Reference no: EM133019207

MGT5085 Risk Management Plan

The project Risk Management Plan (RMP) is a critical component of the overall Project Plan. In this assignment you will be developing a PMBOK compatible Risk Plan.

Assignment Instructions:
To help give this assignment context, you can assume that the project we are working on is a Dream House Project with a Work Breakdown Structure (WBS) that is similar to what is shown below:

Risk Management Plan Template: This section of the risk management plan will involve identifying all of the potential risks associated with a project, using the WBS as well as the various risk categories identified in the readings. In this section, do not try to evaluate the risks; simply identify them.
• Introduce your project (1 paragraph) from a risk perspective (what are the stakeholder's' risk-related concerns on this project?)
• Project Risk Tolerances: Indicate which project characteristic the risk plan is to protect (budget, schedule or quality). Provide a brief justification as to why this project characteristic should be protected over the others.
• Methodology:
o How were risks identified on this project?
(Remember that ‘risk' means uncertainty. Uncertainty can represent both threats and opportunities
o Were any risk analysis tools used?
o What data sources were used in the risk analysis?
• Roles and Responsibilities:
o Develop a Risk Responsibility Assignment Matrix (RAM) (PMBOK® 9.1.2.2) that allocates risk responsibilities among the project team. Your RAM should denote which team member:
- Is the Lead (L) for risks related to each individual WBS activity;
- Is providing Managerial Support (MS) for the WBS activity; and
- Is providing Support (S) for each WBS activity.

• Definition of Risk Probability and Impact
Quantifiably define specific probability and impact levels for this project
• Risk Registry: Develop a risk registry (a.k.a. risk log) for four (4) risks identified in your project.

o WBS Item: Identify the project task(s) that the risk would be associated with (you can make up the project task). Keep in mind that one risk might apply to multiple WBS item numbers.
o Risk #: Each risk should have a unique number in your numbering system.
o Risk Title and Consequence: Identify the risk and indicate what project characteristics it might impact, and to what extent.
o Risk Likelihood: Using industry best practices (PMBOK® 11.3.2.3), identify the likelihood of the risk occurring.
o Risk Impact: Using industry best practices (PMBOK® Table 11-1), describe the potential impact of the risk on the project's three primary constraints (that is, describe potential schedule, budget and quality impact).
o Risk Strategy: Identify your overall strategy or strategies for dealing with the particular risk and briefly justify the strategy. Strategies include the following:
- For threats (PMBOK® 11.5.2.4): Mitigate, Transfer, Accept, Avoid
- For opportunities (PMBOK® 11.5.2.5): Accept, Exploit, Enhance, Share
o Risk Response: Using industry best practices (such as fast tracking, schedule crashing, buffers, insurance policies, contracting mechanisms, contingency funds, management reserve funds, etc.), describe how you would deal with this risk.
• Risk Management Budget:
Develop an estimate for the overall cost of your project risk management plan which will be included in your overall project budget. Your risk management budget needs to include the following costs estimates:
o Costs of assigned resources (include both human and equipment costs)
o Costs of fixed risk management expenses (for example, insurance policies)
o Costs of contingency reserve fund to cover costs of known risks
o Managerial reserve fund to cover the cost of unknown risks

Attachment:- Risk Management Plan.rar