Risk Management

A riskis an event or condition that, if occurs, could have a positive or negativeeffect on a project’s objectives. Therefore, Risk Management is the vitalprocess of identifying, assessing, responding to, monitoring, and reportingrisks. In this section, Risk Management Plan defines how risks associated withthe TWF project will be identified, analyzed, and managed. Theproject manager working with the project team and project sponsors will ensurethat risks are actively detected, analyzed, and controlled throughout the lifeof the project. Risks will be identified as early as possible in the project tominimize their impact via constantly reviewing and reflecting by project team.Thesteps for accomplishing this are outlined in the following sections. Theproject manager, Sudesh Gabale, will undertake the majority of the tasks of theRisk Manager for this project.

 Risk identification section will involve related personnel includingthe project team, appropriate stakeholders. It will contain an evaluation ofenvironmental factors, organizational culture and the project management plan.Careful attention will be given to the project deliverables, assumptions,constraints, work breakdown structure (WBS), cost/effort estimates, resourceplan, and other key project documents.Allrisks identified will be assessed to identify the range of possible projectoutcomes. Qualification will be used to determine which risks are the top risksto pursue and respond to and which risks can be ignored.Theprobability and impact of occurrence for each identified risk will be assessedby the project manager, with input from the project team using the followingapproach:ProbabilityThepercentage of occurrence of a certain event. Usually an event with 70% ofoccurrence can be defined as high probability.

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ImpactThisfactor identifies the extent the event could affect the whole project. Usuallya high risk means that it has the potential to greatly impact project cost,project schedule or performancePerformanceRisksthat fall within either high probability or high impact will have risk responseplanning which may include both a risk mitigation and a risk contingency plan. Analysis of risk events that have been prioritized using thequalitative risk analysis process and their effect on project activities willbe estimated, a numerical rating applied to each risk based on this analysis,and then documented in this section of the risk management plan. Each major risk will be assigned to a project team member formonitoring purposes to ensure that the risk will not “fall through the cracks”.Foreach major risk, one of the following approaches will be selected to addressit:· Avoid– eliminate the threat by eliminating the cause·Mitigate – Identify ways to reduce the probability or the impact of the risk·Accept – Nothing will be doneForeach risk that will be mitigated, the project team will identify ways toprevent the risk from occurring or reduce its impact or probability ofoccurring.

This may include prototyping, adding tasks to the project schedule,adding resources, etc.Foreach major risk that is to be mitigated or that is accepted, a course of actionwill be outlined for the event that the risk does materialize in order tominimize its impact.Thelevel of risk on a project will be tracked, monitored and reported throughoutthe project lifecycle.Themost noticeable events will be maintained by the project team and will be keptas part of the project status reporting process for this project.Managementwill be notified of significant changes to risk status as a component to theExecutive Project Status Report.

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