Project Risk Management

Introduction

According to Engemann (2021), risk management is essential in project management because it influences the project’s success. Risk management includes identifying, analyzing, prioritizing, assigning risks to specific risk owners, and responding to the risk. The two main tools used in the process are the risk register and risk matrix (Salama, 2021). A risk register is a table that summarizes all relevant information about the risks in a project. Consequently, a risk matrix is a tool that captures and identifies the likelihood of a risk and evaluates potential interruption or damage caused by the risks. Software development projects are technical and require proper risk management to avoid major risks that could cost project owners a lot of resources. The risk matrix and risk register below identify ten risks in the software development project, the likelihood of occurrence, impact on the project, and mitigating actions.

		Impact
		Acceptable	Tolerable	Unacceptable	Intolerable
Likelihood	Very likely	Changes in project scope	Exceeding project budget	Cyber-attack	Low productivity among team members
	Likely	Change in customer requirements	Conflict between project team members	Delays in project completion
	Unlikely			Code issues	Improper allocation of resources
	Very unlikely		Stakeholder withdrawal from the project

Risk matrix

Risk Register

Risk ID	Risk description	Likelihood	Impact	Risk owner	Mitigation actions
1	Changes in project scope	Very likely	High	Project manager	· Maintain constant communication between the project team members, stakeholders, and sponsor to ensure project requirements are met at every step of the project. · Create a written contract with the project sponsors specifying the project scope and the conditions for adding new tasks and requirements.
2	Exceeding project budget	Very likely	High	Project sponsor	· Involve project sponsors in creating the project budget. · Use a project schedule to create the project budget to ensure that every task is considered in allocating the financial resources required for the project. · Set a slightly higher budget to cater for unforeseen costs that may arise within the project.
3	Low productivity among team members	Very likely	High	Project manager	· Assign tasks to every team member and set a deadline for their completion. · Set performance standards for team members.
4	Change in customer requirements	Likely	High	Project sponsor	· Implement customer feedback in setting project specifications. · Create a backup code that considers additional requirements that customers may request.
5	Conflict between project team members	Likely	Low	Project manager	· Create a conflict management strategy defining the procedure conflicting team members should follow to solve their conflict. · Identify conflict warning signs to prevent conflicts.
6	Delays in project completion	Likely	High	Project manager	· Create a project schedule. · Address issues as soon as they arise to avoid wasting time that could be used to complete tasks within the project. · Motivate project team members to increase commitment to the project.
7	Code issues	Unlikely	Moderate	Project manager	· Create a backup code.
8	Improper allocation of resources	Unlikely	Moderate	Project manager	· Regularly audit the use of resources in the project to avoid misappropriation of resources allocated for the project.
9	Stakeholder withdrawal from the project	Very unlikely	Moderate	Project sponsor	· Engage all stakeholders in the project by involving them in decision-making and updating them on its progress. · Implement stakeholder feedback in the project.
10	Cyber-attack	Very likely	High	Project manager	· Use a firewall to prevent intrusion. · Regularly review the hardware and software used in the project to identify vulnerabilities that could be used by cyber-attacks and eliminate them.

References

Engemann, K. J. (2021). Advances in project risk management. Project Risk Management, VII-XIV. https://doi.org/10.1515/9783110652321-001

Salama, M. (2021). Risk management and Agile project management. Event Project Management. https://doi.org/10.23912/9781911635734-4781

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Question

Risk Register
Create a risk matrix for the project of your choice:

Project Management Certifications

a) Identify and list at least 10 risks of the project of your choice.
b) Determine the likelihood and the impact of each risk on the list.
c) Design your own risk matrix with proper categorization.
d) Map your risks onto the risk matrix.
Create a risk register using the risk matrix you created.

a) Create your risk register as instructed and demonstrated in the text.
b) You may customize the design of your risk register to improve it.

Project Risk Management