Risk, scope, components, and value

Complete the first part of Section 2 – Risk Scope, Components, and Value, of the risk management plan by determining the scope of the risk plan, the risk management plan components, and the responsibilities for the development of the plan for your chosen case study or work project. Analyze the dollar cost of potential risk if there is no risk management plan.

A project manager must define and determine the scope for evaluating risks. The scope establishes the best methods for analyzing and applying risk management techniques. To determine the scope objectives for a company, you can use a framework evaluation process. It is important to identify a framework for the organization and then to use this framework to help develop and implement the risk management plan. A project manager should understand the steps that would ensure that each aspect of the framework is incorporated into the risk management plan. This requires careful planning. The framework should be evaluated to make sure that the assessment criteria are realistic and relevant to the overall assessment of the risk management process. Determining the steps involved will help you evaluate a project and narrow the focus of its scope and the risks.

Examine methods for evaluating risks, as well as the charter, scope, plan, and WBS (work breakdown structure). These documents help to identify areas of concern for the project and evaluate how risks may be identified. Develop a good understanding of the aforementioned documents, so that you will be able to apply the relevant risks in the risk management plan.

There are also tools for risk management, such as: the risk matrix, time-based network diagram, Gantt chart, network diagram, SWOT (strengths, weaknesses, opportunities, and threats) analysis, and decision trees. Each one is considered a useful risk management tool. Develop an overall understanding of the various types of risk management tools, so that you can determine which one can best help in the evaluation and assessment of risks for your company or project.

Consider the diff€erences between quantitative and qualitative project risks, and practice analyzing and evaluating risks based on each. Practice determining which type of risk, quantitative or qualitative, is easier to analyze and which type is easier to manage. It is important to be able to determine whether there is a way to evaluate risks based on the amount and time of their occurrence, or on their environment.

Preparation

Microsoft Project is the recommended software tool for this course due to its wide industry acceptance and its use in many project management professional roles. This is provided to you through MS Imagine.

Microsoft Software

1. If you have a Capella MS Imagine account, go to Step 2. Otherwise, see the instructions for registering an account at MS Imagine: Registration.
2. Log into the Capella Microsoft Imagine WebStore.
3. Identify the version of MS Visio 2016 and Project Professional 2016 that is compatible with your operating system.
4. Download and install.

If you encounter any difficulties in the download and installation process, post a detailed question in the Ask Your Faculty Discussion in the menu dropdown when you click the image of your faculty.

Introduction

This assessment includes developing the risk scope, components, and value for a risk management plan. Review the Risk Management Plan Template before beginning this assessment. It is important to be able to determine whether there is a way to evaluate risks—based on the amount and time of their occurrence—or whether they may be environmental issues. Use the case study you selected in the first assessment to complete this work.

Note: Developing a risk management plan for a project requires specific steps in sequence. Complete the assessments in this course in the order in which they are presented.

Analyze the information in the case study or your work project to complete this assessment:

• Define the scope of the risk plan and determine the risk management plan components.
• Determine who will be responsible for the development of the risk management plan, and who will monitor the progress.
• Use expected monetary value analysis to explain the cost of not managing risk in this organization. Note that monetary value analysis requires an estimated dollar amount.

Requirements

Use Microsoft Project for this assessment.

Section 2 – Risk Scope, Components, and Value

Use the Risk Management Plan template you started in Assessment 1 to record your analysis for Section 2 – Risk Scope, Components, and Value. You must include the following sections. Refer to the template for directions on what to put in each. Please note that you will be asked to fill out the rest of Section 2 in the next assessment.

• 2.1 Scope of the Risk Management Plan.
• 2.2 Risk Management Plan Components.
• 2.3 Expected Monetary Value.

Deliverable Format

• References: Use scholarly or academic sources where applicable. There is no set number of references required for this assessment.
• Format:
  • Use the Risk Management Plan Template you started in Assessment 1.
  • Insert appropriate supporting tables and other supporting information, if needed.
  • Do not submit multiple files, PDF files, or ZIP files.
  • Follow the Academic and Professional Document Guidelines [PDF]. Be sure to use single-spaced paragraphs.  
  • Use APA style and format for references and in-text citations.
• Length: No specific length requirements. Include all pertinent information.

Evaluation

By successfully completing this assignment, you will demonstrate your proficiency in the following course competencies through corresponding scoring guide criteria:

• Competency 1: Assess project risks to mitigate threats and capitalize on opportunities to ensure project success.
  • ​Define the boundaries of the risk management plan scope.
  • Explain the components and corresponding responsibilities that comprise the Risk Management Plan.
  • Describe the processes included in a risk management plan.
• Competency 2: Evaluate risk impact analysis methods for application in a project
  • Apply an expected monetary value analysis to explain the cost of a project without a risk management plan.
• Competency 4: Communicate in a manner that is professional and consistent with expectations for members of the project management profession..
  • Articulate the benefits of a risk management plan.