Risk Management

Presented by You Exec

 Operational
Strategic › Cost Overrun
› Operational Controls
› Demand Shortfall › Capacity management
› Customer retention › Supply Chain Issues
› Integration problems › Employee Issues incl. fraud
› Pricing pressure › Bribery and Corruption
› Industry downturn › Commodity prices
› JV or partner losses

Types of Risks
› Macroeconomic
› Political Issues
› Legal Issues › Debt and interest rates
› Terrorism › Financial management
› Natural disasters › Asset losses
› Goodwill and amortization
› Accounting problems
Hazard
Financial
 Identification of Risk Categories
Risk Category Financial Financial Operational Operational Strategic Strategic

Customer
Risk Sub Category Funding Capacity Capacity Availability Demand Shortfall
Retention

Likelihood 2 3 3 4 5 5

Risk level
Profitable Growth

Low Price

Develop New product

Leverage Technology

Risk Score by Risk Category

 Risk Appetite

High

Exceeding Risk Appetite

Medium
Impact

Within Risk Appetite

Low

Obtain an estimate of the risk appetite of the shareholders with

the help of the below bar graph. This will help in assessing the
acceptable risk level

Low Medium High

Likelihood
 Risk Tolerance

Very Low Low Moderate High Very High

0.7 0.2 0.1 0.9 0.5

Insignificant
Cost increase
<10% cost increase 10- 20% cost increase 20- 25% cost increase > 25% cost increase

Insignificant fall 7-10% schedule 10-15% schedule 15-20% schedule

Schedule <7% schedule slippage
in schedule slippage slippage slippage

Insignificant scope Minor areas of Major areas of Reduction Project end item
Scope decrease scope affected scope affected unacceptable is useless

Only demanding
Barely noticeable Reduction requires Reduction Project end item
Quality applications are
degradation approval unacceptable is unusable
affected
 Risk Register
Probability Impact
Type Risk Response Risk
Description of Risk
of Risk H M L Perf. Cost Time
Strategy Owner

Lack of acceptance by Market observation, alternative

Design 50k-500k Investor
investor of design proposals designing solutions

Earlier diagnosis of the situation in local

Delays and difficulties in obtaining
Design 500k-2m authorities offices, organization of meetings Investor
opinions and permits
preceding designing process

Conflict among designing Response of a team leader to all forms

Design 50k-500k Designer Office
team members of conflicts – mediation in a team

Proposing for employees to work overtime or

Overly optimistic assessment
Design 50k-500k ordering of part of work to another designing Designer Office
of employee workload
team

Incorrect information from investors Application to investor for extension of time to

Design 2m-5m Investor
and lack of clear guidance complete a design due to additional circumstances

Acceptance of unrealistic deadlines in Employment of new employees or ordering part

Time 2m-5m Designer Office
contact of work to another party during a contract

Underestimation of Limiting scope of design to

Budget 2m-5m Investor
design budget necessary minimum.
 Risk Identification

Time Cost
› Budget Exceeded
› Schedule overruns
› Unanticipated
› Tasks omitted from Schedule
› Expenditure
› Opportunity to compress Schedule

Resources
Communication Identify › Team is under-resourced
› Materials shortage
› Poor communication (Stakeholder Risks › Machinery unavailable
dissatisfaction) › Industrial Action
› Positive & timely communications › Skills gap
(positive publicity)

Environmental
Scope
› Bad weather results in re-work
› Scope creep › Weather delays progress
› Scope poorly defined › Adverse effects occur
› Project changes poorly managed › Environmental approvals not complied
with
 Risk Impact & Probability Analysis
Impact Cost Time Quality

Manageable by exchange against Slight slippage against internal Slight reduction in quality/scope, no
Very Low Internal budgets targets overall impact

Require some additional Slight slippage against key milestones Failure to include certain ‘nice
Low funding from Institution or published targets to have’ elements

Requires Significant additional Delay affects key stakeholders – loss Significant elements of scope for
Medium funding from Institution of confidence in the project functionality will be unavailable.

Requires Significant Failure to meet key deadlines in

Failure to meet the needs of a large
High reallocation of Institutional relation to academic year or
proportion of stakeholders
funds (or borrowing) strategic plan

Increases threaten viability of Delay jeopardizes Project outcomes effectively

Very High project viability of project unusable
 Risk Mitigation Plan

Monitor any updates on

Update client more frequently
along the way with project
progress
popular web browser and / or
bootstrap and make sure all UI
Perform periodical check design works as intended on
on server status updated web browsers or
responsive bootstrap

Client Management Server Technical

Identified Risk
Miscommunication with sponsor or
Identified Risk
Server is down which causes project to be
Identified Risk
Popular web browsers may get
client regarding project requirement slightly delayed due to application not an update that will discontinue support for
and expectations able to load features used in our development as we using
responsive bootstrap.