Running Head: PROJECT RISK MANAGEMENT
Project Risk Management
Name
Institutional Affiliation
1
PROJECT RISK MANAGEMENT
2
Darden Computers and Software Company
Objectives and goals for effective risk management
Darden Computers and Software Company wishes to expand its supply base into China.
The company anticipates increasing the supply base of computers and the related software into
other markets like China. Before the organization can identify the risk management goals and
objectives, it should have a shared vision and mission for the accomplishment of the project on
the supply base expansion in China. This must be articulated then the goals and objectives
defined. The goals and the objectives for effective risk management must be described in very
simple terms that are to be accomplished by the project management team. The objectives and
goals for effective risk management therefore must be consistent with the strategies and the
overall goals of the company so that this can be achieved in line with the mission and the vision
of the organization. Through this, Darden Computers and Software Company will be in a
position to target the markets and the geographies of China where the company wishes to expand
its supply base. Darden Computers and Software Company will also be in a position to stipulate
the products and services that are suitable for the expansion of the supplier chain ensuring that
they are made accessible into the specified markets (Hillson & Simon, 2012).
The goals and objectives for effective risk management include the execution of a global
business management process. This is essential as it will be in a position to integrate the business
risk management with the formulation of the business strategy and planning of the processes that
will enable Darden Computers and Software Company to increase its supply base in China.
Darden Computers and Software Company should be in a position to make an execution of a
global process. This is what will be anticipated to monitor and assess the risk profile while
PROJECT RISK MANAGEMENT
3
identifying the gaps that needs to be filled by the management. This will also be based upon the
changes in the environment of the targeted market for the expansion of the supply chain. Other
goals and objectives for effective risk management include the continuous monitoring of the
information that is provided to the people who make decisions. This will help them to make
decisions regarding the management of the key risks (Hillson & Simon, 2012).
Tools and techniques, and organizational roles for effective risk management for the
project
It will be essential for Darden Computers and Software Company to have the right tools
and techniques that will assist in the effective risk management for the expansion of the supply
base. Darden Computers and Software Company should therefore apply the risk identification
tools and techniques. These should be suited to its objectives and goals that should be in line
with the mission and the vision of the organization. Organizational roles are also essential for
effective risk management for the project. The tools and the techniques should be in a position to
help in the accomplishment of the tasks and the execution of the organizational roles. Some of
the organizational roles will require the use of some supporting software in order to be in a
position to manage the business tasks (Chapman, 2013).
The risk management tools and techniques should ensemble the type of the management
style for Darden Computers and Software Company so that the project on expansion of the
supply base will be successful. PERT is a tool and a technique that defines the risk management
tasks that can be performed simultaneously. This is an essential tool and technique as it will
assist the Darden Computers and Software Company to be in a position to improve on its
organizational roles like the improvement in the activities of the company that involves the
PROJECT RISK MANAGEMENT
4
planning and also the scheduling. The will also help in the estimate of the resource requirements.
Other organizational roles include the rescheduling of the project activities so that the
management will be in a position to make a reflection of the inter project dependencies and also
the resources that are scarce and limited while making also sure that the rules are followed in
priority (Chapman, 2013).
Information sources that are used by the project team for risk identification
Information that is of good quality is very crucial and in that case it should be made
available for the project team in order to identify risks. An organization should start from the
historical data from its background also other similar organizations so that the stakeholders can
be in a position to identify the possible risks that may be experienced by the similar institution.
SWOT analysis is also a potential information source that can be used to identify risks in the
Darden Computers and Software Company. The weaknesses and the threats form the SWOT
analysis will be in a position to offer an insight on the potential risks that could face the
company. Similar institutions also can be benchmarked in order to produce the gaps between the
organizations in order to be in a position to identify those risks that it may be exposed to bearing
in mind that the organizations are in the same industry. Interviews are also essential information
sources where the project team can identify risks that may pose a threat to the success of the
project on the expansion of the supply base in China for Darden Computers and Software
Company. Risk identification information can also be derived from the flow charts on the project
on supply base expansion in China. Flow charts are very crucial as they will help the company to
have a comprehension of the source and the impact of the risks that the company may be
exposed to (Kendrick, 2009).
PROJECT RISK MANAGEMENT
5
Risk management documentation
During risk identification from the various sources of information, it is very crucial for
the Darden Computers and Software Company to document the risks that were identified. A risk
register will be essential for the documentation process. A risk register will have a description of
the risks and the sources and the impacts that come with the risks. A risk register will also
document the internal controls that are already present in the company. These internal controls
are very essential as they will reduce the probability of the occurrence of the risks that were
identified. The risk register will be used by the project management team to account for the key
risks through out the project on the supply expansion base in China. Risk register is also crucial
in prioritizing the risks and then focus on the ones that require quick response (Kendrick, 2009).
Role of risk management in the project planning process
Risks are the main reasons behind the uncertainties in any organization and therefore it is
important for organizations to effectively manage risks in the initial stage of project management
which is the project planning process. This will help the organization to effectively manage risks
so that uncertainties may be eliminated. Effective risk management in the project planning
process will help the Darden Computers and Software Company to be in a position to increase its
competitive advantage in the execution of the project on the expansion of the supply base in
China. Without risk management in the company, it will not be in a position to define the
objectives and goals of the supply base expansion project. And at the same time, if the company
identifies the objectives and goals without taking into details the risks that it may be posed to, the
company will eventually lose direction and fail to succeed on the project. Since risk management
PROJECT RISK MANAGEMENT
6
involves the risk identification process, it is very crucial since the management will be aware of
the possible threats that it may be exposed to (Royer, 2011).
The project management team will be in a position to improve the performance while
taking into consideration the objectives and goals of the organization project. This is possible for
Darden Computers and Software Company since there will be fewer unwelcome surprises since
risks have already been identified. The company will also have been put in place the effective
and efficient utilization of resources such that it can be able to effectively execute the project.
Effective risk management will also ensure that the company manages both the contingent and
the maintenance of the activities that pertains to the supply base expansion project. The company
will only focus more on the effective strategies for the execution of the project. Effective risk
management can also result to the improved innovation for the expansion project on supply base
in China. Effective risk management in the project planning process is key to ensuring the
company’s stability. This will be possible through the protection of the company against any
serious losses and losses that are not anticipated by the company (Royer, 2011).
Risk break down structure
A risk breakdown structure (RBS) helps the project team to look at many sources from
which project risk may arise in a risk identification exercise (Chapman, 2013).
PROJECT RISK MANAGEMENT
7
Project Risks
Project risks are the overall risks that may affect the prospects of the attainment of the
project objectives. This may arise from the business itself. They may also arise from poor
contract relationships with the target customers and also the suppliers such that they are not in a
position to achieve the objective of expansion of the supply base in China. There may also be
risks that come up due to political issues in the target market like china (Chapman, 2013).
Organizational risks
Organizational risks occur at the organizational administration level. This is the totality
of the risk concerns that affect the budgets and the investment that will be required for the supply
PROJECT RISK MANAGEMENT
8
base expansion project. In establishing a supply base in China, there might be legal liability risks
that come with such responsibility of extending beyond country borders (Chapman, 2013).
Project management risks
Project management risks may arise due to the changes that may take place from the first
phase of project management to the last phase. This might be risks that that re associated with the
cost and schedule estimates and also lack of mutual understanding in the communication of ideas
(Chapman, 2013).
Technical risks
Technology risks may arise from the requirements of technology that may be needed for
the attainment of the supply base expansion in China. The might also be advancements in the
technology where the company may not be in a position to cope up with such advancements in
technology (Chapman, 2013).
Production risks
Darden Computers and Software Company must be very innovative in order to be
acceptable and increase is market share in China. The distribution or logistics may be
predisposed to particular risks that should be assessed (Chapman, 2013).
External risks
External risks of Darden Computers and Software Company may arise due to changes in
the procurement that is required to make sure that the supply base expansion project is
PROJECT RISK MANAGEMENT
9
acceptable within the target market in China. Risks that pertain to the quality of the products and
services might be possible to occur resulting to external risks (Chapman, 2013).
PROJECT RISK MANAGEMENT
10
References
Chapman, R. J. (2013). Simple tools and techniques for enterprise risk management. Hoboken,
N.J: Wiley.
Hillson, D., & Simon, P. (2012). Practical project risk management: The ATOM methodology.
Tysons Corner, Va: Management Concepts.
Kendrick, T. (2009). Identifying and managing project risk: Essential tools for failure-proofing
your project. New York: AMACON.
Royer, P. S. (2011). Project risk management: A proactive approach. Vienna, Virg:
Management Concepts.
Risk Management Paper Grading Guide
CPMGT/302 Version 8
Individual Assignment: Risk Management Paper
Purpose of Assignment
The purpose of this assignment is to leverage the risk breakdown structure developed during Week 2 to
perform both qualitative and quantitative risk analysis for the China expansion project. Students determine the
criteria to properly choose risk events for a detailed risk response plan. Students also demonstrate how risks
analysis can be used to determine the frequency and timing of risk monitoring and controlling processes within
the project framework.
Resources Required
Risk Breakdown Structure from Part I and University of Phoenix Material: Risk Project Log
Organization selected for the Week 2 Individual Assignment
Grading Guide
Content
70 Percent
Met
Partially
Met
Not Met
Total
Available
Total
Earned
8
#/8
Partially
Met
Not Met
Comments:
The student documents risks associated with
the supplier expansion in the Risk Project Log
template.
In the paper, the student includes a qualitative
risk analysis using risk probability and impact
analysis.
In the paper, the student includes a
quantitative risk analysis.
In the paper, the student documents the
criteria used to determine which risks will
have a risk response plan.
In the paper, the student outlines the risk
management process in the project life cycle,
including risk monitoring and controlling
processes.
The paper is 1,050 to 1,400 words in length.
Writing Guidelines
30 Percent
Met
The paper—including tables and graphs,
headings, title page, and reference page—is
consistent with APA formatting guidelines and
meets course-level requirements.
Intellectual property is recognized with in-text
citations and a reference page.
Paragraph and sentence transitions are
Copyright © 2014 by University of Phoenix. All rights reserved.
Comments:
1
Risk Management Paper Grading Guide
CPMGT/302 Version 8
present, logical, and maintain the flow
throughout the paper.
Sentences are complete, clear, and concise.
Rules of grammar and usage are followed
including spelling and punctuation.
Assignment Total
#
Total
Available
Total
Earned
4
#/4
12
#/12
Additional comments:
Copyright © 2014 by University of Phoenix. All rights reserved.
2
Risk Project Log
CPMGT/302 Version 8
University of Phoenix Material
Risk Project Log
Risk
ID
Risk category
type
Risk
ID
Total risk
impact
Probability of
occurrence
Risk description
Risk owner
Risk status
Severity of impact
Mitigation plan
Copyright © 2014, 2013, 2011, 2010 by University of Phoenix. All rights reserved.
Trigger for
mitigation
plan
1
Risk Project Log
CPMGT/302 Version 8
University of Phoenix Material
Risk Project Log
Risk
ID
Risk category
type
Risk
ID
Total risk
impact
Probability of
occurrence
Risk description
Risk owner
Risk status
Severity of impact
Mitigation plan
Copyright © 2014, 2013, 2011, 2010 by University of Phoenix. All rights reserved.
Trigger for
mitigation
plan
1
Risk Management Paper Grading Guide
CPMGT/302 Version 8
Individual Assignment: Risk Management Paper
Purpose of Assignment
The purpose of this assignment is to leverage the risk breakdown structure developed during Week 2 to
perform both qualitative and quantitative risk analysis for the China expansion project. Students determine the
criteria to properly choose risk events for a detailed risk response plan. Students also demonstrate how risks
analysis can be used to determine the frequency and timing of risk monitoring and controlling processes within
the project framework.
Resources Required
Risk Breakdown Structure from Part I and University of Phoenix Material: Risk Project Log
Organization selected for the Week 2 Individual Assignment
Grading Guide
Content
70 Percent
Met
Partially
Met
Not Met
Total
Available
Total
Earned
8
#/8
Partially
Met
Not Met
Comments:
The student documents risks associated with
the supplier expansion in the Risk Project Log
template.
In the paper, the student includes a qualitative
risk analysis using risk probability and impact
analysis.
In the paper, the student includes a
quantitative risk analysis.
In the paper, the student documents the
criteria used to determine which risks will
have a risk response plan.
In the paper, the student outlines the risk
management process in the project life cycle,
including risk monitoring and controlling
processes.
The paper is 1,050 to 1,400 words in length.
Writing Guidelines
30 Percent
Met
The paper—including tables and graphs,
headings, title page, and reference page—is
consistent with APA formatting guidelines and
meets course-level requirements.
Intellectual property is recognized with in-text
citations and a reference page.
Paragraph and sentence transitions are
Copyright © 2014 by University of Phoenix. All rights reserved.
Comments:
1
Risk Management Paper Grading Guide
CPMGT/302 Version 8
present, logical, and maintain the flow
throughout the paper.
Sentences are complete, clear, and concise.
Rules of grammar and usage are followed
including spelling and punctuation.
Assignment Total
#
Total
Available
Total
Earned
4
#/4
12
#/12
Additional comments:
Copyright © 2014 by University of Phoenix. All rights reserved.
2
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