Project Risk Management—for “LAZRCUT Training Project”

  • 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. 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 so that the training project can be delivered on time and on budget.

  • 2. Risk Management Approach

Risk management approach

  • 3. Project Stakeholder 

Some project stakeholder in the training project

Project stakeholder-Risk management

  • 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

Risk Matrix 2

 

  • 5. Risk Response Strategy

  • 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. Opportunity or Positive Risk

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.

 

  • 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

Risk status indicators 1

           6.2 Risk Register Form

A part of risk register form.

Risk register 1