Risk Management Plan
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I have made a list of all areas that might cause delays or failure with their respective outcomes (see numerical list below).
Delay or denial of licensing from the city – This could delay the project or even cause the project to move to a new location.
Delay or denial of construction permits – This could delay the project or even cause the project move to a new location.
Lack of Tattoo artists – Without artists contracted to the company, the project could fail.
Office may need to be rewired and the lighting reinstalled – this could delay the project by several months.
Weather issues – This may cause construction delays.
Risk Assessment
The following is an assessment of these risks in terms of the probability of project occurrence and the negative cost impact of project outcomes. Risk analysis attempts to quantify the severity of the impact of an identified risk event, sometimes its probability, and its sensitivity to change.
Defined conditions for risk management Analysis
Project Objective
Relative or numerical scales
Very low-1
Low-2
Modeate-3
High-4
Very High-5
Insignificant Cost Increase
<5% cost Increase
5-10% cost Increase
10-20% cost Increase
>20% cost Increase
Insignificant schedule slippage
Schedule Slippage <5%
Overall Project Slippage 5-10%
Overall Project Slippage 10-20%
Overall Project Slippage >20%
Scope
Scope Decrease barely Noticeable
Minor Areas Of Scope Affected
Major Areas Of Scope Affected
Scope Reduction Unacceptable to Client
Project End Item is Effectively Useless
Quality
Quality Degradation Barely Noticeable
Only Very Demanding Applications Are Affected
Quality Reduction Requires Client Approval
Quality Reduction Unacceptable to Client
Project End Item is Effectively Unusable
Risk Assessment Table (Using the above scoring chart)
Risk Response
For each risk we have determined the action to be taken if the risk should occur: accept, shape, reduce, or transfer the risk. The following risk response table identifies a brief contingency plan for these risks. That is followed by a detailed delineation of the two risks with the highest expected values.
Risk event
Response: Accept, Reduce, Share, Transfer
Contingency plan
Trigger
Who is Responsible
Delay or denial of licensing from the city
Accept
Redo Schedule reduce all slack
Agreement incomplete