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 Demand
Risk Sub Category Funding Capacity Capacity Availability
Retention Shortfall

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

Obtain an estimate of the risk appetite of the
Low

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 10- 20% cost 20- 25% cost

Cost <10% cost increase > 25% cost increase
increase increase increase

Insignificant fall <7% schedule 7-10% schedule 10-15% schedule 15-20% schedule
Schedule in schedule slippage 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 degradation
applications are
approval unacceptable is unusable
affected
 Risk Register
Probability Impact
Type Description of Risk Response Risk
of Risk 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
Design 500k-2m authorities offices, organization of Investor
obtaining opinions and permits
meetings 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

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

Incorrect information from Application to investor for extension of

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

Employment of new employees or

Acceptance of unrealistic
Time 2m-5m ordering part of work to another party Designer Office
deadlines in contact
during a contract

Underestimation of Limiting scope of design to

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

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

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

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

Manageable by exchange Slight slippage against Slight reduction in quality/scope,

Very Low against Internal budgets internal targets no overall impact

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

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

Requires Significant Failure to meet key deadlines

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

Increases threaten Delay jeopardizes Project outcomes

Very High viability of project viability of project effectively unusable
 Risk Mitigation Plan
Update client more
frequently along the way
with project progress
Client Management
Identified Risk
Miscommunication with sponsor
or client regarding project
requirement and expectations
Perform periodical
check on server status
Server
Identified Risk
Server is down which causes
project to be slightly delayed due
to application not able to load
Monitor any updates on
popular web browser
and / or bootstrap and
make sure all UI design
works as intended on
updated web browsers or
responsive bootstrap
Technical
Identified Risk
Popular web browsers may get
an update that will discontinue support
for features used in our development
as we using responsive bootstrap.