Operations & Training Risk Management Plan

Author: Massuello Ximenes Created: Mar 1

Status: Draft Updated: Mar 31

Objective
The purpose of a risk management plan is to identify potential risks, assess their likelihood and
impact, and develop strategies to mitigate or manage them in order to minimize negative
impacts on the project's objectives, timeline, and budget.

Executive Summary
Office Green's Plant Pals operation is an ambitious project with the goal of launching a line of
indoor plant products for homes and businesses. The project team aims to develop and market
the products while ensuring quality and customer satisfaction. Key milestones include securing
vendors, training employees, and launching the products on time and within budget. However,
the project faces potential risks, such as budget overruns and delays in employee training, which
could impact the project's success. These risks are outlined in the tables provided in the
Executive Summary of the risk management plan.

RISK TYPE ONE: Going over the project budget

Scenario Risk to Mitigation Plan

project
(L/M/H)

Product vendor charges a (M/M/M) Accept

higher rate

Product vendor loses a (L/H/M) The team will transfer this risk by purchasing
shipment insurance that covers lost shipments, and by
working with the vendor to ensure they have
appropriate safeguards in place to prevent lost
shipments.
 Delivery truck costs (H/H/H) The team will work with the vendor to negotiate
$16,000 more the cost and ensure the final price is not
significantly higher than the initial quote.
Additionally, the team will have a contingency
budget in place to cover unexpected costs.

RISK TYPE TWO: Falling behind the training schedule

Scenario Risk to Mitigation Plan

project
(L/M/H)

Training Manager gets (L/M/L) Accept

sick

More than 50% of (L/M/H) The team will work to reduce or control this risk
employees quit by conducting a thorough needs analysis to
ensure that the training is effective and
engaging. The team will also solicit feedback
from employees throughout the training process
to identify and address any issues. Finally, the
team will work to create a positive work
environment that encourages employee
retention.

Insufficient time to train
employees
(M/M/H) The team will work to reduce or control this risk
by implementing a recruitment strategy that
includes aggressive job postings, incentives for
referrals, and using recruitment agencies to find
qualified candidates. The team will also consider
outsourcing training to a third-party provider if
necessary.

Appendix:
Probability chart:

Probability
Qualitative Quantitative (if measurable)
 Less than <10% chance of risk
Low Very low chance of risk occurring.
occurring.

Medium Medium chance of risk occurring. 10%-49% chance of risk occurring.

High High chance of risk occurring. 50%-100% chance of risk occurring.

Impact chart:

Types of
Impact Low
Low financial impact,
costing the company
Financial $0-$14,000
Low impact to project
operations, causing
delays of a few days to a
Operational few weeks
Low impact to employee
attrition, with 5%+ of
employees quitting
People
Medium High
Medium financial impact, High financial impact,
costing the company costing the company
$15,000-$29,000 $30,000 or more
Medium impact to project
operations, High impact to project
with potential to delay operations,
project by a month or with potential to cause
more project failure
Medium impact to High impact to employee
employee attrition, with attrition, with 50%+
25%+ of employees employees quitting
quitting

Probability and Impact Matrix:

Inherent Risk
Impact
Low Medium High
 High Medium High High
Probability Medium Low Medium High
Low Low Low Medium