1. Project Risk
Management
Plan Risk Response
Instructor : Cheryl Francis Nurse
Date: 11.26.2015
Team No : 5
Members : Vishavjit Singh
Prabhpaul Singh Gill
Manpreet Singh Gill
Bikram Jeet
Jaspreet Singh
2. Agenda
To discuss various risks with respect to our project
Qualitative and quantitative analysis
Tools and techniques used for analysis
Risk response plan
Key takeaway from “PM as a Risk Taker”
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3. Project: Microsoft surface tablet, launched on June 18, 2012.
Market target: Professionals, students, teachers as this can be utilized
as a handy computer.
Rational: As Microsoft being the most high-tech organization with
windows and other software and hardware products. The tablet or
minicomputer was a market they were lacking behind. Apple, Dell and
other android devices were already in market and doing well. Microsoft
planned to enter this market with unique specifications which were on a
higher scale than others.
Additional Product Information
OS: Windows RT
Light(1): 676 g
Thin(2): 9.3 mm
Clear: 10.6” Clear Type HD Display
Connected: MicroSD, USB 2.0, Micro HD Video, 2×2 MIMO antennae
Productive: Office ‘15’ Apps, Touch Cover, Type Cover
Practical: Keybord Case & Stand
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4. Risks Identified
• Common OEM partners (HCL,HP,IBM, Wincor
etc.)
• Product malfunctioning
• Low adaptability by customers
• Loss of reputation
• Advancement in technology
• High Defect ratio
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5. Tools/Techniques used in risk
identification
Expert Judgement
Cause and effect diagram
SWOT Analysis
Brainstorming
Delphi Technique
Expert Judgement
Lessons Learned
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6. Cause and effect diagram
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Product
Malfunction
Software
Application
crash
Hardware
Inferior
quality
7. Risk Identification
Risk description Cause Triggers
Common OEM Partners Tie up other competitors Closely watching the
products made by other
competitors
Product malfunctioning Bugs or software problems Testing of hardware and
software
Low adaptability by
customers
People are more used to
already existing products
Customer’s feedback and
review
Loss of reputation Customer dissatisfaction
with product’s performance
Market share loss
Advancement in technology Launch of more advanced
products by competitors
Market research
High defect ratio Lack in design
Software bug
More defective pieces
while testing stage in
production line.
More complaints from
focus group testing.
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8. Qualitative scale:
Impact guidelines:
Low(.2) Moderate(.4) High(.8)
Cost Less than 5%
variance
5% to 10%
variance
More than 10%
variance
Schedule Less than 5%
variance
5% to 10%
variance
More than 10%
variance
Scope Minor scope of
scope
Major scope
change
Scope change
unacceptable
Quality High Demand
quality is affected
Quality variance
requires approval
Unacceptable
quality change
10. Qualitative risk Analysis
Risk identifiers Risk description Probability Impact
R001 Common OEM
Partners
High High
R002 Product
malfunctioning
Medium Low
R003 Low adaptability
by customers
High High
R004 Loss of reputation Low High
R005 Advancement in
technology
High High
R006 High Defect
Ratio
Medium High
12. Quantitative Risk Analysis:
“As the name might suggest, this is
quantifying (assigning a value =
quantity) the ranked risks often done
in terms of time or cost”
Qualitative and Quantitative Risk Analysis - PMP Primer. (n.d.). Retrieved November 26,
2015, from http://www.pm-primer.com/pmbok-qualitative-and-quantitative-risk-analysis
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13. Example
Let us take an example of a risk “defects in production line”
From the conversation of the testing team we get to know
that the range of defects may vary from 1000, 2000 and
sometimes 3000. The information obtained from the
production manager says the number of units produced vary
from 400k, 500k and sometimes 600k. And the finance
department calculated that the cost of defective piece
depends on various factors and may vary from $1000,
$2000 and sometimes it may be even $3000.
Microsoft has an organizational formula of calculating the
impact of defected units i.e.
Impact factor = (defected units * cost per defected unit) / total
no. of units produced
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14. Microsoft has impact tolerance factor of 4.
The Tornado diagram of the above stated circumstances
is as below:
15. Risk Response Plan
Risk Risk response Recommendation
Common OEM Partners Mitigate Sign contract with OEM
partners for certain period
Product malfunctioning Mitigate Proper testing,24 hours
online assistance
Low adaptability by customers Mitigate Make the product more
user friendly by adding
extra features and
improving user interface.
Loss of reputation Mitigate Timely software updates
and support assistance
Advancement in technology Accept Perform R&D on the new
technology and implement
it into our product
High defect ratio Mitigate Provide necessary training
to the staff and update
quality check list
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16. Key Takeaways
Rationale for taking a risk
To make an effective decision in risk environment, one must
objectively evaluate the factors associated with risks.
1. Identify the risks
2. Define the potential rewards
3. Assess the chance of probability of success.
4. Assess the chance of probability of failure.
5. Establish a remedy(Contingency Plan) and estimate its cost.
In a risk environment, there is always uncertainty while making a
decision irrespective of the size of project, risk always exist.
Quantitative analysis of risk must be done by using analytical
techniques which deals with risk and uncertainty.
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17. Conclusion
Risks are integral part of every project. Qualitative and
quantitative risk analysis is very important to find out the
impact and probability of the risks associated with the
project. This will not help us to analyze the risk but also
be prepared for any surprises, which could drag our
project and company back.
This project being a crucial project for the Organization.
Risk Management plan will save millions of dollars as
this will help us to be prepared for any unforeseen.
18. Assumptions
Microsoft will Sign contract with OEM
partners
Resistance to change.
Innovative ideas of competitors
Surface with new techs introduced will
affect the market in a positive manner.
The Data attained for the tornado analysis
is attained from the respective department.
19. References
1. Qualitative and Quantitative Risk Analysis - PMP Primer.
(n.d.). Retrieved November 26, 2015, from http://www.pm-
primer.com/pmbok-qualitative-and-quantitative-risk-
analysis
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