Running head: ABI PROJECT RISK MANAGEMENT PLAN
ABI Project Risk Management Plan
Your Name Here
University of Phoenix
ABI Project Risk Management Plan
The recent acquisition of the ABI company by FAFS mean that ABI needs to change many of their internal processes to coordinate and be accessible by both entities. The union of these banking companies means a merging of databases and software applications. The challenge is to implement the fusion of these companies in a timely cost efficient manner. With the VP of FAFS guiding two ABI executives and one FAFS executive, the CEO of ABI needs to come up with a plan to integrate the companies and manage the project throughout the process. Weighing the risk of decisions and implementing these choices becomes more challenging than expected. With unforeseen resource barriers, and changes in scheduling, the team had to work together to bring these financial institutions into a bigger better banking entity Management Responses
"An important manifestation of effective risk management is getting a handle on the scope, volatilities, and severities of the risks one's company faces, then tailoring an appropriate set of risk responses. Risk managers have many types of risk treatments at their disposal. Every company's risk management "solution" will be unique because the exposures and risk appetites all differ. The key is to have a reasonable under-standing of how each treatment option works, alone and in combination with others, so that decisions are informed and results are less influenced by luck than by reason (McCarthy, Flynn, and Brownstein, 2004)."
The executive team in relied on history and the current situation to asses the risk of different decisions. Placing weight on their experience in the backgrounds they came from, they gave advice accordingly. Many times each of them had his or her own idea on how to move forward, but generally there was common theme that assisted on choosing the right way to proceed with the project.
A tool throughout was the process of using a formula to asses the risk. "Risk analysis consists of risk identification, probability assessment, and impact estimate. Start by identifying all the risk events that can occur on your project. Then estimate the probability of each event happening (Chapman, 1997)." Using this formula, more basically written: "Project Risk = ∑(Events * Probabilities * Consequences) (Chapman, 1997)," the team would base their decisions on the outcome of this formula. The key points of the risk formula were: Resource Constraints; skill and Competency Gaps; Dependency on FAFS for Design Inputs; Availability of Network Equipment; Legacy Systems and Standards.
The project was running smoothly until the database specialists began to miss deadlines. It seems the database specialists who were to only work part-time on the "Project Integration", the projects name, but began to ignore the part-time work that was to be done for FAFS. The lack of effort put FAFS behind on deadlines and made apparent the need to make a change. FAFS then took two of the four assigned to the project to meet deadlines.
The lack of two database specialist helped form a decision to move ahead. Each of the executive had ideas on moving forward. Their ideas made moving forward a challenge. One suggested training some of the FAFS people to do the job; the second thought by checking on the progress more and spending a little on outsourcing testing could help; the final leaned completely to outsource and suggested that the FAFS people could not be adequately trained to do the job. The only theme through all the suggestions was that training of the FAFS people would be a challenge and there may be another option.
By taking their views and finding middle ground of cost and the ultimate goal of finishing in time, the option to "Create a design review team including both project sponsors and FAFS experts, arrange for onsite meeting...
Lehmann, D, & Winer, R (2005). Product Management, 4eChapter : New Products.The McGraw-Hill Companies.
Gray, C, & Larson, E (2003). Project Management: The Managerial Process, 2eChapter 9: Reducing Project Duration.The McGraw-Hill Companies.
Kerzner, H (2003). Project Management: A Systems Approach to Planning, Scheduling, and Controlling, 8eChapter 11: Planning. John Wiley & Sons, Inc..
McCarthy, M, Flynn, T, & Brownstein, R (2004). Risk from the CEO and Board Perspective, 1eChapter 4: Treatment Options. The McGraw-Hill Companies.
Tarlow, P (2002). Event Risk Management and SafetyChapter 8: Tomorrow 's Event Risk Management. John Wiley & Sons, Inc..
Chapman, J (1997). Project Risk Management. Retrieved February 3, 2007, from Risk Concepts Web site: http://www.hyperthot.com/pm_risk.htm
Flint, A (5/15/2000). Fleet Bank Customers Report Big Problems Resulting from Merger.(Knight Ridder/Tribune Business News) . Knight Ridder/Tribune Busness News, Retrieved 2/6/2007, from http://www.accessmylibrary.com/coms2/summary_0286-5757000_ITM
Wipperfurth, H (12/11/2000). Merger madness at Chase, Morgan; Derivatives execs search for the exits as merger looms; revenues at risk.(Chase Manhattan Bank, J.P. Morgan and Co.)(Brief Article) . Crain 's New York Business, Retrieved 2/6/2007, from http://www.accessmylibrary.com/coms2/summary_0286-28675677_ITM
Please join StudyMode to read the full document