PROJ6003

PROJECT EXECUTION AND

CONTROL
RISK MANAGEMENT
PART-B
NAME: VENKATNAVEEN REDDY GURRALA
I D NUMBER: 00282860T

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Table of Contents
Introduction......................................................................................................................................2

Risk identification and impact assessment......................................................................................2

Possible risks for the case study their impacts.................................................................................3

A risk probability and impact matrix...............................................................................................3

Response strategies to effectively manage the identified risks.......................................................4

A risk register for the case study.....................................................................................................4

Risk management reporting.............................................................................................................5

Determine possible risks..............................................................................................................5

Quantitative risk assessment........................................................................................................5

Risk response plan...........................................................................................................................6

Notifying stakeholders about the project’s risk management activities..........................................6

References........................................................................................................................................8

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Introduction
This report is based on the change control in which different changes required for the
given study are identified. Along with this, the impact of these changes over various
constraints of the project is also evaluated. These constraints mainly include time, scope,
quality, cost etc. Along with this, various risks associated with the changes are also identified
in the report through risk assessment. The risk register is given in this report demonstrating
various risks that could have a major impact on the project. The whole research is based on
the Blue spider project to evaluate various types of risks and accurately manage them(Asadi,
2015). The report includes a description regarding different types of risks and also define
some effective mitigation strategies that could be used for the mitigation of all identified risks
inefficient way.

Risk identification and impact assessment

Identified Risk Impact Assessment
The risk of changing Quality issues may affect the productivity of the project and even leads to
product quality failure in its implementation phase.
Change in the project Since the material involved in missile manufacturing is changed, it can
scope have a negative impact on the scope of the project. A last-minute change in
project scope sometimes fails inthe project(Marion, Richardson, &
Earnhardt, 2016).
Poor communication In case, there is a lack of coordination among different stakeholders of this
problems project or departments; it will affect the development of the end product to
be delivered.
Changes in the budget Bringing in new material for the missile production may increase the
estimates overall project cost because it is relatively expensive when compared to the
previously used material (Snyder, 2013).
Trust concerns The Chief Executive Officer (CEO) of Park Corporation has many trust
issues on the entire team that may impact the project success.
Latency in project Introducing new changes can raise the risk of latency in product delivery.
delivery These changes can be adjusted only when the project schedule build for
missile implementation is updated

Possible risks for the case study their impacts

Identified risks for the Impact of these risks

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 case study
Change in the project This risk has a moderate impact as with sufficient funds, and through
scope proper communication, the project team will be able to override this issue.
Poor communication This risk will also highly impact the project progress as team conflicts will
problems go on increasing (Wysocki, 2012).
Changes in the budget Cost overrun risk may have a high impact on the missile project since it
estimates requires a higher budget then estimated for its implementation.
The risk of changing Compromising project quality also hasa high impact as brand reputation
product quality will be at stake. Customer’s trust will be badly affected.
Latency in product Risk of time overrun will have a moderate impact on project development
delivery as it can be completed with some delayed intervals(Wysocki, 2012).
Trust concerns It has less impact on the development of “Blue Spider Project” because
some of the unwanted delays can be resolved with mutual co-operation
among team members.

A risk probability and impact matrix

Minor Moderate Major Extreme
Likely Medium Medium High High
Highly Likely Medium Medium Medium High
Moderate Low Medium Medium High
Rare Low Low Medium Medium
Unlikely Low Low Low Medium
The risk score included in this research include;
a) Medium - Highlight low risk with this measure
b) High - Critical risk with high impact can be indicated with this measure
c) Low - Risk of less severity can be presented using this measure

Response strategies to effectively manage the identified risks.

Make sure to have a proactive plan in place to decrease the risk impact and severity.
Using above-defined tools A1 Tracker and Risk Gap helps to manage project risk
easily(Gomes &Romão, 2016).Risk monitoring and control where risk inspection is
conducted and suggestions outlined can be major factors for controlling the associated risk.

A risk register for the case study.

Risk Risk Likelihood Impact & its Ownership Mitigation measures
ID severity

1 Changes in 76-100% Critical risk CEO, To eliminate this risk related to cost,

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 the budget and may Project different methods could be used such as
estimates impact the manager and >Perform statistical evaluation on project
project directors of cost drivers (Project Management
adversely the company Institute, 2013)
>PM should record all budget expenses
and alert the stakeholders whenever any
deviation occurs.
>Always know thorough detail of the
project to hunt resources having desired
skill set beforehand.
>Determine the risk at the project
beginning so that cost adjustments can be
made.
2. The risk of 51-75% High impact Quality To eliminate the quality-related risk, there
changing managers is a need to involve quality control chart
product and as these are useful to solve quality-related
quality sponsors of concerns.
the project
3. Change in 26-50% Moderate PM (Project Various steps that could be used for
the project impact Manager) managing the risk related to scope change
scope include:
>Outline a concise and clear project
schedule
>List the requirements carefully and
verify them with stakeholders
>Proactively involve the customer to
show them development activities in
progress(Haworth, 2020)
4. Poor 26-50% Moderate Project For the elimination of communication-
communicat impact sponsors related risk, there is a need to use
ion and project different communicational channels such
problems managers as email, phone calls, conference calls etc.
to collaborate with team
5. Trust 0-25% Minor impact Executive To eliminate the trust-related issues, there
concerns and is a need to maintain a regular track of
financial project activities by including progress
officers of reports as well as other resources required
the company for successful project completion.
6. Latency in 26-50% Medium Project For eliminating the latency problem in
product impact manager product delivery, different methods could
delivery be used, such as:
>Project review at scheduled intervals
helps to get tangible knowledge of project
>Provide crucial information like
milestones being met or left along with
issues faced.

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Risk management reporting
Creating suitable response methods helps to manage these determined risks of this
case study in a meaningful manner. Incorporating best solution software such as A1 tracker
and RiskGap helps to reduce the risk occurrence and its extent(Junior &Carvalho, 2013).
Below given is the sequence of steps to be followed to implement this solution in an
organization.

Determine possible risks

Various types of risk may impact the complete development and implementation of
the missile project. Cost overrun can be one of those critical risks due to usage of new
material. The time frame required to perform different project activities can be changed that
leads to delay in project delivery. Lack of communication between team and gamble will also
negatively impact project success. Trust issues raised can impact the project deliverables and
final reports to be delivered along with missile project(Aven, 2016)

Quantitative risk assessment

Perform a risk quantification to avoid its impact. Refer to the below-given example of risk
quantification table.

Likelihood Risk rating Risk Description

Rare 1 The type of risk is rare, that is, highly unlikely to occur
Unlikely 2 Very few chances of occurrence of this type of risk
Moderate 3 There can be some chances of occurrence of this type of risk
Likely 4 Possibility of occurrence of this type of risk is there. However, it is
less when compared to the highly likely risk
Highly likely 5 The possibility of risk occurrence is relatively high as compared to
other risks (Chemuturi, 2013).

Consequences Rating Description

Fewer 1 Trust issues
Moderate 2 >Lack of communication
>Delay in delivery
High impact 3 >Quality risk
Critical 4 >Risk related to cost overrun

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Risk response plan
Make sure to have a proactive plan in place to decrease the risk impact and severity. Using
above-defined tools A1 Tracker and Risk Gaphelps to manage project risk easily.
a) Risk monitor and control: Risk inspection and suggestions can be major factors
for controlling the associated risk(Peixoto, Tereso, &Fernandes, 2014).

Notifying stakeholders about the project’s risk management activities.

a) Cost overrun and latency in project development can be the inherent part of almost
every project. The project manager should tend to include error-free designs and
documents by making proper plans, extensive investigation along with proper
reviews(Radujković &Sjekavica, 2017). Additionally, effective project control and
monitoring solutions should be entailed to improve project performance across its
complete lifecycle. It also helps to avoid the cost and time-related risk.
b) Create vigorous plans with the help of Work Breakdown Structure, Estimated time
and Methodology to be used in the project to avoid scope creep.
c) Detailed documents should be prepared that assure future enhancements can be
performed with minimal efforts
d) Using communication channels to collaborate on project developments helps to
reduce the risk of conflicts.

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References
Asadi, Z. (2015). An investigation of risk management strategies in projects. Marketing and
Branding Research, 2. https://doi.org/10.19237/MBR.2015.01.07

Aven, T. (2016). Risk assessment and risk management: Review of recent advances on their
foundation. European Journal of Operational Research, 253(1), 1–13.
https://doi.org/10.1016/j.ejor.2015.12.023

Chemuturi, M. (2013). Mastering IT Project Management: Best practices, tools and

techniques. Retrieved from https://lesa.on.worldcat.org/oclc/869302200

Gomes, J., &Romão, M. (2016). Improving Project Success: A Case Study Using Benefits
and Project Management. Procedia Computer Science, 100, 489–497.
https://doi.org/10.1016/j.procs.2016.09.187

Junior, R. R., &Carvalho, M. M. de. (2013). Understanding the Impact of Project Risk
Management on Project Performance: An Empirical Study. Journal of Technology
Management & Innovation, 8, 64–78. https://doi.org/10.4067/S0718-27242013000300006

Marion, J. W., Richardson, T., & Earnhardt, M. (2016). Project execution: A research agenda
to explore the phenomenon. The Journal of Modern Project Management, 4(1).
https://doi.org/10.3963/jmpm.v4i1.177

Peixoto, J., Tereso, A., &Fernandes, G. (2014). Project Risk Management Methodology: A
Case Study of an Electric Energy Organization. Procedia Technology, 16, 1096–1105.
https://doi.org/10.1016/j.protcy.2014.10.124

Project Management Institute. (2013). A guide to the project management body of knowledge
(PMBOK Guide®) (5th ed.). Newtown Square, Pennsylvania: Project Management Institute.

Radujković, M., &Sjekavica, M. (2017). Project Management Success Factors. Procedia

Engineering, 196, 607–615. https://doi.org/10.1016/j.proeng.2017.08.048

Snyder, C. S. (2013). A project manager’s book of forms: A companion to the PMBOK guide
(2nd ed.). Indianapolis, IN: Wiley.

Wysocki, R. K. (2012). Effective Project Management: Traditional, Agile, Extreme (6th ed.).
Indianapolis, IN: Wiley.

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