Posted: March 8th, 2022

Risk Management Plan

Risk Management Project 1 Instructions Assignment Objectives
Develop a risk management plan that includes management planning, identification, analysis, response strategies, and monitoring and controlling.
Formulate and implement business-level corporate and global strategies to deliver successful
Project 1 Risk Management Plan For this course, the Individual Projects (IPs) will build on each other over the 5 weeks. The format of the plan is not as important as the content. Students are free to use any format, table, or chart to present the information over the 5 weeks.

In Week 1, the requirements are to select a project to develop a Risk Management Plan for. The first sections of the Key Assignment (KA) for the Week 1 IP are as follows:

Introduction
Project Description
Project Objectives
External Dependencies
Stakeholder Analysis
Project Tasks
Get custom essay samples and course-specific study resources via course hero homework for you service – Include a table for your selected project with at least 30 tasks.
Provide your overall planned format for the Risk Management Plan
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Risk Management Plan
Name
Institution

Risk Management Plan
Introduction
Risk management concerns the development and execution of a plan that can reduce potential losses in a business operation. The banking sector is one of the business sectors that are highly exposed to losses or risks. The project provided in this paper focuses on the risk management plan that should be in place in the banking sector both during a financial crisis or not. The risk management plan considers various elements, including management planning, risk identification, analysis of the risks, response strategies, monitoring and control strategies. The risk management plan for the banking sector presented in this study involves a continuous process of the project’s life, which allows the elements of the plan to be updated when new risks are identified during the project life cycle. The study includes a description of the project, project objectives, external dependencies, stakeholder analysis, project tasks, and the format of the risk management format.
Project Description
Modeling and evaluating risk in the banking sector is a project that entails the development of a risk management plan that can be utilized in the banking sector to manage potential losses. The risk management plan provided in the study documents the processes, tools, and procedures that will be used to manage and control events that could negatively impact the banking sector. The project provides a controlling document for managing and controlling all risks associated with the banking sector.

Project Objectives
• To develop mechanisms of identifying risks
• To document risk assessment mechanisms
• To identify the risk mitigation techniques, processes, and procedures
• To develop risk contingency planning, and
• To document the process and procedures of risk tracking and reporting.
External Dependencies
The project’s external dependencies include business partners that the banking sector relies on for storage facilities and security services. The other external dependency in the banking sector that may influence the project is third parties, which provide services to the banking sector, such as cloud services, including data processing, transfer, and storage (Haller & Butkovic, 2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay). The other type of external dependency is model governance, which involves developing risks due to a weak model of governance that might lead to losses across specifically, finical reporting and product pricing categories. The banking sector’s risk management plan will also incorporate the markets as external dependencies. The risk of volatile or falling markets could result in weaknesses in controlling the markets resulting in multiple losses across different categories in the banking sector (Kelliher at el., 2020). The other type of dependency is the macroeconomic conditions, which might pose a risk that economic conditions may increase operational losses across the banking sector. Pandemics are also considered external dependencies as they might lead to losses concerning operational risks, mortality claims, and financial risks.

Stakeholder Analysis
The stakeholder analysis will be conducted at the initiation stage of the project. The analysis will involve sensitive information; hence, the team members will conduct the process with sufficient trust levels. The stakeholder analysis process will include identifying project stakeholders; identification of stakeholders’ interests, level of impact, and relative priority; assessing stakeholders for influence and importance; outlining assumptions and risks associated with stakeholders; and defining stakeholder participation in the project. Major stakeholders considered for the project include bank management, owners, functional departments, employees, customers, vendors, and the government (Smith, 2000).
Project Tasks
The project tasks are designed to achieve the objectives of documenting a process of modeling and evaluating risks in the banking sector. The tasks for the project fall into eight categories. The first category is risk identification, which involves identifying any event that could interfere or prevent the project’s progress. During the risk identification process, the tasks that will be performed include risk awareness, which involves project team members to be aware of what constitutes a risk to the project. The other task is risk identification, which involves project team members determining the risks that are likely to affect the project and document their characteristics. The last task is risk communication, whereby the identified ad documented risk factors or events are presented to the project team and project manager.
The second category is the risk responsibilities, which involve the defining and selecting responsibilities of managing the project among the team members and stakeholders. The responsibilities covered within different aspects include risk identification, registry, assessment, risk response options identification, risk response approval, contingency planning, response management, and risk reporting. The other tasks essential for implementing the risk management plan for the project are based on the risk assessment, which involves tasks of determining the probability of the occurrence of a risk and its expected impact (Risk Management Plan, n.d). The tasks include determining the frequency, likelihood, occasional, seldom, and improbable occurrence of the identified risk. Risk response is the fourth category, whereby the project team develops a response option to the risk. The tasks in the risk response include evaluating and assessing the risk based on response options. Response options include avoidance, transference, mitigation, acceptance, and deferred.
The other deliverable in the risk management plan is risk mitigation, which reduces the probability and impact of risks. The risk mitigation process tasks include identifying potential failure of each risk mitigation solution, documenting each failure point event, and providing alternatives for correcting each failure point. The risk of contingency planning follows risk mitigation. The tasks carried out by the project team in the risk contingency planning include identifying contingency plan steps required for implementing the mitigation strategy; identifying resources for the mitigation such as labor, equipment, and money; developing a contingency plan schedule; defining emergency notification and escalation procedures; developing contingency plan training materials; reviewing and updating contingency plans; and publishing and distributing the plan to the executing team and management. The tracking and reporting category will involve two major tasks, including day to day risk mitigation and continued activities throughout the life cycle of the project (Steyn, 2018: 2024 – Write My Essay For Me | Essay Writing Service For Your Papers Online). The last category of tasks will involve the process of addressing immediate unforeseen risks. The tasks will include reporting the risk to the project management, identifying mitigation strategy and assigning necessary resources, and documenting the risk factor and the mitigating strategy.

Project Tasks Table
Category Tasks
Risk Identification Risk awareness
Risk identification
Risk communication
Risk Responsibilities Defining and selecting responsibilities
Risk Assessment Risk frequency
Risk likelihood
Risk occasional
Risk seldom
Risk improbable
Risk Response Risk avoidance
Risk transference
Mitigation
Acceptance
Deferred
Risk Mitigation Identification of potential failure points for each risk mitigation solution
Documenting each failure point event
Developing alternatives to correct each failure point
Risk Contingency Planning Identifying contingency plan steps that can be performed to implement the mitigation strategy
Identifying the necessary resources such as money, equipment and labor.
Developing a contingency plan schedule
Defining emergency notification and escalation procedures
Developing contingency plan training materials
Reviewing and updating contingency plans
Publishing and distributing plans to management and execution teams.
Tracking and Reporting Day to day risk mitigation activities
Continued activities of risk identification, risk assessment, planning for newly identified risks, monitoring trigger conditions and contingency plans, and risk reporting on a regular basis.
Processes to Address Immediate Unforeseen Risks Notify the project manager
Identification of a mitigation strategy and assigning necessary resources.
Documenting risk factor and the mitigating strategy.

Risk Management Plan Format

Risk Levels:
• Risk is High for codes 5A, 5B, 5C, 4A, 4B, 3A
• Risk is Medium High for codes 5D, 5E, 4C, 3B, 3C, 2A, 2B
• Risk is Medium Low for codes 4D, 4E, 3D, 2C, 1A, 1B
• Risk is Low for codes 3E, 2D, 2E, 1C, 1D, 1E
References
Haller, J., & Butkovic, M. (2014: 2024 – Essay Writing Service | Write My Essay For Me Without Delay). Lessons in External Dependency and Supply Chain Risk Management. Software Engineering Institute. Retrieved from https://resources.sei.cmu.edu/library/asset-view.cfm?assetid=427486
Kelliher, P., Acharyya, M., Couper, A., Maguire, E., Nicholas, P., Pang, N., Smerald, C., Stevenson, D., Sullivan, J., and Teggin, P. (2020). Operational risk dependencies. Institute and Faculty of Actuaries. Retrieved from https://www.actuaries.org.uk/system/files/field/document/Operational%20Risk%20Dependency%20Paper.pdf
Risk Management Plan. (n.d). https://www.phe.gov/about/amcg/contracts/Documents/risk-management.pdf
Smith, L. W. (2000). Stakeholder analysis: a pivotal practice of successful projects. Paper presented at Project Management Institute Annual Seminars & Symposium, Houston, TX. Newtown Square, PA: Project Management Institute. https://www.pmi.org/learning/library/stakeholder-analysis-pivotal-practice-projects-8905
Steyn, J. (2018: 2024 – Write My Essay For Me | Essay Writing Service For Your Papers Online). Introduction to Project Risk Management: Part 1-Planning for project risk management. ResearchGate. Retrieved from https://www.researchgate.net/publication/327981091_Introduction_to_Project_Risk_Management_Part_1-Planning_for_project_risk_management

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