Assessment 2: Demand Management Plan

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.

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.