Extra/Stakeholder information.docx

And here's a list of the personnel involved in the project:

These 2 were in my original project charter:

         General manager and project sponsor (Beth Smith)

         Assistant manager and project manager (Kaitlin Greene)

         Sales associates (random list of names):

o   Jane Montgomery

o   Lisa Johnson

o   David Robertson

o   Ashley Brown

o   Brian Ford

For the stakeholders, let's go with: (From text, Pg. 342-343) Project Sponsor Project Team Project manager Employees Shareholders Customers Suppliers and contractors Government agencies (Code compliance permits etc.)

Project/(READ to understand topic) Risk Management Plan.docx

Risk Management Plan 1

Risk Identification

Risk identification consists of determining which risks are likely to affect the project and documenting the characteristics of each. This component of the risk management process shall remain a significant topic of discussion throughout all phases of this restructuring project to maintain project team commitment to risk awareness, identification, documentation and communication. Risk awareness requires project team members to remain cognizant at all times of what constitutes a risk to the project, and to develop a sensitivity to specific events or factors that could potentially impact the project in a positive or negative way. Risk communication involves bringing risk factors or events to the immediate attention of the Project Manager and project team. Open communication is an essential part of this risk management strategy as it is required in order to provide all project personnel with the freedom to identify issues without negative consequences to themselves. Joint management of risks between Hallmark store owners, management, vendors, and contractors, along with full support from the project team and all employee stakeholders is also necessary to enable identification of the most important risks to the project and to support efficient allocation of mitigation resources (AcqNotes, 2015).

Known and potential risk factors will first be identified and documented utilizing a Risk Breakdown Structure Diagram (RBS) (phe.gov). It is the Hallmark Store Restructuring Team Project Manager’s responsibility to assist the project team and other stakeholders with risk identification, and to document all known and potential risks on the RBS. Updates to the RBS will occur throughout the project life cycle as risk factors change. Risk management will be discussed regularly during weekly scheduled project meetings or sooner, if the situation warrants. During these meetings, the Hallmark Store Restructuring project team will discuss any new risk factors or events, and these will be further reviewed with the Project Manager (phe.gov). The Project Manager will then determine if any of the newly identified risk factors require additional evaluation. Those that do will undergo risk quantification and risk response development, as appropriate (phe.gov). Any risk factors or events discovered at any time during the project must be brought to the attention of the Project Manager via Email or other form of written communication in order to properly document the item (phe.gov). The Project Manager is responsible for logging the risk, if appropriate, to the RBS. Once additional risks are identified and noted, the Project Manager will then begin the risk assessment and risk response procedures to properly neutralize or mitigate the risk.

The Risk Breakdown Structure, shown below, has revealed several probable risks for further analysis.

Risk Breakdown Structure (RBS)

After discussing all the probable risks, the project team has decided that five of these risks are serious, and should be assessed further. These risks are described below.

· Risk #1: Exceed Budget

· The projects set budget may be exceeded and the owner would be required to take money from the emergency contingency funds. Unexpected costs could include more labor to be paid if the project exceeds the timeline, contractors needing to be hired if the store’s staff is unable to complete technical or physical tasks, or more materials are needed for the project than expected.

· Risk #2: Decrease in Sales

· During the renovation, customers may feel inconvenienced if certain gift or card sections of the store that they want to shop in are under construction. They may leave the store and bring their business elsewhere.

· Risk #3: Product/Fixture Damage

· During the restructuring of the store, products that are for sale may become damaged or physical parts of the store may be damaged. Moving large objects throughout the store could be cumbersome and knock holes in the walls or damage shelves or displays. When repainting the walls, paint could spill on the carpets requiring a carpet cleaning service.

· Risk #4: Technical problems with new terminals

· The new register terminals will be installed by the terminal company’s technicians. This is part of the project that our staff will have no control over. There may be problems with the stores wiring, internet connection, or there may not be enough room for the terminals or technical equipment. The technicians may also initially install the terminals incorrectly and service calls may be needed. The staff may also have a difficult time adjusting to the new system.

· Risk #5: Final store layout does not meet quality standards

· The final store layout may not live up to the expectations that the project manager had. The new layout could possibly be even more confusing to the customers. Or the quality of the construction may be below expectations. The vision for the reconstruction of the store may not come to fruition.

Risk Assessment

Capital planning is a methodology of recognizing, examining and selecting venture to focus on association's consumptions on resources whose money streams are required to augment past one year. It's an essential procedure in light of the fact that capital uses oblige huge venture yet constrained by the accessibility of stores (Capital Rationing), incredibly impacts a company's capacity to attain to its budgetary targets, and can get to be as a device of control (Chance & Brooks, 2015). 

Instabilities can exist when the result of an occasion is not known for certain, and when managing resources whose money streams are required to expand past one year, unquestionably, there's component of risk in that circumstance. The assessment of risk in this way depends on leader capacity to distinguish and comprehend the way of vulnerability encompassing the key variables and on the other, having the instruments and system to process its risk ramifications. Different dependable guidelines are regularly used. (Chance & Brooks, 2015). 

An estimation of the extent to which a firm or task acquires a blend of settled and variable expenses.

1. A business that makes couple of offers, with every deal giving a high gross edge, is said to be profoundly utilized. A business that makes numerous deals, with every deal contributing an exceptionally slight edge, is said to be less utilized. As the volume of offers in a business builds, every new deal contributes less to settled expenses and more to productivity.

2. A business that has a higher extent of altered expenses and a lower extent of variable expenses is said to have utilized all the more working influence. Those organizations with lower settled expenses and higher variable expenses are said to utilize less working influence.

The higher the level of working influence, the more prominent the potential risk from estimating risk. That is, if a generally little mistake is made in gauging deals, it can be amplified into vast lapses in income projections. The inverse is valid for organizations that are less utilized. A business that offers a large number of products a year, with every contributing marginally to paying for altered expenses, is not as subject to every individual deal.

Although these viewpoints are essential, it merits accentuating the part of risk, particularly product risk, since this may help as a guiding instrument. It may help to discover the harmony between 'building the correct thing', 'constructing the thing right', and 'building it quick'.

Numerous activities don't have boundless time, cash and assets for assessing the nature of the product. Such limitations as far as time, cash and assets speak to requirements on the outcome to be accomplished and hence frequently diminished assessment conceivable outcomes of the product chances. Accordingly, it is essential to attain to a decently considered harmony between the interest in cash and time from one perspective, and the outcomes to be attained to and the risks secured on the other. The aftereffect of the product risk examination gives the avocation to this equalization.

In view of the knowledge coming about because of the product risk investigation, high risk events can be assessed more seriously than those speaking to a lower risk. Be mindful that risks and how to cover these risks are straightforwardly related to the acknowledgement criteria. These acknowledgement criteria are accessible in different structures.

There are numerous methodologies on the most proficient method to focus risks. However as a rule one could say: These methodologies include dissecting the product to be assessed with the point of attaining to a joint perspective - for and with all partners - of (the properties of) the product to be assessed that speak to higher and lower risk levels, such that relating measures can be relegated to this perspective.

General undertaking business dangers are imparted by most organizations yet their centrality shifts by organization. On account of new businesses or early stage organizations, administration must pick up involvement in overseeing operational, promoting and different issues that will emerge. Potential dangers incorporate surprising issues that may grow in quality control, dispersion, showcasing and advancement and different zones. (Pritchard & PMP, 2014). New companies and early stage organizations should likewise manufacture associations with clients and draw in clients from contenders. Little yet settled organizations have effectively picked up experience managing these issues, diminishing this business risk. The danger investigation area ought to specify these risks and vulnerabilities, and the strategy for success segments identifying with every danger class ought to have systems to manage them. (Chance & Brooks, 2015). 

Although all organizations face vulnerabilities connected with the general monetary environment, a few ventures are less business cycle delicate than others. The monetary cycle danger of a nourishment organization, for instance, may be to a lesser degree a worry than is the situation of a development organization. Banks are presented to premium rate risks yet numerous have set up systems to relieve those vulnerabilities. A few organizations are presented to difficulties postured by higher fuel costs, while real estate agents are presented to dangers identifying with lower home deals. The critical thing is to distinguish which of these general business difficulties could affect the business and have methodologies to manage them. Organizations ought to have methods to balance out their business and keep on succeeding notwithstanding unforeseen changes in the monetary environment. (Ayyub, 2014). 

The business confronts perils connected with characteristic fiascos. These identify with changes of the climate and their results, for example, time lost underway and dissemination and resultant monetary downturns that discourage deals. On account of organizations that offer restrictive items, there are instabilities connected with responsibility for property. It is imperative to have trademarked brand name and patent security to forestall replication of organization items or administrations, which could have an unfriendly impact on the organization and influence the result of protected innovation rights question. (Davies, 2014). 

Qualitative and Quantitative Risk Analysis

To Calculate Risk Value: Impact * Probability * Detection

Impact

Red Zone (Major Risk)

Yellow Zone (Moderate Risk)

Green Zone (Minor Risk)

To Calculate Risk Value: Impact * Probability * Detection

Risk Response Development

Risk Response Development is the next step after risks have been identified and assessed. In this phase the Project Manager will begin the process of deciding which response is most appropriate for each given event (Larson & Gray, p. 214, 2014). In some cases, the decision may be made to mitigate, or reduce the impact or likelihood of the risk by using various proven strategies and tools. In other cases, it may be more practical to avoid the risk altogether by altering the project’s plan in some way. There is also the possibility that a risk may be either too large or too remote to either mitigate or avoid it completely; in cases such as these the Project Manager may opt to retain or accept the risk (Larson & Gray, p. 216, 2014).

2.4.1 Risk Monitoring, Controlling, and Reporting

Following and observing the recognized risks, distinguishing new risks, executing risk reaction plans, and assessing their viability all through the task life cycle. The procedure of risk administration can be grounded on an unmistakable seeing about the nature and extent of choice making inclusion in task administration and a characteristic structure for looking at these choices is the venture life cycle. For fruitful usage of the undertaking, a consistent checking strategy of risk is basically needed in all the sections of this structure like conceptualization, arranging, configuration, development, end and transfer of a task. (Pritchard, & PMP, 2014). Risk Monitoring and Control is the procedure of recognizing, dissecting, and making arrangements for recently emerging risks, staying informed concerning the recognized risks and those on the watch rundown, reanalyzing existing risks, observing trigger conditions for alternate course of actions, checking remaining risks, and auditing the execution of risk reactions while assessing their adequacy. The Risk Monitoring and Control process applies strategies, for example, change and pattern examination, which oblige the utilization of execution information created amid undertaking execution. Risk Monitoring and Control, and in addition the other risk administration methods, is a progressing procedure for the life of the venture. (Davies, 2014). 

These aforementioned techniques can be viably clarified by utilizing a contextual analysis. The contextual investigation clarifies the ordinary risks that a real development venture is constantly presented to and through this contextual investigation the creator needs to demonstrate that regardless of the possibility that the administration group has done a detailed examination of risks, they can never say that they have recognized all the risks in light of the fact that still there are chances for a few risks being forgotten as unidentified. (Davies, 2014). 

A detailed data about the danger at individual advance level and at portfolio level are obliged to deal with the credit chance viably. It is additionally the assignment of danger reporting, an autonomous unit of the business division, to combine and procedure the data identified with danger controlling and to total it into a danger report covering the accompanying four regions:

· The report needs to demonstrate the improvement of the aggregate portfolio and sub-portfolios regarding danger; besides, critical individual positions must be expounded on.

· The report must cultivate the requirement for activity that is fundamentally hazard alleviation measures, coming about because of the appraisal of future business sector inclines, the coordination with danger bearing limit and danger methodology, and additionally discoveries from dissecting the opposition

· The danger report needs to clarify how the measures will influence the foundation's danger circumstance and what the due date for the usage of the measures is.

· The danger report must outline the effectiveness of danger distinguishing proof, appraisal and control, by uncovering frail/hazardous focuses to be handled later on and a fleeting rule for concerns to be under the inner review consideration.

The danger division/area readies the danger report and submits it to the danger council. The report's level of subtle element must be adjusted to the data needed by the beneficiary for every situation. This would require an examination as to the needs of the separate choice making levels, bringing about the readiness of reports as per those needs. In its last form, the credit danger report ought to contain all levels of point of interest to guarantee that the information imparted inside the bank are reliably accessible for all levels of subtle element ought to those information be needed in the choice making methodology. (Davies, 2014). 

It is imperative that the business and budgetary dangers be distinguished and talked about in the undertaking strategy for success. The educated reader, particularly one who may be approached to give money to the business, needs to be agreeable that the administration has considered potential dangers and created methods to manage them. During the time spent adding to the marketable strategy, ID of potential dangers won't just result in a superior arrangement additionally better plan administration to effectively deal with the undertaking. Readers will have a less positive perspective of a composed undertaking arrangement that does exclude a danger investigation area than one that exhibits that administration is mindful of vulnerabilities and is arranged to take activities to address any risk.

Contingency Planning

Contingency Planning is necessary to create an alternate course of action if a predicted risk event materializes. The plans formulated under this heading will only be enacted in the event that a risk is recognized. These alternatives will be detailed in the Risk Response Matrix section of this risk management plan.

Opportunity Management:

The Opportunity Management section of the risk management plan addresses events that could have a positive effect on the project. Once these risk events are identified and assessed, the Project Manager will then make a decision on whether to exploit, share, enhance or accept these opportunities.

Potential positive risks of this project would be:

· Completing the project in less time than expected

· Completing the project under budget

Contingency Funding and Time Buffers:

The Contingency Funding and Time Buffers section of the risk management plan addresses monetary and time “cushions” that will be put in place on this project in order to cover project risks associated with costs and scheduling. These funds are independent of the original time and cost estimates, and will only be activated if a budget overage or project delay related risk materializes (Larson & Gray, p. 223, 2014).

· Time Buffer

· The current project timeline is as follows:

· Additional time up to two weeks will be allotted in case there are setbacks in the project.

· Contingency Funding

· Total budget for all five store’s restructuring is $32,200 (Includes cost of staff labor, new terminals, and construction materials)

· Contingency funds on reserve will be $2,000 with the potential need of requesting a bank loan

Risk Response Control

The Risk Response Control section of the risk management plan is contained within the Risk Register, which is the cornerstone of the risk control process. During this process, we will execute our risk response strategy, which will include “monitoring triggering events, initiating contingency plans, and watching for new risks” (Larson & Gray, p.224, 2014).

2.9 Change Control Management

Change Control Management is the final phase in the risk management plan. In this section we will establish a change review and control process for dealing with any required project changes, and we will define the formal, acceptable method of communication and decision making that will be employed to evaluate and accept or reject changes (Larson & Gray, p.226, 2014).

Change Control Process Flow diagram

Change Request Submitted to Project Manager

Change Request Reviewed by Project Manager

Approved

Project Plan is updated to reflect Changes

Revised Plan is distributed to project team and stakeholders

Yes

No

Change Originates

All project changes must first be submitted to the Project Manager on a Project Change Request Form for review. In the event that authorization is also required from other project stakeholders, the Project Manager will first sign off on the change request, and will then submit it to the relevant parties for additional review and authorization. The Project Manager is responsible for determining the impact of any and all approved changes on the project. Each requested change must be also be noted in the Change Request Log, as this will ensure that a complete history of all change requests is always accessible for review. Once the Change request is approved, the project plan is updated by the designated member of the project team, and copies of the amended project plan are distributed to members of the project team and to all stakeholders.

3. Conclusion

After completing this risk management plan, the project manager will now be thoroughly prepared for potential risks and issues pertaining to this store restructuring plan. Through visual representations such as the risk assessment form and risk severity matrix, the top five potential risks have been identified and given a response. Each risk event has been given an educated numerical score based on its likelihood, impact, detection difficulty, and when the risk would be able to be evident. Each risk event has also been shown how it would affect the projects costs, time and schedule, scope, and quality. Overall, the project at hand has a high chance for success now that the project manager has identified potential risks and has resolution plans in place if any of these risks materialize.

References

AcqNotes (2015) Risk & Safety Management: Generic Plan for Project Risk Management. Retrieved from: http://acqnotes.com/acqnote/tasks/risk-management-plan

Ayyub, B. M. (2014). Risk analysis in engineering and economics. CRC Press.

CDC (2015). “Project Risk Management Plan Template”. Retrieved from: http://www2.cdc.gov/cdcup/library/templates/CDC_UP_Risk_Management_Plan_Template.doc

Chance, D., & Brooks, R. (2015). Introduction to derivatives and risk management. Cengage Learning.

Davies, J. C. (2014). Comparing environmental risks: tools for setting government priorities. Routledge.

Larson, E. W., & Gray, C. F. (2014). Project Management, The Managerial Process (6th ed.). p. 222-226. New York: McGraw Hill.

O'Riordan, T. (Ed.). (2014). Environmental science for environmental management. Routledge.

PHE (Public Health Emergency) (July 2013). Risk Management Documents. U.S. Department of Health & Human Services. Retrieved from: http://phe.gov/about/amcg/toolkit/Pages/default.aspx

Pritchard, C. L., & PMP, P. R. (2014). Risk management: concepts and guidance. CRC Press.

Project Management Body of Knowledge, PMBOK 5th edition. (2013). Project Risk Management. p. 309-349. Newtown Square: Project Management Institute.