In this activity you will develop a project risk plan. Related concepts are discussed in chapter 11 of the textbook. This plan will include risk assessment, risk evaluation, risk mitigation, contingency planning, and a risk breakdown structure. Read the steps here and for more information read the document on Moodle titled Example Risk Table.
1. Risk Assessment: Identify the risks that may be encountered during the project. One way to do this is to engage in a brainstorming session that attempts to list anything that could go wrong. Once you have a comprehensive list, specify and describe each risk in your project risk plan. You should identify even those risks that seem unlikely. Sometimes you can identify a broader risk that covers a number of specific risks. For example, the health of someone working the project with unique skills may be affected or the same person may decide to take another job in the middle of the project. All the risks that may result in this person not being able to work on the project can be identified as one risk specifying the person's contribution to the project ceases or is delayed significantly. The "Risk Identification" section of chapter 11 lists examples of categories for potential risks. In addition, be sure to take into account the areas of complexity discussed in the "Project Risk and Project Complexity Profile" section of chapter 11.
2. Risk Evaluation: Now evaluate the risk based on the probability that it will occur and the potential loss that may result. You should rate the likelihood and impact using low, medium, or high as your ratings. The "Risk Identification" section of chapter 11 explains this further.
3. Risk Mitigation: After you have rated each risk, specify a mitigation strategy or contingency for each risk. Common strategies are discussed in the "Risk Mitigation" section of chapter 11.
4. The mitigation of some risks will involve a contingency plan. Contingency plans will typically cost more. Therefore, you should specify whether contingency funds will be required and estimate how much they will be. Any contingency funds should be added to your project budget in one of the two methods specified in the "Contingency Plan" section of chapter 11.
5. After steps 1 through 4 are complete, for each risk your project plan should include a description, a rating of its likelihood and potential loss, a description of a mitigation plan, and where necessary information concerning the need for contingency funds. See the "Example Risk Table" document I posted on Moodle if you haven't already done so. The number of risks you include in the table should result in one to two pages.
6. Now create a Risk Breakdown Structure (RBS) as shown in the "Planning Phase" section of chapter 11. You can accomplish this by taking the first two levels of your work breakdown structure as a starting point and adding levels 3 and 4 as shown in the book. Start with the Word document of the WBS outline (assuming you developed one) and add the risks under any corresponding high level tasks listed there. You do not need to use MS Project to create the RBS. I would recommend not removing tasks that have no associated risk(s). The risks could be bolded or underlined so they stand out. I will accept the other tasks being removed. However to me that seems more work. In addition, if later you thought of a risk associated with a task that doesn't have one, the task would need to be added back.
7. Now add one or more risk plan reviews to your risk breakdown structure. A risk review evaluates the effectiveness of the current plan and explores for possible risks not identified in earlier sessions.
8. In addition to the risk table and RBS, your risk plan should have an introduction paragraph stating the purpose of the risk table and RBS.
9. In your document you should have the following deliverables:
• Project Risk Table
• Risk Breakdown Structure
• Modified Budget - now includes information regarding contingency funds
• Modified Work Breakdown Structure (addition of at least one risk plan review)