What is Needed: A physical budget plan,A physical cost estimateA physical schedule forecast.We just need to create those and I can add them to the original document. the paper itself was perfect- att
Running head: MILESTONE 0
Portfolio Milestone: Courier Service Proposal
Fallon Urquhart
Course Number (ORG580) – Capstone- Project Management
Colorado State University – Global Campus
Dr. Douglass Smith
October 29, 2020
Title of Paper
The success of any project depends on how well the project team manages the risks. The process of project risk management entails various activities such as identification, analysis, and response to any risk that comes up as the project is underway at any stage. In this case, Liberty Travel has to manage the risks associated with the creation of the new division that will provide a courier service to new and existing customers. Risk management will make the project to stay on track and ensure that it meets its targeted goals. Ideally, the occurrence of any risk can negatively impact the timeline of the project, its performance, or the budget. The purpose of this paper is to analyze the risk management process of Liberty Travel’s courier services project.
Risk Analytical Techniques
The analysis of risks associated with this project will apply various techniques. One of the tools that will be used is brainstorming. This approach will help in the planning of the project and will assist in identifying various risks and thinking about various scenarios for the courier service project. It will help the members of the project team to think creatively about ways of enhancing the success of the project and finding ways of dealing with potential risks without being criticized by the other members of the project. Another way of identifying the risks is through sensitively analysis. It analyzes the effect of change in any variable in a project by finding out its overall impact on the entire plan (Garvey, 2016). Another crucial method of risk analysis that will be crucial in this project is probability analysis. This method will specify the probability distribution for every variable and define situations where any of them can be changed to prevent risks. Finally, the project’s team will apply the Delphi method to solve various risks that will arise at any time within the life of the project (Garvey, 2016). Liberty Travel will form a team of experts to find convergent solutions to any problem that will come up when the project will be underway.
Risk Breakdown Structure
The project’s team needs to establish a risk breakdown structure. The risk breakdown structure will organize the risks into different categories by the use of a chart. The structure has different levels such as risk issues, risk categories, and risk factors. In this project, the first level is the courier service project. The risk categories include business, technical, organizational, and project management categories. Each of these levels have associated factors that will make the team undertake its project management categories successfully (Garvey, 2016). The first risk category for the project is business. It entails business-related factors that can negatively impact the success of the courier service project. For instance, competitors pose a serious risk to the project. Competing against already established rivals requires a lot of planning and interventions such as rigorous marketing and sales activities. As a start-up, the company will provide discounts to the customers to prevent this risk. The sub-contractors like transport providers might also fail the company in achieving its goals. They might fail to deliver their roles in this project. These subcontractors are part of the suppliers who provide various tools and services to the success of the company. The organizational risk factors are the inadequacy of executive support and inadequate teamwork. The technical problems are network issues in the stores, hardware problems with computers in the stores, and software issues. Lastly, the project management itself can experience different risks such as estimation errors, communication issues, and challenges in resource allocation. The project risk breakdown structure is shown in Appendix A.
Given the risks shown in Appendix A, the team will place them in a specific category and identify the probabilities of their occurrences and potential impacts. However, the risks will constantly change and will need to be placed in different categories in the probability impact table, shown in Appendix B for reference. The project team will always have to carry out urgency assessment to determine the impacts of risk occurrences. Urgency assessment will enable the team to find out the near-term risks. It implies that the project manager will identify the risks that require immediate attention and other forms of action (McShane, 2018). The crucial factors that the team will consider as time is available to respond to the issues, the warning signs of the risks, and the rating scores of the risks.
Risk Register
The risk register will help Liberty Travel find out what potential risks will occur during the project and fulfill the regulatory compliance and stay on top of the potential risks that can severely impact the set goals of the project. In this project, the risk register in Appendix C will be used to keep track of expected risks. It will be essential for the project team to use a decision tree to examine the potential results for various choices, compare them, evaluate the risks, and find the likelihood of success as well as the potential benefits associated with every action. An example of a decision-tree diagram for this project is shown in Appendix D.
Strategies for Positive and Negative Risks
The team will apply different strategies to deal with both negative and positive risks. The strategies that the team will use to deal with the positive risks of the project as the exploitation of the chances and making sure that they make full value of them. Secondly, the team can increase the risk by enhancing the likelihood of its effect (Bartlett, 2017). Moreover, the team can share the risk with third parties to increase its likelihood and also decline to take proactive approaches to utilize the opportunity. One the other side, the team can apply various strategies to deal with the negative risks accordingly. It can mitigate the likelihood of the risks occurring and fail to experience it completely. Besides, it can transfer the risk to a third party. The team can also avoid the risk and complete all tasks to remove the threat and protect the project from the overall effects of the risks (Bartlett, 2017).
Conclusion
This paper examined the risk management process of Liberty Travel in its efforts to understand the goals of starting up a courier service division within their company. Risks management assist in identifying various threats to the success of the project and creating a strategy to handle them accordingly. This paper provided a risk breakdown structure of the project, the probability and impact matrix, risks register, and a decision-tree diagram. It also examined the methods used to handle both positive and negative risks.
References
Bartlett, J. (2017). The Essentials of Managing Risk for Projects and Programmes. Taylor & Francis.
Garvey, P. R., Book, S. A., & Covert, R. P. (2016). Probability methods for cost uncertainty analysis: A systems engineering perspective. CRC Press.
McShane, M. (2018). Enterprise risk management: history and a design science proposal. The Journal of Risk Finance.
Appendix A
Appendix B
Appendix C
| ID | Date Raised | Risk Description | Likelihood of Risk | Impact if Risk Occurs | Severity | Owner | Action |
| Laws and Regulations | Medium | Unobtainable resources or prevention of building permits. | High | Procurement Manager | Before building have understanding of the laws and regulations in each location and obtain required permits before start of the build. | ||
| Timeline of project | Low | Specific tasks could be delayed or are unobtainable in timeline. Delay could cause issues with permits, start date of services, and resources could be unavailable. | Medium | Procurement/ Project Manager | Speak with procurement manage to get specific and obtainable timeframes for builds and vehicles | ||
| Unclear Specifications | Medium | Needed resources, buildings, and vehicles would not be able to support expected level of business | High | Project Manager | Work with stakeholders to establish precise specification. Next, work with contractors and suppliers to ensure these specifications are obtainable | ||
| Neglected Design | Medium | Building could be functional but not at quality or level expected | Medium | Project/ Procurement Manager | Work with stakeholders to agree on designs per regulations and safety. Communicate with contractors to ensure these specifications can be met. | ||
| Insufficient Resources | Low | Unable to complete buildings, obtain vehicles and higher staff | High | Procurement Manager | Determine amount of resources needed. Also have multiple vendors or suppliers that will be able to provide resources. | ||
| Inaccurate Budget | Medium | Not enough funds for completion of project. Also, could end up costing company more than expected or quoted | High | Project Manager | Work with procurement manager on needed resources and costs. Can estimate slightly above amount to ensure the funds are available. |
Appendix D
