Expert answer:Project Management: Risk Management Paper, managem
Answer & Explanation:Risk Management Paper
Assignment
Requirements:
Your organization has determined that more resources are required to complete the project’s risk management process for the expansion into China or another country approved by your instructor. Your team has been asked to perform a risk analysis, develop risk responses, and determine how the project will monitor and control risks.Utilize the Risk Breakdown Structure and Risk Management Paper Grading GuideWrite a 250-350 word paper in which you do the following: Determine and document the criteria used to determine which risks will have a risk response plan.Format your paper and presentation consistent with APA guidelines.
Additional
Requirements:
Complete the
assignment using your own words with correct spelling, punctuation, and
grammar in APA format. No plagiarism.
If you are not
using your own words or if you are quoting any information or definitions,
make sure to cite the information by using proper APA format citations and
don’t forget to include the source of the information as a reference on
the references page by using proper APA format.
Read and use the
attached PDF and/or Word document(s) listed under the attachments section
in order to understand the necessary information in order for you to be
able to complete the assignment accurately and completely.
Read and use any other attachments listed under
the attachments section in order for you to be able to complete the
assignment accurately and completely, if applicable. Do not forget
to include any other attachments as references and to use citations from
them, if applicable.
Attachments:Risk Breakdown Structure.docx Risk Management Paper Grading Guide.doc
risk_breakdown_structure.docx
risk_management_paper_grading_guide.doc
Unformatted Attachment Preview
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Risk Management Breakdown Structure
Risk Management Breakdown Structure
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Risk Management Breakdown Structure
Risk Management Breakdown Structure
Introduction
This paper will assume a scenario in which a company I am familiar with begins a project
in China. The highlight will be the analysis and importance of a proper breakdown of risk
management and its structure. This attempt will be made by describing the goals and objectives,
tools and techniques, and organizational roles for the evaluation of risk management. I will
describe the various sources of information that will be used to identify risk management and
describe the documentation the risk management team will use to track the risk. I will then
describe the role of risk management in the project planning process and create a risk breakdown
structure.
Scenario
In an effort to begin an industrial environmental responsibility initiative, China has
tightened the parameters of industrial wastewater discharge. Veolia (an environmental service
company) has identified an industrial business that is need of wastewater control. The unique
methods that Veolia has been able to pioneer would be effective at removing the heavy oils and
pigments from the wastewater, and dramatically reduce the environmental impact the Company
has locally. The facility of this project will be unique in the specific combinations of
technologies to bring about success to the Chinese company. Veolia has established municipal
and industrial sites in China and feels it can accurately assess and mitigate any risk. The project
will establish a contract with the client to be responsible for cleaning the company’s wastewater
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Risk Management Breakdown Structure
for the next 20 years. This will entail the company building at their own expense, a facility
capable of maintaining the local standards for acceptable wastewater discharge. It will be the
objective of Veolia to fulfill the contract needs of providing an acceptable design, successful
installation and build, establishment of a fully operational facility, and comprehensive training
for local operators. At the end of a 13 month timeframe, it is expected that the new Veolia
contracted wastewater facility in China will be fully operational and locally managed and
operated.
Objectives and Goals
The objective for effective risk management in this facility is to identify areas of
possibility and probability for things that could cause failure and delay to the project. This proper
identification will be a valuable resource for the project management plan, and help the project
manager to fully understand where the risks are and the likelihood of those things happening.
The goal is to provide a comprehensive and accurate view of risk for the project as a measure of
preparation against those risks, and to put in place warnings to alert the management of
impending risk.
Tools and Techniques
Meetings are a crucial tool to establish with confidence, a risk management plan for any
project. The project manager will hold meetings with the stakeholders and the project team, to
establish high level plans (Project Management Institute, 2013.) In these meetings there will be a
solidification of several aspects of the risk management plan. The risk categories will need to be
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Risk Management Breakdown Structure
defined as well as the team members responsible for those categories. Breaking up the
responsibility of risk will help to ensure that nothing gets overlooked. A scale will need to be put
into place to determine the level of risk. This keeps everyone on the same page in
communicating the rise of risk. For the purpose of this project, the Risk Categories will be;
Project Risk, Management Risk, Production Risk, Support Risk and External risk. The Risk will
be measured on a scale of 1-5. With the number one being no risk at all, the number two being
slight risk, the number three being moderate risk, the number four being significant risk, and the
number five being high risk.
Due to the complex technical nature of the project, and the temperamental operational
aspects, there will also be another tool that the project will use. This is the tool of expertise. The
success of very few other similar installations means, this project will rely heavily upon the
expertise of individuals who have experience in this particular field. It will be imperative to the
success of the project to pull available company resources in this field, as well as any external
consultants, to provide the most insight possible.
Organizational Roles and Responsibilities
The project manager will be the risk portfolio manager, and the five team leaders of the
project will each take a category to be responsible for. Using the experts of the field and
research, each team leader will identify hazards he or she foresees for the project. The project
manager will look at all risks and provide feedback to each of the team leaders, who will then
take this feedback back to their team to continue reviewing and analyzing the project for risk.
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Risk Management Breakdown Structure
This can be done as many times as needed to get a full and comprehensive list of realistic risks
the company may be exposed to during the life of the project.
Information Sources
Each team leader will assess their category for risk identification and determine what
sources will be the most helpful for aiding in that identification. Not all sources of information
will be relevant to all risk categories. In the initial risk assessment meetings we will identify
some of the best resources to help the team leaders get started. Veolia currently has in operation
3 similar facilities. Each of these projects’ managerial and operational staffs will be an
invaluable resource for identifying risks in beginning and seeing through the project. Each site
has been presented with different challenges, and each site has overcome those to be very
successful. Veolia also has successful sites in China that will be able to provide information on
the difficulties that will be presented simply by being in China. Operations in a foreign country
will always present different challenges than that of being domestic. For example bureaucratic
navigation, supply chain, and societal integration all present some challenges risk for a new
project. External resources may include expert research on; the risks involved in starting a
project in China, managing supply chains in foreign countries, overcoming technical and cultural
barriers, and managing costs of projects in China.
Risk Management Documentation
For this project the focus of documentation will be on the risk management plan (RMP),
and the risk register. The risk management plan establishes a structure for all risk analysis within
the project. The RMP will identify 9 areas to be defined for the project risk evaluation as
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Risk Management Breakdown Structure
demonstrated by The Project Management Institute (2013) in “A Guide to the Project
Management Body of Knowledge.”
•
“Methodology. Defines the approaches, tools, and data sources that will be used to
perform risk management on the project.
•
Roles and responsibilities. Identify the lead, support, and risk management team members
for each type of activity in the risk management plan.
•
Budgeting. Estimates funds needed, based on assigned resources, for inclusion in the cost
baseline and establishes protocols for application of contingency and management
reserves.
•
Timing. Defines when and how often the risk management processes will be performed
throughout the project life cycle, establishes protocols for application of schedule
contingency reserves, and establishes risk management activities for inclusion in the
project schedule.
•
Risk categories. Provide a means for grouping potential causes of risk.
•
Definitions of risk probability and impact. The quality and credibility of the risk analysis
requires that different levels of risk probability and impact be defined that are specific to
the project context.
•
Probability and impact matrix. A probability and impact matrix is a grid for mapping the
probability of each risk occurrence and its impact on project objectives if that risk occurs.
•
Revised stakeholders’ tolerances. Stakeholders’ tolerances, as they apply to the specific
project, may be revised in the Plan Risk Management process.
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Risk Management Breakdown Structure
•
Reporting formats. Reporting formats define how the outcomes of the risk management
process will be documented, analyzed, and communicated. It describes the content and
format of the risk register as well as any other risk reports required.
•
Tracking. Tracking documents how risk activities will be recorded for the benefit of the
current project and how risk management processes will be audited.”
A risk register will also be used to document the risks of the project. The risk register is the
culmination of many different documents. It brings together the risk analysis and the response to
that analysis to provide the project with the best possible vision for risk it might incur. As the
project revisits the risk management process, the risk register evolves to always be a relevant
source of information to the project manager.
Role of Risk Management
The role of risk management in the project planning phase is crucial. Without an
evaluation of risk, the project, company, and stakeholders are all open to catastrophic failure. To
be properly prepared. Risk management is more than simply asking the question “what could go
wrong?” Risk management identifies the likelihood of risks and weighs that against the
opportunities as well. By generating documents and information on qualitative and quantitative
risk analysis, the project manager and team will be able to rightly identify the areas of concern
and make the best decisions moving forward to give the project the best chance of success. These
documents and information will then be gathered and incorporated into the project management
plan.
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Risk Management Breakdown Structure
Risk Breakdown Structure
Project Risk, Management Risk, Production Risk, Support Risk and External risk
•
Project risks
o
Difficulties in communication leading to misunderstandings with the client and
suppliers
o
Bureaucratic issues with the state leading to project delays
o
Client stability
▪
Poor management by the client leading to business failure
▪
Market fluctuation leading to business failure- The client is an ink
manufacturer in a very competitive industry.
•
Project management risks
o
Project costs fluctuate
▪
Scope change – any changes in scope by the client will lead to project
delays and increase in cost.
▪
Due to difficulties of availability for material and resources – Material to
complete the project such as building supplies, computers, and project
specific machines will come from vendors all over the world.
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Risk Management Breakdown Structure
▪
Due to changes in any of the resource markets – each resource needed has
a market and each market fluctuates. Small fluctuations in each market can
cause large problems for the overall project cost.
▪
o
Due to changes in the transportation market (oil and gas)
Schedule breakdowns (can also affect costs)
▪
Contractor issues – Building delays for any of the million reasons when
building delays happen, will cause the schedule to stall
▪
Difficulty of availability for resources – again the availability of resources
for each phase of the project may cause schedule issues as well and hold
up the building and operational process.
o
Communication
▪
Due to the new project being in China, communication will be an issue. It
will be necessary to take the time and ensure that messages are received
with the same intent with which they were sent. Confusion here could be
very costly in time and money.
•
Production risks
o
Training
▪
Unable to get operators who are qualified to train local new hires
▪
Difficulty finding capable local operators who can be trained to handle
chemicals and expensive complicated equipment
▪
o
Unable to communicate proper methods to the trainees
Environment
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Risk Management Breakdown Structure
o
▪
Unable to successfully handle and treat industrial discharge initially
▪
Chemical mixing hazards
Logistics
▪
Unable to form a reliable supply chain for consistent resource (chemical)
delivery
▪
•
Unable to establish proper waste disposal contactors
Support risks
o
Water filtration plant isn’t capable of operations at capacity
▪
Operations from a deficit creates storage problems as well as disposal and
liability problems for the project and client
▪
Mechanical issues for some parts may require expert maintenance that
may not be available
▪
o
Specialized equipment supply issues
Infrastructure reliability
▪
Utility failures and unreliability create havoc in these plants. Startups and
shut downs are very complicated affairs.
▪
Shipping dependability failures will make a consistent production
impossible, as tractor trailer loads of chemical is needed daily.
•
External risks
o
Procurement
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Risk Management Breakdown Structure
▪
Chemical and technical availability must be reliable. These resources are
needed in large quantity and a well-established supply chain is a must.
▪
Chemical loads will be needed daily, and many other part will be needed
in abundance. If lead times are unreliable for delivery large storage may
be needed.
▪
Subpar or inconsistent chemical and filter quality.
Conclusion
Veolia, in its new project initiative in China, will need to employ risk management to
properly assess the dangers and probability of those dangers. This paper discussed the analysis
and importance of a proper breakdown of risk management and its structure. By establishing the
goals and objectives, tools and techniques, and organizational roles for the evaluation of risk
management. The risk management team will set a firm structure for proper risk evaluation.
Highlighting and establishing the various sources of information that will be used to identify risk
management will help the team know how to find all the most probable risk. Establishing the
documentation the risk management team will use, tells the project manager how the risk will be
tracked over time. I then described the role of risk management in the project planning process
and created a risk breakdown structure.
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Risk Management Breakdown Structure
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Risk Management Breakdown Structure
References
Project Management Institute. (2013). A guide to the project management body of
knowledge (PMBOK® guide) (5th ed.). Newton Square, PA: Author.
Individual Assignment: Risk Management Paper
Purpose of Assignment
The purpose of this assignment is to leverage the risk breakdown structure developed during Week 2 to
perform both qualitative and quantitative risk analysis for the China expansion project. Students determine the
criteria to properly choose risk events for a detailed risk response plan. Students also demonstrate how risks
analysis can be used to determine the frequency and timing of risk monitoring and controlling processes within
the project framework.
Resources Required
Risk Breakdown Structure from Part I and Risk Project Log
Organization selected for the Week 2 Individual Assignment
Grading Guide
Content
70 Percent
Met
Partially
Met
Not Met
Total
Available
Total
Earned
8
#/8
Partially
Met
Not Met
Comments:
The student documents risks associated with
the supplier expansion in the Risk Project Log
template.
In the paper, the student includes a qualitative
risk analysis using risk probability and impact
analysis.
In the paper, the student includes a
quantitative risk analysis.
In the paper, the student documents the
criteria used to determine which risks will
have a risk response plan.
In the paper, the student outlines the risk
management process in the project life cycle,
including risk monitoring and controlling
processes.
The paper is 1,050 to 1,400 words in length.
Writing Guidelines
30 Percent
The paper—including tables and graphs,
headings, title page, and reference page—is
consistent with APA formatting guidelines and
meets course-level requirements.
Intellectual property is recognized with in-text
citations and a reference page.
Paragraph and sentence transitions are
Met
Comments:
present, logical, and maintain the flow
throughout the paper.
Sentences are complete, clear, and concise.
Rules of grammar and usage are followed
including spelling and punctuation.
Assignment Total
Additional comments:
#
Total
Available
Total
Earned
4
#/4
12
#/12
…
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