WK5Proj_Armstrong_Earl

MSPM 6140: Enterprise and Project Risk Management Project Risk Management EARL P. ARMSTRONG JR. Walden University October 4, 2023 i

MSPM 6140: Enterprise and Project Risk Management Table of Contents Risk Management for the Pepsi Refresh Project ............................................................................. 1 Approach to Risk Identification ........................................................................................................ 1 Types of Risks ................................................................................................................................... 2 Sources of Project Risks ................................................................................................................... 2 Risk Register ..................................................................................................................................... 6 ii

MSPM 6140: Enterprise and Project Risk Management to reflect the changing risk landscape and serve as a reference point for risk management decisions. Types of Risks Risks come in various forms, and categorizing them is essential for effective risk management. For the Pepsi Refresh Project, we will define several types of risks: 1. Operational Risks: These risks pertain to day-to-day project operations, including logistical challenges, resource constraints, and process inefficiencies. 2. Technical Risks: Technical risks are associated with technology and may include potential failures, software glitches, or hardware malfunctions. 3. Regulatory Risks: Regulatory risks arise from non-compliance with legal and regulatory requirements governing the project. These could encompass environmental regulations or industry standards. 4. Financial Risks: Financial risks are linked to budget overruns, unexpected expenses, or financial constraints that could impact the project's financial viability. Sources of Project Risks Understanding where project risks originate is crucial. For the Pepsi Refresh Project, we anticipate risks originating from: 1. Vendor Risks: These risks are associated with third-party vendors, encompassing considerations of their reliability, adherence to project timelines, and the quality of deliverables. 2. Operational Risks: Risks arising from the day-to-day execution of project tasks, such as resource allocation, scheduling, and task dependencies. 2

MSPM 6140: Enterprise and Project Risk Management 3. Technology Risks: These risks are related to the use of technology, including potential software bugs, compatibility issues, or system failures. 4. Market Risks: Market risks are associated with shifts in market demand, consumer preferences, or competitive pressures that could affect the project's success. 5. Environmental Risks: Risks arising from environmental factors, such as weather conditions or natural disasters, which might impact project logistics. In conclusion, the risk management plan for the Pepsi Refresh Project emphasizes a systematic approach to risk identification, categorization, and understanding their sources. By actively involving stakeholders, documenting risks, and classifying them by type and source, we aim to proactively manage risks and enhance the project's chances of success. Effective risk management is a cornerstone of project excellence, and it will remain a priority throughout the project's lifecycle. Qualitative Risk Assessment: Development of Risk Measurement Scales: In terms of qualitative risk assessment, standardized measurements will be adopted to maintain consistency and align with industry best practices. This approach will promote better understanding and communication of risks within the project team. Risk Prioritization Based on Qualitative Measurement Scales: Risk prioritization will rely on predefined qualitative measurement scales, which consist of impact and probability scores. These scales will use a 1 to 5 rating system for both impact and 3

MSPM 6140: Enterprise and Project Risk Management Risk Measurement Scale in the Risk Register (Columns: Expected Monetary Value - EMV): The quantitative measurement scale (EMV) will be documented in the project risk register as follows: Risk Event Expected Monetary Value (EMV) Delayed Deliveries $50,000 Technical Failures $100,000 Regulatory Non-compliance $30,000 Budget Overruns $200,000 Market Competition $80,000 By employing both qualitative and quantitative risk assessment methods and clearly defining measurement scales, we can effectively prioritize and manage risks in the Pepsi Refresh Project, ensuring a comprehensive approach to risk management. 5

MSPM 6140: Enterprise and Project Risk Management Risk Register Note: The first line is an example. Delete it when creating your own risk register. A B C D E F G H I J K L M Risk No. Risk Name Risk Event Description Risk Impact Description Risk Type Risk Source Risk Trigger Impact Score 1 to 5 Prob. Scor e 1 to 5 Risk Fact or PI EMV Respon se Type Respon 1 Delay in supplier deliveries Project delays Operational Vendor Late supplier deliveries 4 3 12 $50,000 Mitigatio n Expedite Shipping 2 Technological system failures Disruption of project Technical Technology System Malfunctio n 5 2 10 $100,00 Conting ency Backup syst 3 Non-compliance with regulations Legal Issues Regulatory Regulatory Regulatory Changes 4 3 12 $30,000 Avoidan ce Compliance 4 Budget overruns Financial Strain Financial Financial Cost overruns 5 3 15 $200,000 Conting ency Allocate bud 5 Competitor product launches Market Share Market Market Competitor Product Launch 3 4 12 $80,000 Accepta nce Strategize 6 Severe weather conditions Disruptions of Logistics Environmen t Environmen t Severe Weather Forecast 4 2 8 $40,000 Mitigatio n Alt. Routes 7 Key C-Suite member resigns Experience loss Operational Human Resources Team Member Resignatio n 3 2 6 $20,000 Conting ency Developmen 8 Data security breach Data Loss and Legal Issues Technical Technology Insider Threat 5 2 10 $120,000 Avoidan ce Enhance Cybersecuri 9 10 6