Project Title: Risk Management Document Project Manager: Venkata Srikanth Pakala Date: 08/18/2023 1. Planning: Strategy for Handling Risks: The project team's commitment to proactive risk management underscores our dedication to the successful execution of the website development project. Our approach is centered on vigilantly identifying, thoroughly assessing, and effectively mitigating risks at every stage of the project lifecycle. By adopting this strategy, we not only enhance our ability to meet project objectives but also fortify our capability to navigate unforeseen challenges. The project risk management plan is one of the most important documents in project risk management (Eby, 2023). 2. Identification: Risk identification is crucial for a project as it defines the possibility of any negative occurrence that may happen due to external or internal factors, and that may be mitigated through preventive actions (Anastasiya V et al., 2016). The below table will provide some negative and positive risks while developing a website. Risk ID R-01 R-02 R-03 R-04 R-05 R-06 R-07 R-08 R-09 R-010 Risk Description Delays in content delivery from the client Scope creep due to changing requirements Technical issues with third-party integrations Key team members being unavailable during development Hosting provider downtime affecting the website Insufficient testing resulting in bugs Security vulnerabilities in the website Early completion of a key functionality Unexpected availability of extra resources Positive user feedback on design prototype Negative/Positive Negative Negative Negative Negative Negative Negative Negative Positive Positive Positive 3. Qualitative Analysis: To effectively prioritize risks, a qualitative analysis will be performed using a probability and impact matrix. This approach allows us to assess each risk's likelihood of occurring and the potential impact it could have on the project. Risks will be categorized as High, Medium, or Low based on the combination of their probability and impact levels. Risk ID R-01 R-02 R-03 R-04 R-05 R-06 R-07 R-08 R-09 R-010 Probability High Medium Medium Low Medium Medium Low Low Low Low Impact High High Medium High Medium Medium High Low Low Low Risk Level High High Medium Medium Medium Medium Medium Low Low Low Risk Level: High: Risks with both a high probability of occurrence and a high impact on the project. Medium: Risks with either a medium probability and medium impact, or high probability and medium impact. Low: Risks with low probability of occurrence and low impact on the project. By categorizing risks based on their likelihood and impact, we can allocate appropriate resources and attention to the most critical risks while managing those with lower potential impact more efficiently. 4. Quantitative Analysis: The quantitative analysis aims to assign a numerical value to each risk based on its prioritization derived from the probability and impact matrix. This value will provide an estimate of the potential monetary or time impact on the project in case the risk occurs. Risk ID R-01 R-02 R-03 R-04 R-05 R-06 R-07 R-08 R-09 R-010 Probability High Medium Medium Low Medium Medium Low Low Low Low Impact High High Medium High Medium Medium High Low Low Low Risk Level High High Medium Medium Medium Medium Medium Low Low Low Quantitative Value $50,000 $30,000 $15,000 $20,000 $10,000 $12,000 $18,000 $2,000 $1,000 1,500 By assigning quantitative values to risks, we can prioritize our efforts and resources on addressing risks with potentially higher financial or time implications, ensuring that the project remains on track and within budget. 5. Response Planning: In response planning, strategies are outlined to address identified risks. For negative risks, including delays and technical issues, strategies encompass mitigation, enhancement, exploitation, sharing, or acceptance. Conversely, for positive risks like early task completion, strategies involve exploitation, enhancement, or acceptance. Each strategy is tailored to the risk's nature and project context, ensuring a proactive approach to risk management. Risk ID R-01 R-02 R-03 R-04 R-05 R-06 R-07 R-08 R-09 R-010 Risk Response Strategy Mitigate - Set clear content deadlines Enhance - Regular requirement reviews Mitigate - Thorough integration testing Exploit - Cross-train team members Transfer - Utilize a reliable host Mitigate - Comprehensive testing plan Mitigate - Regular security assessments Exploit - Allocate resources to other tasks Enhance - Utilize additional resources Accept - Leverage positive feedback Mitigate: Implementing actions to reduce the likelihood and impact of a risk, minimizing its potential negative effects on the project. Exploit: Maximizing the benefits of an identified positive risk by taking proactive actions to ensure the opportunity is fully realized. Transfer: Shifting the responsibility for managing a risk to a third party, such as through insurance or outsourcing, to minimize the impact on the project. Enhance: Taking steps to increase the likelihood and positive impact of an opportunity, enhancing its potential benefits for the project. Accept: Acknowledging a risk without taking any specific actions, either because its impact is within acceptable limits or because response efforts aren't feasible or cost-effective. 6. Response Implementation: Response implementation involves executing planned strategies when risks occur. For instance, for a high-priority risk like content delivery delays, our mitigation plan will be executed. Conversely, if a positive risk like resource availability arises, our strategy of exploiting the opportunity will be put into action, ensuring the project's resilience and adaptability. Assuming three risk events occurred: R-01: The content delivery from the client was delayed. The mitigation strategy helped manage the delay, and the project timeline was adjusted accordingly. R-03: Technical issues arose with third-party integrations. Mitigation strategies reduced the impact, and the development team worked closely with the third-party vendors to resolve the issues promptly. R-09: Unexpected availability of extra resources allowed for quicker completion of certain tasks, accelerating the project timeline. 7. Monitoring: Risk monitoring refers to an organization’s framework for staying aware of its current risk exposure, including the implemented risk management system and any other activities that inform the organization’s risk decisions (Kadar, 2022). Project risks will be under constant surveillance through regular meetings, updates, and monthly risk review sessions, where the efficacy of risk responses will be assessed, and new risks identified. Data analysis and audits will be integrated to meticulously track project advancement, detect patterns, and evaluate potential vulnerabilities. This holistic monitoring approach guarantees timely identification of evolving risks, enabling agile and informed decision-making, and fostering ongoing refinement of risk management strategies. References: Anastasiya V, Maryna Z, & L, E. (2016, September 13). Risk Management in Web Development. Rubygarage.org; RubyGarage. https://rubygarage.org/blog/risk-management-indevelopment Eby, K. (2023, February 27). How to Make a Project Risk Management Plan | Smartsheet. Www.smartsheet.com. https://www.smartsheet.com/content/project-risk-managementplan Kadar, T. (2022, July 26). Risk monitoring: What is it, its importance and how to do it. SEON.io. https://seon.io/resources/risk-monitoring/ Watt, A. (2019). Project Management, 2nd Edition. B.C. Campus Open Education.
