OPERATIONS & TRAINING RISK MANAGEMENT PLAN

Objective

The purpose of risk management is to identify potential problems before they occur, or, in the
case of opportunities, to try to leverage them to cause them to occur. Risk-handling activities
may be invoked throughout the life of the project.

Executive Summary
provides a high-level overview of the project itself, the scope, and the overall approach in
developing the risk management plan. This tells the stakeholder(s) what to expect when
reviewing the plan and helps set their expectations.

RISK TYPE ONE: Going over the project budget

Scenario Risk to Mitigation Plan

project
(L/M/H)

Each delivery truck costs Transfer the risk. Get more quotation from
$16,000 more than initially Low various other vendors, compare, negotiate and
quoted finalize one who meets our budget need.

A product vendor charges Medium Transfer the risk. Get more quotation from
a higher rate than various other vendors, compare, negotiate and
expected. finalize one who meets our budget need.

A product vendor loses a High Accept the risk. Ask vendor to arrange another
product shipment. same product immediately, without delaying
the shipment.
RISK TYPE TWO: Falling behind the training schedule

Scenario Risk to Mitigation Plan

project
(L/M/H)

Your Training Manager
gets sick and misses a
week of training.
Accept the risk. Talk to email with training
Low manager to see, if possible, to conduct training
online, to avoid not to miss weekly training
schedule.

You cannot hire enough Medium
employees in time to train them before
launch
More than 50% of
employees quit after a
difficult training process, High
leaving the company short-staffed.
Accept the risk. To utilize available trained
employees for the lunch.
Transfer the risk. To recruit new employees to
avoid shortfall of staff and make training
process simpler & easier so that staff can enjoy
the process & working.

Appendix:

Probability chart:

Probability
Qualitative Quantitative (if measurable)

A product vendor loses a product

Low Less than <10% chance of risk occurring.
shipment.

The budget impact would

be

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

$17,000.
 Office Green would pay $32,000
more
High than expected for their two delivery 50%-100% chance of risk occurring.
trucks.

Impact chart:

Types of
Impact Low Medium High
Low financial impact, Medium financial High financial
costing the company $0- impact, costing the impact, costing the
Financial $14,000 company $15,000- company $30,000 or
$29,000 more

Low impact to project Medium impact to

operations, causing
delays of a few days to a
Operational few weeks
Low impact to
employee attrition, with
5%+ of employees
quitting
People
project operations, High impact to
project operations,
with potential to
delay project by a with potential to cause
month or more project failure
Medium impact to High impact to
employee attrition, employee attrition, with
with 25%+ of 50%+ 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