Section 1a d lessons learned_guliford as of 21_apr15

COCO MAIDS ©

RISK

MANAGEMENT

PLAN

Project Report Section 1a-d

LESSONS LEARNED

Project: Development of Risk Management Plan

Summary

Documenting lessons learned is an essential part of risk management and serves numerous purposes.

The lessons learned document serves as a tool for use by other managers within an organization who are

assigned similar projects. This document should not only document problems during a project and suggestions

to avoid similar occurrences in the future, but it should also capture information on what went well and how

similar projects may benefit from this information.

The purpose of the lessons learned document for the Risk Management Plan Development Project is to

capture the information in a formal document for use by other risk managers on future projects. This document

may be used as part of new project planning for similar projects in order to determine what problems occurred

and how those problems were handled and may be avoided in the future.

Additionally, this document details what went well with the project and why, so that other project

managers may capitalize on these actions. Risk managers may also use this document to determine who the risk

stakeholders were in order to solicit feedback for planning their projects in the future. This document will be

formally communicated with the organization and will become a part of the organizational assets and archives.

Lessons Learned Approach

The lessons learned approach describes how the document will be created, what it will consist of, and

how lessons will be categorized. It is important that the lessons learned approach is covered in the initial stages

of project planning. The lessons learned from the Risk Management Plan Development Project are compiled

from experiences gathering data and recommendations from risk management industry professionals.

The lessons learned from this project are to be used as references for future projects and contain an

adequate level of detail so that other project managers may have enough information on which to help base their

project plans. The lessons learned in this document are categorized by project knowledge area. These

knowledge areas consist of: procurement management, risk management, integration management, quality

management, time management, cost management, scope management, human resource management, and

communications management.


LESSONS LEARNED FROM THIS PROJECT

The lessons learned must be communicated in a consistent manner. In addition to the categorization and

description of the lesson, it is important to state what the impact was and provide a recommendation for project

managers to consider on future projects. The following chart lists the lessons learned for the Risk Management

Plan Development. These lessons are categorized by project knowledge area and descriptions, impacts, and

recommendations are provided for consideration on similar future new construction projects.

LESSONS LEARNED KNOWLEDGE BASE / DATABASE

The Lesson Learned Knowledge Base contains historical information from previous projects. It is part

of the organizational project assets and provides a valuable source of information to be used by similar projects

in the future. All project lessons learned and other historical information need to be transferred to this

knowledge/database in order to provide one centralized repository for ease of use. This should also include

information on issues and risks as well as techniques that worked well which can be applied to future projects.

Most lessons learned knowledge/databases contain large amounts of information, so it is important that there is

a system for cataloging this information.

The lessons learned for the Risk Management Plan Development Project will be contained in the

organizational lessons learned knowledge base maintained by the project management office (PMO). This

information will be valuable for any risk manager assigned to a new project in the future.

PROCESS IMPROVEMENT RECOMMENDATIONS

It is important that once lessons learned are collected and documented that the organization approves

and implement any process improvements identified. It is important for organizations to strive for continuous

improvement and this portion of the lessons learned process is an integral step.

As indicated in the lessons learned chart above, the Risk Management Plan Development Project did not

have a process for reviewing and approving requested changes in requirements or project scope. Not only is

this a lesson learned for similar future projects; but the organization must ensure that all project managers are

aware of the need for this process to be included in the planning of all future projects. Therefore, it is

recommended that prior to work beginning on any new project, the project manager must brief the project

sponsor on the process for requesting and approving changes to project scope.


COCO MAIDS®

RISK MANAGEMENT PLAN

Housekeeping, Social Media, MLM & Entertainment

“Start Your Own Professional Cleaning Business, like a Diva!”

DATE: April 7th, 2015


Table of Contents

ASSIGNMENT 1A ............................................................................................................................................................................. 5

SECTION 1: INTRODUCTION ....................................................................................................................................................... 5

1.1 PURPOSE OF THE RISK MANAGEMENT PLAN ................................................................................................................................. 5 1.2 TABLE OF ORGANIZATION ............................................................................................................................................................. 7 1.3 EMBEDDING THE RISK MANAGEMENT PLAN................................................................................................................................... 8 1.4 COCO MAID’S® RISK MANAGEMENT PROCESS ............................................................................................................................ 8 1.5 COMPANY DATA: ........................................................................................................................................................................... 9

ASSIGNMENT 1B ........................................................................................................................................................................... 11

SECTION 2: RISK MANAGEMENT STRATEGY, TOOLS AND METHODS .......................................................................... 11

2.1. RISK MANAGEMENT STRATEGY ................................................................................................................................................. 11 2.2. RISK MANAGEMENT TOOLS AND OUTPUTS ................................................................................................................................ 12 2.3. RISK IDENTIFICATION ................................................................................................................................................................. 13 2.4. RISK ANALYSIS ........................................................................................................................................................................... 15 2.5. RISK RESPONSE PLANNING ......................................................................................................................................................... 16 2.6. RISK MONITORING AND CONTROL ............................................................................................................................................. 16 2.7. ASSUMPTIONS AND CONSTRAINTS .............................................................................................................................................. 17

(ASSIGNMENT 1-C) ....................................................................................................................................................................... 18

SECTION 3: PROJECT RISK SCOPE .......................................................................................................................................... 18

3.1 SOURCES OF SCOPE RISK ............................................................................................................................................................. 18 3.2 COCO MAIDS® OPERATIONS & PROJECTS RISK SCOPE ............................................................................................................. 18 3.3 COMMON SCOPE RISK SOURCES: ................................................................................................................................................ 19 3.4 ROLES AND RESPONSIBILITIES .................................................................................................................................................... 19 3.5 STAKE HOLDER INVOLVEMENT PROCESS ................................................................................................................................... 20 3.6 HIGH LEVEL RISK ASSESSMENT .................................................................................................................................................. 21 3.7 COCO MAIDS® RISK LIMITS ....................................................................................................................................................... 22

SECTION 4: PROJECT RESOURCE RISK .................................................................................................................................. 23

4.1 RESOURCE RISK: .................................................................................................................................................................... 23

4.2 COMMON SOURCES OF RESOURCE RISK FOR COCO MAIDS® ..................................................................................................... 24 4.3 MAINTAINING PRODUCTIVITY ..................................................................................................................................................... 24 4.4 RESOURCE LEVELLING & RESOURCE ALLOCATION PLAN.......................................................................................................... 24 4.5 RESOURCE PLANNING FORMAT: .................................................................................................................................................. 25 4.6 COST ESTIMATING & COST BUDGETING ..................................................................................................................................... 25 COST MANAGEMENT WORKSHEET TEMPLATE ................................................................................................................................. 26 4.6 PROCUREMENT PROCESS ............................................................................................................................................................. 28

SECTION 5: PROJECT SCHEDULE RISK .................................................................................................................................. 28

5.1 SCHEDULE RISK ........................................................................................................................................................................... 29 5.2 METHODS FOR IDENTIFYING SCHEDULE RISKS ............................................................................................................................ 29

ASSIGNMENT 1D ........................................................................................................................................................................... 29

SECTION 6: COCO MAIDS® RISK RESPONSE PLAN OVERVIEW ...................................................................................... 29

6.1 IMPETUS FOR COCO MAIDS® RISK RESPONSE ACTIVITIES ........................................................................................................ 30 6.2 RISK ANALYSIS - OPTIONS FOR RESPONDING TO RISKS ............................................................................................................... 30 6.3 RISK RESPONSE PLANNING - SELECTION OF RISK RESPONSE ..................................................................................................... 32 6.5 RISK MONITORING, CONTROLLING, AND REPORTING - IMPLEMENTING APPROPRIATE CONTROLS ........................................... 32 6.6 RISK RESPONSE ACTION .............................................................................................................................................................. 33 TOOLS, RESOURCES & PRACTICES ................................................................................................................................................... 34 SUPPORTING DOCUMENTS: ............................................................................................................................................................... 35 RISK REGISTER .................................................................................................................................................................................. 35

REFERENCES ................................................................................................................................................................................. 41


Assignment 1A

Section 1: Introduction

1.1 Purpose of the Risk Management Plan

The purpose of this risk management plan is to allow Coco Maids® to identify and record potential risks. The

plan also outlines mitigation strategies to be developed and tracked. The document should be updated quarterly,

or whenever is necessary, e.g. following an incident of significant impact on Coco Maid’s® day to day operations.

Executive Summary: Coco Maids® is a residential house cleaning service serving professionals in Texas

metropolitan areas. Through generous human capital investments, Coco Maids® will exceed our customer's

expectations. We will be servicing business professionals, executives and top tier companies via contractual

agreements. These targeted groups will be willing to pay a premium for our service because of the high level of

professionalism and trustworthiness that we offer, not replicated by any of our competition. Our projected growth

rate is very high each year with respectable profit margins as a percentage of sales. Coco Maids® started as home-

based business with Crystal Guliford as the sole proprietor. By the end of one year, the company grew to 20

additional employees and began expansion.

Mission: Coco Maids® is the most forward thinking and tech innovative cleaning service in the U.S. We offer

the only social networking, MLM based program; there is no other service like ours. Utilizing popular dating site

app technologies, we offer our customers a chance to hand pick their maid, though the use of a convenient cellular

phone application. We are exhibitionists offering a professional and experienced cleaning service. We employ

some of the most beautiful, friendly and intelligent maids around. We exist to attract and maintain customers.

When we adhere to this maxim, everything else will fall into place. Our services will exceed the expectations of

our clients.

Goals/Purpose: Our goal is to provide our customers with the highest level of service available. We are the next

phase in cleaning, entertainment and social networking. Coco Maids®, founded in 2010, is a leading residential

cleaning company in Texas. Our aims are to provide professional, discreet, entertainment, and top notch

housekeeping services. Headquartered in Houston TX, our offices are located in major metro areas to include

Dallas, Austin, and San Antonio.

Our aim is to give you a personal opportunity to have your home, or business suite cleaned by one of our beautiful

Coco Maids. We understand executives live busy lifestyles. Why spend limited personal time cleaning? Sit back,

log on your iPhone or android, browse our Maid’s pages, connect and enjoy selecting your fantasy housekeeper,

with a few simple clicks.

Sexually Oriented Business License: Currently, for the state of Texas, the Sexually Oriented Business fee

derives from the law which became effective on January 1, 2008, that imposes a $5.00 fee on each entry by each

customer admitted to businesses that provide live “nude” entertainment or live “nude” performances for an

audience of two or more individuals, and authorize on-premises consumption of “alcoholic beverages”, regardless

of whether the businesses are required to hold a license or permit under the Alcoholic Beverage Code.


Exotic cleaning services do not fit into the category of what would legally be defined as a “sexually oriented

business” because no nudity is involved. This concept has presented a unique opportunity for women to earn

residual income in a relatively new “structured” and reputable business.

Texas Business & Commerce Code §47.051 - 47.056

Objective: Coco Maids® objectives for the next three years of operation include:

To increase our number of web social networking based program clients served by 20% per year through

superior service

MLM Goal - Increase our number of Coco Maids business partners. Goal is 5 new signups weekly x 52

weeks = 520 down line per year ($40 business fee ea.) = 20K year income beyond cleaning services

Obtain corporate contracts for providing service to executive clients

Continue to develop website in order to stay abreast of social networking trends

Decrease our percentage of work related incidents, fraud, waste, and abuse

Develop an efficient Risk Management Strategy

In addition, plans include continuous improvement of our Multi-Level Marketing Affiliate Program and

compensation plans. Our program is an easy-to-join system that enables Webmasters, Affiliates and Publishers

to earn monthly paychecks by promoting one or more of the sites within our diverse network of offerings, or

building teams of Coco Maids® to drive company expansion goals nationally.

OWNER & STAKEHOLDERS

T2 T2 T2 T2

T2 T2


1.2 Table of Organization

COO

• CFO

• PR

• Web Development

• Writers

• Business Analyst

• Sales/Contracts Team

• Property & Equipment Manger

• Products & Equipment

• Transportation

• Storage Site

• Safety/Risk Officer

• Managing Director

• Operations Mgmt.

• HR

• Recruitment

• Hiring

• Bus. Mgr.

• Call Center

• Appointment Scheduling

• Administrative Assistant Team

• Training & Orientation

• Beauty Consultant

• Chief of Maid Staff

• DFW District/Group Leader (long range goal)

• Coco Maids Team Leader

• Coco Maid Staff X 15

• Houston District/Group Leader (HQ)

Coco Maids Team Leader

• Coco Maids Staff X 15

• Austin District/Group Leader(long range goal)



• San Antonio District/Group Leader(long range goal)



• Legal and Policy

• Corporate Support Services

• Safety Officer/Risk Manager

• Security Manager

• DFW Security Team

• Houston Security Team

• Austin Security Team

• San Antonio Security Team


1.3 Embedding the risk management plan

Risk management is recognized by Coco Maids® as an integral part of efficient management practice. To ensure

operational goals are being met, risk management needs to become part of our culture. It will be integrated into

the Coco Maids® philosophy, practices and business plans rather than be viewed or utilized as a separate program.

When this is achieved, risk management becomes the business of everyone within the Coco Maids® team.

Risk management is the term applied to a logical and systematic method of:

• Hazard and risk identification

• Risk Assessment

• Risk Control

• Control implementation

• Evaluation and monitoring

The risk management plan will refer to, and be reviewed against, Coco Maids® strategic, operational and

business plans. The Risk Management Strategy will be executed through the use of four processes:

1. Identification of Risk

2. Analysis of Risk

3. Control of Risk

4. Monitoring and Regular Review of Risk

1.4 Coco Maid’s® Risk Management Process

Derived from ISO 31000 Risk Management standards is shown below:


As an emerging company, Coco Maids® will enhance its existing risk management culture by examining risks

that have affected other similar domestic cleaning service organizations. By reviewing our own existing data and

statistics, company leadership can plan appropriately in terms of economic performance and professional

reputation, as well as environmental, safety and societal outcomes. Therefore, managing risk effectively will

contribute to enhancing our company’s performance.

1.5 Company Data:

Coco Maids® expects to reach $1.5 million in annual sales in its third year of operation and begin to pay

dividends to investing partners in its first year. Net profit of $80,000 will be achieved in the first year and will

double in the second year. Breakeven will be accomplished rapidly partially due to the fact that the management

is knowledgeable with sales, marketing, and operations, and that all cleaning crews will be paid only for hours

worked, reducing the payroll risk for the business.


Expenses 2012 2013 2014

Payroll $156,000 $180,000 $229,000

Marketing/Promotion $79,000 $90,000 $110,000

Depreciation $18,400 $30,000 $35,000

Rent $30,000 $35,000 $50,000

Utilities $1,800 $2,400 $3,000

Insurance $3,000 $4,000 $5,000

Payroll Taxes $49,095 $63,060 $86,450

Other $6,000 $10,000 $15,000

Total Operating Expenses $343,295 $414,460 $533,450

Profit Before Interest and Taxes $104,807 $226,440 $398,050

EBITDA $123,207 $256,440 $433,050

Interest Expense $2,766 $4,809 $6,159

Taxes Incurred $30,612 $66,489 $117,567

Net Profit $71,429 $155,142 $274,324

Net Profit/Sales 10.13% 15.49% 18.89%

Coco Maids® Injuries & Events 2013 - Statistics

Coco Maids® Work Related Injuries 2014 Statistics


Coco Maids® Insurance Data 2014

Coco Maids® Online/App Usage Data 2014

Assignment 1B

Section 2: Risk Management Strategy, Tools and Methods

2.1. Risk Management Strategy

Coco Maid’s existing risk strategy is aligned with the Project Management Institute’s (PMI) PMBOK

strategy for managing risk. According to PMI, Risk is defined as an “uncertain event or condition that, if

it occurs, has a positive or negative effect on a project’s objectives”. The purpose of the risk


management strategy is to minimize the negative risk impacts and maximize the positive (opportunity)

risks identified for the project so that Coco Maid’s® company objectives are met. This will be achieved

by following a structured PMBOK process utilizing the tools and techniques described in this plan,

while ensuring the efforts of risk management activities are appropriate for the importance of individual

projects.

The risk management activities are:

Risk Management Planning – determine the approach to risk management

Risk identification - identify all known project risks

Risk Analysis - perform an assessment of the probability of occurrence and potential impact

Risk Response Planning - create action plans to manage the identified risks

Risk Monitoring and Control – monitor, review and update risk status and plans

Risk Closeout – document lessons learned

Risk Management Methodology Diagram

Risk management is an iterative process, beginning in the Initiation phase of a project and concluding at Project

Closeout. A non-risk adverse philosophy will be applied during the process while remaining in compliance and

aligning with the project objectives regarding financial, contract and legal, schedule, performance, resources,

quality and customer satisfaction.

The Risk Management Plan is a component of the PMBOK Project Management Plan. It describes our company’s

approach for managing uncertainty, both threats and opportunities, for the project.

2.2. Risk Management Tools and Outputs

The following tools will be used to by company Risk Management Department to support and document

outcomes from the risk management process on this all company projects:

Risk Management Activity Risk Management Tools and Outputs

Risk Management Planning Risk Management Plan


Risk Identification Risk Log

Risk Analysis Risk Response Planning

Monitoring and Control

The physical storage location of the risk management plan and other risk-related documents will be kept in the

Coco Maids® Corporate Office with the Safety and Risk Management Officer.

Scope of Risk Management Effort

The Coco Maids® Risk Policy describes the minimum activities required of the risk management process, and

these are reflected in this plan. For all company projects, business processes, and planning, risk management

activities will focus on three primary areas:

Risk which have the potential for a negative impact to the project objectives, specifically in terms of

schedule, cost, scope or quality.

Those risks that are common across multiple component projects, impact multiple projects or impact the

overall Coco Maids® program objectives.

Any risks which have a negative impact on Coco Maids® will be considered Very High priority with

Avoidance as the default response strategy.

2.3. Risk Identification

The risk identification activity will:

Commence at the Initiation of a project for those that are not currently active, be repeated at intervals as

defined in the Monitoring and Controlling section of this plan and conclude at Project Closeout.

For projects already active, take place through scheduled project review sessions.

For all projects, continue to be identified throughout the project via the use of weekly project status reports

and periodic Risk Audits.

Be included as part of the Coco Maids® Integrated Change Management process. As change requests are

submitted, they will be assessed for risk and impact to the program at several key points in the process since

such requests are often a key source of project risk.

Identify a comprehensive list of potential risk events that have a negative (threat) or positive (opportunity)

impact on the Coco Maids® objectives and/or the subsidiary programs.

The following risk sources will be considered to ensure thoroughness in the identification process:

Engagement

Definition

Legal &

Contractual

Project Schedule

Complexity

Commercial Issues

Client Commitment

Duration Related Projects

Regulatory Issues

Communications

Technology -

Hardware &

Software

Political

Considerations

Project

Budget/Financial

Sub-contractors

Industrial Relations

Resources

Suppliers

Occupational

Health & Safety

Vendor Experience

& Capability

Market Action


Note: Additional risk sources and categories may be identified and incorporated into the risk log as needed

during Coco Maids® program review.

The following PMBOK© techniques may be used to further identify risks:

Checklists - Risk Management Checklist

Examine each element of the project Work Breakdown Structure (WBS)

Analogy - review risk management efforts from similar projects

Analogy - examine lessons learned documents or databases

Interview subject matter experts

Interview stakeholders – customer, subcontractor, supplier, third parties.

We will examine project specific sources of risks within related documents including but not limited to:

project schedule and critical path

resource responsibility matrix

scope statements

requirements specifications

design specification

SOW contractual agreements

Group Process Techniques:

Brainstorming

Delphi Technique

Nominal Group Technique

Risk Identification workshop

The effectiveness of the entire risk management process is only as good as the quality and specificity of the risk

event statements. There are three recommended general formats:

"_________ may occur during _________, thereby causing an impact to _________"

"If ___________ occurs, then an impact to ________ will occur"

“If (cause) does/does not happen, then (risk event) will occur with result that (impact) will take place”

PMBOK Risk event statement guidelines:

- Include no questions

- Include no action items

- Use complete sentences

- Be as specific as possible


- State the risk and the area of impact

- Think about ability to quantify risk event impact.

- Assumptions can simply be submitted as a concise sentence.

NOTE: All Assumptions will be treated as risks and should be documented.

2.4. Risk Analysis

Risk Analysis is primarily concerned with determining which risk events warrant response, and will cover three

categories

Qualitative – to assess the impact and likelihood of the risk event impacting project objectives using

standard probability and impact labels defined in the risk tool

Quantitative – to assess the impact and likelihood of the risk event through mathematical methods

Prioritization – to narrow the focus of the risk management effort to gain the greatest positive impact on the

project for the applied resource effort

Analysis will be determined considering project costs (level of effort, labor rates, task duration, direct

materials, equipment, and tools) and project schedule (resource shortages, duration expansion, delays). Where

specific values are not provided, standard rates and costs will be used as agreed to by corporate leadership.

Probability and impact estimates will be based on information derived from:

Estimates

Expert judgment – Consultants, Stakeholders, Professional associations, Industry groups

Risk Assessment questionnaire

Decision Trees

Network diagram - analyzed to assess impacts due to path convergence (parallel activities) and dependent

activities

2.4.1. Qualitative Analysis

Qualitative Analysis will determine probability of occurrence and magnitude of impact using the standard labels

defined in the risk tool to derive an overall risk rating for each identified risk event.

2.4.2. Quantitative Analysis

Quantitative Analysis will use the probability percentage associated with the chosen probability label in the risk

tool and estimate the magnitude of the impact to determine the Expected Value (EV = Probability x $ Impact) at

a minimum for those risks with an overall risk rating of “HIGH”. Where it is not possible to provide a quantitative

$ impact, a narrative impact description will be given.

2.4.3. Risk Prioritization

Analyzed risks will be prioritized to identify the top risks with threats and opportunities ranked separately based

on the Qualitative overall risk rating and Quantitative expected value rating. When selecting the top risks,

consideration will be given to those risks with overall rating of “HIGH” as well as risks that are important to the

customer or other stakeholders after examining the following information sources:


Scope statements

Requirements specifications

Design specification

SOW

Contract Agreements

Stakeholders

Where further ranking differentiation and filtering is required the following techniques will be applied:

Comparative Risk ranking

Filtering – as defined in the appendix of this plan

The remaining risks that will not be the focus of immediate risk management effort will be reconsidered at

intervals defined in the Monitoring and Control section of this plan.

2.5. Risk Response Planning

Risk Response plans will be developed for both threats and opportunities for each risk selected from the

prioritization process, at a minimum, for those risks with an overall risk rating of “HIGH”. Response strategies

will be those listed in the risk tool. Response plans will be integrated with the component project plans, be

recorded in the Risk Log and document the following:

The risk owner who is the person responsible for managing the response plan

The risk response strategy that will be used

The description of the mitigation or contingency plan

Any stakeholders impacted by the risk

Other projects impacted by the risk

Coco Maids® objectives impacted by the risk

The cost of the risk response (if available)

To ensure efficient expenditure of risk management effort for related risks, a risk response matrix will be used to

identify priorities and select a primary response plan that is effective for more than one risk.

2.6. Risk Monitoring and Control

The process will include a risk assessment at the end of each major activity to review the identified risks

for the next set of activities. The purpose of this assessment is to review and plan for potential risks identified in

the Risk Log, identify new potential risks, and reassess the status and response strategies for previously identified

risks.

The following monitoring intervals will be applied starting at the Initiation phase and concluding at Project

Closeout for all active projects. Where meetings are conducted to facilitate risk monitoring and control activities,

the meeting facilitator will designate a person to take Minutes. All meeting Minutes should be sent to the

Integrated Risk Manager and Coco Maids® Communications Manager and the corresponding Project Lead(s).

Minutes will be posted and distributed in accordance with the Coco Maids® Communication Plan.

The Project Manager will schedule and conduct a weekly meeting with the Project Lead to review the

risk status for those company risks with an overall rating of “HIGH” or “VERY HIGH”


Monthly review of risk status for all identified Coco Maids® risks will be conducted by the Risk

Manager and the Project Team.

Weekly internal review of high and very high impact risks, overall project risk status and identification

of new risks will be scheduled and conducted by the Coco Maids® component Project Manager with the

project team members attending.

Review risk status at major project milestones – conducted by Coco Maids® component project

managers and track managers.

Review risk impacts as part of the Coco Maids® Integrated Change Management process – facilitated

by the company Integrated Change Manager with the participation and input of the Coco Maids®

Integrated Risk Manager and the Safety Manager.

Quarterly management review of risk status with company Program executives.

The following metrics will be used to trigger that a risk event may occur and invoke the risk management

process:

Cost variance (if available)

Schedule variance

Changes in forecast project end date

Changes in schedule float

Changes in stakeholder attitude

Earned value variance (if available)

At the monitoring intervals, the activities performed will be:

Update and document risk probability, impact, priority, thresholds, response plans, and overall status.

Review the execution of risk plans and evaluate their effectiveness in reducing risk.

Integrate updated risk response plans with the associated component project plan.

Re-analyze residual risks previously filtered out.

Identify new risks or opportunities and apply the risk management process.

Document lessons learned.

The results from Monitoring and Control will be documented as defined in the reporting and communication

section of this plan.

2.7. Assumptions and Constraints

Coco Maids® leadership and the associated partners and agencies will be supportive of and

participate in Risk Management activities, particularly Risk Identification.

All component projects will perform some level of risk management activities.

Timely and relevant weekly status reports will be provided by all component Safety Managers and

will include a section on Risk.

The level of knowledge and experience with Risk Management varies by program resource.

Accurate cost information will be supplied for any risks where quantitative analysis (i.e. Earned

Value) is required or requested.

All persons responsible for managing risk on the project will complete Risk Management training

early in the project life cycle.


Assignment 1C

Section 3: Project Risk Scope

3.1 Sources of Scope Risk

The two broad categories of scope risk:

3.2 Coco Maids® Operations & Projects Risk Scope

The project risk management process objectives are to manage all predictable risks (both

opportunities and threats) in a manner which is proactive, accurate, and suitable, in order to ensure the

likelihood of individual company projects achieving their objectives, while sustaining risk exposure at

an acceptable level. This risk management plan describes the minimum activities required of the risk

management process, and these are reflected in this plan. For Coco Maids®, Risk Management

activities will focus on these common sources of risk:

DefectsChanges

Scope Risk

Change

Scope Creep

Gaps

Scope Dependencies

Defects

New technology/service

Reliability

Functionality


1. Risk which have the potential for a negative impact to the project objectives, specifically in

terms of schedule, cost, scope or quality.

2. Those risks that are common across multiple component projects, impact multiple projects or

impact the overall company objectives.

3. Any risks which have a negative impact on physical safety will be considered Very High priority

with Avoidance as the default response strategy.

3.3 Common Scope Risk Sources:

Highlighted in gray:

3.4 Roles and Responsibilities

This section identifies the event manager, support, and risk management team membership for each type

of activity in the risk management plan. It assigns people to these roles, and clarifies their

responsibilities. The responsibility for managing risk is shared amongst all the stakeholders of the

company.

However, decision authority for selecting whether to proceed with mitigation strategies and

implement contingency actions, especially those that have an associated cost or resource requirement

Risk Factors: Common Sources for Cleaning

Company

Occupational Health & Safety

Personal Safety Hazards

environmental Hazards

manual tasks Hazards

chemicals and substances Hazards

External

Legal & Contractual

Suppliers

Client Commitment

Regulatory issues/Licenses &

permits

Organizational

Resources & Team

Budget/Financial

Adult Entertainment Market/Reputation

risk

Operational

Technical

Hardware & Software Tools

Communications

Website Payment Systems


rest with the Project Manager who is responsible for informing the funding agency to determine the

requirement for a contract modification.

3.5 Stake Holder Involvement Process

The following tables details specific responsibilities for the different aspects of risk management.

The level of risk on a project will be tracked, monitored and controlled and reported throughout the

project lifecycle. Risks will be assigned a risk owner(s) who will track, monitor and control and report

on the status and effectiveness of each risk response action to the Project Manager and Risk

Management Team on a month to month basis

A “Top 20 Risk List” will be maintained by the PM/Risk Manager or IPT and will be reported as a

component of the project status reporting process for this project.

All project change requests will be analyzed for their possible impact to the project risks.

As Risk Events occur, the list will be re-prioritized during weekly reviews and risk management plan

will reflect any and all changes to the risk lists including secondary and residual risks.

Management will be notified of important changes to risk status as a component to the Executive Project

Status Report. Monthly

The Risk Manager (PM) will:

• Review, reevaluate, and modify the probability and impact for each risk item [timeframe, as

needed, every two weeks, etc.]

• Analyze any new risks that are identified and add these items to the risk list (or risk database).

• Monitor and control risks that have been identified

• Review and update the top ten risk list [timeframe, as needed, every two weeks, etc.]

• Escalate issues/ problems to management [List factors that would need to be escalated to

management. Examples: documented mitigation actions are not effective or producing the

desired results; the overall level of risk is rising.]

The Risk Owner will:

• Help develop the risk response and risk trigger and carry out the execution of the risk response, if

a risk event occurs.

• Participate in the review, re-evaluation, and modification of the probability and impact for each

risk item on a weekly basis.

• Identify and participate in the analysis of any new risks that occur.

• Escalate issues/problems to PM that:

1. Significantly impact the projects triple constraint or trigger another risk event to occur.

2. Require action prior to the next weekly review

3. Risk strategy is not effective or productive causing the need to execute the contingency plan.


Risk activities will be recorded in the <Document Name/ Risk Database Name> located on <full

network path location>.

Risk Identification: All project stakeholders

Risk Registry: Project Manager

Risk Assessment: All project stakeholders

Risk Response Options Identification: All project stakeholders

Risk Response Approval: PM with concurrence from CO/PO/COTR

Risk Contingency Planning; Project Manager(s)

Risk Response Management; Project Managers

Risk Reporting; Project Manager

3.6 High Level Risk Assessment

For Coco Maids® high level risk assessment is the process of determining the probability that a risk will

occur and the impact that event would have, should it occur. This is basically a “cause and effect”

analysis. The “cause” is the event that might occur, while the “effect” is the potential impact to a project,

should the event occur. Assessment of a risk involves two criteria. First is the probability which is the

measure of certainty that an event, or risk, will occur. This can be measured in a number of ways, but for

the Coco Maid’s operations and projects will be assigned a probability as defined in the table below.

Probability of Occurrences

Definition Meaning Value

Frequent Occurs frequently

Will be continuously experienced unless

action is taken to change events

5

Likely Occur less frequently if process is corrected

Issues identified with minimal audit activity

Process performance failures evident to trained

auditors or regulators

4

Occasional Occurs sporadically

Potential issues discovered during focused

review

3


Seldom Unlikely to occur

Minimal issue identification during focused

review

2

Improbable Highly unlikely to occur 1

The second criteria is estimate of the impact on the project. Coco Maid’s Risk Register contains five

ratings for impact:

High-Level Risk Assessment Tools: To assess risk, Coco Maid’s Risk Plan include:

Risk complexity index

Technology (the work)

Marketing (the user)

Manufacturing (the production and delivery)

Risk framework

Index = (Technology + Architecture + System) × Scale

Risk assessment grid

Technology

Structure

Size

3.7 Coco Maids® Risk Limits

Setting limitations: Many scope risks come from specifics of the deliverable and the overall technology,

scope risk also arises from failure to establish firm, early limits for the project. (Kendrick, 2009) Risks

which affect company schedule or cost will be analysed on a case by case basis and compared to their

role in obtaining or obstructing the overall project objectives. Specific thresholds and/or constraints with

Critical

Moderate

MinorNegligible

Catastrophic


regards to scope, schedule, and budget will be identified for the specific project or operations function

and considered when determining risk impact and the development of risk response strategies.

Company Strategies for determining limitations concerning risk:

Risk Acceptance Company will select this option when the cost of other risk management options

such as avoidance or limitation may outweigh the cost of the risk itself.

Risk Avoidance Company will avoid any exposure to the risk whatsoever.

Risk Limitation Limit company’s exposure by taking some action.

Risk

Transference

Company will hand risk off to a willing third party.

Section 4: Project Resource Risk

4.1 Resource Risk:

These risks include people, outsourcing, and money. People risks arise within the project team. Outsourcing

risks result from the use of people and services outside the project team to perform critical project work. The

third category, money, is a key factor in many of the people and outsourcing problems, and the effect of

insufficient funding on projects has substantial impact on a project in many other ways. (Kendrick, 2009)

Resource Risk:

Outsourcing

Money

People


4.2 Common Sources of Resource Risk for Coco Maids®

4.3 Maintaining Productivity

Due to Coco Maids® small company size, and unique projects, the resource analysis method will be

concise. We will identify sections of individual projects where the resources available do not support the

project work planned. We will inspect project timelines to assess where the hours needed from an

individual on a week-by-week basis exceed what will be available.

4.4 Resource Levelling & Resource Allocation Plan

Tool Description

Microsoft

Project

2013

Project 2013 calculates resource levelling to try to resolve resource over allocations in

the project. The feature works in two ways: by delaying a task until the overbooked

resource is freed up or by splitting tasks. Splitting a task involves (essentially) stopping

it at some point, thereby freeing the resource, and then resuming it later, when the

resource is available.

Resource Risks

People

Cleaning Staff Turn-Over

Untrained Staff

Not Enough Staff

Outsourcing

Cleaning Supply Late Deliveries

Contractors

Equipment repair

Money

Bonding & insurance premiums

Contract reversals

Lean Budget


4.5 Resource Planning Format:

RESOURCE PLANNING WORKSHEET

Milestone / Activity/

Activity

People Equipment Materials Other

4.6 Cost Estimating & Cost Budgeting

This section provides the strategy and tools for managing project costs.

Cost Estimating:

Organization and special project cost estimates will serve primarily for staffing, miscellaneous expenses, cleaning

equipment, advertising services, travel, communications, and other project needs.

Cost Budgeting:

After estimates are completed, cost budgeting will review all of the cost estimates for the organization and special

projects.

A risk contingency budget will be established to prepare in advance for the possibility that some risks will not be

managed successfully. The risk contingency budget will contain funds that can be tapped so that Coco Maid’s projects

don’t go over budget.

There is a total of 100,000 in the budget allocated for Risk Management activities. These activities may include, but

are not limited to, identifying, analyzing, tracking, controlling, managing, and planning for risks. This also includes

creating and updating the risk response strategies and contingency plans.


To reduce risk the company will utilize the following tools:

Cost Management Worksheet Template

COST MANAGEMENT WORKSHEET

Project Name: Project Sponsor: Project Manager: Date:

Description Materials Labor

Summary Description #1 Budget Actual Variance Scheduled Hours Actual

Hours

Variance


Hours

Variance

Staffing and outsourcing

costs

Equipment & Software

Costs

Miscellanous Costs

Advertising

Travel


COST MANAGEMENT WORKSHEET

Project Name: Project Sponsor: Project Manager: Date:

Description Materials Labor


Hours

Variance

SUMMARY

Sub Total

Budgeted Materials

$ Sub Total

Actual

Materials

$ Sub Total Variance

Materials

$

Sub Total Budgeted Labor $ Sub Total

Actual

Labor

$ Sub Total Labor

Variance

$

Total for Budgeted

Materials and Labor

$ Total for

Actual

Materials

and Labor

$ Total Variance

Materials and Labor

$

PROJECT COST / SCHEDULE REPORT

Project Name: Responsible: Prepared By:

WBS #

(Code of

Accounts

number)

Title

(Activity))

Milestone,

Work

Package,

Activity

Duration

(days/

weeks?)

Start

Date

End

Date

Labor

(hours,

days,

weeks?)

Result/

Deliverable Cost

Resources

Required

$

Final

Acceptance

Milestone 0 Final Report

/Sign-off

$0 Project

Sponsor

$

TOTALS $

BUDGET WORKSHEET

Project:

Date:

Prepared By:

WBS #

(Code of

Accounts #)

Who’s

Responsible? Start Date End Date Equipment Materials Labor

Total

(Planned)

Total

(Actual)


4.6 Procurement Process

The procurement process allows the company to perform more detailed opportunities for risk

identification. This following provides the strategy and tools for managing project procurement. In the

PMBOK® Guide, Project Procurement Management has six components that Coco Maids must adhere

to:

Area Coco Maids Procurement Process & Policy

Procurement

planning

All outsourced work must be specified in detail both in the initial request and in the

contract so that both parties have a clear definition for the work required and how it will be

evaluated.

Solicitation

planning

Request for Proposal (RFP) is required (use template)

Solicitation Identify potential suppliers

Source

selection

Must be consistent with operations & projects requirements

Contract

administration

Document required: Statement of work (SOW)

Contract

closeout

Must establish a "not to exceed'' limitation to avoid increasing costs

PLAN PURCHASES AND ACQUISITIONS WORKSHEET

Resource, Equipment,

Materials Required

Date

Required

Contract Type

Desired

Cost Estimate Person Responsible Notes

Section 5: Project Schedule Risk


5.1 Schedule Risk

To ensure quality with industry proven risk methods, Coco Maids will mitigate schedule risks through

the use of the PMBOK® Guide’s principal project schedule risk ideas that include:

5.2 Methods for identifying schedule risks

Determine the root causes of all uncertain estimates.

Identify all estimates not based on historical data.

Note dependencies that pose delay risks, including all interfaces.

Find any differences between project effort requirements and life-cycle norms.

Identify risky activities and schedule them early in the project.

Ascertain risks associated with multiple critical (or near-critical) paths.

Note risks associated with lengthy projects. (Kendrick, 2009)

Assignment 1D

Section 6: Coco Maids® Risk Response Plan Overview

delays

EstimatesDependencies

Sources of Schedule Rsik

Delays

deliveries of cleaning supplies/equipment

completion of jobs

repair of cleaning equipment

Dependencies

Legal Contracts & Licenses

IT/Communcation System dependency

Human resources

Estimates

Poor estimate of SQ FT of Area to be serviced

Underestimate time required for services

underestimate costs of operations/expenses


6.1 Impetus for Coco Maids® Risk Response Activities

Risk assessment is the activity of identifying all of the events that could have an impact on the organization.

Having completed the risk assessment, the organization will have a list of risks and an analysis of the likelihood

and potential impact of each risk, together with an evaluation of the anticipated consequences of each of the

risks facing the organization. (Hopkin, 2013)

Plans will be created for both threats and opportunities for each risk selected from the prioritization process, at a

minimum, for those risks with an overall risk rating of “HIGH”. Response strategies will be those listed in the

risk tool. Response plans will be integrated with the component project plans, be recorded in the Risk Log and

document the following:

The risk owner who is the person responsible for managing the response plan

The risk response strategy that will be used

The description of the mitigation or contingency plan

Any stakeholders impacted by the risk

Other projects impacted by the risk

<PROJECT> objectives impacted by the risk

The cost of the risk response (if available)

6.2 Risk Analysis - Options for responding to risks

Risk analysis involves developing specific, discrete, and measurable responses to each risk as well as

developing a list of prioritized risks. During risk analysis, appropriate responses are developed to minimize the

realization of each risk, and are documented according to certain actions. (MNHIX 2013)

Focus Areas

A. Group Similar and Related Risks: Similar risks are grouped together. Redundant risks are rejected by the

Project Management Officer. Related risks are combined when it makes sense to work the risks together.

Dependent risks are linked, allowing one risk to be related to another risk.

B. Analyze the Risk Using Risk Analysis: During the analyze step, risks are quantified according

to calculations. Risk quantification extends the value of the analyzing, understanding, documenting, and

reporting on risks by attempting to assign each risk a numerical scale. Risk is composed of two factors:

probability of risk occurrence and impact.

C. Probability

Risk probability is the likelihood that an event will actually occur. Using a numerical value for risk

probability is desirable for ranking risks. Risk probability must be greater than zero but less than 100


percent or the risk is a certainty. Impact measures the effect that the risk will have on the Project. The

likelihood of risk occurrence can be evaluated qualitatively or quantitatively.

Probability Probability Statement Score

> 80% Almost Certain 5 Almost Certain 50

61%-80% Probable 4 Probable 40

41%-60% Improbable 3 Improbable 30

21%-40% Unlikely 2 Unlikely 20

1%-20% Highly Unlikely 1 Highly Unlikely 10

D. Impact

Impact is an estimate of the overall scale of the impact following an occurrence of each risk. This measures

the severity of adverse effects, or the magnitude of a loss, if the risk comes to pass.

Rating Rating Description Score

Critical Project will not meet mission or technical success/exit criteria and no

alternatives exist

5

High Project will not meet mission or technical success/exit criteria and some

alternatives exist

4

Moderate Project will meet mission or technical success/exit criteria, alternatives exist

with medium modification

3

Low

Project will meet mission or technical success/exit criteria, alternatives exist

with little modification

2

Very low Project will meet mission or technical success/exit criteria, alternatives exist

with no modification

1

E. Risk Exposure

The Risk Exposure is calculated based on the following: Risk Exposure = Probability * Impact. See the

matrix below to determine risk exposure status. The results shown in the risk register will be the exposures

score

Risk Exposure Score

Probability Impact Relative Numeric Scale

Critical (5) High (4) Moderate (3) Low (2) Very (1)

81-100%


61-80%

41-60%

21-40% 1-20%

F. Rank Risk

Based on risk qualification, the risk priority is calculated. Those with the highest risk exposure score are

addressed first. By ranking the risks, project resources are focused more efficiently and effectively.

Once the risk has been submitted and assigned a Risk Owner, the Risk Owner can go back and change

the probability and/or impact as appropriate.

6.3 Risk Response Planning - Selection of Risk Response

For each major risk, one of the following approaches will be selected to address it:

Avoid – eliminate the threat by eliminating the cause

Mitigate – Identify ways to reduce the probability or the impact of the risk

Accept – Nothing will be done

Transfer – Make another party responsible for the risk (buy insurance, outsourcing, etc.)

A. For each risk that will be mitigated, the project team will identify ways to prevent the risk from

occurring or reduce its impact or probability of occurring. This may include prototyping, adding tasks to

the project schedule, adding resources, etc.

B. For each major risk that is to be mitigated or that is accepted, a course of action will be outlined for the

event that the risk does materialize in order to minimize its impact.

6.5 Risk Monitoring, Controlling, and Reporting - Implementing appropriate controls

The level of risk on a project will be tracked, monitored and reported throughout the project lifecycle. A “Top

10 Risk List” will be maintained by the project team and will be reported as a component of the project status

reporting process for this project. All project change requests will be analyzed for their possible impact to the

project risks.

Risk Response Matrix.

The Risk Response matrix can be used to identify, prioritize and select a primary response plan which is

effective for more than one risk thereby ensuring efficient expenditure of risk management effort.


Response Plans

Risks Risk A

Response

Plan

Risk B

Response

Plan

Risk C

Response

Plan

Risk D

Response

Plan

Risk E Response

Plan

Risk A description

Risk B description

Risk C description

Risk D description

Risk E description

6.6 Risk Response Action

Risk response planning takes risk information and turns it into decisions and actions. Response planning

involves developing actions to address individual risks, prioritizing risk actions, and creating an integrated

risk action plan. The Risk Response Plan will be completed by the Risk Owner. The Risk Response Plan

includes planned actions to reduce or eliminate the risk.

Action Steps

Mitigate/Resolve Risk

Respond to Notification of

Triggering Event

Execute the Risk Action Plan

Report Progress against the Plan

Corrective Action and Deviation from

the PlanResolve (Retire) Risk


Tools, Resources & Practices

A Risk Log will be maintained by the project manager and will be reviewed as a standing agenda item for

project team meetings

Risk Response Register

(Template)

WBS or Work

Package Item

Risk Event Probability

(H,M,L)

Impact

(H,M,L)

Risk Response (Include

mitigation and trigger)

Risk Owner


Supporting Documents:

Risk register



Schedule





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Education

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