Need help creating an outline for a risk management plan

Question

Hi,

I need some help on my system analysis and design assignment. I need to put together part of an outline for a
deliverable. Below is a little bit of background on the project.

This project will design and implement a customer relationship management system in order to provide superior
customer service by rewarding our most loyal customers. Specifically, the system will track customer purchases,
assign points for cumulative purchases, and allow points to be redeemed for "rewards" at local stores. This
goal of this system is to provide an incentive to customers to choose Petrie Electronics as their first and only
choice for making electronic purchases. The system will provide Petrie Management with improved information on
the purchase behavior of our most loyal customers.

I need help starting my part of the outline for the deliverable

1. Risk Management Plan
     a. Process
     b. Risk Identification
     c. Risk Analysis
     d. Risk Response Planning
     e. Risk monitoring, controlling, and reporting

2. Recommendation - detail narrative of your recommended solution. Be sure to discuss any alternatives
investigated and why they were rejected in favor of your recommended solution. Include a discussion of the
estimated cost to complete and the estimated schedule to complete with backup on how you arrived at these cost.
The cost and schedule must be the same as in the Microsoft project deliverable below.

Answer 1

To get started, here’s an outline draft for your deliverable based on the requirements you shared:

1. Risk Management Plan

a. Process

Define the overall approach to managing risks throughout the project.

1. Establish a Risk Management Team.
2. Identify tools and techniques for risk assessment (e.g., brainstorming, checklists, historical data).
3. Document risk management processes in a formalized plan.

b. Risk Identification

List potential risks that could impact the project, such as:

1. Technical Risks: Issues with integrating the CRM with existing systems, data accuracy concerns.
2. Operational Risks: Training employees to use the system effectively, disruptions during deployment.
3. Financial Risks: Budget overruns, unexpected costs for hardware or software.
4. Customer Risks: Poor adoption by customers, lack of understanding of the rewards system.

c. Risk Analysis

Assess the likelihood and impact of each identified risk.

1. Use qualitative methods (e.g., low, medium, high) or quantitative methods (probability-impact matrix).
2. Identify critical risks that require immediate attention.

d. Risk Response Planning

Develop strategies to mitigate or address each risk.

1. Avoidance: Change project scope to sidestep certain risks.
2. Mitigation: Implement redundancies or backup systems.
3. Acceptance: Acknowledge and monitor risks that are low-impact.
4. Transference: Use third-party vendors for complex functionalities.

e. Risk Monitoring, Controlling, and Reporting

Outline how risks will be tracked during the project lifecycle.

1. Regular status meetings to review risks.
2. Use of risk logs to document status and resolution.
3. Reports for stakeholders summarizing risk management activities.

2. Recommendation

Recommended Solution

Implement a cloud-based CRM system integrated with Petrie Electronics’ existing infrastructure.

1. Key Features:Customer purchase tracking.
2. Automated point allocation and rewards redemption.
3. Advanced analytics for customer behavior insights.
4. Advantages:Scalability for future growth.
5. Real-time updates and reporting.
6. Minimal upfront costs compared to on-premise solutions.

Alternatives Investigated

1. Custom In-House Development:Reason Rejected: Higher initial cost, longer development time, and lack of expertise.
2. Off-the-Shelf CRM Solution:Reason Rejected: Lack of customizability for rewards programs specific to Petrie Electronics.

Cost and Schedule Estimates

1. Cost to Complete: $200,000 (breakdown: software licensing, development, testing, deployment, and training).
2. Schedule to Complete: 9 months (3 months for development, 2 months for testing, 2 months for deployment, 2 months for training).
3. Backup:Cost based on vendor quotes and historical data from similar projects.
4. Schedule derived using Microsoft Project with dependencies and resource allocations considered.