Operations & Training Risk Management Plan
Author: ABHISHEK
Status: Final
Created: October 21, 2023
Updated: October 21, 2023
Objective
The objective of this risk management plan is to systematically identify, assess, and mitigate
potential risks associated with the Plant Pals operations launch, with a primary focus on
addressing budgetary and scheduling challenges.
Executive Summary
As the project manager for Office Green, the goal of the Plant Pals operations launch is to
seamlessly introduce our new product line to the market, ensuring both customer satisfaction
and operational efficiency. Key milestones include finalizing product manufacturing, conducting
comprehensive employee training, and executing a successful product launch. However, to
navigate this project successfully, we must proactively address potential risks. Two primary risk
categories have been identified: going over the project budget and falling behind the training
schedule. In the subsequent sections, we will delve into specific risks within these categories
and propose mitigation strategies.
RISK TYPE ONE: Going over the project budget
Scenario
Each delivery truck costs
$16,000 more than initially
quoted.
Risk to
project
(L/M/H)
High
Mitigation Plan
Reduce or Control - To mitigate the risk of
increased delivery truck costs, we will implement
strict cost monitoring measures throughout the
procurement process. Regular reviews and
comparisons with initial quotes will be
conducted, and negotiations with suppliers will
be undertaken to minimize additional costs.
Additionally, exploring alternative suppliers with
competitive pricing will be part of our strategy.
Probability: 50%
Impact: $32,000
A product vendor charges
a higher rate than
expected.
Medium
Accept - Given the moderate probability and
impact of this risk, we will accept this potential
cost increase. However, to proactively manage
this, we will establish clear communication
channels with the vendor and seek early
notification of any pricing adjustments. This will
allow us to adjust our budget accordingly and
minimize the impact.
Medium
Transfer - Recognizing the low probability but
high potential impact, we will transfer this risk by
securing shipment insurance and incorporating
clauses in our vendor contracts that hold them
responsible for any lost shipments. This way, in
the event of a lost shipment, the financial burden
will be transferred to the vendor, minimizing the
impact on our budget.
Probability: 20%-25%
Impact: $17,000
A product vendor loses a
product shipment.
Probability: 5%
Impact: Over $25,000
RISK TYPE TWO: Falling behind the training schedule
Scenario
Risk to
project
(L/M/H)
Mitigation Plan
Your Training Manager
gets sick and misses a
week of training.
Probability: 5%-10% (Low
to Medium)
Impact: Medium - The
impact would be a
temporary disruption to
the training schedule,
potentially affecting the
thoroughness of training
during that week.
Medium
Accept - Given the relatively low probability
and potential impact, we will accept this risk
and develop contingency plans to ensure
that training materials are well-documented.
Cross-training team members will be
considered to mitigate the impact of the
Training Manager's absence.
You cannot hire enough
employees in time to train
them before launch.
High
Reduce or Control - To reduce the likelihood
of this risk, we will implement proactive
recruitment strategies ahead of schedule.
Initiatives such as early job postings,
collaboration with recruitment agencies, and
Probability: 20%-30%
(Medium)
Impact: High - The impact
could result in a delay in
training and,
consequently, a potential
delay in the overall project
launch.
More than 50% of
employees quit after a
difficult training process,
leaving the company
short-staffed.
potential incentives for early hires will be
explored.
Low
Accept - Given the low probability and
potential impact, we will accept this risk.
However, to mitigate its impact, we will
conduct regular check-ins with employees
during the training process, address
concerns promptly, and create a positive and
supportive training environment.
Probability: 5% (Low)
Impact: Low to Medium The impact could result in
a temporary shortage of
staff, but if addressed
promptly, it may not
significantly affect the
overall project.
Appendix:
Probability chart:
Probability
Qualitative
Quantitative (if measurable)
Low
Very low chance of risk occurring.
Less than <10% chance of risk occurring.
Medium
Medium chance of risk occurring.
10%-49% chance of risk occurring.
High
High chance of risk occurring.
50%-100% chance of risk occurring.
Impact chart:
Types of
Impact
Financial
Low
Medium
Low financial impact,
costing the company $0$14,000
Low impact to project
operations, causing
delays of a few days to a
Operational few weeks
People
Low impact to employee
attrition, with 5%+ of
employees quitting
High
Medium financial impact, High financial impact,
costing the company
costing the company
$15,000-$29,000
$30,000 or more
Medium impact to project
operations,
with potential to delay
project by a month or
more
Medium impact to
employee attrition, with
25%+ of employees
quitting
High impact to project
operations,
with potential to cause
project failure
High impact to employee
attrition, with 50%+
employees quitting
Probability and Impact Matrix:
Inherent Risk
Impact
Low
Medium
High
Medium
High
High
Probability Medium
Low
Medium
High
Low
Low
Low
Medium
High