Risk management and project quality

Running head : RISK MANAGEMENT

Risk Management and Project Quality

[Author]

[Institution]

Risk Management and Project Quality : Item 1

This is both a negative risk and positive opportunity . Both the risk probability and impact is low . It is negative in the sense that the deployment of the new email system cannot be immediately achieved 100 It is positive because areas with lower hardware specifications and primitive networks can be upgraded to accommodate the new email system via acceptable delays to achieve a 100 deployment . The probability of risk and impact

is low because the problem areas are likely to represent areas that have low transaction volumes

Strategy : Identify the areas of the state where the existing infrastructure does not support the email system . Accept this fact and request a budget for next year that will cover these areas . With sufficient funds due for next year , upgrade or replace the existing network and hardware in these areas to accommodate the new email system Meanwhile , properly monitor and periodically archive the data of the existing email system in these areas for the planned future upgrade or replacement via remote administration for far-flung areas and onsite visits for those near Columbus , Ohio . Inform stakeholders of this plan and provide the rationale for such action . One major rationale is the low volume of potential DHS transactions in these areas hence , the current low specification of the hardware or limitations of the network

Risk Management and Project Quality : Item 2

This is both a positive opportunity and negative risk . Both the risk probability and impact is high . The positive implies reduced one-time cost for the email system software while the negative implies rising indirect costs in terms of training , troubleshooting , maintenance and lost worker productivity and these make the risks high . The negative impact is also high since indirect costs will be scaled up with a statewide rollout

Strategy : New email systems involve learning curves and therefore training . Moreover , newly programmed features in the form of address books and templates are likely to be unstable . As strategy , accept these facts and require that vendors test their products in some small controllable areas of the state as a requirement for selection via a benchmark test . Those vendors that pass the performance and stability criteria shall pass the technical selection process to be eligible for the financial bidding process

Risk Management and Project Quality : Item 3

This is negative with a high probability of risk . The impact is also likely to be high . Strategy : Since skilled network engineers are hard to come by , the state could : a ) outsource its network engineering needs b re-channel existing information technology personnel into network engineering via on-the-job training during the email system upgrade or replacement c ) hire new network engineers and /or d ) advertise for job volunteers in reputable colleges and universities . The lack of a business analyst can be remedied with : a ) hiring of temporary workers b ) advertising for job volunteers or c ) re-channeling existing information technology personnel with equivalent , related , or complementary skills into business analysis . One good avoidance strategy is to desist from a 100 implementation simultaneously statewide Implementation should be through pilot testing and several rollout stages to provide sufficient time for skills upgrade . Transfer strategies cover outsourcing , re-channeling and advertising for job volunteers . Mitigation strategies involve hiring and training by stages

Risk Management and Project Quality : Item 4

This is negative with medium probability for risk . The impact is likely to be high . Strategy : First , avoid a 100 implementation statewide Next , procure only the applicable number of software licenses or reduced software features or warranties to avoid the 20 additional license cost . Second , set a budget for next year to complete the statewide implementation and transfer other rollout activities to next year 's budget . Finally third , mitigate the effects of a less than 100 rollout via the strategy described in Item 1

Risk Management and Project Quality : Item 5

This is a positive opportunity with medium risks and high impact Strategy : First , exploit this opportunity via a two-stage bid process covering the technical and financial aspects . The technical bid can be executed through a benchmark selection process covering issues on features , stability , data handling , security , scalability and other concerns . Second , share the risks of implementation thru the conduct of a financial bid process on all eligible vendors who passed the technical bid process . The financial bid can cover scope of work issues to include costs on training , troubleshooting , maintenance and possibly compensation for lost worker productivity in terms of further discounts Third , enhance vendor relationships with the possibility of referral or favorable recommendation to the Ohio Department of Taxation

Risk Management and Project Quality : Risk Management Tools

For this particular project the following risk management tools , appear to be applicable

1 . Software : a ) Analytica b ) Excel add-ins that include : TreePlan Decision Tree , SensIT Sensitivity Analysis , and RiskSim Simulation c Decisioneering software tools including Crystal Ball d ) Palisade software suite which includes RISK , TopRank , PrecisionTree , BestFit and RISKview e ) RAMAS Risk Calc f ) SimulAR g ) Spatial Analysis and Decision Assistance : SADA h ) TreeAge Pro (Foodrisk .org i ) Primavera Pertmaster and j ) Mind Tools ' Decision Trees

2 . Project Management Tools : a ) Deterministic or Single-Point Analysis (Hammal , 2007 ,

. 7 b ) What If Analysis (p . 8 c ) Real Options Analysis (p . 29 d ) Sensitivity Analysis (p . 27 e ) Optimization (p 37 ) and f ) Cost Benefit Analysis (Watkins

3 . Diagramming Techniques : a ) Histogram b ) Scatterplot c ) Criticality d ) Distribution Analyzer e ) Percentile Report f ) Tornados g Precedence Network h ) Barcharts i ) Resources j ) Gantt Charts (Primavera and k ) Decision Trees (Mind Tools Ltd

References

Foodrisk .org (n .d . General Risk Analysis Tools . Joint Institute of Food Safety and Applied Nutrition . Retrieved August 8 , 2007 , from the University of Maryland Website http /www .foodrisk .org /general_risk_analysis_tools .cfm

Hammal , D (2007 . Integrating Risk Analysis Tools in Financial Forecasting . CO : Denver . Decisioneering Inc

Mind Tools Ltd (2007 . Risk Analysis Risk Management Evaluating and Managing the Risks You Face . Retrieved August 8 , 2007 , from the Mind Tools Ltd . Website http /www .mindtools .com /pages /article /newTMC_07 .htm .Primavera (n .d . Sample Reports . PertMaster Project Analytics . TX Houston . Primavera Software

Watkins , T (n .d . An Introduction to Cost Benefit Analysis . San Jose State University Department of Economics . Retrieved August 8 , 2007 , from http /www .sjsu .edu / faculty /watkins /cba .htm

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