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1. Brief Introduction
I am the manager of a training development team within a large global company that is a leading manufacturer of lawn mowers. I have personally gone through many training courses such as the interactive turbine maintenance training courses in Australia and learnt from the top 4 specialist engineers in the world. Our team’s primary role within the organization is to develop product training that supports all new products, called LAZRCUT. Cost of this new option is $1000. Base price for a new lawn mower is $4000. Retrofit cost is around $2000, dealer installed. Our training development team is required to develop a training program that will show customers how to operate this new attachment.
I have developed a risk management plan to control the potential risks and mitigate the current risk using a project management software for construction. Although it is primarily for construction, it can be applied to many areas outside of construction, I am confident it will help the training project successfully be delivered on time and on budget.
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2. Risk Management Approach
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3. Project Stakeholder
Some project stakeholder in the training project
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4. Risk Matrix
It is used for risk qualitative analysis and risk prioritization. Risk score is used to determine the degree of a risk (Extreme high, high, medium, low and very low) based on the impact and probability factors of each risk. The risk score is calculated using the following formula:
Risk score = impact * probability
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5. Risk Response Strategy
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5.1. Threat or Negative risks
5.1.1 Avoid.
It acts to eliminate the threat or protect the project from its impact and contains changing the project management plan to eliminate the threat entirely, even though it might cause secondary risk and over budget for a project
5.1.2 Transfer.
A negative risk can use transfer to shift the impact of a threat a third party.
5.1.3 Mitigation.
If a negative risk cannot be avoided, project team can take action to minimize the impact of the negative risk
5.1.4 Accept.
This is a strategy that project team decides to accept the risk in the project and not take any action unless the risk occurs. It means, “If it happens, it happens”. This is a good choice if the effects on the project are minimal or the possibilities to influence it prove to be very difficult, time consuming or relatively expensive.
5.2.1 Exploit.
This tool is selected for risks with positive impacts where the organization wishes to ensure that the opportunity is realized.
5.2.2 Enhance.
This tool is used to increase the probability and/or positive impacts of an opportunity. The action of this strategy includes adding more resources to an activity to finish early
5.2.3 Share.
This tool is to share a positive risk to a third party who is best able to capture the opportunity for the benefit of the project. It involves allocating some or all of the ownership of the opportunity and forming risk- sharing partnerships, teams, special-purpose companies.
5.2.4 Accept.
This strategy is involves in taking no action unless the risk actually occurs. This acceptance can be either active or passive.
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6. Risk Register
Risk register provide project managers with a list of identified risks and risk prioritization method. It is clearly shown the most important risks to focus your efforts on.
6.1.Risk status indicator
6.2 Risk Register Form
A part of risk register form.
