Makeovers R Us Risk Management Samples †MyAssignmenthelp.com

Question: Discuss about the Makeovers R Us Risk Management. Answer: Risk Management Planning Outline The risk management process will comprise of five major steps which are listed and described below. Risk Identification: The risks will be identified by determining the project factors involved and on the basis of the information collected through processes, such as interviews, brainstorming, observation, and documentation. The risks are will be listed on the basis of their risk category and type. Risk Analysis: The risk analysis step will be carried out on the basis of the identified risks. The risks will be listed and the likelihood, impact, and score will be assigned to every risk in the list. Risk Evaluation Prioritization: The risks will be evaluated on the basis of the risk score and will also be classified as acceptable and non-acceptable. The priority will be assigned to every risk. Risk Treatment Response: The risks that will be classified as non-acceptable will be assigned with a treatment and response strategy and the same will be applied to treat the risk. Risk Monitoring Control: The application of the treatment strategy will be monitored using the automated tools and review processes. The application of managerial control will also be involved in this step. Brief Description The project is being carried out by Makeovers R Us, an organization that has expertise in managing renovations of houses and gardens. The project client is Cecile, an accountant who wishes to get her kitchen renovated. The kitchen has to be renovated completely and there are specifications that have been listed out by Cecile. The decision on the selection of the contractor of the project by Cecile is based on the project schedule as five weeks, best storage solution, and reasonable temporary kitchen space. Tools, Techniques, and Processes The risk management process will have five phases involved as risk identification, risk analysis, risk evaluation and prioritization, risk treatment response, and risk monitoring control. The tools and techniques that will be involved in the process will include information investigation techniques as interviews, brainstorming, observation, and documentation. Root Cause Analysis is a technique that will be applied on the risks identified to find out further risks along with the checklist analysis. Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis will be applied to under the project factors and to determine the risks. Data analytics tools will be used in the risk analysis process. Probability and impact analysis will be carried out to understand the risks that may require an immediate response. Positive Risks The primary criteria for Cecile are to ensure that the renovation of her kitchen is done in the specified project schedule and allocated budget. These two constraints may be used as an opportunity to fulfil the project objectives and turn the risks in the positive areas by accomplishing the project activities before the estimated schedule and under the estimated budget. There will be specific duration assigned to each of the project activities and the application of the efforts in the accurate direction will ensure that the project activities are completed within or before the schedule estimated. The same approach may be used in terms of the budget along with the negotiations with the suppliers and vendors. Consequence Likelihood Risk Consequence Rating Description of Possible Consequences Schedule Risks (Positive) High Positive feedback by Cecile and enhancement of organizational reputation Budget Risks (Positive) High Positive feedback by Cecile and enhancement of organizational reputation Technical Risks Moderate Disruption in the execution of project activities causing delays Environmental Risks Critical Inability to carry out renovation tasks due to poor weather conditions or other environmental changes Operational Risks Moderate Execution of the operational task that may not be rolled back Risk Likelihood Rating Description of Possible Likelihood Schedule Risks (Positive) Low Application of the effort in correct direction with resources outperforming their usual efficiency and productivity levels Budget Risks (Positive) Low Drop in the prices of tools and equipment, completion of project activities before estimated schedule, negotiations with the suppliers Technical Risks Moderate Breakdown or fault in the technical tool or equipment Environmental Risks Moderate Natural hazards, breakdown of electrical/power supply Operational Risks High Operational error by a resource Quantitative Risk Analysis Technique Decision tree analysis will be used to understand the possible risks, the alternative and the conditions that may impact the likelihood and consequences of the risks. A tree-like structure will be represented comprising of all the risks and the specific alternatives involved. Expected Monetary Value (EMV) analysis will be used as a risk analysis technique to calculate the outcomes of the risk situations identified. The monetary impact of the risk situations will be assessed through this technique. Risk Response Template The following template shall be used to provide risk response. Risk Register Risk Consequence Rating Critical 5 High 4 Moderate 3 Low 2 Insignificant - 1 Likelihood Rating Critical 5 High 4 Moderate 3 Low 2 Insignificant - 1 Risk Score (Consequences x Rating) Risk Response Strategy Schedule Risks (Positive) High Low 8 Risk Acceptance Budget Risks (Positive) High Low 8 Risk Acceptance Technical Risks Moderate Moderate 9 Risk Transfer Environmental Risks Critical Moderate 15 Risk Mitigation Operational Risks Moderate High 12 Risk Avoidance Risk Monitoring Control The risk register, results of gap analysis, and the list of approved change requests will be required for the purpose of risk monitoring and control. There will be techniques required for risk monitoring and control. The risk reassessment shall be done to understand the changes that may have happened in rating during the project lifecycle. Risk audits shall also be done to understand the effectiveness of the review process. Variance analysis must be done to find out the schedule and budget variance. The process shall also involve status meetings and reporting activities so that the risk status and the pending effort to be applied may be monitored and evaluated. Outline of the Report Element Identify Project Risks If specific volume or frequency is not stated , the evidence must be provided at least once Context Date of Observation/ Comments Satisfactory (Please Tick) Determine the risk objectives and standards for the project Risk Identification Step 28-02-2018 P Establish risk context and identify project risks Risk Identification Step 28-02-2018 P Classify project risks according to risk categories Risk Identification Step 28-02-2018 P Element Analyse Project Risks If specific volume or frequency is not stated , the evidence must be provided at least once Context Date of Observation/ Comments Satisfactory (Please Tick) Determine risk analysis classification criteria and apply to a risk ranking system for a project Risk Analysis Step 07-03-2018 P Follow risk analysis processes to analyse and qualify risks , threats, and opportunities that apply to a project Risk Analysis Step 07-03-2018 P Determine risk priorities and document the outcomes of risk analysis in a risk register Risk Analysis Step 07-03-2018 P Contribute to the development of a risk management plan Risk Analysis Step 07-03-2018 P Element Establish risk treatment and controls If specific volume or frequency is not stated , the evidence must be provided at least once Context Date of Observation/ Comments Satisfactory (Please Tick) Identify and document existing controls used for project risk management Risk Treatment Control Step 14-03-2018 P Consider and determine risk treatment options using agreed consultative methods and record outcome Risk Treatment Control Step 14-03-2018 P Update risk plans, allocating responsibility to appropriate team members Risk Treatment Control Step 14-03-2018 P Element Monitor and control project risks If specific volume or frequency is not stated , the evidence must be provided at least once Context Date of Observation/ Comments Satisfactory (Please Tick) Develop a process to review risk processes on a regular basis Risk Monitor Control Step 14-03-2018 P Develop strategies to monitor risk environment to identify changes circumstances impacting project risks Risk Monitor Control Step 14-03-2018 P Determine risk response to an identified change to circumstances Risk Monitor Control Step 14-03-2018 P Implement a risk response plan and modify plans to maintain currency of risk treatments and controls Risk Monitor Control Step 14-03-2018 P Element Assess risk management outcomes If specific volume or frequency is not stated , the evidence must be provided at least once Context Date of Observation/ Comments Satisfactory (Please Tick) Review project outcomes to determine effectiveness of risk management processes and procedures Assessment of Risk Management Outcomes 21-03-2018 P Identify and document risk management issues and recommended improvements for application to future projects Assessment of Risk Management Outcomes 21-03-2018 P Evaluation Criteria The risk management plan and its associated processes, policies, procedures, tools, techniques, and activities developed for Makeover R Us project are required to be evaluated. The evaluation process is carried in the monitoring and control phase of the project to come up with the positive and negative aspects along with the areas of improvement. The following evaluation criteria are used to understand the risk management plan and its associated mechanisms. Effectiveness: The risks associated with the project along with their status and completion will be assessed. Achieving project goals and objectives: The ability of the project to achieve its goals and objectives will be determined on the basis of the risks generated in the project and the treatment strategy. Impact: The impact of the risk management process and procedure on the project will be evaluated. Cost Variance: The actual and estimated values of the project costs will be analysed. The increased gaps will indicate the failure of the risk management plan and process and vice versa. Schedule Variance: The actual and estimated values of the project schedule will be analysed. The increased gaps will indicate the failure of the risk management plan and process and vice versa. Evaluation of Risk Management Processes The risk management process that has been used in the project has been illustrated below. The risks identified in the project are schedule risks, budget risks, technical risks, environmental risks, and operational risks. The risks management process has been evaluated as per the criteria above. Risk Name Effectiveness Project Goals Objectives Impact Cost Variance Schedule Variance Schedule Risks The risk has been treated using the risk avoidance and acceptance strategy by regular reviews and inspections. The negative impacts could be controlled as a result. The positive impacts were incorporated. The risk status is now closed. The risk did not have any negative effect on the project goals and objectives. The impacts were positive as the project activities could be completed before the estimated schedule. Less than 10% - within the tolerable limits Less than 10% - within the tolerable limits Budget Risks The risk has been treated using the risk avoidance and acceptance strategy by regular reviews and inspections. The negative impacts could be controlled as a result. The positive impacts were incorporated. The risk status is now closed. The risk did not have any negative effect on the project goals and objectives. The impacts were positive as the project activities could be completed within the estimated budget. Less than 10% - within the tolerable limits Less than 10% - within the tolerable limits Technical Risks The risk has been treated using risk transfer as the response strategy. The risk status is now closed. The risk did not have any negative effect on the project goals and objectives. The negative impacts were controlled due to implementation of risk management processes. Less than 10% - within the tolerable limits Less than 10% - within the tolerable limits Environmental Risks The risk has been treated using risk mitigation as the response strategy. The risk status is now closed. The risk did not have any negative effect on the project goals and objectives. The negative impacts were controlled due to implementation of risk management processes. Less than 10% - within the tolerable limits Less than 10% - within the tolerable limits Operational Risks The risk has been treated using risk avoidance as the response strategy. The risk status is now closed. The risk did not have any negative effect on the project goals and objectives. The negative impacts were controlled due to implementation of risk management processes. Less than 10% - within the tolerable limits Less than 10% - within the tolerable limits Evaluation of Policies Procedures The objectives of the risk management plan and mechanisms were to make sure that the project goals and objectives could be achieved as per the estimated budget and schedule. The risk management policies and procedures could be achieved as none of the risks are in the open state and there are no negative impacts of any of the risks identified. There were changes that had to be implemented to avoid, mitigate, and control the risks. The cost and schedule variance calculated in each case is less than 10%. As a result, the risk management policies and procedures are found to be effective, impactful, and adequate. Evaluation of Tools Techniques There were various techniques that were used in the process of data gathering and collection for identification and assessment of the risks. These techniques included surveys, interviews, observations, domain analysis, and brainstorming sessions. These techniques allowed the members of the project team members to have the data and information sets to prepare the list of the risks and to treat the same. Theproject management methodology asProject Management Body of Knowledge (PMBoK) was applied in the project and risk management knowledge areas was used to treat the risks. The analysis techniques, such as SWOT (Strengths, Weaknesses, Opportunities, and Threats), Pareto chart, and Cause Effect diagrams were used to assess and evaluate the risks. Areas of Improvements The evaluation process also highlighted some of the areas that could be improved in the process of risk management. The first area is the use data analytics tools in the process. These are the automated tools that may be applied on the data and information sets to identify the associated patterns and trends that may be involved. These tools should have been used in the process of risk identification and risk assessment. The use of these tools would have provided the patterns that would have led to better prevention and treatment of the risks for root cause analysis. The second areas that are suggested for improvement in the risk management plan and process is the use of other automated tools for risk monitoring, control, and reporting. There are risks reporting tools that have been developed and should have been integrated so that risk reports were prepared and circulated to keep a track of the process.