Case Study

The Manitoba Mutual Insurance Co. has launched a project to improve the customer experience. In scope, are changes to the customer self-serve portal in order to support online bill payments and integrate with policy reinstatement functionality. Below is a subset of the requirements that have been elicited thus far.

Table 1: Requirements

ID	Description
R1	Provide functionality to allow customers to pay their bill on the self-serve portal.
R2	Distribute an updated Statement of Account when payments are made via the self-serve portal.
R3	When the customer pays their bill, integrate with existing processes for policy reinstatement, and if the policy was on hold or cancelled due to late payment, reinstate it automatically.
R4	Ensure that the reinstatement reconciliation process is notified, so that additional payment reminders are not sent to clients.
R5	Do not add additional steps to the reinstatement reconciliation process.

Table 2: Assumptions

Assumption ID	Req. ID	Assumption Description	Stakeholder Concerns
A1	R4	We assume that the reinstatements that happen automatically will result in a status change on the policy that is auditable, and that the billing team will be aware of the status change.	The billing team is responsible for reconciling all policy reinstatements against cancelled or "on hold" policies, and they do this via a "delinquency" report that is currently manually maintained by the Billing Specialists that accept payments. The specialists send letters to customers whose accounts are in a delinquency status. These specialists might not know that the payments and reinstatements occurred and would continue to send billing reminders to the customers.

The project team brainstormed how to manage the risks associated with the listed concerns. Table 3 shows what they decided.

Table 3: Treatment Options

ID	Treatment options notes from brainstorming session	Treatment Types
A1	Build an automated report that queries the billing system for payments and subsequent automatic reinstatements. This option would require a change to scope that could push out the project timelines, but would take the pressure off of billing resources. Update the letter that is used by Billing to provide a contact number for customers to call if they feel they have paid, so that Billing can update their files on who is delinquent. This change takes some of the pressure off Billing to reconcile, but could be seen as poor service from the customer perspective. Ask the Underwriting team to review the Reinstatement Reconciliation reports maintained by Billing, and update it with any policies that were reinstated. Don't do anything. This situation doesn't happen often enough to warrant a change to scope.

Exercise

Populate the Assignment 1: Risk Register Spreadsheet, based on the information in the case study, as follows:

1. Using the Assumption A1 from the Case Study, populate the "Risk Event or Condition" and "Consequence" for each stakeholder concern.
2. Estimate the "Probability," "Impact," and "Risk Level," prior to "Treatment." Within each cell, briefly (one short sentence) explain your reasoning. To assess the impact, use Table 10.38.1: Example of a Risk Impact Scale, from the BABOK.
3. Review the Treatment Options in Table 3 and select an appropriate treatment.
   1. Populate the "Treatment" column with the selected treatment, and indicate what type of treatment it is (e.g., Avoid, Transfer, Accept, Mitigate or Increase).
   2. Justify your selection of treatment in the "Justification" column.
4. Will the selected treatment of the issue result in a residual risk? Populate the final three columns, along with a brief (one short sentence) explanation in each cell.
5. Lastly, can you observe any conflicts between requirements, related to this risk? What does this result mean in terms of validating R1?