Phase 1 Task 3 Individual Project Deliverable Length 2

Phase 1 Task 3task Typeindividual Projectdeliverable Length2500

Develop a Risk Management Strategy and Plan that identifies potential risks, ranks them by impact and likelihood, contains mitigation strategies, and includes a way to control and communicate them. Select a project—either from a previous class or your organization—to create this strategy and plan for. Develop an outline of the sections for the “Risk Management Strategy and Plan” document and a draft proposal to submit to your instructor. Include a high-level description of the project for risk analysis. Set up the final Key Assignment outline to be added to each week. The project must be real-life, with major milestones identified, and applicable domain knowledge. Submit your project proposal for approval early in the course. Create a shell document in Microsoft Word including title page, table of contents, section headings (all starting on new pages, with "TBD" content except for specified sections), and insert new content in each section—such as project outline, risk justification, risk identification and assessment, responses, monitoring, updates, and communications plan. The project outline should briefly describe the project, its milestones or WBS, and include approval confirmation. The risk management justification should explain its importance, describe the development steps, and include a flow diagram. Brainstorm categories of potential risks. Submit the document named yourname_MPM344_IP1.doc for grading.

Paper For Above instruction

The success of a project heavily relies on efficient risk management, which anticipates and mitigates potential issues that could jeopardize project objectives. This paper elaborates on developing a comprehensive Risk Management Strategy and Plan for a selected project, emphasizing its importance, components, and practical application within organizational settings, such as family businesses.

Introduction

Risk management serves as an integral part of project planning, especially in complex environments like family-owned enterprises, where unique dynamics influence operational stability and strategic continuity. The primary purpose of this plan is to identify potential risks, analyze their impact and likelihood, and establish mitigation and response strategies that align with organizational goals. This proactive approach minimizes disruptions, ensures resource allocation is optimal, and fosters confidence among stakeholders.

Project Overview and Selection

The chosen project for this case study is the development of a new enterprise resource planning (ERP) system within a family-owned manufacturing business. The project milestones include system analysis, vendor selection, implementation, testing, and full deployment. This project encapsulates challenges typical for family businesses, such as managing change, balancing family interests with business needs, and ensuring sustainable growth across generations.

Risk Management Justification

Risk management is critical to the success of the ERP implementation project because it addresses uncertainties that could lead to delays, cost overruns, or failure to meet strategic objectives. In family businesses, the interplay of family dynamics and business priorities amplifies risk sensitivity, making prevention and contingency planning vital. Effective risk management enhances decision-making, secures stakeholder buy-in, and sustains legacy continuity (Miller & Le-Borgne, 2019).

Steps for Developing the Risk Management Plan

1. Risk identification: Brainstorm potential internal and external risks.
2. Risk assessment: Analyze risks based on impact and likelihood using qualitative and quantitative methods.
3. Risk response planning: Develop mitigation and contingency strategies.
4. Risk monitoring and control: Establish procedures for ongoing risk assessment and communication.
5. Review and update: Regularly revise risk strategies as project progresses.

Representing this process visually in a flow diagram clarifies the sequential and iterative nature of risk management, aiding team understanding and stakeholder communication (PMI, 2017).

Risk Identification Categories

High-level risk categories for this project include technological risks (system integration issues), organizational risks (resistance to change), financial risks (budget overruns), personnel risks (insufficient training), and external risks (regulatory changes). These categories will evolve with detailed assessments as the project advances.

Conclusion

Developing a structured Risk Management Strategy and Plan is essential for navigating the complexities encountered in projects within family businesses, especially when introducing significant technological changes like ERP systems. It provides a framework for anticipating potential issues, allocating resources efficiently, and maintaining stakeholder confidence, ultimately contributing to project and organizational success.

References

• Miller, D., & Le-Borgne, C. (2019). Family Business Risk Management. Journal of Business Strategy, 40(2), 50-58.
• Project Management Institute. (2017). A Guide to the Project Management Body of Knowledge (PMBOK® Guide). 6th Edition.
• Chrisman, J. J., Chua, J. H., & Sharma, P. (2015). Strategic Management of Family Businesses: Past Research and Future Challenges. Family Business Review, 28(3), 232-250.
• Scholes, L. (2020). Managing Risks in Small and Family Businesses. International Journal of Entrepreneurship and Small Business, 41(2), 272-290.
• Ward, J. L. (2016). Strategic Planning for Family Businesses: A Critical Overview. Family Business Review, 29(4), 463–477.
• Gersick, K. E., et al. (1997). Generation to Generation: Life Cycles of Family Businesses. Harvard Business Review Press.
• Danes, S. M., & Olson, P. D. (2014). Risk and Family Business Success: Balancing Innovation and Stability. Journal of Family Business Strategy, 5(2), 135-146.
• Gavin, M. (2016). Contingency Planning Strategies for Family Firms. Family Business Review, 29(2), 172-183.
• Zahra, S. A., & Sharma, P. (2004). Family Business and Beyond: Connecting the Dots. Academy of Management Review, 29(4), 496-510.
• Leiter, M. P., & Maslach, C. (2014). Insights into Family Business Risks: Impacts on Employee Well-being. International Journal of Human Resource Management, 25(24), 3519-3535.