Challenges And Pitfalls Of Different Status Reports | Risk Management Report

Identified Risks for Lewis Project

Robert L. Frank Construction Company was engineering as well as Construction Company serving petroleum, chemical, mining as well as food processing industries from its headquarters. The services for the company are engineering, inspection, construction, consultation as well as purchasing (Snyder, 2013).

The identified risks for Lewis Project are that the project is over budget as well as was not progressing to satisfy the customer. There are various slippages while delivering of materials, unofficial indication from the project scheduler, and delay in delivery of the project key items. Therefore, the completion time of the project was not meet with scheduled time (Vanclay et al., 2015). Therefore, the three main constraints of this project are time, budget and performance constraints.

1.2 Record the risks identified in risk register 

Description of risk and impact	Risk owner Save Time On Research and Writing Hire a Pro to Write You a 100% Plagiarism-Free Paper. Get My Paper	Impact	Likelihood	Risk rating	Probability	Mitigation
Budget risk: The Lewis project goes over budget, due to unplanned direct cost, delay in project schedule and change in the project scope.	Project Manager	5	5	25	Moderate	There should be proper planning of the budget with consideration of extra resources for the project work (Kendrick, 2015).
Schedule risk: Due to increase in project cost and loss of revenue, lack of project planning leads to affect the project time (Rahman et al., 2016). It causes delay in the entire project work.	Project Manager	5	4	20	Likely	There should be proper planning of the project schedule so that proper time of the project is meeting and the Lewis project should complete on time.
Performance risk: There is slippage in delivering the materials at right time to project client which provides a huge effect on the project performance.	Project Manager	3	4	12	Unlikely	There should be strict set of the project material delivery time so that all the materials are delivered to the client on time (Sinclair, Doelle, & Duinker, 2017).

Likelihood	5					Budget risk
4			Performance risk		Schedule risk
3
2
1
	1	2	3	4	5
Impact

Table 1: Impact and likelihood matrix

1.3 Use of risk probability and impact matrix 

            Based on the identified risks, following risk probability and impact matrix is prepared such as:

Probability	Impact
	Trivial	Minor	Moderate	Major	Extreme
Rare
Unlikely				Performance risk
Moderate					Budget risk
Likely					Schedule risk
Very likely

Table 2: Risk probability and impact matrix

            From the above table, it is analyzed that budget as well as schedule risk are higher risk which affects the Lewis project a lot. Both the risks are major risk which affects the entire completion date of the project work. When the project is not completed on provided time, then it affects the brand reputation of organization (Project Management Institute, 2013). Other risk is project performance risk which affects the internal business operations of Robert L. Frank Construction Company.

2. Risk management and reporting

2.1 Develop of response strategies to manage identified risks in case study 

            In order to become competitive in the business environment, Robert L. Frank Construction Company must implement of risk management strategies to manage identified risks so that the construction company can achieve business as well as strategic objectives (Kerzner & Kerzner, 2017). The organization is not able to understand the risks but it is assumed that the risks are monitored, managed as well as aligned with risk tolerance. The construction company can achieve as well as manage risks for mitigating the threats as well as taking advantage for the project opportunities. Following table shows the response strategies for each identified risks such as:

Type of project risk	Impact	Likelihood	Risk Rating	Probability	Risk Owner	Response strategies
Budget risk	5	5	25	Moderate	Project Manager	The project manager should undergo a proper budget plan to estimate the cost for each selected resources required for the Lewis Project (Wysocki, 2012).
Schedule risk	5	4	20	Likely	Project Manager	The project manager should perform a schedule management plan to schedule the entire project activities (Nicholas & Steyn, 2017). Each of the activities of project is assigned with resources based on their skills and expertise.
Performance risk	3	4	12	Unlikely	Project Manager	All the materials required to complete the project should be deliver to the client on time so that there is no possibility of any slippage of the materials (Pritchard & PMP, 2014).

2.2 Identify and describe stakeholders to assess risk management activities

            The project stakeholders help the project manager to perform ongoing risk management activities for addressing interests in the project work. The Lewis Project was required for purchase of orders meeting with the vendors. The project manager should conduct meetings with the client weekly so that the issues related to the project are discussed and proper strategies are taken to mitigate the risks (Rahman et al., 2016). The goal of this section is to provide risk management framework for understanding as well as satisfying the project stakeholders. A stakeholder management plan is prepared to identify the stakeholders and assess the risk management strategies which are shown in below table such as:

Risk factors	Board of director	Senior management level	Project team leader	Chief project engineer	Project manager	Project control manager	Inspection coordinator	Financial officer
Risk concept	ü		ü		ü		ü
Risk governance	ü	ü		ü		ü
Controlling of project risk			ü		ü	ü
Risk culture		ü		ü
Risk related project activities		ü	ü
Risk reporting	ü		ü		ü		ü
Limitation of project risks		ü		ü
Cyber security		ü	ü
Privacy of the data			ü				ü
Schedule risk					ü	ü
Budget risk			ü	ü				ü
Performance risk			ü	ü			ü

            From the above table, the project stakeholders are identified those have assessed with the project risk activities. The project plan is articulated the management strategies to engage them in managing as well as handling the project activities. The stakeholder seems to have fully engaged in preventing the project from the risks (Vanclay et al., 2015). The project manager is continued with the problems which are cropped up with the vendor materials delay which are occurred.

The upper level management is aware that the issues related to this project work are sensitive in nature. The senior level management is not provided proper support to Lewis project. The upper level management is conducted of weekly meetings to pacify the project work (Kerzner & Kerzner, 2017). The personnel of Lewis are integrated into the Frank organization to point where it becomes part of the project organization.

            From the perspective of the risk management, the stakeholders are benefited due to higher level of trust with groups of stakeholders where they are contributed to decide and affect in the future. There is higher quality of information to make proper decisions and wider range of required services to the project clients (Nicholas & Steyn, 2017). Mitigation of schedule and budget risk is when the stakeholders such as project manager should properly schedule entire project based on project activities and business requirements.

The performance risk is managed by stakeholders by managing and building trust among the project team members. The stakeholders should build trust with each other so that it can build strong relations with each other (Sinclair, Doelle, & Duinker, 2017). Therefore, the company should remain a contextual experience of the project risks as well as mitigate the issues which are relevant to the public concern. The main purpose of risk management plan is to mitigate the risks so that the management team can meet with client’s requirements. It helps to achieve profitability from the business organization.

References

Cleden, D. (2017). Managing project uncertainty. Routledge.

Kendrick, T. (2015). Identifying and managing project risk: essential tools for failure-proofing your project. Amacom.

Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning, scheduling, and controlling. John Wiley & Sons.

Nicholas, J. M., & Steyn, H. (2017). Project management for engineering, business and technology. Routledge.

Pritchard, C. L., & PMP, P. R. (2014). Risk management: concepts and guidance. Auerbach Publications.

Project Management Institute. (2013). A guide to the project management body of knowledge (PMBOK Guide®) (5th ed.). Newtown Square, Pennsylvania: Project Management. 

Rahman, A., Hasan, R. M., Agarwala, R., Martin, C., Day, A. G., & Heyland, D. K. (2016). Identifying critically-ill patients who will benefit most from nutritional therapy: further validation of the “modified NUTRIC” nutritional risk assessment tool. Clinical nutrition, 35(1), 158-162.

Santen, C., & Oy, S. (2015). Risk Management Plan.

Sinclair, A. J., Doelle, M., & Duinker, P. N. (2017). Looking up, down, and sideways: Reconceiving cumulative effects assessment as a mindset. Environmental Impact Assessment Review, 62, 183-194.

Snyder, C. S. (2013). A project manager’s book of forms: A companion to the PMBOK guide (2nd ed.). Indianapolis, IN: Wiley. 

Vanclay, F., Esteves, A. M., Aucamp, I., & Franks, D. M. (2015). Social Impact Assessment: Guidance for assessing and managing the social impacts of projects.

 Wysocki, R. K. (2012). Effective Project Management: Traditional, Agile, Extreme (6th ed.). Indianapolis, IN: Wiley.