Discussion

Risk management is generally considered to be a process which is associated with the identification of potential risks along with assessing the probability as well as the severity of the various risk assessments. This is initially followed by the planning of the responses for the risks events which are having high importance (Pritchard, C.L. and PMP, P.R., 2014). The major objective of this report is to implement a successful risk management upon an IS or Information Security Project so as to establish a new Capital Management System or the CMS for Fortune 500 Company. The IS project consist of some objectives and the major one includes the Creation of a new and customized software package which would be based upon the internet and would be used for the purpose of managing the capital budget along with the expenditures (Kerzner and Kerzner 2017). The most important of the objective of the client sponsor included the completion of the project by considering the budget which is initially followed by the functionality and finishing the project within the schedule.

The risk identification process involves the gathering of the information which would be helping in the determination of the risks that are likely to affect the project along with identifying the characteristics of each of the risk event (Turner 2014). The characteristics of the risks mainly includes the following:

• The frequency of occurrence of the risk event which are possible,
• The various kind of risk along with the range that the outcome are having
• The risk impacts along with the symptoms that the risk events are having.

There exists several ways of determining the risks associated with the project and they have been listed below:

• Brainstorming:  In this technique the ideas flow in a freely and this ideas are generally used for the purpose of generating a list of potential risk events. The key aspect of brain storming is not to judge any of the idea unless and until the brainstorming session is completed.
• Checklist: This is process of listing the events which are generally encountered in a project of certain type or a class. Once the checklist is prepared the team associated with the project reviews the entire checklist, and is done mainly before initiating a new project so as to recognize the various kind of specific risk events which are likely to occur (Ashuri et al. 2015).
• Interviews: This is the stage which includes the doing of discussions with the entire team associated with the project along with the other stakeholders which can be helpful in the process of identifying the risks that were not previously identified during the normal phase of planning (Xing, Y. and Guan, Q., 2017).
• Flowchart: This is process which involves the making of diagrams so as to display the relation between different elements of a project. Thin in turn is also associated with illustrating the ways in which the risks events and the causes are related to the impacts of potential risk (Marcelino-Sádaba et al. 2014). This helps in better understanding of the causes and the impact of the risk.

Mitigation is considered to be the biggest response technique which is to be used by the CMS project team. This technique would be associated with the reduction in the expected value of the risk event which would be done either by means of reduction in the impact or probability of occurrence of the risk. In case of high probability of the risk the team would not be sitting ideal but would be associated with developing of methods so as to reduce them (Carvalho and Rabechini Junior 2015). Along with the contingency plan, team associated with the project also makes contingency plan even if the risk event does not occur. This would be allowing the users to respond quickly to any kind of risk. The project team would be associated with reviewing the risk spreadsheet on the team meetings conducted every week.

Below are the list of the identified residual risks along with the mitigation and contingency plan of those risks.

Conclusion:

The report helps in concluding to the fact that the project team would be successful if it includes the risk management in the plan of the project. The chances of success that the project is having is totally dependent upon the proper structuring of the project plan which would also be including the risk management as its part. The CMS or the Capital Management System IS project would be using the risk management so as to ensure that a successful project is going to be delivered after all the phases of the project are completed. By adaptation of appropriate risk management strategies, the project would be completed within the estimated time and cost.

References:

Ashuri, B., Kingsley, G., Rogers, J., Gahrooei, M.R., Ilbeigi, M., Sung, E.J.Y. and Toroghi, S.S.H., 2015. Streamlining Project Delivery through Risk Analysis (No. FHWA-GA-15-1305).

Carvalho, M.M.D. and Rabechini Junior, R., 2015. Impact of risk management on project performance: the importance of soft skills. International Journal of Production Research, 53(2), pp.321-340.

Hopkin, P., 2018. Fundamentals of risk management: understanding, evaluating and implementing effective risk management. Kogan Page Publishers.

Hopkinson, M., 2017. The project risk maturity model: Measuring and improving risk management capability. Routledge.

Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Marcelino-Sádaba, S., Pérez-Ezcurdia, A., Lazcano, A. M. E., & Villanueva, P. (2014). Project risk management methodology for small firms. International journal of project management, 32(2), 327-340.

Pritchard, C.L. and PMP, P.R., 2014. Risk management: concepts and guidance. Auerbach Publications.

Turner, J.R., 2014. Handbook of project-based management (Vol. 92). New York, NY: McGraw-hill.

Xing, Y. and Guan, Q., 2017, March. Risk management of PPP project in the preparation stage based on Fault Tree Analysis. In IOP Conference Series: Earth and Environmental Science (Vol. 59, No. 1, p. 012050). IOP Publishing.