Objective of the Risk Management Plan

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2.0 RISK MANAGEMENT PROCEDURES                                                                                                                 5

2.1 PROCESS  6



2.3.1 Methods for Risk Identification  10

2.3.2 Risk Register 11


2.4.1 Qualitative Risk Analysis – Probability and Impact Matrix  12




References  21






In alignment with Kohl’s strategic plan, leadership and management at Kohls has decided to expand their retail footprint by opening a new location to grow and service additional customers. Our team has been hired as a consultant group that will guide and support the opening of a new Kohl’s retail store.

Executive leadership has tasked our group with identifying the risks involved with opening the new location as well as their impacts to the project and ways to mitigate or preferably eliminate the risks. By implementing a risk management plan, we are setting ourselves up for a successful project while considering the possible risks and scenarios that can be encountered during the process.  The end result is to open the new location on time while staying on budget and eliminating and reducing overall risks.



risk management plan is a formal document that describes how to deal with specific risks and what risk managing actions can be taken in order to mitigate or remove threats to the project activities and outcomes. The project risk management plan gives members of the project management team a sense of the risk managing actions they can take to identify, analyze and respond to threats around and within the project. The risk mitigation plan is a subsidiary plan in the hierarchy of the project management plan. The given project risk management plan definition is common and relevant to most kinds of project, including IT projects and construction projects (My Management Guide).  The risk management plan is used as a resource for the project management team to update and modify risks as the project moves along in its cycle.

The project risk managing plan is intended for guiding the project management team through the whole process of managing project risks which includes such major steps as Risk Identifying, Risk Analyzing, Risk Responding and Risk Controlling. The plan will be under constant review throughout the course of the project. The risk mitigation plan purpose is to provide the team with a clear understanding of the necessary actions to be taken to protect the project from hidden and identified threats and to utilize existing opportunities for improving project performance.

There are three main risks in every project: budget, time, and performance (McHale, 2020). The financial risks associated with a project are often managed more closely as these tend to be more pressing than others. If a project is set back or requires changes, the budget will need to be adjusted to accommodate those changes. There is always a risk of running out of money or misallocating funds, so it is vital that a project manager work to predict those instances and minimize their effects. Time is valuable finite resource in a project, with each activity encompassing a certain amount. Therefore, it is important to understand the life cycle of the project. It can help to predict how much time to spend at each project phase from beginning to end and identify any potential issues before planning the project implementation. It is always a good practice to leave ‘cushion’ room in for any changes or modifications needed of the construction plan. The most important risk in the project is the performance itself. The outcomes of the project depend on the team’s performance. When managing the performance risk, the project plans for the ideal outcome of finishing the project successfully despite obstacles. The ability to successfully manage risks is directly tied to the risk management process.






A risk is identified as being anything that could potentially impact your project’s timeline, performance or budget. Risks are potentialities, and in a project management, once they become realities, they then become classified as “issues” that must be addressed. Risk management is the process of identifying, categorizing, prioritizing and planning for risks before they become issues (project manager risk management). The risk management plan helps establish unforeseen circumstances or uncertainties that can be reviewed and adjusted accordingly throughout the project plan. An effective risk management plan is vital in project management to ensure the overall success of the project itself. Market research has shown that an additional retail location is highly demanded by consumers. The purpose of expanding Kohls with a new location is to grow sales and service additional customers in the specified area. The location selected has the potential risks for build-out and permit delays. The Project Manager will work closely alongside construction and set-up team to ensure an on-time opening and alleviate any risks that occur throughout the project life cycle. There is also the risk associated with the level of foot traffic and demand predicted and results of market research not being accurate. These risks will be considered on our plan.



As we open the pages for ‘process’ we investigate all the processes for project risk management and how the processes unfold the risks involved in the expansion of Kohl’s. The expansion of Kohl’s, like any project, comes with risks. The project management team must be aware of any risks and the ins and outs of the planning processes. As we dive into the processes, there are several key concepts we must identify.

            Positive Risk is based off opportunities that often result in benefits in the company’s favor. These are risks that we aim for but happen less often than one hopes for. The best response for positive risks, is to have all the necessary strategies in place to accept the incoming rewards. With every positive, there is also a negative. This is when it comes down to negative risks, which involve risks that impact the project, partners, or company in a detrimental way. One must be able to react and adapt, so the effects do not ultimately destroy the entire project.

Qualitative Risk analysis “prioritizes the identified project risks using a pre-defined rating scale. Risks will be scored based on their probability or likelihood of occurring and the impact on project objectives should they occur” (Goodrich). The qualitative risk is based on categorizing each of the risks whether it be effect or source based.

Quantitative Risk analysis is based on numerical data to provide an analysis of a project based on numerical probabilities.  An analysis based on quantitative data includes the following:

  • “Quantifies the possible outcomes for the project and assesses the probability of achieving specific project objectives”
  • “Provides a quantitative approach to making decisions when there is uncertainty”
  • “Creates realistic and achievable cost, schedule or scope targets”

The chart below highlights the differences between qualitative vs. quantitative risk analysis

Qualitative Quantitative
No special tools/software necessary Specialized tools may be required
Risk-level Project-level
Easy to perform Time consuming


The Kohl’s expansion team has in fact developed a necessary project model to ensure both the qualitative and quantitative risks are analyzed accurately and timely. The dynamics of the project management team have brought a sense of stability and security for the process. The team will continue to conduct planning for risk management and response plan. The risks are identified, and the expansion team are on board to ensure the positive and negative risks are of low impact on the overall project.




Role Responsibilities
Project Manager The Project Manager will:

–       Consider and evaluate location of expansion

–       Keep SME/Project team/Stakeholders updated with any changes

–       Update team on current/future risks

–       Maintain RMP

–       Maintain Risk Management Data Plan

–       Perform Risk analysis

–       Prepare Reports for Project Risk review

–       Provide Risk Management training to necessary parties in expansion


Subject Matter Experts (SME) The SME’s will:

–       Review and make any necessary changes to Risk Mitigation Plan

–       Review lessons/recommendations from Risk management team

–       Report any current/future risks

–       Complete necessary mitigation tasks

–       Provide status report for Risk Management Database

Project Team The Program Team will:

–       Review any risks reported from SME and make any necessary changes/recommendations

–       Review mitigation tasks and responsibilities

–       Review risk assessment

–       Report any current/future risk to Project Manager

–       Complete mitigation tasks

–       Report status of mitigated actions

Other Stakeholders Other Stakeholders may:

–          Communicate any current or future risks/information necessary to the above team including Project Manager, Project Team, SME

2.3 Risk Identification

The process of risk identification is the crucial first step in developing a risk management plan that provides a rough outline of possible issues and threats a project may encounter along the way. The first step is generating a list of potential risks through various collaborative methods, setting aside any preconceived notions. The idea is to come up with as many possible risks and scenarios as possible, accounting for every nuance of the project by viewing it from different angles. The key to this process is collaboration, as risk identification requires a diversity of thought and opinion to address and determine the severity of risks properly (Gray & Larson, 2021). In this step, all thoughts and ideas presented should be given equal consideration. Once potential risks are identified, there should be a process of narrowing down and ranking the probability and seriousness of risks. This process is necessary to ensure that adequate energy and resources are delegated to various potential risks so that the project runs as smoothly as possible. The final step is to define the solution to potential risks and devise a plan to prevent them from occurring. An important note to understand is that risk identification does not end at a project s inception. It is a continual refinement process, with risks revealing themselves as the project unfolds (PMBOK, 2017).


2.3.1 Methods for Risk Identification

Our team will utilize a variety of methods to determine every plausible risk in the risk identification process. We aim to be as thorough as possible as this will provide us a more accurate image of the project’s timeline. Listed below are the following methods:

  • Brainstorming: The project manager will gather all stakeholders and project team members to generate ideas. We have concluded that it is more efficient to gather everyone together as this cut down on meeting time and allows ideas to flesh out quicker. We will provide a collaborative atmosphere that encourages all opinions.
  • Delphi Technique: We will seek advisement from independent project managers and zoning consultants to identify potential risks. These experts will help us in determining the priority of potential risks identified in the brainstorming process.
  • SWOT Analysis: We have conducted a SWOT analysis to determine what areas the team members should focus on while brainstorming. Among the strengths are high morale amongst team members, project management’s attention to detail, and an excellent track record in successful store openings. The weaknesses are the marketing department’s dependency on outdated marketing methods and research, a weak line of communication amongst project coordinators, and inefficiencies in the blueprint approval process.
  • Root Cause Analysis: We will conduct a root cause analysis that further builds off the previously mentioned SWOT analysis. This process will reveal additional potential risks and how to address them.
  • Risk Questionnaire: All crew members will receive a questionnaire that will ask for additional thoughts and concerns regarding the project. The risk identification process will consider any lingering questions among crew members.


2.3.2 Risk Register

A risk register is essentially a master list that provides an overview of a project’s risks. It should be a comprehensive list that includes the root causes of risk, risk priority, the organization’s response to potential risks, and the name of team members tasked to handle and remedy potential risks. A risk register is a helpful reference for project managers that keeps them up to date on potential risks and which ones to prioritize. We compiled a risk register focusing on three areas after our highly productive final brainstorming session with team members and stakeholders.


Risk Register for the Standardized Operating Model











2.4.1 Qualitative Risk Analysis – Probability and Impact Matrix


As the Kohl’s expansion project gets off the ground we must look and review the probability and impact matrix involved. It is crucial that each risk is reviewed in detail and the probability of each risk is accurately measured. As the risk assessment matrix is identified below, one will find the consequences of each risk and how they impact the Kohl’s expansion project.

Additionally, the project managers will prioritize each risk based on the impact it has on the project. According to Roland, “Each risk is entered into the matrix, according to its probability and impact. The position on the matrix corresponds to the relative importance or risk level of the risk. In the top right-hand corner of the red fields are the dangerous risks, and in the bottom left-hand corner of the white fields are the less-dangerous risks “(Wanner, 2019).

The Kohl’s project management team have communicated efficiently to ensure the necessary tools are involved in with each risk.  Wanner states, “Since opportunities—like risks—are evaluated according to probability and impact, it makes sense to present both in a common chart” (Wanner, 2019). Below we have illustrated our company’s risk matrix chart as a necessary reference.






Probability and Impact Matrix Definitions





Risks Probability (1-10) Impact (1-10)
1) Organizational Conflict 7 9
2) Inaccurate Market Research 5 2
3) Build Out Costs 9 9
4) Permit Delays 5 6








Risks Probability and Impact Matrix




2.5 Risk Response Plan

Permit Delays

Permitting the project could be a complex project. From understanding when and which permit is needed, to go through the required bureaucracy in obtaining the permits, even a small misstep during the process of permitting could result in delays and additional costs. Additionally, the process of permitting, which needs the challenging coordination of multiple parties, often with competing concerns, offers numerous chances for one to ‘drop the ball.’ Permit delays could drag the project; delay is one of the most common costly challenges in many projects. Moreover, timely project completion is one of the essential factors that can affect the success of this project. A delay can result in time and cost overruns. A delay in obtaining permits will delay the project. However, there is a solution to this risk.

The first solution is ensuring that the management has everything planned in order, from the process of acquisition to opening the new location and staffing. The corporate team of Kohls also should have the store layout specifics, design, and operation expectations ready before the start of the project. The best solution to this risk is planning ahead in ensuring there are no permit delays. The detailed blueprints, as well as a clear outline of the work, should be completed and finalized beforehand. The submitted plans should be final, as changing these plans after submission can result in delays. Any changes to the original designs could also lead to increased costs.

All of these requirements will be achieved by hiring an experienced and professional contractor who will ensure the whole project runs seamlessly. The contractor should be qualified for the task and be properly licensed. The contractor, because of his knowledge in this particular field, will decide on the permits required for the successful completion of the project. The professional contractor will also know the correct forms to file, and this will effectively save both money and time. Overlooking the supporting documentation or the wrong paperwork results in permit delays. The contractor needs to be a skilled professional who understands the local laws related to this project to help in ensuring the project is completed within the targeted period.


The build-out process, whether upgrading an existing retail location, enhancing the office environment, or starting a new retail location, can often be overshadowed by unanticipated expenses and delays. However, various steps can be taken to help in mitigating these issues. A custom-built new retail location for Kohls real estate will require expertise from multiple fields. The project can become complicated, and expenses increase when dealing with multiple contractors or firms for equipment fabrication, design, installation, and maintenance. These steps will help to mitigate the risks that might arise during the build-out process.

First, the project manager needs to make sure that he gets the design right from the beginning. The contractor needs to have a firm understanding of the current challenges and processes before the beginning of the project. The designing phase is vital to the overall project success. A perfect design will save the company costs and headaches during the process. Second, the manager needs to hire a dynamic team for the build-out process. The team should be able to execute the installation and fabrication of all components and equipment. A team’s ability to manage various pieces offers incredible value through maximizing efficiency, simplifying the process, and saving costs. Lastly, after the build is done, there are various maintenance procedures required in keeping everything 100 percent effective and staying environmentally compliant. The company needs to have a scheduled maintenance plan to avoid unnecessary interferences during operations.

Inaccurate Market Research

There are various market research mistakes that can occur during market research, risking the success of the project. The first is not doing the market research to know what the customers really want and understanding the potential market. This risk is no longer an issue here since it has been well established that the customers highly demand an additional retail location. This expansion is aimed at growing service and sales to the additional customers in the specified locations. To make sure that the research is accurate, there needs to be an external consultancy in completing research, not just carrying out research using the in-house resources. The external consultant ensures an unbiased questioning approach. The company will also need professional consultant who will save it time in terms of their experience and manpower in assessing the findings to offer an accurate result and inform the business strategy. The research consultant should also be real estate savvy, fully understanding the real estate sector. The people in charge of finding the new and desirable building location for the new store should make sure they offer accurate market research to the company.


Risk metrics helps provide a measurement for the different constraints, thresholds, values, and scope. Being able to properly monitor, control, and report on the varying risks levels of a project is crucial to the success of the project lifecycle. A variety of risk metrics will be used to help analyze the different risks that are present throughout this project.

These metrics include 1) Metric Identification, 2) Baseline Measurement, 3) Benchmark Data, 4) Reporting Processes, 5) earned value, 6) resource plan, and 7) project plan. This variety of risk metrics will help the Project Manager ensure that the overall project is successful.

When a risk is identified, the risk will be reviewed by the Risk Manager, which is the Project Manager. The Risk manager will then:

  • Review the defined risk(s) on a recurring two-week basis, or as the need arises
  • Identify any new risks and ensure they are documented on the risk management plan
  • Coordinate with the project team to ensure all risks have been properly identified and discussed. These tasks will be reviewed on a weekly basis, or as the need arises.
  • Work with project stakeholders to ensure that all risks are properly communicated and escalated as needed. These risks may include:
    1. Project Timeline Change
    2. Project Cost Change
    3. Resource Constraints



Risk Category Key Questions Metrics
Budget How is the budget being managed? Earned Value

Completion estimate

  Has there been a variance in the estimated budget cost? Change Controls
  Are there any risks that may impact the overall budget? Project Plan

Resource Plan

Organization Are there any resource constraints? Project Plan

Resource Plan

  Are there any planned vacations and/or holidays? Project Plan

Resource Plan

Schedule Are there any changes in the original schedule plan? Change Controls

Project Plan

Resource Plan








3.0 Risk Status Report

The immanent part of this project is the cost overrun and delay, despite the project management knowledge. This project of acquiring a new location and the build-out plus staffing is expected to be completed within six months, and the total budget should not exceed $500,000. The economic and physical scale of this project is driven under the profit platform of Kohls real estate company and of national interest by the success level defined within the cost, scope, and time frame. The three of the most probable risks that can occur include permit delays, build-out risks, and inaccurate market research. Although permit delays could result from factors beyond the control of the project manager, the company, or the contractor, some are avoidable.

As mentioned before, the team involved in making the project successful needs to be well prepared before beginning the process. The designs should be ready and correct, as poor design management will result in delays. Lack of submitting the permit requests in time, changing the details after submitting the request, not having the needed documents, and lack of knowledge of the required permits can result in project delay. The build-out process also has some potential risks. Presenting inaccurate designs, hiring an unqualified build-out team, and inadequate preparation could negatively impact the build-out process.

The project owners have the responsibility of the basic planning, risk allocation, funding, payment rules, award criteria, licensing, procurement of major items, and approving the design. On the other hand, the contractors have a role in detail procurement, design details, risk management, productivity, scheduling, and the process, equipment, labor, environment, among other things (Banobi and Jung, 2019). The failure of any party to fulfill their roles and responsibilities poses a great risk to the project’s success. Lastly, there is a risk of inaccurate market research. The company is yet to find the best spot for the new store it intends to develop. In order to acquire the best location, Kohl needs to do thorough research on where the customers would prefer it to be located, accessibility, affordability, and the target market. Any mistake during the market research process would result in inaccurate information that can potentially mislead the company, hindering the success of the project (Hague et al., 2004).


4.0 Closing a Risk

A risk is closed once it has been mitigated successfully. The risk of permit delays could be an issue beyond the control of the company. However, it could be mitigated by ensuring all the requirements are fulfilled in time and that all the required permits are applied for. Additionally, the party in charge of acquiring these permits should ensure that the permit application files are correct and finalized to prevent any late changes that could delay the issuing process. Here, seeking professional help is recommended. After fulfilling the above, the company should then wait for the issuing institution to process the request and offer the permit. The build-out delay risk can be mitigated by ensuring all the necessary preparations are finalized beforehand. The final design should be given to the build-out team, who should be qualified professionals to ensure that the process runs seamlessly. The team should also be ready to ensure that they can handle every step of the build-out process without any challenges. Finally, the market research team needs to be experienced professionals who know what to look for. Mitigating the risk of inaccurate market research demands accurate information from the research team. The research information should then be professionally analyzed to prevent any mistakes that could hurt the project’s success.


  1. risk management plan for a project: Definition, Purpose, SOFTWARE, content and approaches. (n.d.). Retrieved April 07, 2021, from https://mymanagementguide.com/guidelines/project-management/risk-management/risk-management-plan-for-a-project-definition-purpose-software-content-and-approaches/

Banobi, E. T., & Jung, W. (2019). Causes and mitigation strategies of delay in power construction projects: Gaps between owners and contractors in successful and unsuccessful projects. Sustainability, 11(21), 5973. doi:10.3390/su11215973

Gray, C. F., & Larson, E. W. (2021). Project management: The managerial process. In Project management: The managerial process (8th ed., p. 299). New York, NY: McGraw-Hill Education.

A guide to the project management body of knowledge (PMBOK guide — 6th ed.). (2017). Newtown Square, PA: Project Management Institute.

Hague P. N., Hague N. & Morgan C, H. (2004). Market research in practice: A guide to the basics. Market Research in Practice: A Guide to the Basics- Kogan Page Publishers.

McHale, B. (2020, November 11). What are the different types of risks in project management. Retrieved April 07, 2021, from https://www.projectcentral.com/blog/project-risk-management/

Ray, S. (2021, March 08). The risk management process in project management. Retrieved April 07, 2021, from https://www.projectmanager.com/blog/risk-management-process-steps

Ray, S. (2021, March 08). The risk management process in project management. Retrieved April 07, 2021, from https://www.projectmanager.com/blog/risk-management-process-steps

Read “Guidebook for Successfully assessing and managing risks for Airport capital and MAINTENANCE projects” at NAP.edu. (n.d.). Retrieved April 07, 2021, from https://www.nap.edu/read/22278/chapter/3

RolandWanner. (2020, December 06). Do you really know the risk matrix? Retrieved April 07, 2021, from https://rolandwanner.com/do-you-really-know-the-risk-



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