RiskManagementPlanFinal1.3
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This document presents a risk management plan for implementing SAP B1 at XYZ Ltd. It identifies objectives such as senior management support, effective communication, and change management. The plan defines the project scope, assumptions, and constraints. It also provides a risk rating methodology and identifies numerous operational, technical, legal, market, and financial risks. Finally, it discusses the organizational structure for risk management and processes for reporting and tracking risks.
![[SAP B1 IMPLEMENTATION]
Risk Management Plan Page 1 of 12
DocumentControl
Methodology
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
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RiskManagementPlanFinal1.3
- 1. SAP B1 IMPLEMENTATION Risk Management Plan Page 1 of 12 Risk Management Plan SAP B1 IMPLIMENTATION INSTRUCTOR: SIR. Salman Bilal Date: 3-28-2015 Version: 1.1 STUDENT: FAHAD SALEEM
- 2. [SAP B1 IMPLEMENTATION] Risk Management Plan Page 1 of 12 DocumentControl Methodology 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 Document Location
- 3. 75ec6beb-5612-41ed-9e17-41d4d5a4ffd8-161028082438 Table of Contents 1 PROJECT SUMMARY......................................................................................................................3 1.1. Opportunity Statement ..............................................................................................................3 1.2. Objectives and Critical Success Factors .....................................................................................3 1.3. Scope ......................................................................................................................................3 1.3.1. In scope 4 1.3.2. Out of scope 4 1.3.3. Assumptions 4 1.3.4. Constraints 4 1.3.5. Business Constraints 5 1.3.6. Technical Constraints 5 1.4. Recommended Solution ............................................................................................................5 2. PROJECT RISK ASSESSMENT .......................................................................................................5 2.1. Risk Rating Methodology...........................................................................................................5 2.2. Consequence Legend ...............................................................................................................6 2.3. Risk Identification .....................................................................................................................7 2.3.1. Operational Risks 7 2.3.2. Legal Risks 8 2.3.3. Market Risks 9 2.3.4. Financial Risks 9 2.3.5. Miscellaneous Risks 9 3. RISK MANAGEMENT PROCESSES ...............................................................................................10 3.1. Organisation...........................................................................................................................10 3.2. Risk Reporting........................................................................................................................11 3.3. Tracking.................................................................................................................................11
- 4. 75ec6beb-5612-41ed-9e17-41d4d5a4ffd8-161028082438 1 ProjectSummary This 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 Statement The 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. Scope Implementation 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)
- 5. 75ec6beb-5612-41ed-9e17-41d4d5a4ffd8-161028082438 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
- 6. 75ec6beb-5612-41ed-9e17-41d4d5a4ffd8-161028082438 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. ProjectRisk Assessment 2.1. Risk Rating Methodology Consequence Rating Insignificant Minor Moderate Major Catastrophic
- 7. 75ec6beb-5612-41ed-9e17-41d4d5a4ffd8-161028082438 Consequence Rating 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 Legend Rating Description Insignificant 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
- 8. 75ec6beb-5612-41ed-9e17-41d4d5a4ffd8-161028082438 Page 7 of 12 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 Risk Summary Description Preliminary Risk Rating Risk Mitigation Description Residual Risk Rating Insufficient training of end-users Moderate low Lack of business and technical knowledge Major high Underestimation of organizational structure and business processes Catastrophic extreme
- 9. 75ec6beb-5612-41ed-9e17-41d4d5a4ffd8-161028082438 Page 8 of 12 Risk Summary Description Preliminary Risk Rating Risk Mitigation Description Residual Risk Rating Poor integration of the infrastructure systems Catastrophic extreme The design and implementation of system disrupts the business operations Catastrophic extreme 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. Catastrophic extreme 2.5. Legal Risks Risk Summary Description Preliminary Risk Rating Risk Mitigation Description Residual Risk Rating 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
- 10. 75ec6beb-5612-41ed-9e17-41d4d5a4ffd8-161028082438 Page 9 of 12 2.6. Market Risks Risk Summary Description Preliminary Risk Rating Risk Mitigation Description Residual Risk Rating Lack of vendor support and partnership Major High 2.7. Financial Risks Risk Summary Description Preliminary Risk Rating Risk Mitigation Description Residual Risk Rating Ineffective project cost and time management Catastrophic extreme Unfunded for the ERP Catastrophic extreme 2.8. Miscellaneous Risks Risk Summary Description Preliminary Risk Rating Risk Mitigation Description Residual Risk Rating Lack of competence of ERP’s consultants Major high Poor conflict management Catastrophic extreme Poor motivation and project team work Moderate low
- 11. 75ec6beb-5612-41ed-9e17-41d4d5a4ffd8-161028082438 Page 10 of 12 3. Risk ManagementProcesses . 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.
- 12. 75ec6beb-5612-41ed-9e17-41d4d5a4ffd8-161028082438 Page 11 of 12 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