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.

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

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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)

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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. ProjectRisk Assessment
2.1. Risk Rating Methodology
Consequence
Rating Insignificant Minor Moderate Major Catastrophic

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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

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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
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

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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

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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

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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.

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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