Running head: ABI PROJECT RISK MANAGEMENT PLAN
ABI Project Risk Management Plan
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University of Phoenix
ABI Project Risk Management Plan
The recent acquisition of the ABI company by FAFS mean that ABI needs to change many
of their internal processes to coordinate and be accessible by both entities. The union of
these banking companies means a merging of databases and software applications. The
challenge is to implement the fusion of these companies in a timely cost efficient manner.
With the VP of FAFS guiding two ABI executives and one FAFS executive, the CEO of
ABI needs to come up with a plan to integrate the companies and manage the project
throughout the process. Weighing the risk of decisions and implementing these choices
becomes more challenging than expected. With unforeseen resource barriers, and changes
in scheduling, the team had to work together to bring these financial institutions into a
bigger better banking entity
Management Responses
An important manifestation of effective risk management is getting a handle on the scope,
volatilities, and severities of the risks ones company faces, then tailoring an appropriate set
of risk responses. Risk managers have many types of risk treatments at their disposal.
Every companys risk management solution will be unique because the exposures and risk
appetites all differ. The key is to have a reasonable under-standing of how each treatment
option works, alone and in combination with others, so that decisions are informed and
results are less influenced by luck than by reason (McCarthy, Flynn, and Brownstein,
2004).
The executive team in relied on history and the current situation to asses the risk of
different decisions. Placing weight on their experience in the backgrounds they came from,
they gave advice accordingly. Many times each of them had his or her own idea on how to
move forward, but generally there was common theme that assisted on choosing the right
way to proceed with the project.
A tool throughout was the process of using a formula to asses the risk. Risk analysis
consists of risk identification,probability assessment, and impact estimate. Start by
identifying all the risk events that can occur on your project. Then estimate the probability
of each event happening (Chapman, 1997). Using this formula, more basically written:
Project Risk = ∑(Events * Probabilities * Consequences) (Chapman, 1997), the team
would base their decisions on the outcome of this formula. The key points of the risk
formula were: Resource Constraints; skill and Competency Gaps; Dependency on FAFS
