Development of a Project Risk, Essay Example

Pages: 6

Words: 1690

Essay

Kitchen Remodel Risk Management and Mitigation Plan

What is a Risk Plan?

A risk plan gives or projects the risks that a project is faced with and provides the possible set of mitigation plans or actions that have to be taken in order to completely prevent their occurrences or completely reduce their impacts in the event that that the risks occur. It also evaluates its impacts. The plan does the following specific actions as it tries to mitigate the risk.

Gives a detail and full list of all the risks that are foreseeable
Each of each of risks that are expected to occur while rating its likelihood
Overall importance of each risk is rated to get its priority
Actions that are preventive measures against the occurrence of risks
Actions that are contingent measures against the impacts of those risks that eventuate
Risk management process throughout the project.

When to use a Risk Plan

During the planning phase of the risk management and mitigation plan, a risk plan must be documented especially in the very initial stages of the plan. This is because the planning phase is undertaken before the execution. This is to help make sure that any possible risks are identified on time and addressed before the execution stage of the plan is in itself performed. A monitoring and control of the risk likelihood and impacts of the risks that the project is engaged immediately after the plan has been documented. After the execution of the plan has been completed, the risk management process is immediately terminated. This is just before the project is closed.

Risk Management

Risk management has been found out to be the best way of mitigating risks and trying to minimize the impacts of such risks in the event that the risks occur. One should therefore be conversant with the risk and risk management issues and other preventative measures that help prevent injuries that would occur. One should for instance understand what risk all about, the categories of risk that is particular the to the specific type of projects, the importance of risk management and its management plan, the chances of risks occurring, the need to manage risk, the importance of managing risk in order in to keep the safety of the people and property. The timing of risk management is also paramount. The simple four steps that ought to be undertaken during risk management procedure include:

The four easy steps are:

Spotting the hazards also known as risk identification- This involves walking around the event site and identifying the things that would pose some danger to the volunteers working on the project.
Risk quantification/Assessment of risks– This involves identification of the probability of risk happening and the knowing the potential effects or impacts of the risks in the event that the risk eventuate to the volunteers working on the project.
Fixing the risk problem- There are several activities that would be undertaken in order to either eliminate, substitute or isolate the hazard. It also involves adaption of the equipment, performing some controls that that are administrative in nature or the protective equipment that is personal.
Result evaluation- The step ensures that the problem is actually fixed as it. This involves gradual evaluation of the results of risk management plan. This is carried out through the use of the risk assessment template that is extra. This also enlightens the importance of having the host being the overall manager and overseer of the events hence supposed to make that know all the risks that the project is prone.

Answering A, followed by B then finally addition of A and B together is the way in which the assessment of risk is determined for every hazard identified.

A) What is the most expected consequence or impact of the hazard?	B) In the event that the event occurs, what is the likely risk?	Sum both A and B	Risk	Action
1 = Minor – First aid necessary within the shortest time possible Due to its insignificance on the project, it is not possible to have its impact on the project measured It is scheduled to be undertaken at the end of the project due to its minor which is less than 5% deviation in its ratings on the project.	1 = Low – It rarely happens but highly unlikely to occur in most situations Not likely to occur as the possible circumstances are not there to trigger the occurrence	Low	Score of 2– 3 = Low/small risk	Continue with caution
2 = Moderate – Occurrence of damages that are reversible on the health of the workers hence the need for a medical treatment to be undertaken The impacts are measurable as they range between 5-10 % in deviation of score and therefore scheduled at the end of project	2 = Moderate – This is possible occasionally As all indication points at risk eventuating	Moderate	Score of 4 – 5= Moderate/modest	Frequently screen the situation
3 = Serious – Irreversible damages occurs which may include death hence the necessity and urgency for a medical treatment The impact on the project is significant which may range between 10-25% deviations of score. Its therefore scheduled at the end of the project budget A 25% or more deviation on the scope experienced hence a major and critical impact on the project	Chances of it occurring are very high based on the project’s circumstances The risk at all possible ways is anticipated to occur as all the conditions that are favorable for the occurrence of these risks are there.	Serious/high	Score of 6 – 7= High to dangerous risk	Do not advance

Priority

The priority of each risk must be identified and its likelihood must also be established. Its impacts on the project must also be evaluated for those risks that eventuate. The priority score is then calculated as shown in the table below once the scores on the likelihood and impact are identified and quantified.

Priority = average Likelihood + Impact score
This is generated as Priority = (Likelihood + Impact) / 2©

ID	Probability/Likelihood	Effect©	Priority rating	Score
1.0	21	70	60	Average
1.1	81	50	80	High
1.2	99	30	80	High
2.2	41	10	40	Small
2.3	81	90	90	Very High
2.4	21	70	60	Average

The priority score is what is used to calculate the ratings of the risks that occur with an example of the system used shown below.

Priority Score Priority Rating

0 – 19 Very small

20 – 39 Low

40 – 59 Average

60 – 79 High

80 – 100 Very High©

Color-coding is the other worth that must be done on the above final ratings to show the risks that require more attention and those which require less attention. The system below helps find out or identify these risks as they are identified by color.

Priority Score Color

Very low Blue

Low Green

Medium Yellow

High Orange

Very High Red

Risk Plan

Sets of action plans to be executed in order to avoid the risk must be included in a risk plan. The transferor mitigation of every risk identified must be based on the priority that every risk is assigned. A schedule is also identified and the schedule should include but not limited to the following.

Schedule

A priority order for every risk identified should include the list below which is in itself not limited to:

The preventive actions that help minimize the likelihood of risk occurring
The contingent actions that are meant to reduce the impacts of the risks in the event that the risks occur.

A resource, time and date must be identified for every risk action that has been identified. The resources used for undertaking the resource must also be sufficient and the time allocation and date should also be appropriate. The table below shows an example of how these resources and time is allocated.

Score	ID	Preventive Activities	Action Source	Action Period©	Liable/ Contingent Actions	Action Source	Action Period
Very High	2.1	Clearly and exhaustively quantify the benefits of the Kitchen remodeling actions as indicated in the documentation	Project Guarantor/sponsor	dd/mm/yy	Measuring the actual impacts and benefits of kitchen remodeling project	Project Supervisor/Manager	dd/mm/yy
High	1.1	Clear specification of the customers and the quality plan requirement	Project Supervisor/Manager	dd/mm/yy	After the production of deliverables the requirements of these deliverables must be considered. Any deviation must also be enhanced in order to meet the requirements	Project Supervisor/Manager	dd/mm/yy
High	1.2	This involves clear specification of the qualification and quality criteria. This helps show the requirements for each deliverable and how it has been achieved through the quality plan.	Quality Manager	dd/mm/yy	After the production of deliverables the requirements of these deliverables must be considered. Any deviation must also be improved in edict to encounter the requirements	Quality Manager	dd/mm/yy

For very risk identified, the above table must be completed with those risks that have higher priority risks being assigned more actions than those risks that have less priority since they are less risky to the continuation of the projection. The actions that are assigned to the higher priority risks must also be comprehensive as much as possible.

References

Fan, M., Lin, N., & Sheu, C. (2008). Project Management Template, Oxford University Press

Perminova, O., Gustafsson, M., & Wikstrom, K. (2008). Project Management and Implementation , McCrew, New York Olsson, R. (2007)