Introduction
In the project management process, it seems imperative for project management to identify several risks and shape effective risk mitigation strategies. The most important thing for project management is to define key roles and responsibilities of all key stakeholders in the project process. Of course, in the risk identification and risk motivation process, these stakeholders have to play a vital role and enable project sustainability. This analysis revolves around the case study “The Blue Spider Project.” Several risks are to be derived from this case study for further assessment in terms of probability and impact, probability and impact metric and risk, register are two main components of this case study analysis.
Risk identification and Impact Assessment
Some risks are to be identified in this case study, along with consequence and impact. The identification of the risk sets the foundation for assessing the risk in terms of impact and probability. Some risks and possible effects in this project are illustrated below.
Possible Risks and Critically Analyzing Impact
Lack of Administration Skill
One of the apparent risks in this project process or case study is the lack of administration skills. After getting a promotion from engineer to project programmer or manager, he intended to control the whole research and development process for Lord Industries. Nonetheless, due to the lack of management or administration skills, he would fail in controlling or managing the staff. Critically, the impact on the project management or organization is evident, as lack of administration skills or expertise would lead to impaired project outcomes, especially in the research and development process (Case., P 280)
Resistance by Project Stakeholders
Another risk can be the immense resistance by project stakeholders, including engineers and associated staff. In the research and development process at Park Corporations, these stakeholders would refuse to work extra. It can be said that the negative behavior of staff was a considerable risk. Critically, the impact is also apparent, as Gary has a direct relationship with the project team working at the bottom-line in the company.
Rejection of New Material
Another critical risk, which has been identified in the case study, is the rejection of new material, which is tested without being included in the project program or plan. Parks Corporation is willing to design a tactical missile for military or army with standard material, and it was the main motive to conduct substantial research and development. The testing of new material was risky, as the Lord can reject it. Critically, the impact of this risk is high because it can impair the relationship between both parties. Gary creates some resistance initially. However, he managed to sustain the process and keep this substantial risk.
Impaired Brand Image
Another risk, obtained from this case study, was that the Parks Corporation could have impaired brand image. The revelation of unethical practice in the project management process can cause the termination of the project.
Out of Budget
Another risk is that the project may be out of budget for a while due to any change in the scope. It can put a burden on departments, and overall, the financial capability of Parks Corporation can be questioned (Nicholas, 2004).
Risk Probability and Impact Matrix
| Risk | Probability | Impact | P*I |
| Lack of Administration Skill | 0.1 | 0.7 | 0.07 |
| Resistance by Project Stakeholders | 0.5 | 0.5 | 0.25 |
| Rejection of New Material | 0.9 | 0.7 | 0.63 |
| Impaired Brand Image | 0.7 | 0.5 | 0.35 |
| Out of Budget | 0.5 | 0.7 | 0.35 |
| Probability | 0.9 | 0.09 | 0.27 | 0.45 | 0.63 | 0.81 |
| 0.7 | 0.07 | 0.21 | 0.35 | 0.49 | 0.63 | |
| 0.5 | 0.05 | 0.15 | 0.25 | 0.35 | 0.45 | |
| 0.3 | 0.03 | 0.09 | 0.15 | 0.21 | 0.27 | |
| 0.1 | 0.01 | 0.03 | 0.05 | 0.07 | 0.09 | |
| 0.1 | 0.3 | 0.5 | 0.7 | 0.9 | ||
| Impact | ||||||
Now, this impact and probability metric tells prominent or essential and least essential risks. Of course, the project management process has to focus on these risks, which are highlighted in dark colors in the metric. In short, it can be said that the rejection of material, lack of administration skills, and minimum budget are a key risk, which contains more probability and impact. Thus, project management has to focus on these risks and make effective risk mitigation strategies (Heldman, Baca, Jansen, & Jansen, 2007).
Appropriate Response Strategies
The proper response strategies are in the limelight, as these have been shaped for all risks, which have been identified earlier in the case study. For instance, regarding lack of administration skills, project management, especially Gable, should arrange some key training sessions for newly promoted project programmers or managers. Just focusing on cost and time is not enough, as administration skills are to be learned through training and development initiatives. Of course, it will reduce the probability and impact of this particular risk. On the other hand, the resistance of the project stakeholder is also a key issue, which can create an effect on overall project outcomes. The best thing that the project team can do is to engage all key stakeholders, especially engineers and reach teams. These stakeholders will know what is going to be conducted in the project. Eventually, it will diminish the impact and probability. Rejection of the material is one of the prominent and high probability risks in the whole project case. Of course, testing or using the material, which is not included in the program, was risky, as it may lead to the project termination cancellation (Case., p 284).
The best response strategy is collaboration with Lord Industries. It is all about implementing the agile method, as the company has to work or collaborate with the client to discuss the new material. Due to effective engagement and communication, the company can convince Lord Industries or the army to use this new material in the development of a new tactical missile. An improved brand image is also a prominent risk, as the company has to keep the high brand image in a loop. Thus, the best thing that the company or project management can do is to develop and execute the ethical model of conduct. If the project team implements the moral code of conduct in the project process, it will be restrained from conducting any unethical practices.
For instance, at the end of the case, it was revealed that Gary was unable to share information with Gable, and it was unethical. Thus, the implementation of the ethical code of conduct seems the best response strategy.
Risk Register for Case Study
| Risk Index | Risk Description | Impact | Likelihood | Risk Response | Risk Response Action |
| 1 | Lack of Administration Skill | High | Low | Mitigate | Training & development is the best mitigation strategy, as Gary can emerge in a better way with administration skills. |
| 2 | Resistance by Project Stakeholders | Moderate | Moderate | Transfer | Communication and engagement will help to transfer this risk, as project stakeholders will know what they are going to do |
| 3 | Rejection of New Material | High | High | Transfer | Of course, rejection of the new material can be mitigated by collaborating with another party, and it can help to transfer the risk. |
| 4 | Impaired Brand Image | High | Moderate | Accept | If the company takes a risk by using unauthorized material or project practice, it must own it if there is no ethical code of conduct. |
| 5 | Out of Budget | High | High | Accept | Change in the scope in the project may increase the budget, and the company has to accept it by using management reserves kept in the Parks Corporation. |
(Molenaar, 2010)
Risk Management Reporting
Effective risk management reporting is always triggered by effective communication. For instance, it can be affirmed that communication is the best source for the company to get rid of gaps.
Apprising Stakeholders about Ongoing risks Management Activities
The best way to engage stakeholders or apprising stakeholders in terms of ongoing project activities is to conduct or hold meetings. Project management can make a weekly or monthly schedule to meet several stakeholders and discuss ongoing activities. Work delegation in the research and development process is a key, and a good communication process is always needed. The second-best way for apprising ongoing risk management activities is to reduce the gap between top management and people working at the bottom-line. The case study revealed that Gary tried to contact Gable to discuss ongoing project activities. Unfortunately, he was unavailable. It seems a learning aspect, as project managers and authorities must be available to discuss ongoing project activities. If these activities are planned at the top level, these are to be communicated in a report form.
Conclusion
Finally, it is to presume that the Blue Spider Project can be successful if the project management manages to overcome these risks or barriers. The most important thing is to assess the probability and impact of the risk and shape effective response strategies. In this comprehensive case study analysis, the emphasis was on the risk identification, probability, and impact matrix and an appropriate risk register. In the effective project management process, the project manager has to identify the need for risk identification and risk mitigation strategies, and Blue Spider Project must be up to it
References
Heldman, K., Baca, C. M., Jansen, P. M., & Jansen, P. (2007 ). PMP Project Management Professional Exam Study Guide. John Wiley & Sons.
Molenaar, K. R. (2010). Guidebook on Risk Analysis Tools and Management Practices to Control Transportation Project Costs. Transportation Research Board.
Nicholas, J. M. (2004). Project Management for Business and Engineering: Principles and Practice. Elsevier.
