkage project deliverables, schedule delays possible.

High Risk Characteristics:

The total estimated effort hours are unknown.
oUse a project management tool to control resource utilization. oHave a team member utilize weekly status report on progress against their...
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