MURPHY STORES: CAPITAL STORES
RFID IMPLEMENTATION PROJECT
RISK MANAGEMENT PLAN TEMPLATE
Version 1.0
10/10/2021
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RFID IMPLEMENTATION PROJECT Version: 1.0
VERSION HISTORY
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Plan Template up to the final point of approval was controlled and tracked. Use the table
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version, the name of the person approving the version, the date that particular version was
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1.0 <Author name> <mm/dd/yy> <name> <mm/dd/yy> Initial Risk Management
Plan draft
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RFID IMPLEMENTATION PROJECT Version: 1.0
TABLE OF CONTENTS
1 INTRODUCTION.....................................................................................................................1
1.1 Purpose Of The Risk Management Plan....................................................................1
1.2 The Project Background ............................................................................................1
1.3 The Parent Organization Background .......................................................................1
1.4 The Project Organization Structure ...........................................................................1
2 RISK MANAGEMENT PROCEDURE.................................................................................1
2.1 Process........................................................................................................................1
2.2 Risk Identification......................................................................................................1
2.3 Risk Analysis.............................................................................................................1
2.3.1 Qualitative Risk Analysis.....................................................................................1
2.3.2 Quantitative Risk Analysis...................................................................................1
APPENDIX A: REFERENCES....................................................................................................5
APPENDIX B: KEY TERMS......................................................................................................6
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1 INTRODUCTION
1.1 PURPOSE OF THE RISK MANAGEMENT PLAN (HARDIK)
The objective of a Risk Management Plan is to anticipate possible problems before they
happen, or, in the event of opportunities, to try to leverage them to make them happen.
Risk-management actions can be used at any time during the project's life cycle. This
Murphy Store RFID Risk Management Plan outlines how risks connected with the
RFID/EAS project will be identified, analyzed, and controlled. Our team has produced a
risk statement encompassing the risk description, evaluation, impact, probability, roles
and duties, tactics, and plan in order to cope with the various risks associated in this
project.
Following that, we conducted interviews, brainstorming sessions, and assumption
analysis with the entire team and all key stakeholders to identify potential risks connected
to all parts of the project. We considered both negative and positive risks and
opportunities when determining the risks. Finally, as a group, we gathered all of
the risk- prevention measures and determined what to avoid, transfer, moderate, or accept,
as well as creating a contingency plan.
The project manager/team usually creates the Risk Management Plan during the Planning
Phase, and it is monitored and modified throughout the project. The sponsor and project
managers are the intended recipients of this document, who will be kept up to date.
1.2 THE PROJECT BACKGROUND (LUIS)
Provide an overview of the project. What is the perceived need or purpose of the project? What are the
objectives of the project?
1.3 THE PARENT ORGANIZATION BACKGROUND (LUIS)
Provide an overview of the parent organization. The parent organization is the company
within which the project exists. The parent organization owns and fiscally controls the
project and the project organization.
1.4 THE PROJECT ORGANIZATION STRUCTURE (NAEM)
The organizational structure is clearly seen in the diagram below that gives
information about different levels and individuals of the organization. It also provides a
hierarchical structural view and explains the reporting structure of different departments. In
this way it also helps in displaying the individual’s powers that they have in the project.
The project manager has the final say and authority in this organization. The structure is
basically a project-oriented structure and the rationale behind this is that managers will
have to control overall resources. And the manager will use an expert team that will be
contributing to this project.
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2 RISK MANAGEMENT PROCEDURE
2.1 PROCESS (UMAIS)
The process of detecting, assessing, and addressing to any risks that occur during the
project life cycle to keep the project on track and meet its objectives is known as project
risk management. The project manager will work on the project's risk management process
in this project, and the tools that will be utilized at each stage are as follows.
Analyse possible hazards: The project manager and team should interact with appropriate
specialists and do independent analysis to determine the dangers connected with RFID
anti-theft technology and lighting system replacement. Furthermore, the project manager
can utilize the difficulties that may arise in the project to determine the core cause of the
risk.
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Brainstorming, root cause analysis, interview, Delphi technique, and SWOT analysis are
some of the techniques that will be implemented.
Examine risk and consequences: The project manager and project team can use risk
mapping, descriptive and analytical analysis to establish project risk prioritization and
budget allocation by analyzing EAS security technology and lighting replacement system
hazards.
Qualitative risk analysis, quantitative risk analysis, likelihood and effects analysis, IT
hazard analysis template, deviation and market analysis are some of the techniques that
will be utilized.
Establish risk management strategies: The organization can adopt, minimize, manage,
or exchange risk. Furthermore, the project manager must create solutions depending on the
importance and complexity of the project's potential hazards. Risk control and mitigation
techniques can help to reduce the likelihood of risk.
Brainstorming, qualitative risk assessment, root cause analysis, and quantitative risk
assessment are some of the tools that will be implemented.
Identifying hazards and establishing solutions: The project manager must produce a
plan, such as a mitigation or photographic album approach. Next, the project manager must
speak with the risk's stakeholders and collectively decide on the strategy to be undertaken
to mitigate the risk.
Quantitative risk analysis, brainstorming, interviews, and an IT risk assessment template
are among the methods that will be implemented.
Measuring risks and consequences: In terms of managing certain identified risks and
detect some unrecognizable hazards, the project manager must monitor and control the
status of the project plan and keep it updated.
Probability and Impact Analysis, Reserves Analysis, and SWOT Analysis are some of the
techniques that will be implemented.
2.2 RISK IDENTIFICATION (UMAIS)
To begin, the project manager will study some important project documentation, such as
lessons gained from previous projects, post-project assessment reports, and allocated
resources, to identify any possible hazards. Secondly, implement some standard ways to
gather potential risks, such as risks presented by stakeholders, risk associated by the
project team, and any other risks that may occur. Create a risk register as well.
The following are some examples of commonly used techniques:
Brainstorming: Brainstorming is a way of discovering project hazards for a group of
people.
Delphi Technique: A panel of experts was questioned informally. Before a decision is
reached, experts are provided a list of needed materials, their opinions are gathered, and
the findings are handed back to them for study.
Interviewing: Project managers, stakeholders, consultants, and others are surveyed to
evaluate the risks.
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Root Cause Analysis: The core issues of recognized risks are determined using root cause
analysis. These fundamental variables are also used to identify other risks.
Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis: The project's
internal strengths and weaknesses, and hazards are identified consequently.
Checklist Analysis: The risk factors checklist is used to detect new project uncertainty.
Assumption Analysis: Considering and analyzing the project's multiple conclusions helps
in the detection of project risks.
A Risk Register is a legal document that is updated on a regular basis throughout the
project's lifespan. It is preserved in the archived files for future projects and forms part of
the project records. The risk register contains a list of risks, a list of potential responses, a
list of actual causes for risks, and modified risk exposures.
To utilize a risk register, project managers must first gather hazards that have been
recognized. Then make a list of the dangers. It gives project managers a location to identify
risks, track their history (from when they first appeared to when they were resolved), and
even assign risks to individuals who recognize and own them. This helps the project
manager to assess the impact of the risk on the project. The next step is to keep an eye on
the hazards. The project manager assigns risks to team members. This individual is in
responsible of monitoring the risk and taking the necessary actions to reduce or eliminate it
if it becomes a problem. Finally, deal with the hazards.
2.3 RISK ANALYSIS (HARDIK)
Risk analysis entails determining how the risk event's influence will affect project
outcomes and objectives. Once the risks have been identified for Murphy store’s RFID
project, Project manager and Project team will analyze the risk to determine the risk's
qualitative and quantitative impact on the project so that suitable mitigation measures can
be performed. Risk ID: Date raised; Risk description; Likelihood; Impact; Severity; Owner;
Mitigating action; Risk Mitigation approaches; Contingent action; Progress on actions are
the primary contents of the risk registry.
Quantitative risk analysis and qualitative risk analysis are required to conclude these
contents.
2.3.1 Qualitative Risk Analysis
In the qualitative risk analysis, the project team will prioritize risks based on their impact
and recurrence probabilities to identify high-priority issues that can be addressed more
quickly and effectively. The risks will be determined in the form of scores and rated based
on the type of impact, the level of impact, and the likelihood of occurrence in this
circumstance.
Occurrence Probability:
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The probability scale will range from 0.1 to 0.9, with 0.1 means a danger that is extremely
unlikely to occur and 0.9 means a risk that is almost certain to occur.
Scale Probability Probability
Score
Very High >70 % .7-.9
High 50-70 % .5-.7
Medium 30-50 % .3-.5
Low 10-30 % .1-.3
Very Low <10 % .1
The impact on the project budget, schedule, scope, stakeholder satisfaction, and actual
performance will be measured on a scale of 0 to .9
Impact on Project
Schedule Cost Scope Impact Score
>4week >20 % budget The risk will result in scope creep and fail to .9
increase meet one of its primary objectives.
3-4 week 10-20% The risk will have an impact on the project's .7
budget requirements and overall scope.
increase
2-3 week 5-10% budget The risk will have a minor impact on the .5
increase product performance and objectives.
1-2 week <5 % budget The risk will have a negligible impact on the .3
increase scope and insignificant impact on the
stakeholder’s satisfactions.
< 1week Negligible The risk will have no impact on the scope and .1
increase the satisfaction of all stakeholders.
Risk Zones:
In addition to these divisions, the matrix contains three primary zones. Following the
calculations, the quantified risk is divided into three categories:
Yellow – a low-risk zone that is acceptable.
Green — a moderately high-risk zone that may be unacceptably dangerous.
Red — a dangerous and unacceptably dangerous zone.
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2.3.2 Quantitative Risk Analysis
Explain how quantitative analysis will be conducted. Identify the specific tools that will be
used, how they will be used and what actions are to be taken based on the results of the
qualitative risk analysis.
The quantitative analysis will be done using numerical tools to quantify the risks and
provide a more objective view of the dangers, allowing the project team to respond to them
more effectively. In this example, the project will primarily analyze the predicted monetary
value using Expert Judgment, Data Gathering, Statistical Interpretation, Simulation, and
Sensitivity Analysis methodologies.
Expert Judgment will be used by the project team to assess the impact of risks in specific
domains. The project entailed professional operations in EAS technologies and LED light
replacements, necessitating expert judgement on potential dangers in those areas in order
to collect correct and reliable data.
Data gathering techniques such as brainstorming, interviews, historical data and Monte
Carlo analysis simulation are used to collect data and information from a variety of
sources.
Expected Monetary Value:
Expected Monetary Values (EMV) is a method of quantifying risks. It shows how much
money is predicted to be spent on negative risks and how much money is projected to be
gained from positive risks. In this situation, the project team will assess the impact of each
risk numerically by combining all cost, schedule, and performance consequences into
money earned and money paid.
The maximum amount is our contingency reserve, which is equivalent to 10% of the
project budget ($7000000*10% =$700000), while the rest is evenly distributed between $0
and $700000.
The following table will categorize the results of the Expected Monetary Value for the
risks, with various actions related to their values.
Results and Actions:
Positive Risks Actions
USD>700000 The strategy is to ensure that the risk occurs so that the team can reap the
perceived benefit from the situation
USD>350000 The project team will create a detailed strategy for implementing the risk
and amplifying its impact.
USD>100000 The team will look for new ways to incorporate technology and improve
the efficiency of the implementation of this project.
Negative Risks Actions
USD>700000 This risk should be treated as the highest priority and must be avoided to
achieve the project objectives.
USD>350000 The risks under this category should be avoided if possible or limit the
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impact on the business goals.
USD>100000 The risks in this category should be controlled.
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APPENDIX A: REFERENCES
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referenced in this document. Add rows to the table as necessary.]
The following table summarizes the documents referenced in this document.
Document Name Description Location
and Version
<Document [Provide description of the <URL or Network path where
Name and document] document is located>
Version
Number>
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APPENDIX B: KEY TERMS
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necessary.)
The following table provides definitions for terms relevant to the Risk Management Plan
Template.
Term Definition
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[Insert Term] [Provide definition of the term used in this document.]
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