PM FPX 5332 Assessment 4 Risk Management Plan PM-FPX5332 Project Management, Planning, Execution, and Control Introduction

The intent of developing the Risk Management Plan is to address the inherent risks associated with projects, which affect individuals and businesses alike. All projects carry risks due to their unique nature and varying complexities, which aim to deliver specific benefits (PMBOK, 2017). While risks cannot be entirely eliminated, they can be effectively managed through preparation. This management occurs within a framework of constraints and assumptions, while also responding to potentially conflicting and evolving stakeholder expectations (PMBOK, 2017). This risk management plan will encompass the project description, risk management principles, processes, planning, and analysis.

Project Description

Cosmo, Inc. has established itself as a leading manufacturer of wearable technology. However, following a comprehensive market analysis, the President and CEO identified a potential issue that could adversely affect future earnings. The report indicated that competition from other companies could threaten its current 33% market share. The objective is to assess this perceived threat by formulating a plan that aims to mitigate or eliminate the risk of losing market share. Cosmo will devise a swift and validated plan to introduce new technology to the market. The challenge lies in integrating this technology into existing ERP and marketing systems to create a successful formula. This new marketing strategy must be executed within a budget of $150,000 and completed within 10 weeks. To facilitate this project, staffing and communication plans have been established.

Guiding Risk Management Principles

This project will employ the tools and techniques from PMBOK (2017) as outlined below in its approach to risk management:

• Expert Judgment: The Project Manager will invite resources with experience in similar projects to participate in data-gathering sessions aimed at identifying and addressing potential risks. The outcomes will be presented to the Project Sponsor.

• Data Gathering through Brainstorming: A group of individuals with prior experience in similar projects will engage in data-gathering sessions facilitated by the Project Manager. These sessions will be informal, allowing participants to share issues encountered in past projects.

• Meetings: Weekly meetings will be held to discuss risks and risk mitigation as they arise. An initial brainstorming session will be conducted, followed by ongoing weekly change review board meetings and segment status checks to communicate and document any risks.

• Documents: A risk register will be maintained as necessary. This register will include identified risks, potential owners, and possible risk responses. A risk report will be generated to provide information on individual risks and their impact on the overall project.

Risk Management Process

Risk Identification

Based on an analysis of known and unknown risks associated with the project, the following specific risks may impact project outcomes (costs, time, quality, performance) and their characteristics are documented below:

• Delay of Microchips: If microchips are delayed by the IT department, it could affect the completion date, as all microchips must be delivered for testing to proceed. (NEGATIVE)

• Lack of Resource Availability: Insufficient availability of resources may result in missed deadlines, delaying the overall project launch date. (NEGATIVE)

• Software Enhancement Effects on Existing Functionality: If the deployment of additional features negatively impacts existing software functionality, it may necessitate additional development and testing work that is not accounted for in the current budget and timelines. (NEGATIVE)

• Lack of Funds: If the full budget is not approved or available, the project may need to be scaled back or paused until full funding is secured. (NEGATIVE)

• Manufacturing Volume: If the manufacturing teams are unable to increase their output, there will be delays in fulfilling orders, leading to negative customer impacts and potentially decreased sales. (NEGATIVE)

• Developmental Gaps: If there are gaps in the requirements used by the development team, issues may arise during the user acceptance testing phase, necessitating redevelopment that could extend timelines and jeopardize deadlines. (NEGATIVE)

• Testing Errors: If issues are not identified during unit, quality assurance, or user testing, there is a risk that these problems will reach production, resulting