Project Risk Assessment

Article
03/05/2008

A prompt and broad change in the IT environment poses several challenges. Several measures must be taken to ensure that this project is a success (Table 8).

Communication to all stakeholders will be critical to receiving both executive and user support. Senior management will need to support this project by freeing up the resources outlined in this document. Risks in this area can be minimized by providing a detailed communication plan and giving frequent updates to management and user groups.

Application compatibility is a concern, especially for legacy applications in the smaller microbranches. This project requires that an adequate inventory of applications be made in the initial phases of the project followed by testing and remediation. To avoid risks, thorough testing and remediation has been planned.

Project costs have been carefully calculated using commercially available tools and internal price estimates. In calculating these figures, an appropriate degree of risk allocation has been provided for all purchasing activities that are to be confirmed. Proper inventorying and planning will help to reduce the budget risk.

Project schedules are yet to be determined and are contingent upon the timely approval of this business case and executive sponsorship in allowing team members the time required to accomplish the tasks set out in this project. Risks can be minimized if this project is given adequate priority and resource assignments are communicated and approved.

Table 8. Project Risk Assessment

Project Risk Assessment	Proposed Solution	Proposed Solution	Update Older Computers	Update Older Computers	Do Not Change	Do Not Change
	Probability	Impact	Probability	Impact	Probability	Impact

Lack of senior management support	High	Medium	Medium	Low	Low	Low
Positive communication and frequent updates

Application compatibility	Low	Low	High	Medium	Low	Low
Thorough planning, testing, and remediation	Adequate time and resource budgeted; multilingual testing also performed	Adequate time and resource budgeted; multilingual testing also performed	Local support needed in regional offices (consulting or travel expenses); internal resource issues resulting from a lower priority level	Local support needed in regional offices (consulting or travel expenses); internal resource issues resulting from a lower priority level

Budget may not be met	Medium	Medium	High	High	Low	Low
Sufficient planning, calculation, and risk allocation	Inventories of hardware must be confirmed; hardware compatibility needs to be tested	Inventories of hardware must be confirmed; hardware compatibility needs to be tested	Deployment and post-deployment issues may require external support	Deployment and post-deployment issues may require external support

Schedules may not be met	Low	Medium	High	Medium	Low	Low
Allocated additional time in project schedule; accurate times needed for specific office locations will be confirmed after project begins	Maximum time proposed is likely to exceed time required	Maximum time proposed is likely to exceed time required	Priority may not be sufficient to allocate proper resources	Priority may not be sufficient to allocate proper resources

Project Risk Assessment

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