RiskManagementPlanFinal1.3

SAP B1 IMPLEMENTATION

Risk Management PlanSAP B1 IMPLIMENTATION

INSTRUCTOR: SIR. Salman BilalDate: 3-28-2015Version: 1.1

STUDENT: FAHAD SALEEM

Risk Management Plan Page 1 of 13

[SAP B1 IMPLEMENTATION]

Document ControlMethodology

Methodology

PM BOK 5

Document location

Location

BAHRIA UNIVERSITY LAHORE

Author

Position Name Contact no

Stakeholders and other contributors

Position Name

RISK MANAGER FAHAD SALEEM

PROJECT MANAGER

Revision history

Version Issue date Author/editor Description/Summary of changes

1.0 3-28-2015 FAHAD REVIEW

1.1 4-4-2015 FAHAD CHANGE IN CONTENTS

Reviewed by

Version Issue date Name Position Review date

1.0 3-21-2015 Sir Salman Bilal Instructor 3-28-2015

1.1 3-28-2015 Sir Salman Bilal Instructor

Approvals.

Version Issue date Name Position Approval date

1.1 3-21-2015 Sir Salman Bilal Instructor 3-28-2015

Related documents

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Risk Management Plan Page 1 of 13

Table of Contents1 PROJECT SUMMARY.............................................................................................................................. 3

1.1. Opportunity Statement...................................................................................................................... 31.2. Objectives and Critical Success Factors...........................................................................................31.3. Scope................................................................................................................................................ 3

1.3.1. In scope 41.3.2. Out of scope 41.3.3. Assumptions 41.3.4. Constraints 41.3.5. Business Constraints 41.3.6. Technical Constraints 4

1.4. Recommended Solution.................................................................................................................... 52. PROJECT RISK ASSESSMENT..............................................................................................................5

2.1. Risk Rating Methodology.................................................................................................................. 62.2. Consequence Legend....................................................................................................................... 62.3. Risk Identification.............................................................................................................................. 7

2.3.1. Operational Risks 72.3.2. Legal Risks 82.3.3. Market Risks 92.3.4. Financial Risks 92.3.5. Miscellaneous Risks 9

3. RISK MANAGEMENT PROCESSES......................................................................................................103.1. Organisation.................................................................................................................................... 103.2. Risk Reporting................................................................................................................................ 113.3. Tracking.......................................................................................................................................... 11

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1 Project SummaryThis document is the Project Risk management plan for the SAP Business One (ERP) implementation project, at XYZ Ltd.. The Project Plan follows Hussain Chaudhury Consulting proposal to implement SAP Business One, which was accepted by XYZ Ltd .

The proposal defined the high-level project scope and approach. The plan also incorporates various activities that will be required so that XYZ Ltd. can use the SAP Business One ERP properly.

1.1.Opportunity StatementThe purpose of this phase is to prepare the SAP Business One system and the client organization for production go-live. During this phase Cut-over activities are completed Along with final system testing and necessary adjustments are made to resolve all remaining critical open issues.

1.2.Objectives and Critical Success Factors. Senior management commitment and support at all levels Participation of team leads in the project team Empowered project team to make decisions as well as existence of forums to support a rapid

decision making process High-calibre project team members Project team availability and full-time dedication to the project Communication with key stakeholders, project team and all users Alignment of expectations to project scope Appropriate human resources, budget and/or time to complete the project Organizational readiness and ability to change Full incorporation of redesigned processes for increased efficiency, effectiveness and alignment with

strategic priorities Strong focus on organizational change management Sufficient training on new application Minimization of unique or local requirements within the organization Strong team environment within the Project Office. Availability of all the data on timely manner..

1.3.ScopeImplementation Services (here in after referred to as “Services”) shall mean to include some or all of the following:

Installation and setup of SAP Business One at Customer’s premises, whether on stand-alone system or network provided by the Customer

Understanding of Customer’s existing systems / processes and development of Business Blueprint of the new system (ASAP Methodology)

Proposing the coding schema for chart of accounts & coding structures in different modules of SAP Business One

System Initialization and set up of the system and uploads of master data HCC Technical team will be responsible for Software (SAP Business One) installation on interim

server, production server and on the Customer site. Training of designated Customer personnel in the proper use of SAP Business One. (Project plan will

be delivered at the preceding week of start of the project)

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1.4. In scope Financials Sales Opportunities Sales A/R Purchasing A/P Banking Inventory Human Resource

1.5. Out of scope Point of Sale Payroll Asset Maintenance Gate Security

1.6. Assumptions Assumptions need to be analysed

You will get all resources required by you.

During the implementation, Technical Staff will be available.

All important stakeholders will come to the next meeting.

1.7. Constraints

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1.8. Business Constraints

Business constraints depend on the state of your organization time, budget, and resource.

1.9. Technical Constraints

Technical constraints limit your design choice

1.10. Recommended Solution …………

2. Project Risk Assessment

2.1.Risk Rating Methodology

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ConsequenceRating Insignificant Minor Moderate Major Catastrophic

Almost certain - controls unsatisfactory to mitigate the risk

High High Extreme Extreme Extreme

Likely - Controls inadequate to mitigate the risk and require improvement

Medium High High Extreme Extreme

Possible - Controls reasonable / adequate to mitigate the risk but may still require improvement

Low Medium High Extreme Extreme

Unlikely - Controls robust and adequate to mitigate the risk

Low Medium Medium High Extreme

Rare - Controls strong to mitigate the risk Low Low Medium High High

2.2.Consequence LegendRating DescriptionInsignificant Impact can be easily absorbed without requiring management effort

Minor Impact can be readily absorbed but some management effort is required

Moderate Impact cannot be managed under normal operating conditions; requiring moderate level of resource and management input

Major Impact requires a high level of management attention / effort and resources to rectify

Catastrophic Disaster with potential to lead to business collapse and requiring almost total management attention / effort to rectify

HIGH BROWN

MEDIUM YELLOW

LOW GREEN

EXTREME ORANGE

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2.3.Risk Identification

2.4. Operational Risks

Risk Summary Description Preliminary Risk Rating

Risk Mitigation Description Residual Risk Rating

Lack of Top Management commitment and support

Minor Medium

Unclear goals and objectives Major high

Limitation in resources Moderate low

Failure to redesign business process Major high

Poor of changes and risks management catastrophic extreme

Poor project management Major high

Ineffective communications Moderate low

Poor conflict management catastrophic extreme

Lack of proper project planning and controlling

Major high

Insufficient testing phase Moderate low

2.4.1.1. Technical Risks



Insufficient training of end-users Moderate low

Lack of business and technical knowledge Major high

Underestimation of organizational structure and business processes

Catastrophic extreme

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Poor integration of the infrastructure systems Catastrophic extreme

The design and implementation of system disrupts the business operations


Insufficient automation Moderate medium

Underestimation of system technical architecture

Moderate medium

Poor software troubleshooting Moderate Medium

Data losses Major high

Too many customizations without knowing exactly which processes should be customized and which need to follow Best Practices.


2.5. Legal Risks



Access Governance Catastrophic extreme

audit management Catastrophic extreme

controls and compliance management Catastrophic extreme

enterprise risk management (ERM) Catastrophic extreme

fraud management Catastrophic extreme

international trade management Catastrophic extreme


2.6. Market Risks



Lack of vendor support and partnership Major High

2.7. Financial Risks



Ineffective project cost and time management Catastrophic extreme

Unfunded for the ERP Catastrophic extreme

2.8. Miscellaneous Risks



Lack of competence of ERP’s consultants Major high

Poor conflict management Catastrophic extreme

Poor motivation and project team work Moderate low


3. Risk Management Processes

.

3.1.Organisation Organizational risk management is risk management at the strategic level. Risk management concepts are discussed in the "Technical Risk Management" practice area, which describes the activities that are necessary for project-level risk management. An organizational risk management process relies on the existence of such project-level risk management and provides mechanisms for surfacing and managing risks that transcend, or are shared across, projects.

The seven principles of risk management are shown in the following figure. These principles are divided into one core principle, three sustaining principles, and three defining principles. An effective risk management program exhibits characteristics of all seven principles.


3.2.Risk Reporting

Risk ID Description Risk Owner Risk Responsible

Recommended Action

3.3.Tracking

Monthly ranking

Risk item Weekly Monthly Quarterly Risk resolution progress


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RiskManagementPlanFinal1.3