PM FPX 5334 Assessment 1 Introduction to the Plan

Student Name

Capella University

PM-FPX5334 Project Risk Assessment and Control

Prof. Name

Date

Section 1 – Introduction to the Plan

1.1 Benefits of Risk Management

Establishing a risk management plan is crucial for achieving project objectives. This risk management plan identifies, assesses, and provides mitigation guidelines for challenges faced by virtual teams. As technology evolves, virtual connectivity offers various benefits to workplace projects but also introduces risks. Through this risk management plan, the organization can identify less obvious risks, assess their likelihood and impact, and develop responses to mitigate potential losses.

1.2 Project Goals and Objectives

Clarify the goals and objectives of the plan in relation to risk assessment for the project.

The primary goal of this project is to mitigate risks associated with virtual teams, enabling the organization to effectively harness the potential benefits of utilizing such teams. With globalization breaking down traditional workgroup boundaries, leveraging virtual teams necessitates evaluating new risks. Key factors associated with virtual teams, as identified by Regueira (2016), include communication, coordination, and technology. The objectives of the virtual team risk mitigation project also involve improving these critical factors.

1.3 Company Background

Evaluate the company background and identify stakeholders, their roles, and their impact on the plan.

This project is relevant to organizations seeking to leverage virtual teams, benefiting stakeholders ranging from the Board of Directors to clients. Project managers play a pivotal role in organizing resources to meet project goals, while virtual teams execute tasks using technological resources. The organization benefits from safe social distancing, ensuring a healthy and productive workforce.

1.4 Risk Identification

Identify appropriate strategies and parameters for analyzing risks in the project situation.

For this project, a qualitative risk assessment approach will be employed to evaluate specific risks to virtual teams. A probability scale (low, medium, high) and severity scale (no impact, minimal, critical, catastrophic) will be used. To identify risks, a review of Regueira’s case study on risk identification in virtual project teams, along with expert judgment, will be employed.

Section 2 – Risk Scope, Components, and Value

2.1 Scope of the Risk Management Plan

Define the boundaries of the risk management plan scope.

This risk mitigation plan focuses on the use of virtual teams within an organization, defined as a project manager and under 8 team members. It explores potential risks associated with virtual teams compared to face-to-face teams, providing a general approach to address challenges in the evolving business landscape.

2.2 Risk Management Plan Components

This risk management plan draws insights from Regueira’s case study and Jared Palmer’s experience with virtual teams. Risks will be identified, assessed, and measured by probability and severity, considering factors such as team engagement, multitasking, communication, and technological limitations. The plan is categorized into Introduction, Scope, Analysis, Corrective Action, and Postpartum sections.

2.3 Expected Monetary Value

Apply an expected monetary value analysis to estimate the cost of a project without a risk plan.

The financial value assessment considers factors such as office space, commute time, productivity time, and product quality. Effective utilization of virtual teams could significantly reduce costs for organizations, providing a work-life balance, expanded talent pool, and faster turnaround times.

2.4 Determine the Risks

Explicit risks to virtual teams, outlined in Regueira’s case study, include team engagement, multitasking, incorrect dates or planning, poor communication, poor project accuracy, duplication of effort, team cohesion, and customer satisfaction.

2.5 Evaluate and Assess the Risks

A hierarchical risk breakdown structure is developed to assess risks related to virtual teams. The structure categorizes risks into Team Dynamics, Individual Performance, Process, Technological, and Project Completion categories, each with specific sub-categories. This breakdown provides a high-level overview of potential areas requiring attention from the project manager.

2.6 Qualitative and Quantitative Processes

The primary method of analysis for this risk management strategy is qualitative, using probability and severity scales. Specific risks are assessed based on expert judgment, literature review, and Regueira’s case study. Likelihood and severity are ranked, and risks are evaluated using a decision tree.

Section 3 – Risk Analysis and Assessment

3.1 Major and Minor Risks

Risk analysis involves categorizing risks as major or minor based on their impact on the budget or schedule. The determination considers the severity side of the risk breakdown structure and classifies risks falling within levels 1 or 2 as minor (indicating <5% change in budget or schedule) and those with a >5% impact as major.

3.2 Risk Probability

Likelihood is challenging to estimate, particularly qualitatively. Probability scores (1-4) are assigned based on literature review, Regueira’s case study, and expert judgment. These scores are then used to assess and rank risks.

3.3 Risk Matrix Template

A risk matrix template incorporates probability and impact levels, categorizing risks as Very High, High, Medium, or Low based on likelihood and severity. Each risk is assigned a risk score, calculated as the sum of its probability and impact scores.

3.4 Risk Data Quality Strategy

Data quality for project-based risks involves documenting variations from the original agreement or estimate, ensuring accurate and reliable information for analysis. A quality risk log, following a standard operating procedure for reporting, is maintained in a SharePoint list. Periodic surveys of stakeholders are conducted to validate data quality and ensure ongoing accuracy.

3.5 Risk Reviews

Monitoring and reviewing risks involve weekly discussions between the project manager and virtual team lead. Risks are categorized as green, yellow, or red based on their status, and regular reviews in team meetings ensure ongoing awareness and timely responses.

Section 4 – Corrective Action and Monitoring

4.1 Risk Tolerance

Organizational and departmental tolerance for risk is evaluated, recognizing varying risk tolerances within the organization.

4.2 Risk Mitigation

Risk mitigation approaches include proactive measures to address potential risks. Triggers to initiate mitigation are identified, and specific actions are outlined. Mitigation will be implemented through collaboration between the project manager and team members.

4.3 Corrective Risk Management Strategy

The corrective risk management strategy involves continuous monitoring through weekly meetings and periodic reporting. Corrective actions are initiated based on risk reviews, and responsibilities for corrective measures are clearly defined. The plan incorporates ongoing auditing and strategic planning to address emerging risks.

4.4 Corrective Action Plan

Corrective plan procedures are assessed and made available to the team for review. Documentation is regularly reviewed, ensuring transparency and accountability.

Section 5 – Postmortem Plan

5.1 Results

Results data is collected through ongoing monitoring and periodic reporting, identifying trends and areas requiring corrective actions. Postmortem results may lead to concrete changes in project management approaches, and lessons learned are documented.

5.2 Follow Up

The organization’s view of risk management is evaluated based on project outcomes. Postmortem results may impact the organization’s risk management approach, and recommendations for corrective plan procedures are made to enhance future risk management projects.

Section 6 – References

6.1 References

Novel Coworking. (2019, December 23). How Much Should Startups Pay for Office Space? Retrieved October 22, 2020, from https://novelcoworking.com/blog/how-much-should-startups-pay-for-office-space/

Project Management Institute. Guide to the Project Management Body of Knowledge (PMBOK® Guide) — Sixth Edition and Agile Practice Guide. Newtown Square. PA

. 2017.

Regueira, J., Jr. (2016). A case study exploration of risk identification and risk management in a virtual project team setting. Dissertation: ProQuest ID 10179214.

PM FPX 5334 Assessment 1 Introduction to the Plan