Risk Management Plan

Topics: Risk management, Project management, Risk Pages: 6 (646 words) Published: October 12, 2014

Prepared by: Wade Shipman (Project Manager)
Approved by: Professor Oscar Moretti
Version 1October 11, 2014
This document is the Risk Management Plan for “Wade’s Resale Project” that defines the risk management process working throughout the life of the project. The Project Manager is responsible for reviewing and maintaining this plan to ensure that the risk process remains appropriate to deal with the level of risk faced by the project. Project Description and Objectives

This project is the creation of an online extension to an existing furniture resale business. This will consist of a combination of online sales, for market expansion, as well as the current business relocation to a smaller location that will serve as a product display area as well as to serve the already established customer base. The project startup will begin on September 8, 2014 with a completion date of November 20, 2014. The tentative budget is set at $25,000.

The expectation for this project is to create a webpage for the existing business and form a marketing base that will eventually remove the need for a physical location and store front staffing. Not only does this enhance the quality of the service, by making shopping easier with more product visibility and updated availability, but it will also increase the speed of services while lowering burdensome overhead costs. This should, in-turn, reduce product cost and increase sales volume.

The objective of this project endeavor is to maintain the established customer loyalty base by maintaining a smaller location to suffice those who lack internet options and wish to see some products in a physical location before purchasing while expanding the customer base with a broader marketing capability through online sales. The risk of expense and possible loss of customer loyalty is a top priority to lower, and the opportunities are enough to justify the actions. Application of the ATOM Process

This project is considered to be small in accordance with the project sizing tool and will apply a reduced ATOM process to the project. The following ATOM process will be used for “Wade’s Resale Project”: Initiation – clarifying and recording objectives for the project, and defining the details of the risk process to be implemented. Identification – exposing and documenting risks which might affect project objectives either positively or negatively. Assessment – qualitatively describing risks individually so they can be understood and prioritized. Response planning – determining appropriate strategies and actions to deal with identified risks. Reporting – communicating the status of risk on the project to all stakeholders. Implementation – implementing agreed response strategies and actions while continuously verifying their effectiveness. Review – updating the assessment regularly through a series of major and minor reviews. Post project review – understanding any lessons learned to improve the risk management as well as the scope of project management actions. The initiation phase will be conducted before the start of the project while the proceeding phases will be conducted throughout the life of the project. Initially, a risk assessment will take place within the first week from the beginning of the project start and then minor/major reviews will follow at weekly intervals through the end of the project’s completion time. Risk Tools

Threat and opportunity risks will be identified through research initially. Brainstorming all potential outlying risks from all stakeholders. Analyzing constraints.
Creating a risk register for a probability and impact assessment of all risks that are identified. Monitoring the effective risk management through both minor and major reviews. Definitions of Probability and Impacts

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