Project Risk Management Plan
Since all projects have risks, experts in project management have adopted proactive approaches designed to manage these risks. Risk management success determines the success of a project. However, risk management responses depend on the nature of the project. In the practical project management evaluation, risk analysis methods such as failure mode, risk matrix, analytical hierarchy, effects analysis, and fault tree analyses may be applied either independently or as a complement of another (Gray & Larson, 2011; Solomon, 2010). This part of the paper will present a risk management plan for the proposed expansion of production and storage space for the Performance Plastics Incorporation (PPI). The broad spectrum of risk matrix will revolve around social risks, safety risk, legal risk, delay risk, operational risk, procurement, and financial risks.
Risks applicable to the project
Identification of the Risks in the PPI Expansion Project
The following risks have been identified in the PPI Expansion Project in line with the discussed risk classifications.
Operational and Technological Risk
From the definite time frame for implementation, it is apparent that this project has a clear specific and period of performance. However, the third stage may prove to be a challenge since there is no local company within the project country that has the capacity to carry out construction within the allocated time. Besides, the inflexible time allocation for completion of the project may be faced with challenges in channels of reporting progress that is critical in ensuring clear communication from one stage to another. The risk level in this category is high.
Contractual and Procurement Risk
This risk falls in the low-risk category since the project has a very clear procurement and contractual arrangement for the completion of the project, as indicated in the project arrangement.
Economic and Financial Risk
The leading financier of the project, which is the Performance Plastics Incorporation has precise demands for the economic viability of the whole project. This risk in this classification is medium.
Environmental Risk
The aspects of sustainability, pollution, environmental degradation, and other ecological concerns must be reviewed in the course of this project. However, the risk is low since the project will have a minimal negative impact on the environment.
Delay Risks
Just like any other project, this project may experience a delay due to different dynamics during implementation. However, the risk is very minimal.
Classification of the Risks
After identification, these risks were classified in terms of their overall impact on the project and the probability of their occurrence. The basis for classification was in terms of the magnitude of effects such as (LI) low impact, (MI) medium impact, and (HI) high impact (Murray, Grantham, & Damle, 2011). In terms of probability of occurrence, the risks were broadly classified as (LP) low probability, (MP) medium probability, and (HP) high probability of a possible event.
(Source: Self Generated).
From the above classification table, probability/impact matrix was developed as indicated in the table below.
Probability
Explanation of the Project Probability/Impact Matrix
(Source: Self generated).
Appropriate options for treating the risks
The primary risk responses include avoidance of risk, transfer of risk, mitigation of risk, and acceptance of chance as to the underlying ways of organizing appropriate responses in project implementation. This broad-spectrum classification of risks is critical in the identification of the various dangers, reviewing their impacts on the project, and offering mitigation to the risks to make the project viable and successful. Specifically, the chances are rank in terms of their magnitude, that is, low risk, medium risk, and high risk, in order to make the responsive strategies specific in addressing the risk concerns (Snyder, 2009). The appropriate actions are summarized in the table below.
(Source: Self generated).
Project Human Resource Plan
Key:
R – Responsibly of completion
A – Accountable for task end
C – Consulted before commencement of each duty
I –Alerted after every decision is made
Human Resource Required and Associated Costs
(Source: Self generated).
Training approach
The training approach will be done through series of meeting between the internal and external suppliers of project requirements. Training will be continuous depending on the needs and dynamics of the project. There will be reward to internal suppliers for a accomplishing each milestone within the set time. The reward will be in the form of monetary allowances and certificate of competency.
Project Communication Plan
The project directors hold the key to the future of the PPI construction project. They have a mental picture and a vision of how they want the company to become after a given period of time. The clients of the company should understand that the company policy is on security. Getting their approval is critical. Members of the project workforce are an integral aspect of the implementation of the proposed project (Quantum & Daley, 2011). They are the hands that carry out the actual duty. If properly trained, they are the strengths that ensure the success of the new procedures.
Communicating with stakeholder groups
Directors
Key messages: Risk mitigation and monitoring for sustainability of the proposed PPI project.
Delivery strategies: Open meetings and consultative forums.
How to encourage input/participation: Preplanning of the meetings and micromanaging each stage.
Level and type of support for the project plan: Technical support.
Members of the project taskforce
Key messages: Risk mitigation and monitoring for sustainability of the proposed project.
Delivery strategies: Open meetings and consultative forums.
How to encourage input/participation: Preplanning of the meetings and micromanaging each stage.
(Source: Self generated).
The plan will be communicated through face to face meetings and official emails. The progress will be displayed after every three days. The documentation needed is training pamphlets, risk monitoring books, and store files for each mitigation strategy proposed. The action plan will be monitored every day during the first month. Reports on its progress will be made after every two days.
References
Gray, C.F., & Larson, E.W. (2011). Project management: The managerial process. New York, NY: McGraw-Hill.
Murray, S. L., Grantham, K., & Damle, S. B. (2011). Development of a Generic Risk Matrix to Manage Project Risks. Journal of Industrial and Systems Engineering, 5(1), 35-51.
Quantum, P., & Daley, S. (2011). Microsoft Project 2010 in depth. Indianapolis: Que Publishing.
Snyder, C. (2009). A project manager’s book of forms: A companion to the PMBOK Guide, fourth edition. Hoboken, ST: Wiley.
Solomon, M. G. (2010). PMP Exam Cram: Project management professional. Upper Saddle River, NJ: Pearson.