RISK REGISTER IN EXCEL – PART 1
Using your team’s ITP WBS, develop and submit a project risk register in MS-Excel. Compose your risk register using ideas from the textbook, the classroom material, www.pmi.org, or from other valid research. The risk register must identify no fewer than 12 risks:
- 3 risks for the Project WBS element at Outline Level 1 (ID 0)
- 3 risks for WBS elements at Outline Level 2
- 3 risks for WBS elements at Outline Level 3
- 3 risks for Work Activities
This is the minimum required (along with the other assignment elements) to earn a satisfactory grade. Including more risks at each level would enhance your grade.
Note: Risks may include technical IT risks, external risks (impact the project but are outside the PM’s control), project management risks, risk of project changes, quality risks, financial risks, organization risks, project risks, and others. Also, a WBS Element/Work Activity could have more than one risk.
The risk register must include mitigation strategies to avoid/eliminate or minimize the risk and contingency plans (what you will do if the risk happens). If the format you are using does not include these columns, please add them, then be clear on the difference between mitigation and contingency. Address what aspect of the project will be affected by each mitigation action – cost, schedule, or scope. Provide a recommendation for whether or not the mitigation action should be implemented, remembering that each mitigation will impact the project’s scope, cost or schedule.
The risk register should also include:
- Title or description of item (WBS Element/Work Activity) at risk
- The WBS ID
- Description of the RISK (What is the risk? What is at risk of happening?), identifying the nature of the risk itself, not the WBS Element/Work Activity
- Risk category or type (e.g., technical risks, quality risks, financial risks, external risks, organization risks, project risks, quality risks, other risks, etc.)
- Consequences, impact, or cost at risk; adjectival (i.e., from very low to very high) or numeric (i.e., from 1 to 5)
- Likelihood or probability of a risk occuring; adjectival (i.e., from very low to very high) or numeric (i.e., from 1% to 100%)
- Initial risk score (or “risk product”, consequence times likelihood)
- Risk handling category (avoidance, mitigation, transfer, acceptance, etc.)
- The mitigation action that, if taken, would avoid the risk or the impact of the risk.
- Cost and time required for the mitigation action.
- Contingency plan – what the team will do if the risk actually happens
- Designation of risk “owner” or risk manager (best designated by title or role rather than by individual’s name)
You may include such things as:
- Additional risks
- Risks for additional WBS Elements/Work Activities
- Results of handling each risk after controls are implemented:
- Consequences or cost at risk
- Likelihood or probability
- Final risk score or product (consequence times likelihood)
- Quantitative numerical consequences, probabilities, and risk scores (rather than subjective, qualitative, or adjectival assessments)
- Additional narrative discussion of each risk, handling method, etc.
- Total of all the risk scores (risk products) for the entire project after risk controls are implemented, in dollars.
Finally, if you quantitatively calculated the risk product in those terms, then show the total of all the initial risk scores (risk products) for the entire project, in dollars.
No Executive Summary is needed for this assignment.
Questions: In an accompanying MS-Word document, answer the following questions:
1a. Which risks (and associated WBS Elements/Work Activities) would be the most threatening to the success of the project and why?
2a. Which top three mitigations (and WBS Elements/Work Activities) and risk handling plans should be implemented, and why?
2b. What can you afford to do based on the likelihood and impact of the risk?
3a. What are the total impacts on cost, schedule and scope for the project if the recommended risk controls and mitigation actions are taken?
3b. If you use costs, how did you calculate the cost?
3c. Will the risk handling improve things or make them worse?
4a. How did you determine those costs and impacts?
4b. What is the benefit of mitigating risks that are identified for mitigation?
5a. If your project could only afford $20,000 for mitigation actions, which risks (identify associated WBS Elements/Work Activities) would be implemented?
6a. If your project could only tolerate a 5-day delay related to mitigation actions, which risks and mitigations (identify associated WBS Elements/Work Activities) would be implemented?
7a. What would be the most expensive (time and or schedule) contingency action/plan?
8a. How did you determine those costs and impacts?