Plushie CompanyRisk Assessment
IntroductionIn this report, our team analyses the possible risks that our project may face.Risk is determined based on the probability of it happening and the impact thatthe risk will cause on the project.List of possible risksRefer to Appendix ATop 5 risksRefer to Appendix BThe top 5 risks were chosen based on the probability of it happening and howlarge the impact will be on the project. Priority is given to the risks that will incurlarge impacts, as these risks will be the ones that affect the outcome of theproject, resulting in project failure. Measures to reduce the probability of suchhigh impact risks are needed to ensure the success of our project.Top 2 risks analysisRefer to Appendix C
Top 2 risks:
Damage to equipment and lack of suitable locationDamage to equipment was given both high probability and high impact due tothe fact that it can occur easily as and when the equipment is mishandled or ifunskilled workers use the equipment. Damaged equipment is rendereduseless for production, thus reducing the production ability of the company andimpacting the project largely. Damage to equipment will result in additionalcosts from purchasing new equipment, which may amount up to $10,000.Warranty can also be claimed if it were purchased. 1-2 weeks will be requiredto service or purchase new equipment, thus affecting the schedule of theproject.Lack of suitable location was the second highest risk based on ourassessment. Without a suitable location, the project will not have a productionsite to produce our products. A possible solution for the risk will be to rent atemporary site for the production. However, extra costs will be incurred fromthe rental. The cost of rental can range from $5000-10000 a month, dependingon the size of the site. Project schedule will also be delayed by 2-3 weeksbecause more time is needed to locate the temporary and final site.
Done by: Yong Lin, Jonathan, Li Yi, Jian Sheng