WK4Proj_Armstrong_Earl

MSPM 6140: Enterprise and Project Risk Management Project Risk Management EARL P. ARMSTRONG JR. Walden University October 1, 2023 i

MSPM 6140: Enterprise and Project Risk Management Table of Contents Project Risk Management Approach ............................................................................................... 1 Project Risk Management Process ................................................................................................... 1 Project Risk Identification ................................................................................................................ 1 Project Risk Assessment (Qualitative) ............................................................................................. 1 Project Risk Assessment (Quantitative) ........................................................................................... 2 Project Risk Response ...................................................................................................................... 2 Risk Monitoring and Control ............................................................................................................ 2 Risk Register ..................................................................................................................................... 3 ii

MSPM 6140: Enterprise and Project Risk Management The outcomes of these sessions, including identified risks, will be meticulously documented in a centralized Risk Register. This dynamic document will be continually updated to reflect the changing risk landscape and serve as a reference point for risk management decisions. Types of Risks Risks come in various forms, and categorizing them is essential for effective risk management. For the Pepsi Refresh Project, we will define several types of risks: 1. Operational Risks: These risks pertain to day-to-day project operations, including logistical challenges, resource constraints, and process inefficiencies. 2. Technical Risks: Technical risks are associated with technology and may include potential failures, software glitches, or hardware malfunctions. 3. Regulatory Risks: Regulatory risks arise from non-compliance with legal and regulatory requirements governing the project. These could encompass environmental regulations or industry standards. 4. Financial Risks: Financial risks are linked to budget overruns, unexpected expenses, or financial constraints that could impact the project's financial viability. Sources of Project Risks 2

MSPM 6140: Enterprise and Project Risk Management Understanding where project risks originate is crucial. For the Pepsi Refresh Project, we anticipate risks originating from: 1. Vendor Risks: These risks are associated with third-party vendors, encompassing considerations of their reliability, adherence to project timelines, and the quality of deliverables. 2. Operational Risks: Risks arising from the day-to-day execution of project tasks, such as resource allocation, scheduling, and task dependencies. 3. Technology Risks: These risks are related to the use of technology, including potential software bugs, compatibility issues, or system failures. 4. Market Risks: Market risks are associated with shifts in market demand, consumer preferences, or competitive pressures that could affect the project's success. 5. Environmental Risks: Risks arising from environmental factors, such as weather conditions or natural disasters, which might impact project logistics. In conclusion, the risk management plan for the Pepsi Refresh Project emphasizes a systematic approach to risk identification, categorization, and understanding their sources. By actively involving stakeholders, documenting risks, and classifying them by type and source, we aim to proactively manage risks and enhance the project's chances of success. Effective risk 3

MSPM 6140: Enterprise and Project Risk Management Risk Register Note: The first line is an example. Delete it when creating your own risk register. A B C D E F G H I J K L M Risk No. Risk Name Risk Event Description Risk Impact Description Risk Type Risk Source Risk Trigger Impact Score 1 to 5 Prob. Score 1 to 5 Risk Facto r PI EMV Respon se Type Respon 1 Delay in supplier deliveries Project delays Operational Vendor Late supplier deliveries 4 3 12 $50,000 Mitigatio n Expedite Shipping 2 Technological system failures Disruption of project Technical Technology System Malfunction 5 2 10 $100,00 Continge ncy Backup syste 3 Non-compliance with regulations Legal Issues Regulatory Regulatory Regulatory Changes 4 3 12 $30,000 Avoidanc e Compliance 4 Budget overruns Financial Strain Financial Financial Cost overruns 5 3 15 $200,000 Continge ncy Allocate budg 5 Competitor product launches Market Share Market Market Competitor Product Launch 3 4 12 $80,000 Accepta nce Strategize 6 Severe weather conditions Disruptions of Logistics Environment Environment Severe Weather Forecast 4 2 8 $40,000 Mitigatio n Alt. Routes 7 Key C-Suite member resigns Experience loss Operational Human Resources Team Member Resignation 3 2 6 $20,000 Continge ncy Developmen 8 Data security breach Data Loss and Legal Issues Technical Technology Insider Threat 5 2 10 $120,000 Avoidanc e Enhance Cybersecurit 9 10 5