Risk Management

Free Essay Sample «Risk Management»

1. Project Risk Plan

1.1. Objectives

Any project lifecycle presupposes the preparation of a detailed risk register. The register is an essential component  of the project and requires reviewing during each project phase. Hence, the risk register is considered to be the main component in the plan of risk management and the sub-plan of the whole project management plan. The project manager is a person responsible for the preparation process. In addition, he/she holds responsibility for the implementation and review of the risk management plan and other relevant documents.  

According to PMBoK (2013), risk is defined as any uncertain condition or event that occurs and has an effect on the project cost, time, scope, and quality. It is vital to ensure that this process includes the root cause assessment of both positive and negative risks, as well as future opportunities providing the overall assessment of the suitable project direction. 

1.2. Risk Categorisation

The practice of risk categorisation tends to improve the quality and effectiveness of the process related to the risk indentification due to its nature to create a comprehensive and structured process. There are many categories that may be implemented during the process of the risk identification . They are a part of a standard checklist system that is usually developed by the project team on the basis of similar previous projects. These categories are:  People (Pe), Technical (Te), Operational (Op), Economic (Ec), Political (Po), and Market (Ma).

The overall risk level can be determined with the help of assessment of each individual risk in terms of its likelihood and consequence. It should be noted that the events related to negative risks are primarily recorded and assessed becoming an essential part of the risk identification process. The descriptor is characterised by its unique and complex nature of opportunities and is widely used to provide the sole assessment of the positive risk events. In addition, the process is closely connected to the impact of project objectives.

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The final stage of the risk identification process is therisk level determination. This process is based on the likelihood and consequence combination selected for the identification of any existing risk. The effective measurement method of the risk ranking process is the risk level method.

1.3. Risk Register

The data from the risk identification process within the risk register are represented in the Appendix. The risk register summarises the above mentioned processes and collects the information in one document that is regularly examined and updated during the whole lifecycle of a project. The register includes the following sections: root cause details, risk description, risk event impacts, initial risk assessment with the consequence, likelihood, and risk level, risk treatments, and risk responsibility.

1.3.1. Risk Description

This section presupposes a brief risk description for use in the identification documents.

1.3.2. Root Cause Details

The section is the root cause discussion of the risk. It can be a constraint, assumption, or any other specific project component identified in the work breakdown structure. However, it may also be based on lessons learnt from the previous files of the same project. This stage is a generator of the risk event that is related to uncertainty.

1.3.3. Risk Event Impacts

The section of the impacts of risk events presupposes a discussion of the event influence on the project objectives including cost, time, scope, quality and other knowledge areas identified by PMBoK (2013).

1.3.4. Risk Treatment

Risk treatment is the most suitable strategy of mitigation that aims at meeting the key planning objectives of a project.

1.3.5. Risk Responsibility

This section includes management responsibility for the risk assessment, the mitigation strategy implementation, and updating during the whole project lifecycle. 

1.4. Risk Ranking

Risk ranking is the process of a qualitative risk analysis that presupposes a prioritised risk list that is considered to be a key output. In addition, it provides an assessment of the identified risk urgency and its relative importance. The process is implemented to ensure the limited resource application of project management. 

The process of risk ranking is used to identify risks that may need further analysis. These risks cannot be a part of the project scope. They may generate a low priority risk watch list that does not require the implementation mitigation strategies and further analysis. However, it should be monitored during the project lifecycle.

1.5. Budget Contingency

A budget contingency amount is allocated for individual risks ranked M6 and above. It is related to the risks that may have a negative influence on the contingency sum. 

1.6. Key Opportunities

During the process of preliminary planning of the utility tunnel system requires project commitment and project engagement. That is why the project team has developed a number of opportunities that lead to the improvement of project delivery. The key aspect of the recognition process was to reduce the influence of a critical reduction schedule in terms of time to the construction phase from Client Notice. In addition, it was necessary to reduce the overall budget of the project.

Opportunity 1:  Scope Upgrading – Build One Main Tunnel

Scope upgrading of the system related to the utility tunnel identified within the project will result in the reduction of the overall tunnel system length and the time needed for the construction phase excavation. The entry number reduction and the reduction of entry and exit pits may also substantially reduce the excavated volume. However, it requires a reduced plant and labour resource number due to the mobilisation during the phase of construction, as well as associated storage and fuel requiremetns, accommodation, and temporary services.

Free Essay Sample «Risk Management»

 

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