Complete each section of attached document using the Space Shuttle Challenger as the project management case study. Use the Project Management Institute Guide to the Project Management Body of Knowledge (PMBOK Guide) for in-text citations.
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Risk Management Plan
Table of Contents
Section 1 – Introduction to the Plan ____________________________________________________________________________ 3
1.1 Benefits of Risk Management ______________________________________________________________________________________ 3
1.2 Project Goals and Objectives _______________________________________________________________________________________ 3
1.3 Company Background ____________________________________________________________________________________________ 3
1.4 Risk Identification________________________________________________________________________________________________ 3
Section 2 – Risk Scope, Components, and Value ___________________________________________________________________ 3
2.1 Scope of the Risk Management Plan _________________________________________________________________________________ 3
2.2 Risk Management Plan Components_________________________________________________________________________________ 3
2.3 Expected Monetary Value _________________________________________________________________________________________ 3
2.4 Determine the Risks ______________________________________________________________________________________________ 4
2.5 Evaluate and Assess the Risks ______________________________________________________________________________________ 4
2.6 Qualitative and Quantitative Processes ______________________________________________________________________________ 4
Section 3 – Risk Analysis and Assessment ________________________________________________________________________ 4
3.1 Major and Minor Risks ____________________________________________________________________________________________ 4
3.2 Risk Probability __________________________________________________________________________________________________ 5
3.3 Risk Matrix Template _____________________________________________________________________________________________ 5
3.4 Risk Data Quality Strategy _________________________________________________________________________________________ 5
3.5 Risk Reviews ____________________________________________________________________________________________________ 5
Section 4 – Corrective Action and Monitoring ____________________________________________________________________ 5
4.1 Risk Tolerance___________________________________________________________________________________________________ 5
4.2 Risk Mitigation __________________________________________________________________________________________________ 6
4.3 Corrective Risk Management Strategy _______________________________________________________________________________ 6
4.4 Corrective Action Plan ____________________________________________________________________________________________ 6
Section 5 – Postmortem Plan __________________________________________________________________________________ 6
5.1 Results ________________________________________________________________________________________________________ 6
5.2 Follow Up ______________________________________________________________________________________________________ 6
Section 6 – References _______________________________________________________________________________________ 7
6.1 References _____________________________________________________________________________________________________ 7
Templates _________________________________________________________________________________________________ 8
Risk Matrix Legend Example __________________________________________________________________________________________ 8
Risk Matrix Example _________________________________________________________________________________________________ 8
Risk Monitoring and Control Example ___________________________________________________________________________________ 9
Section 1 – Introduction to the Plan
1.1 Benefits of Risk Management
Explain the beneﬁts of risk management in support of the project.
1.2 Project Goals and Objectives
Deﬁne the plan’s goals and objectives as they relate to the evaluation of risk for a project.
1.3 Company Background
Evaluate the company background and identify the stakeholders, their role in the enterprise, and their impact on the plan.)
1.4 Risk Identification
Describe qualitative and quantitative risk analysis processes to determine priority and impact of project risks strategies for identifying
and evaluating project risk.
Identify strategies appropriate for the project situation and the parameters for analysis.
Section 2 – Risk Scope, Components, and Value
2.1 Scope of the Risk Management Plan
Deﬁne the boundaries of the risk management plan scope.
2.2 Risk Management Plan Components
Explain the components and the corresponding responsibilities that comprise the Risk Management Plan.
Describe the processes included in a risk management plan.
2.3 Expected Monetary Value
Apply an expected monetary value analysis to estimate the cost of a project without a risk plan.
Articulate the beneﬁts of a risk management plan.
2.4 Determine the Risks
Identify sources of risk and the corresponding potential impact on project outcomes.
Include evidence of at least one of these processes:
The Delphi technique.
2.5 Evaluate and Assess the Risks
Deﬁne the elements of the risk breakdown structure for use in evaluating project risk.
Analyze the impact of risk on project outcomes.
Integrate risk analysis techniques to create a risk breakdown structure.
2.6 Qualitative and Quantitative Processes
Apply qualitative and quantitative risk analysis.
Include evidence of at least one of these processes:
Expected monetary analysis.
Monte Carlo simulation.
Decision tree analysis.)
Section 3 – Risk Analysis and Assessment
3.1 Major and Minor Risks
Analyze project risk to identify major and minor risks associated with the project.
How were the risks determined?
Were qualitative or quantitative methods used?
Was the most eﬀective method applied to determine risk?)
3.2 Risk Probability
(Integrate qualitative and quantitative risk analysis techniques to identify methods for evaluating the probability of a risk event.
How conﬁdent are you in the accuracy of the probabilities used?
What can you do to improve the accuracy of the probability?
3.3 Risk Matrix Template
Insert your completed Risk Matrix Template. See the end of this document for examples.
3.4 Risk Data Quality Strategy
Deﬁne the process and tools to be used to determine the quality of data for use in assessing project risk.
How reliable is the data?
What is the evidence of reliability?)
3.5 Risk Reviews
Deﬁne the process to be followed for risk reviews to be conducted throughout the project life cycle. Insert your completed Risk
Monitoring and Control Template. See the end of this document for an example.
What is being done to proactively reduce risk in the future?
What is being done to communicate risks?
Section 4 – Corrective Action and Monitoring
4.1 Risk Tolerance
Evaluate the organizational and departmental tolerance for risk.
Discuss the diﬀerent risk tolerances within the organization.)
4.2 Risk Mitigation
Identify risk mitigation approaches in support of the project.
How will you implement the mitigation approaches?
Have you identiﬁed speciﬁc triggers to initiate mitigation?
4.3 Corrective Risk Management Strategy
Describe your strategy for corrective risk management.
Explain whether you will use auditing, strategic planning, or another type.
Describe the corrective action process and responsibilities.
Will you be performing a risk postmortem? If not, why not?)
4.4 Corrective Action Plan
Assess corrective plan procedures in support of the project.
Is your documentation available to others?
Is it reviewed by the team or others?
Section 5 – Postmortem Plan
Identify and describe how results data will be collected and reviewed to determine corrective actions.
Did your postmortem results lead to any concrete changes? Explain.
5.2 Follow Up
Evaluate the organization’s view of risk management and approach, resulting from project outcomes.
Did this project change the organization’s approach and management of risk?
Describe the impact of postmortem results on the organization.
Recommend corrective plan procedures to eﬀectively manage risk.
What recommendations would you make for future risk management projects?
What resources did you use to support your assertions?
Section 6 – References
Include a minimum of two references in APA style.
You may delete this section once you have copied the tables as directed above.
Risk Matrix Legend Example
If you wish, you may color code risk in addition to using the indicators of high, very high, and so forth. A usual color scheme is green,
yellow, orange, red.
Very High (VH)
Very High (VH)
< 89% x > 80%
< 79% x > 70%
< 69% Low (L) No Impact Probability Level Criteria Code Impact Level Risk Matrix Example The risk matrix is a graphical representation of the identified risks and their evaluation in terms of probability (likelihood) of occurrence and impact on project success factors (costs, time, quality) if they should occur. The definitions of risk probability and impact levels are specific to the selected project and reflect risk appetite and thresholds. • Risk #: Numerical number of risk. • Risk: Provide a description of the risk (i.e. Weather impacts – storm season). • Probability: Defines the likelihood that risk will occur (i.e. H, M, L). 8 • Impact: Defines the level of impact to project success factors (time, costs, quality) (i.e., H, M, L). • Response to Risk: Avoid, mitigate, transfer and accept. • Action Plan: A detailed explanation of the steps for risk mitigation(s). • Person Responsible: Who will manage the mitigation strategy? • Status: Status of mitigation process. Risk # Risk Probability Impact Response to Risk Action Plan Person Responsible Status Risk Monitoring and Control Example Continue Review and Action Plan Owner Time Estimate Monitoring Process [Define monitoring process of current and new risks] Review [Define stages or timeframes for specific types of review] Reporting [provide types of communication channels and deliverables] 9 ... Purchase answer to see full attachment