The Essential of Risk Management - Voltrone Communication Company Ltd - Case Study Example

Risk Management Plan Risk Management Document Control Panel List of Acronyms 1. To identify and Recruit best workmanship with minimal risk involved 1.1Purpose This Risk Management Plan establishes the process for implementation proactive risk management as part of the overall management of recruitment process. The purpose of this risk management is to identify potential problems they occur, so that risk –handling activities may be planned and invoked as needed across the life of the project to mitigate adverse impacts on achieving objectives. Risk management is a continuous forward looking process that address issues that could endanger achievement of critical objectives and include early aggressive risk identification through the collaboration and involvement of relevant stakeholders. The risk management approach is tailored to effectively anticipate and mitigate the risks that have a critical impact on this recruitment exercise .Risk management considers both internal and external source for cost, schedule and technical risk .Early detection of risk is the recruitment objective because it is typically easier, less costly and less disruptive to make changes and correct work effort during the earlier, rather than later, phases of the project. This document describe the process to Identify risk events and risk owners Evaluate risks with respect to likelihood and consequences Assess the option for the risks and development mitigation plan Track risk mitigation efforts Conduct periodic reassessment of project risks The risk management process should be updated and identified risks will be tracked until they are retired. 1.2.1Voltrone department of Human Resource and Risk Management The following will be methods used to recruit Written job application in response to an advertised position. Group recruitment requiring telephone interviews Group recruitment information session Telephone of screening interviews Apply for jobs recruiting criteria Accepting application from job seekers cold calling Industry /Corporate Website Employee referral Registration with a Job Search Firm Labor hire companies 1.3 Definitions This section defines the terms used in risk management process that need clarification Risk is a measure of inability to achieve overall project objective within defined cost ,schedule and technical constrains and has two components 1).the probability (or likelihood) of failing and 2).the consequences of failing to achieve the out come Risk Event are those events within the project that if unsuccessful ,could result in problems in the development ,production and fielding of the system .Risk events should be defined to a level so that the risk and causes are understandable and can be accurately assessed in terms of likelihood/probability and consequences to establish level of risk. Technical Risks is the uncertainty of achieving the program requirements for function ,performance ,and operability within the planned cost and schedule .Technical risks are associated with ability of the system (i.e.) product design and production process to meet the level of performance necessary to satisfy the operational requirements. Typical technical risk drivers include requirements, constraints, and technology and development approach. Cost Risk is the uncertainty in achieving the cost budget if none of technical and none schedule risks should materialize. Cost risks are associated with the ability of project to achieve its overall cost objective. Two risk areas bearing on cost are 1.)The risk that cost estimates and objective are inaccurate and unreasonable and 2.)The risk that project execution will not meet the cost objective as a result of a failure to mitigate cost, schedule and performance risks. Typical cost risk drivers include requirements, personal availability, reuse tools and environment. Schedule Risk is the uncertainty of achieving the program schedule if none of the technical or risk should materialize .Schedule risks are those associated with adequacy of time estimate and allocated for development, production and fielding of the system. Two risks areas bearing on schedule risk are :(1)the risk that the schedule estimate and objectives are unrealistic and /or unreasonable and (2) the risk that projection execution will fall short of the schedule objective as a result of failure to mitigate cost, schedule and performance risk .Typical risk drivers include requirements, needs/delivery dates ,technology available and resources. Project Risk is a risk that affects multiple project teams or spans the whole project structure and is subject scrutiny at the highest levels of project management. Project risk is associated with overall status of project .These risks are generally associated with the ability of the project to maintain political and other support .Failure to meet cost ,schedule and technical objective can produce project risks .In additional ,external budget priority and political consideration can produce risk . Risk Assessment is the translation of risk data into information for evaluation risk and determining the likelihood and consequence. A risk assessment (or rating) is the or level that is given to a risk event based on analysis of likelihood /probability and consequences of the event Risk Assessment is measures used to indicate progress or achievement on risk events. 1. Project Summary Voltrone is a leading communication company that provides a host of products and services for Telephony, GPRS, 3G, EDGE, Data and Fax. Our services are all geared towards growth. We seek to make positive contributions to communities in direct ways through value added services and financial support for community projects. Our commitment in giving back to the society seeks to address Health, Sports, Culture and Education. Our people make voltrone exceptionally successful and we always seek to attract, develop, reward and retain outstanding individuals who we are committed to offering challenging responsibilities and development opportunities. Due to potential grow of future voltrone is seeking to recruit qualified personal through ,the press in the following fields ,Accountants , Managers ,System Analysts and Communication Engineers. 1. Risk Management Strategy (Fig A) DESCRIPTION OF RISK OCCURRENCE SEVERITY STATUS WHO IS REPNSOBLE MITIGATION Unqualified personal D LOW Human Resource Training Inefficient production B HIGH PRODUCTION MANAGER Training Loss of confidence in performance A EXTREM GENERAL MANAGER Review of management Loss making A EXTREM C.E.O Review of the entire system Collapse of enter organization A EXTREM C.E.O Change of C.E.O and board of directors Division in work place C MEDIUM HUMAN RESOURCE Review of working conditions Investor Confidence gets eroded D LOW BOARD OF DIRECTORS Annual General Meeting KEY CHANGE TO GRADE SINCE LAST ASSESMENT Grading decreased Grading increased Grade A is automatically assigned to any risk defined as extremely high severity SWOT ANALYSIS Strength, Weakness, Opportunity, Threats in accordance to documentation in (Fig A) Strength of these companies is illustrated elimination of unqualified personalities and a strong commitment by the board of governance hence boosting investor confidence however , Same of the major weakness of Voltrone Company limited as per the above risk management schedule illustrated are loss of confidence in overall performance ,loss making , and collapse of the entire organization. Vast opportunities lie in transforming these major weakness losses of confidence in overall performance, loss making, the risk of collapse of the enterer organization into strength .Given the enabling environment from government that is peace and stability there is no reason why voltrone as a company should not strive. Loss making and collapse of voltrone are some of the major treats but with mitigation of strategies in place the likely hood of this to occur is dismal. 4. Risk Management Process The risk management process comprised of four phases: identification, assessment, handling and monitoring (Refer to Fig B.) The following paragraphs describe the process used by the project to identify and manage its risks. Fig B-Risk Management Process The following sections describe the risk management process used in voltrone and many organizations that value this process .Projects may tailor this process to best meet the needs of the project. This risk management process includes the following elements: Risk Identification - Examines all project element in details .Identify, describe and document cost, schedule, technical, financial and other risks. Begin the identification process during the capture phase and continue throughout the project life cycle. Risk Assessment – Evaluates the identified risks for probability of occurrence and potential impact. Estimate project exposure and establishes risk-handling priorities. Qualitative assessment may be used as an initial filter but all medium and high risk must be assessed quantitatively. Risk Handling – Identifying risk handling option (i.e. mitigation, transfer, avoidance, assumption) and action plans, include contingency action with implementation criteria and decision dates. Ensure that risk handling plans document the criteria (i.e., observable, test, data, and documentation) that justify the planned, sequential reduction of quantitative risk level over time. Risk Monitoring – track progress against action plans and establishes merits to ensure timely completion of action .Include action plans in the project integrated into master schedule. 4.1Risk Identification Risk identification is the process of examining the project areas and each critical technical process to identify document associated risk .The identification of potential issues ,hazards ,threats and vulnerabilities that could negatively affect work effort or plans is the basis for risk management strategy .The project utilizes several methods for identifying risks. Examination of work breakdown structure to uncover risks areas Conductance of risk assessment Interview with subject matter experts Reviewing risk management effort from similar products Examinations of lessons-learned documents Examination of design specification and agreement equipments Cost, schedule and performance risk identification takes place during the concept phase and continues through out the projects life cycle. Cost risks include those associated with funding estimate and distribution budgets. Schedule risk may include risks associated with planned activities, Key event and milestone. Performance risks may include risks associated with the following Requirements Analysis and design Application of new technology /process Manufacturing and fabrication Functional performance and operations Verification Validation Performance maintenance attributes Resources (i.e. people, funds, schedule tolls etc) Individual team members involved in the detailed day to day technical, cost and scheduling aspects of the program are aware of potential problems (i.e. risks) that need to be managed .Program management must instill in the staff the discipline for and the importance of identifying these potential risk sources. Part of the risk assessment process will be to survey team members for potential risks events and circumstances .The process accumulates and documents information on events or circumstances that will be evaluated to determine any potential adverse impact on the program from technical, cost or schedule view points. The following indicators should be used Lack of stability, clarity or understanding of requirement Failure to use best practices New processes Any process lacking rigor Insufficient resources Test failure Qualified supplier availability Negative Trends or forecasts Reverences Croughy, M, Galai, D, Mark, R D2005, The Essential of Risk Management, McGraw-Hill Lam, James, M 2003, Enterprise Risk Management, Wiley Read More