As a project manager for this company, you are to analyze the risks associated with the project. Risks should be identified and defined as cost, probability, impact, and mitigation plans for each risk. Below, you are to provide a risk assessment for the project based on the criteria and template provided.
• Identify and name at least three risks and name them (risk name).
• Determine the expected costs for each named risk.
• Determine the risk probability for each named risk.
• Include factored risk value (should automatically calculate using the Risk Assessment Matrix template).
• Determine the risk impact to project (using the drop-down menu in the Risk Assessment Matrix template).
• Provide the Risk Mitigation Plan.
• Provide the expected risk retire date (when the risk is no longer a risk).
To perform a risk assessment for the project, you will need to follow the steps below:
Step 1: Identify and name at least three risks:
1. Risk Name: Delays in material delivery
2. Risk Name: Unforeseen changes in client requirements
3. Risk Name: Lack of skilled resources
Step 2: Determine the expected costs for each named risk:
For each risk, estimate the potential financial impact it could have on the project. Be as specific as possible, considering the cost of potential delays, additional resources, or any other financial consequences.
Example:
1. Delays in material delivery: Potential cost - $10,000
2. Unforeseen changes in client requirements: Potential cost - $20,000
3. Lack of skilled resources: Potential cost - $15,000
Step 3: Determine the risk probability for each named risk:
Evaluate the likelihood of each risk occurring. This can be based on historical data, expert opinions, or any other relevant sources.
Example:
1. Delays in material delivery: Probability - Moderate (50%)
2. Unforeseen changes in client requirements: Probability - Low (20%)
3. Lack of skilled resources: Probability - High (80%)
Step 4: Calculate the factored risk value:
The factored risk value is determined by multiplying the probability and impact of each risk. Use the Risk Assessment Matrix template to automatically calculate this value.
Example:
1. Delays in material delivery: Risk Value - Moderate (Probability * Impact)
2. Unforeseen changes in client requirements: Risk Value - Low
3. Lack of skilled resources: Risk Value - High
Step 5: Determine the risk impact to the project:
Using the drop-down menu in the Risk Assessment Matrix template, categorize the impact of each risk on the project. This can be categorized as low, medium, or high.
Example:
1. Delays in material delivery: Impact - Medium
2. Unforeseen changes in client requirements: Impact - High
3. Lack of skilled resources: Impact - Medium
Step 6: Provide the Risk Mitigation Plan:
For each identified risk, develop a plan to mitigate or minimize its impact on the project. This may include actions such as contingency planning, resource allocation, or communication strategies.
Example:
1. Delays in material delivery:
- Maintain a buffer in the project schedule to accommodate potential delays.
- Establish relationships with alternate suppliers for necessary materials.
- Regularly communicate with the materials supplier to track progress and address potential issues promptly.
2. Unforeseen changes in client requirements:
- Maintain open and frequent communication with the client to identify and address any changes as early as possible.
- Clearly document and agree upon project scope and requirements at the beginning of the project.
- Implement a formal change management process to evaluate and approve any requested changes.
3. Lack of skilled resources:
- Conduct a thorough resource assessment and plan for resource availability and allocation.
- Consider hiring additional resources or outsourcing certain tasks if necessary.
- Provide training or professional development opportunities to existing team members to enhance their skills.
Step 7: Provide the expected risk retire date:
For each risk, identify a specific point in the project timeline when the risk is expected to no longer be a threat. This could be based on deliverables, milestones, or any other project-specific factors.
Example:
1. Delays in material delivery: Risk retire date - Upon completion of material procurement process.
2. Unforeseen changes in client requirements: Risk retire date - Upon final approval of project scope and requirements.
3. Lack of skilled resources: Risk retire date - Upon successful recruitment or training of required resources.
By following these steps, you will be able to effectively analyze the risks associated with your project, define their impact and probability, and develop mitigation plans to minimize their impact.