Step 1: Complete the Risk Management Plan Template below.

Step 2: Read the Fast Delivery Parts Store scenario below. Then, :

a). Identify at least two risks to the project in addition to the three identified in the scenario below. Note: You may use some creative license while identifying additional risks.

b). Using the Risk Management Plan Template, fill out the Risk Assessments for each of the five (or more) risks identified. Be sure to provide complete information for each of the risks associated with this project. Note: You may use some creative license while completing the risk assessments.

c). Fill out a Probability Impact Matrix for each of the risks identified in the previous steps by identifying the risk impact level for cost, schedule, scope, and quality. Use the Risk Impact Chart below.

d). Based on your analysis, rank the risks based on their probability of occurrence (from Step 3) and their impact (from Step 5).

SCENARIO:

Fast Delivery Parts Store Scenario Addition

For the Fast Delivery Parts project, (i) you are worried that you do not have trained IT personnel to complete the information system development and changes to the existing information systems. This is definitely a risk that you have planned for. Another risk is (ii) lack of coordination from the suppliers. Despite the earnestness of Shanghai Auto Parts and Rio Parts Company, they are facing resource constraints and have not been able to commit dedicated personnel to the project you are managing. Their involvement is the key for addressing the data inconsistency problem. Yet another risk is that (iii) Fast Delivery Parts has a matrix organizational structure, and there has not been much commitment of resources from functional managers to your project. Without the resource assurances, you may be unable to complete the project in a timely manner.

Risk Impact Chart The following chart shows risk impact definitions across cost, schedule, scope, and quality. During risk analysis, the potential impact of each risk should be analyzed, and an appropriate impact level (e.g., 0.05, 0.10. 0.20, 0.40, or 0.80) should be selected from the chart below (see definitions below).

Project Objective	Very Low 0.05	Low 0.10	Moderate 0.20	High 0.40	Very High 0.80
Cost	Insignificant cost impact	< 10% cost impact	1020% cost impact	2040% cost impact	> 40% cost impact
Schedule	Insignificant schedule impact	< 5% schedule impact	510% schedule impact	1020% schedule impact	> 20% schedule impact
Scope	Barely noticeable	Minor areas impacted	Major areas impacted	Changes unacceptable to sponsor	Product becomes effectively useless
Quality	Barely noticeable	Only very demanding applications impacted	Sponsor must approve quality reduction	Quality reduction unacceptable to sponsor	Product becomes effectively useless

Risk Management Plan :

Risk #1 Assessment

Risk Description:

Reasons for this risk (i.e., what are the origins of this risk?):

Likelihood of risk occurring (express this as a probability between 0 and 1):

Potential impact on the project:

Ways to address this risk:

Risk #1 Probability Impact Matrix

Project Objective	Very Low 0.05	Low 0.10	Moderate 0.20	High 0.40	Very High 0.80
Cost
Schedule
Scope
Quality

Risk #2 Assessment

Risk Description:

Reasons for this risk (i.e., what are the origins of this risk?):

Likelihood of risk occurring (express this as a probability between 0 and 1):

Potential impact on the project:

Ways to address this risk:

Risk #2 Probability Impact Matrix

Project Objective	Very Low 0.05	Low 0.10	Moderate 0.20	High 0.40	Very High 0.80
Cost
Schedule
Scope
Quality

Risk #3

Risk Description:

Reasons for this risk (i.e., what are the origins of this risk?):

Likelihood of risk occurring (express this as a probability between 0 and 1):

Potential impact on the project:

Ways to address this risk:

Risk #3 Probability Impact Matrix

Project Objective	Very Low 0.05	Low 0.10	Moderate 0.20	High 0.40	Very High 0.80
Cost
Schedule
Scope
Quality

Risk #4

Risk Description:

Reasons for this risk (i.e., what are the origins of this risk?):

Likelihood of risk occurring (express this as a probability between 0 and 1):

Potential impact on the project:

Ways to address this risk:

Risk #4 Probability Impact Matrix

Project Objective	Very Low 0.05	Low 0.10	Moderate 0.20	High 0.40	Very High 0.80
Cost
Schedule
Scope
Quality

Risk #5

Risk Description:

Reasons for this risk (i.e., what are the origins of this risk?):

Likelihood of risk occurring (express this as a probability between 0 and 1):

Potential impact on the project:

Ways to address this risk:

Risk #5 Probability Impact Matrix

Project Objective	Very Low 0.05	Low 0.10	Moderate 0.20	High 0.40	Very High 0.80
Cost
Schedule
Scope
Quality

Rank Project Risks Base

Rank Project Risks Based on their probability of occurrence and their impact.

1. [Risk needing the greatest amount of attention]
5. [Risk needing the least amount of attention]