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PROCESS AND TIMING FOR IDENTIFYING AND MANAGING RISKS

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PROCESS AND TIMING FOR IDENTIFYING AND MANAGING RISKS

Bio-Film Buster Project Risk Management Plan

Revision History

Date

Version

Description

Author

   

The purpose of this risk management plan is to provide information for use in risk management. Project teams to identify and handle the risks on their project use this risk management process. It covers the needs of the project team to proactively manage their project. It is applied to the BFBP as a means to identify, mitigate and control risks

Pujitha Muppireddi

 

 

 

 

 

 

 

 

 

 

 

 

1. Introduction:

Purpose:

The purpose of this risk management plan is to provide information for use in risk management. Project teams to identify and handle the risks on their project use this risk management process. It covers the needs of the project team to proactively manage their project. It is applied to the BFBP as a means to identify, mitigate and control risks.

Scope:

This document gives a comprehensive overview about the risk management plan for the BFBP product line in the CEV system. The plan consists of the process and timing for identifying and managing risks, mitigation actions required and organizational responsible for monitoring and managing the risks throughout the entire lifecycle. Risk management starts at the very beginning of the project initial planning and assessing. Risks identified early should be addressed immediately. Risks and potential risk areas are monitored and managed throughout the remainder of the project.Scope of the Risk Management Plan (RMP) is not limited to those risks identified early.

Definition Acronyms and Abbreviations:

BFBP - Bio-Film Buster Project
CEV - Crew Exploration Vehicle
RMP - Risk Management Plan
MASC - Mission and Safety Critical Systems
GQM - Goal/Question/Metric
CRR - Comparison Risk Ranking

References:

1) Online material 
2) Managing risk : methods for software systems development / Elaine M. Hall
3) http://www.marquette.edu/riskmanagement/roles.htm
4) http://en.wikipedia.org/wiki/Crew_Exploration_Vehicle#Funding
5) http://www.mapl.com.au/risk/risk3.htm

Overview:

The Risk Management Plan documents the risk management practice (processes, methods, and tools) to be used for a specific project. A Risk Management Plan document is a subset of other documents in the Project Management Plan Document. It helps the project personnel in managing, tracking and documenting the risks. This document provides a risk management plan for the Bio-Film Buster Projects (BFBP) in the development of the Crew Exploration vehicle.

2. Risk Summary:

The Bio-Film Buster Project (BFBP): 1) maintains the orbiter’s thermal stability, 2) provides a pressurized, habitable environment for the crew and onboard avionics, and 3) manages the storage and disposal of water and crew waste. BFBP is functionally divided into four systems: the pressure control system, the atmospheric revitalization system, the active thermal control system, and the supply and waste water system.

The pressure control system maintains the crew compartment at 14.7 pisa with a breathable mixture of oxygen and nitrogen. The atmospheric revitalization system uses air circulation and water coolant loops to remove heat, control humidity, and clean and purify cabin air. The active thermal control system consists of two Freon loops that collect waste heat from orbiter systems and transfer the heat overboard. The supply and wastewater system: 1) stores water produced by the fuel cells for drinking, personal hygiene, and orbiter cooling; 2) stores crew liquid waste and wastewater form the humidity separator; and 3) has the capability to dump supply and wastewater overboard.

 

3. Risk Management Tasks

A risk can be defined as the probability that a project will experience undesirable consequences. Risk Management is the process of identifying, analyzing and controlling risk at the lowest possible cost. An organization with an effective risk management will improve its financial resources. Risk management is a set of actions that helps an organization from incurring any financial losses.
The reasons for performing risk management are
• Early identification of potential problems
• Increase chances of project success
• Enable more efficient use of resources
• Promote teamwork by involving personnel at all levels of the project
• Information for tradeoffs based on priorities and quantified assessment
Continuous Risk Management:

A software project is volatile to different kind of risks. Anything can happen at any time. The server may be crashed all off a sudden, a virus can destroy the data, and unstable requirements can lead to major defects and also result in the crossing of schedule and budget estimates. Miscommunication between the teams working on different modules of a project might lead to interface errors. Continuous Risk Management can be described as a continuous process of learning what a project’s risks are and mitigating/ reducing them or nullifying their impact.

Principal Functions of Continuous Risk Management:

The elements of Continuous Risk Management are

  1. Risk Identification
    2. Risk Analysis
    3. Risk Planning
    4. Risk Tracking
    5. Risk Control
    6. Risk Communication

 

 Risk Identification:

It is important that the risks are identified before they can be managed. The risk identification function primarily aims to find the major risks that a project might face during or after its development, before they can affect the project adversely. A risk is something that has not yet happened, but is likely to turn into a problem. The purpose of risk identification is to locate the risks and stop it from becoming a problem. The Bio-Film Buster Project (BFBP) of the crew exploration Vehicle (CEV) is a Mission and Safety Critical System (MASC). Therefore, the project management team cannot take any chances while locating risks. It has to identify all the possible risks that can arise. For example, there is always this risk that the pressure control system can get out of control. The development team should look for alternatives incase of such abnormal behavior of the principal components.


Risk Analysis:

Once the risks have been identified, the next step is to understand the risks. The raw risk data that we have should be converted into understandable Risk Management information. The project manager can take correct decisions only if each of the risks are identified and clearly defined. Risk analysis can be thought of as an evaluation of all identified risks to understand the probability of impact, the severity of impact and the mitigation actions that need to be done.
The radiators in the active thermal control system of the BFBP are prone to the risk of getting over heated and eventually burn down. It is important to analyze this risk and consider the options that prevent the radiator from getting overheated.


Risk Planning:

Planning is the function of deciding what to do about a risk or a set of risks. The planning phase can have different goals with respect to the risk, such as mitigating impact of the risk, avoiding the risk by changing the design, accepting the risk consequences or assessing the risk impact. The purpose of risk planning is to develop effective plans which ensure that the consequences and sources of risk are known and risks are mitigated while giving preference to the most important risks.

Risk Tracking:

It ensures effective action plan implementation. Tracking is the watch dog function of the risk action plan. The purpose of tracking is to collect accurate and timely risk information and to present it in a clear and understood manner appropriate to the group or person that receives the status report. Tracking is done by the person who is responsible for monitoring or mitigating the risks.

Risk Control:

The purpose of risk control is to make informed, timely and effective decision regarding risks and their mitigation plans. It is the process that takes in tracking status information and decides exactly what to do based on the reported data. Controlling risks involves analyzing the status reports, deciding how to proceed, and then implementing those decisions. The success of the Crew Exploration vehicle heavily depends on how well the BFBP performs. Therefore risk control has a major impact on this MASC operation

Risk Communication and Documentation:

Communication and documentation are essential for the success of any software project. There should be a proper understanding between the various developers and development teams. All the personnel should understand the project’s risks, their consequences, mitigation alternatives, if any to make effective decision within the constraints of the project. Communication is crucial in all the above functions like Identification, Planning, and Tracking etc. For example Guidance Navigation and Control System (GNC) development team which is part of the CEV should have a proper understanding with the BFBP team.

 

4. Organization and Responsibilities:

Risk management is a continuous, forward-looking process that is an important part of business technical management processes. Risk management should address issues that could endanger achievement of critical objectives. A continuous risk management approach is applied to effectively anticipate and mitigate the risks that will have critical impact on the project. Effective risk management includes early and aggressive risk identification through the collaboration and involvement of relevant stakeholders. There will be several roles involved in risk management. The project Manager, project developers, Risk managers, Risk analysts, Team leads and the senior management all have their roles and responsibilities in the handling of risk management.

Table 1: Different roles and their responsibilities

Role

Responsibilities

 

Project Developers

  1. Identify and Analyze risks

 

  1. Evaluate and categorize risks

 

  1. Prioritize risks based on their likely impact upon the project

 

Project Manager

  1. Authorizes the financial resources for the implementation of the mitigation action plans.

 

  1. Integrate all the risk information  and re-prioritize all the risks to determine the top 10% or 20% risks

 

  1. Build action plans and coordinate the communications with the senior management and the stake holders.

 

  1. Balance the schedule and budget estimates of the project

Risk Manager

1.      Analyze the financial impact  of loss to the organization

 

2.      Prepare Risk Management and Insurance budgets

 

3.      Implement or Co-ordinate a comprehensive loss control program

 

4.      Prepare a Risk Management policy statement

 

 

Senior Risk Analyst

1.        Responsible for the development, implementation and refinement of risk management strategies

 

2.        Provide direction and support to account management groups to manage losses.

 

3.        Managing resources wisely and protecting the organization’s assets and public image.

Senior Management

  1. Support the goals of the program

 

  1. Provide necessary authority to the risk manager commensurate with the responsibility.

 

  1. Allocate the budget for the mitigation activities

 

Software Quality personnel

1.      Assess the overall quality of the project.

 

2.      Monitor the impact of the risks or risk mitigation action plans on the quality of the product.

 

3.       Improve the software quality, thereby enhancing the product marketing and sale

5. Budget:

The success of a project largely depends on whether or not the project is on schedule and still meeting its budget estimates. Before allocating the budget for a project, the management considers several issues such as the Equipment costs, labor costs etc.
The proposal to create the Crew Exploration vehicle is partly a reaction to the space shuttle Columbia disaster. NASA has decided to use an Apollo-like capsule for the CEV design.
Nasa allocated a budget of $28 million to Lockheed Martin corp. and Boeing to come up with a complete design for the CEV. Once they come up with their design, Nasa will award one of the two companies, the contract of building the CEV. An amount of $428 million was allocated to develop the CEV which is a mission and Safety Critical System. An amount of $753 millions is allocated for the continuing development of the CEV for the year 2006. The total development cost for the CEV is estimated to be $15 billion. The Bio-Film Buster Project is a product line of the CEV. It is estimated that approximately $3.7 billion would be allocated for the development of the BFBP.

6. Tools and Techniques:

There are different methods and tools to identify risks.

Brainstorming: Brainstorming is used to quickly generate ideas on a particular problem. It is an excellent way of identifying or bringing out the creative talent in the group. The quantity of ideas is given more preference than quality here. Evaluation of ideas is not performed at this time. This method does not require any training for the participants.

Goal/Question/Metric Paradigm: The GQM is a Paradigm for formalizing the characterization, planning, construction, analysis, learning and feedback of tasks

Software Checklist: It is organized by development phases of a project, with emphasis on the software portion of the overall project lifecycle.

Risk Information sheet: A means of documenting information about a risk, much as a software trouble or problem report documents a problem in software. Information is added to the sheet as it is acquired or developed

Some methods and tools for Analyzing risks are:

Affinity Grouping: Affinity grouping organizes large numbers of data (risks) into groupings of related items and ties similar groups together. The outcome forms a structure of related items

Bar Graph: Bar graphs graphically represent data for comparison to other data or other categories of data using bars. The measure of data are depicted by a bar length. In risk management, a bar can be used, for example, to graphically represent categories of risks and number of risks in a category.

Comparison Risk Ranking: Comparison risk ranking (CRR) is a method of ranking risks. It compares two risks at a time in conjunction with the project criteria. In this method there is an explicit comparison of every risk with every other risk and participants cast a vote for each comparison.

Multivoting: Multivoting is a general voting method used to select the most important items from a list. Selecting the number of votes to be used depends on the number of items on the list. In risk management, each participant is given a number of votes to choose the top risks in the list according to them. A general rule of thumb is to allow participant votes equal to one-third the numbers of items on the list. For a large number of items, a series of votes is used to reduce the list to a workable number.

Some tools like the Risk Information sheet can be used for Risk planning, tracking and control. A risk information sheet is a means of capturing information about a risk. Risk information sheets are used to document new risks as they are identified. They are also used to modify information as risks are managed. It is a form that can be submitted to the appropriate person or included in a database with other project risks. Also the Multivoting technique can be used in planning, tracking and control of risks.
Other than these, there are several other tools and techniques like Pert chart, Stop light chart, Gantt charts, spreadsheet Risk Tracking etc that can be used to store risk information.

7. Risk Items to be managed:

There can be many risk factors involved in a project like, lack of proper management structure, insufficient training or internal expertise and in some cases, lack of management support.

The development of the Crew Exploration vehicle is a critical project, consisting of several product lines that provide a solution to a subsystem in an application domain. The development team should consider all possible risks before releasing the product for use. Some of the risk items that should be managed properly are explained below.

• The requirements for the BFBP should be well defined. Care should be taken to avoid any unstable requirements. There are many cases where new requirements are included into the project as the product is under development. It is in the best interests of the project to define the entire requirements early in the life cycle of the project. This could cut down the development costs as well.

• There should be a good communication among the development team. For example, different teams may interpret the initial requirement differently. It is important that all these teams reach a consensus with respect to the requirement. In this case study, there should be a proper communication between the GNC (Guidance Navigation and Control Systems) and the BFBP.

• Another risk factor, that should be emphasized upon is the financial risk. The organization should complete the project with the scheduled time. Going for overtime will increase the labor costs. Also the requirements should be well defined to eliminate the cost from exceeding.

• The design of the BFBP should be correct. An erroneous design of the product could lead it towards disaster.

• Proper validation should be performed to check if the product is appropriately working in the intended environment. A product development validation, planning, execution and analysis should be done to determine the validity of the product.

Bio-Film Buster Project Risk Management Plan

1. Introduction:

Purpose:

The purpose of this risk management plan is to provide information for use in risk management. Project teams to identify and handle the risks on their project use this risk management process. It covers the needs of the project team to proactively manage their project. It is applied to the BFBP as a means to identify, mitigate and control risks.

Scope:

This document gives a comprehensive overview about the risk management plan for the BFBP product line in the CEV system. The plan consists of the process and timing for identifying and managing risks, mitigation actions required and organizational responsible for monitoring and managing the risks throughout the entire lifecycle. Risk management starts at the very beginning of the project initial planning and assessing. Risks identified early should be addressed immediately. Risks and potential risk areas are monitored and managed throughout the remainder of the project.Scope of the Risk Management Plan (RMP) is not limited to those risks identified early.

Definition Acronyms and Abbreviations:

BFBP - Bio-Film Buster Project
CEV - Crew Exploration Vehicle
RMP - Risk Management Plan
MASC - Mission and Safety Critical Systems
GQM - Goal/Question/Metric
CRR - Comparison Risk Ranking

References:

1) Online material 
2) Managing risk : methods for software systems development / Elaine M. Hall
3) http://www.marquette.edu/riskmanagement/roles.htm
4) http://en.wikipedia.org/wiki/Crew_Exploration_Vehicle#Funding
5) http://www.mapl.com.au/risk/risk3.htm

Overview:

The Risk Management Plan documents the risk management practice (processes, methods, and tools) to be used for a specific project. A Risk Management Plan document is a subset of other documents in the Project Management Plan Document. It helps the project personnel in managing, tracking and documenting the risks. This document provides a risk management plan for the Bio-Film Buster Projects (BFBP) in the development of the Crew Exploration vehicle.

2. Risk Summary:

The Bio-Film Buster Project (BFBP): 1) maintains the orbiter’s thermal stability, 2) provides a pressurized, habitable environment for the crew and onboard avionics, and 3) manages the storage and disposal of water and crew waste. BFBP is functionally divided into four systems: the pressure control system, the atmospheric revitalization system, the active thermal control system, and the supply and waste water system.

The pressure control system maintains the crew compartment at 14.7 pisa with a breathable mixture of oxygen and nitrogen. The atmospheric revitalization system uses air circulation and water coolant loops to remove heat, control humidity, and clean and purify cabin air. The active thermal control system consists of two Freon loops that collect waste heat from orbiter systems and transfer the heat overboard. The supply and wastewater system: 1) stores water produced by the fuel cells for drinking, personal hygiene, and orbiter cooling; 2) stores crew liquid waste and wastewater form the humidity separator; and 3) has the capability to dump supply and wastewater overboard.

3. Risk Management Tasks

A risk can be defined as the probability that a project will experience undesirable consequences. Risk Management is the process of identifying, analyzing and controlling risk at the lowest possible cost. An organization with an effective risk management will improve its financial resources. Risk management is a set of actions that helps an organization from incurring any financial losses.
The reasons for performing risk management are
• Early identification of potential problems
• Increase chances of project success
• Enable more efficient use of resources
• Promote teamwork by involving personnel at all levels of the project
• Information for tradeoffs based on priorities and quantified assessment
Continuous Risk Management:

A software project is volatile to different kind of risks. Anything can happen at any time. The server may be crashed all off a sudden, a virus can destroy the data, and unstable requirements can lead to major defects and also result in the crossing of schedule and budget estimates. Miscommunication between the teams working on different modules of a project might lead to interface errors. Continuous Risk Management can be described as a continuous process of learning what a project’s risks are and mitigating/ reducing them or nullifying their impact.

Principal Functions of Continuous Risk Management:

The elements of Continuous Risk Management are

1. Risk Identification
2. Risk Analysis
3. Risk Planning
4. Risk Tracking
5. Risk Control
6. Risk Communication

 Risk Identification:

It is important that the risks are identified before they can be managed. The risk identification function primarily aims to find the major risks that a project might face during or after its development, before they can affect the project adversely. A risk is something that has not yet happened, but is likely to turn into a problem. The purpose of risk identification is to locate the risks and stop it from becoming a problem. The Bio-Film Buster Project (BFBP) of the crew exploration Vehicle (CEV) is a Mission and Safety Critical System (MASC). Therefore, the project management team cannot take any chances while locating risks. It has to identify all the possible risks that can arise. For example, there is always this risk that the pressure control system can get out of control. The development team should look for alternatives incase of such abnormal behavior of the principal components.


Risk Analysis:

Once the risks have been identified, the next step is to understand the risks. The raw risk data that we have should be converted into understandable Risk Management information. The project manager can take correct decisions only if each of the risks are identified and clearly defined. Risk analysis can be thought of as an evaluation of all identified risks to understand the probability of impact, the severity of impact and the mitigation actions that need to be done.
The radiators in the active thermal control system of the BFBP are prone to the risk of getting over heated and eventually burn down. It is important to analyze this risk and consider the options that prevent the radiator from getting overheated.


Risk Planning:

Planning is the function of deciding what to do about a risk or a set of risks. The planning phase can have different goals with respect to the risk, such as mitigating impact of the risk, avoiding the risk by changing the design, accepting the risk consequences or assessing the risk impact. The purpose of risk planning is to develop effective plans which ensure that the consequences and sources of risk are known and risks are mitigated while giving preference to the most important risks.

Risk Tracking:

It ensures effective action plan implementation. Tracking is the watch dog function of the risk action plan. The purpose of tracking is to collect accurate and timely risk information and to present it in a clear and understood manner appropriate to the group or person that receives the status report. Tracking is done by the person who is responsible for monitoring or mitigating the risks.

Risk Control:

The purpose of risk control is to make informed, timely and effective decision regarding risks and their mitigation plans. It is the process that takes in tracking status information and decides exactly what to do based on the reported data. Controlling risks involves analyzing the status reports, deciding how to proceed, and then implementing those decisions. The success of the Crew Exploration vehicle heavily depends on how well the BFBP performs. Therefore risk control has a major impact on this MASC operation

Risk Communication and Documentation:

Communication and documentation are essential for the success of any software project. There should be a proper understanding between the various developers and development teams. All the personnel should understand the project’s risks, their consequences, mitigation alternatives, if any to make effective decision within the constraints of the project. Communication is crucial in all the above functions like Identification, Planning, and Tracking etc. For example Guidance Navigation and Control System (GNC) development team which is part of the CEV should have a proper understanding with the BFBP team.

4. Organization and Responsibilities:

Risk management is a continuous, forward-looking process that is an important part of business technical management processes. Risk management should address issues that could endanger achievement of critical objectives. A continuous risk management approach is applied to effectively anticipate and mitigate the risks that will have critical impact on the project. Effective risk management includes early and aggressive risk identification through the collaboration and involvement of relevant stakeholders. There will be several roles involved in risk management. The project Manager, project developers, Risk managers, Risk analysts, Team leads and the senior management all have their roles and responsibilities in the handling of risk management.

5. Budget:

The success of a project largely depends on whether or not the project is on schedule and still meeting its budget estimates. Before allocating the budget for a project, the management considers several issues such as the Equipment costs, labor costs etc.
The proposal to create the Crew Exploration vehicle is partly a reaction to the space shuttle Columbia disaster. NASA has decided to use an Apollo-like capsule for the CEV design.
Nasa allocated a budget of $28 million to Lockheed Martin corp. and Boeing to come up with a complete design for the CEV. Once they come up with their design, Nasa will award one of the two companies, the contract of building the CEV. An amount of $428 million was allocated to develop the CEV which is a mission and Safety Critical System. An amount of $753 millions is allocated for the continuing development of the CEV for the year 2006. The total development cost for the CEV is estimated to be $15 billion. The Bio-Film Buster Project is a product line of the CEV. It is estimated that approximately $3.7 billion would be allocated for the development of the BFBP.

6. Tools and Techniques:

There are different methods and tools to identify risks.

Brainstorming: Brainstorming is used to quickly generate ideas on a particular problem. It is an excellent way of identifying or bringing out the creative talent in the group. The quantity of ideas is given more preference than quality here. Evaluation of ideas is not performed at this time. This method does not require any training for the participants.

Goal/Question/Metric Paradigm: The GQM is a Paradigm for formalizing the characterization, planning, construction, analysis, learning and feedback of tasks

Software Checklist: It is organized by development phases of a project, with emphasis on the software portion of the overall project lifecycle.

Risk Information sheet: A means of documenting information about a risk, much as a software trouble or problem report documents a problem in software. Information is added to the sheet as it is acquired or developed

Some methods and tools for Analyzing risks are:

Affinity Grouping: Affinity grouping organizes large numbers of data (risks) into groupings of related items and ties similar groups together. The outcome forms a structure of related items

Bar Graph: Bar graphs graphically represent data for comparison to other data or other categories of data using bars. The measure of data are depicted by a bar length. In risk management, a bar can be used, for example, to graphically represent categories of risks and number of risks in a category.

Comparison Risk Ranking: Comparison risk ranking (CRR) is a method of ranking risks. It compares two risks at a time in conjunction with the project criteria. In this method there is an explicit comparison of every risk with every other risk and participants cast a vote for each comparison.

Multivoting: Multivoting is a general voting method used to select the most important items from a list. Selecting the number of votes to be used depends on the number of items on the list. In risk management, each participant is given a number of votes to choose the top risks in the list according to them. A general rule of thumb is to allow participant votes equal to one-third the numbers of items on the list. For a large number of items, a series of votes is used to reduce the list to a workable number.

Some tools like the Risk Information sheet can be used for Risk planning, tracking and control. A risk information sheet is a means of capturing information about a risk. Risk information sheets are used to document new risks as they are identified. They are also used to modify information as risks are managed. It is a form that can be submitted to the appropriate person or included in a database with other project risks. Also the Multivoting technique can be used in planning, tracking and control of risks.
Other than these, there are several other tools and techniques like Pert chart, Stop light chart, Gantt charts, spreadsheet Risk Tracking etc that can be used to store risk information.

7. Risk Items to be managed:

There can be many risk factors involved in a project like, lack of proper management structure, insufficient training or internal expertise and in some cases, lack of management support.

The development of the Crew Exploration vehicle is a critical project, consisting of several product lines that provide a solution to a subsystem in an application domain. The development team should consider all possible risks before releasing the product for use. Some of the risk items that should be managed properly are explained below.

• The requirements for the BFBP should be well defined. Care should be taken to avoid any unstable requirements. There are many cases where new requirements are included into the project as the product is under development. It is in the best interests of the project to define the entire requirements early in the life cycle of the project. This could cut down the development costs as well.

• There should be a good communication among the development team. For example, different teams may interpret the initial requirement differently. It is important that all these teams reach a consensus with respect to the requirement. In this case study, there should be a proper communication between the GNC (Guidance Navigation and Control Systems) and the BFBP.

• Another risk factor, that should be emphasized upon is the financial risk. The organization should complete the project with the scheduled time. Going for overtime will increase the labor costs. Also the requirements should be well defined to eliminate the cost from exceeding.

• The design of the BFBP should be correct. An erroneous design of the product could lead it towards disaster.

• Proper validation should be performed to check if the product is appropriately working in the intended environment. A product development validation, planning, execution and analysis should be done to determine the validity of the product.


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  • Title: PROCESS AND TIMING FOR IDENTIFYING AND MANAGING RISKS
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  • Post Date: 2018-11-09T10:09:21+00:00
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