Risk Management Plan for WSI Blue Mountains TAFE Project

This assignment requires the development of a Risk Management Plan for the WSI Blue Mountains TAFE project. The plan should comply with industry and Australian Standards and include a Risk Register. The assignment provides a list of risks that could be encountered in the completion of the building project, and the learning resource notes and AS/NZS ISO 31000:2009 should be used to complete the plan.

BSBPMG508A: Assessment 2
What you have to do
This Assignment relates to the following Project:
19735 Project 4 Blue Mountains TAFE
Job Address: WSI Blue Mountains College, Parke St, Blue Mountains, NSW
Job Title: New facility for Beauty Therapy and Complimentary Health Classrooms and
Offices
Client: NSW Department of Commerce
Architect: Perumal Pedavoli Architects, Wattle St, Ultimo, NSW
You should obtain the following documents, from the OLS, for the job:
Arch Plans 40 pages
Civil Plans 2 pages
Electrical Plans 7 pages
Hydraulic Plans 6 pages
Mechanical Plans 3 pages
Structural Plans 11 pages
LA018343 Assessment 2 BSBPMG508A Ed 3 1
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

It is recommended that you are familiar with the following standards prior to completing this
assessment:
 AS/NZS ISO 31000:2009 Risk Management
 HB 436 2013 Guidelines to AS ISO 31000
You may make any assumptions you need to, but be sure to include them as part of your
submission.
2 LA018343 Assessment 2 BSBPMG508A Ed 3
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

Task
Your company has won the tender for the WSI Blue Mountains TAFE project (19735 Project
4) and the tender requirements require you to include a Risk Management Plan for the
project that complies with all relevant industry and Australian Standards.
Your company is a small to medium sized construction company, currently undertaking a
variety of commercial and residential construction projects, with annual turnover of
approximately $25 million or more.
Listed below are a number of risks that your company could typically encounter in the
completion of this building project.
 Contractual
 Technical e.g. design faults
 Logistical
 Construction
 Financial
Using the learning resource notes together with AS/NZS ISO 31000:2009 complete a Risk
Management Plan (including the Risk Register) for this project.
Use the appropriate template from: -
http://www.egovernment.tas.gov.au/project_management/supporting_resources/toolkit/
risk_management (also attachment A)
LA018343 Assessment 2 BSBPMG508A Ed 3 3
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

Attachment A
Risk Management Plan
Template & Guide
Version 1.1, April 2008
This Guide is intended to be read in conjunction with the following template for the development of a
Risk Management Plan for large/complex projects.
As such the Guide should be removed from the front of your final document.
The project management templates are being continuously improved. Feedback on suggested
improvements to this Template would be appreciated, and may be made to Project Services by
emailing [e-mail].
DISCLAIMER
This material has been prepared for use by Tasmanian Government agencies and Instrumentalities.
It follows that this material should not be relied upon by any other person. Furthermore, to the extent
that ‘this material is relied upon’, the Crown in Right of the State of Tasmania gives no warranty as to
the accuracy or correctness of the material or for any advice given or for omissions from the material.
Users rely on the material at their own risk.
4 LA018343 Assessment 2 BSBPMG508A Ed 3
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

What is a Risk Management Plan?
The Risk Management Plan is used to
summarise the proposed risk
management approach for the project.
Usually it is included as a section in the
Project Business Plan, however for larger
or more complex projects it can be
maintained as a separate document. It is
dependent on the establishment of a Risk
Register. At a minimum, the Risk
Management Plan should cover:
 the process which will be used to
identify, analyse, evaluate and treat
risks both initially and throughout the
life of the project, including estimated
costings (where practical);
 the process for transferring approved
risk costings into the project budget;
 the process for transferring risk
mitigation strategies into the project
Work Breakdown Structure;
 how often the Risk Register will be
reviewed, the process for review and
who will be involved;
 who will be responsible for which
aspects of risk management;
 how Risk Status will be reported and
to whom; and
 include as an appendix the initial
snapshot of the major risks, current
gradings, planned mitigation
strategies and costings and who will
be responsible for implementing them
(these are usually included as an
Appendix in the Risk Register).
Why would you develop a Risk
Management Plan?
A Risk Management Plan is developed to
ensure levels of risk and uncertainty are
properly managed so that the project is
successfully completed. It enables those
involved with the project to manage
possible risks by defining the manner in
which they will be contained and the likely
cost of mitigation strategies. A Risk
Management Plan is developed to:
 provide a useful tool for managing
and reducing the risks identified
before and during the project;
 document risk mitigation strategies
being pursued in response to the
identified risks and their grading in
terms of likelihood and seriousness;
 provide the Project Sponsor, Steering
Committee/senior management with a
documented framework from which
risk status can be reported upon;
 ensure the communication of risk
management issues to key
stakeholders;
 provide a mechanism for seeking and
acting on feedback to encourage the
involvement of the key stakeholders;
and
 identify the mitigation actions required
for implementation of the plan and
associated costings.
When would you develop a Risk
Management Plan?
Initial risks must be identified and graded
according to likelihood and seriousness
very early in the Project. This initial risk
assessment will form part of the Project
Proposal/Brief or Project Business Case
for the project. Once the project is
approved the Risk Management Plan and
Risk Register should be fully developed.
In the case of smaller projects the Risk
Register may serve both purposes.
For large or complex projects it can be
beneficial to use an outside facilitator to
conduct a number of meetings or
brainstorming sessions involving (as a
minimum) the Project Manager, Project
Team members, Steering Committee
members and external key stakeholders.
Preparation may include an environmental
scan, seeking views of key stakeholders
etc.
A Risk Management Plan is developed in
an iterative manner as the project
progresses and as clarity in relation to
potential risks emerges. Although the
Project Sponsor and Steering Committee
has ultimate responsibility for ensuring
LA018343 Assessment 2 BSBPMG508A Ed 3 5
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

appropriate risk management processes
are applied, the Project Manager may
develop the first release with their co-
operation, and will most likely maintain its
currency.
What you need before you start:
 Knowledge and understanding of the
project and the environment in which
it operates.
 Knowledge and understanding of the
Key Stakeholders.
 Knowledge and understanding of
appropriate types of risk management
activities, or where to obtain them.
 Any of the following documents –
Project Proposal/Brief, Project
Business Case, or Project Business
Plan.
 The Tasmanian Government Project
Management Guidelines.
Optional:
 Departmental Project Management
Guidelines.
 Corporate/Business Plan for the
Department/Business Unit.
What you will have when you are
finished:
A Risk Management Plan that is ready for
acceptance by the Steering Committee or
Project Sponsor. As the project
progresses, this document will need to be
updated, revised, re-endorsed and re-
released.
Integration Process
As risk management is an ongoing
process over the life of a project, any risk
analysis must be considered a ‘snap shot’
of relevant risks at one point in time. In
this context, document (version) control is
essential in order to ensure both the Risk
Management Plan and the Risk Register
are uniquely identifiable and changes
through their development and
subsequent revision(s) reflect progress in
the management of the identified risks and
changes are able to be tracked
How to use this template
The template contains sections which are
either optional or can be developed at a
number of levels of detail depending upon
individual need.
All documents developed based on this
template should include an appropriate
acknowledgement.
A number of different text styles have
been used within the template, as follows:
 Text in blue italics is intended to
provide a guide as to the kind of
information that can be included in a
section and to what types of projects it
might be applicable. It should be
deleted from the final document .
 Text in normal font is intended as
examples.
 Text enclosed in <angle brackets> is
intended to be replaced by whatever it
is describing.
This document has been formatted for
duplex printing. If you intend to print single
sided, you may need to delete some page
breaks.
Where to Get Additional Help
Project Management tools and resources
that can assist you through each step in
your project are available at
www.egovernment.tas.gov.au
Checklist
Have you remembered to remove:
 The versioning statement from the
front cover of your document?
 This guide and checklist from the front
of your document?
 All blue italic instructional text and
<prescriptive text enclosed in angle
brackets> within the template?
6 LA018343 Assessment 2 BSBPMG508A Ed 3
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

<Project Title>
Risk Management Plan
Version 0.A, dd-mm-yyyy
Copy: Uncontrolled
The version number starts at one and increases by one for each release. It shows the release
number and a revision letter if in draft. The original draft is 0.A and subsequent drafts are 0.B, 0.C
etc. The first accepted and issued document is Version 1.0. Subsequent changes in draft form are
1.0A, 1.0B etc. The accepted and issued second version is 1.1 or 2.0, depending on the magnitude of
the change.
Refer to the Project Management Fact Sheet: Document Control for more information.
Acknowledgements
The contribution of the following individuals in preparing this document is gratefully
acknowledged:
<contributors/reviewers/developers>
The following two paragraphs should be included in the documents where these templates
have been used as a basis for development.
This document has been derived from a template prepared by the Department of Premier
and Cabinet, Tasmania. The structure is based on a number of methodologies as described
in the Tasmanian Government Project Management Guidelines.
For further details, refer to www.egovernment.tas.gov.au
DOCUMENT ACCEPTANCE and RELEASE NOTICE
This is <release/version> <n.n> of the <Project Title> Risk Management Plan.
The Risk Management Plan is a managed document. For identification of amendments each
page contains a release number and a page number. Changes will only be issued as
complete replacement. Recipients should remove superseded versions from circulation. This
document is authorised for release once all signatures have been obtained.
PREPARED:______________________________________________DATE: ___/___/___
(for acceptance) (<name>, <Project Title>, Project Manager)
ACCEPTED:______________________________________________DATE: ___/___/___
(for release) (Project Sponsor, <name>)
on behalf of the <Project Title> Steering Committee
LA018343 Assessment 2 BSBPMG508A Ed 3 7
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

1. BUILD STATUS:
The most recent amendment first.
Version Date Author Reason Sections
<n.n> <dd mmm yyyy> <Name> <e.g. Initial Release> <All>
2. AMENDMENTS IN THIS RELEASE:
Section Title Section
Number
Amendment Summary
<e.g. This is the first release of this document.>
3. DISTRIBUTION:
Copy No Version Issue Date Issued To
1 <n.n> <dd mmm yyyy> <Name, Title, Organisation>
2
Electronic
8 LA018343 Assessment 2 BSBPMG508A Ed 3
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

Table of Contents
1 Executive Summary 2
2 Introduction 2
3 Risk Assessment 2
3.1 Identification 2
3.2 Analysis and Evaluation 2
4 Risk Mitigation 2
5 Risk Monitoring 2
6 Roles and Responsibilities 2
6.1 Steering Committee 2
6.2 Project Manager 2
6.3 Project Team 2
Appendix A: <Project Title> Risk Register (as at dd/mm/yy) 2
LA018343 Assessment 2 BSBPMG508A Ed 3 9
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

1 Executive Summary
This report depicts the potential of gaining or losing something of value. The construction
company has successfully won a tender for WSI Blue Mountains TAFE project (19735
Project 4). There is a difference between risks and uncertainty therefore the project manager
requires developing a risk management plan to identify the possible risks that may interrupt
the success line of the construction project. Respectively the project manager should also
develop the risk mitigations plans as well. The risk management framework will make sure
that the risks levels and possible uncertainty can be accurately managed. Before developing
the risk management plan a risk register needs to be prepared to identify the impact and
probability of the specific risk occurrence from the construction perspectives. The risk
management process will identify and analyse he risks and this risk management strategy
would help to reduce the likelihood and impact of risks. Based on the complexity of the risks
The project is divided in small activities and the project associates are individually assigned
to accomplish each of the activity. The roles and responsibilities of the project team
members are developed in this report including steering committee. Considering all possible
risks a risk register is prepared in this report to reduce the likelihood and impact of each risk.
2 Introduction
The aim of the risk management plan is to make sure that all risks and uncertainty are
initially identified and accordingly mitigation strategies are also elaborated. It is mandatory
for the project head to identify the risks with resources, cost, time and quality. In order to
realize positive outcomes or commercial benefits from the construction project, preparation
of a risk management plan is much helpful. The risk management plan will help the business
owners to identify and manage the contractual, technical, logistics, construction oriented and
financial risks.
The objective of risk management approach in this specific construction project is to identify,
analyse, prioritize and mitigate the potential risks. In order to avoid other threats and risks
the company should monitor the risks frequently. Frequent risk management plan can
resolve the issues of overrunning cost, extra annual turnover cost and over allocated project
resources. Each of the specific factors needs to be identified and prioritized to develop
possible mitigation strategies.
In order to successfully win the tender relevant Australian standards and industries are also
required to be analysed by the project manager. It is expected that, if each of these factors
are properly analysed and prioritized then managing those risk will become an easier
activity.
Based on risk complexities proper responses should be offered by construction manager in
terms of risk acceptance, risk mitigation, risk transfer and risk avoidance. Proper
countermeasures must be developed including consultation, related stakeholders and
project team members.
3 Risk Assessment
3.1 Identification
Risk identification is referred to as a process used to determine the risks with WSI Blue
Mountains TAFE construction project. The risks those are identified for this specific project
are as follows:
10 LA018343 Assessment 2 BSBPMG508A Ed 3
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

Safety hazards: For the construction project safety hazard is referred to as a major risk as it
may lead to worker’s accident as well as injuries.
Management of change orders: Supply of construction raw material is another success
factor if the resource manager fails to identify the resources (physical and material) then the
project manager will fail to meet project objectives and aim.
Contractual risk: If the contract is written poorly then the tender may not won project
contract.
Improper cost management: If the project manager fails to conduct the feasibility study
appropriately at the initial stage then the estimated cost will over flow.
Incorrect time management: If the project manager fails to identify the timeline and project
schedule exactly at the initial phase then it will result overrunning timeline an over allocate
resource risks.
In order to identify the above mentioned risks the risk identification process that will be used
is facilitated session. The facilitated session will assist the project team members individually
and motivate them with professional leadership qualities.
Five different risk categories: Logistic, contractual, constructions, financial and technical are
the categories analysed to evaluate the possible risks with WSI Blue Mountains TAFE
construction project.
The risk identification process is required to be conducted at the project initiation phase. In
the process of risk identification project manager and project team members will be involved.
3.2 Analysis and Evaluation
From this risks will be graded as A, B, C, D or N according to the following matrix:
Likelihood
Seriousness
Low Medium High EXTREME
Low N D C A
Medium D C B A
High C B A A
LA018343 Assessment 2 BSBPMG508A Ed 3 11
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

Risk id Risk description Impact Possibilities Score
R1 Improper cost
management
High Likelihood C
R2 Inaccurate time
management
Medium Unlikely A
R3 Logistic risks Low Most likely B
R4 Improper resource
management
Extreme Unlikely D
R5 Improper High Possible C
4 Risk Mitigation
The project manager requires preparing a risk management plan to develop the mitigation
strategies. Based on the risk complexities mitigation plans are to be prepared by the project
managers. The mitigation strategies, responsible person and risk response for each of the
risks are elaborated in the below table:
12 LA018343 Assessment 2 BSBPMG508A Ed 3
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

Risk
id
Risk
description
Mitigation action Responsibl
e person
Risk
response
Proposed
action
(date)
R1 Improper
cost
management
The finance
manager is
required to
prepare a
feasibility study to
make sure that
whether the
project will be
beneficial or not
Finance
manager
Risk
acceptance
12/03/2019
R2 Inaccurate
time
management
Based on the
project complexity
the project
manager should
prepare the project
timeline or project
schedule
Project
manager
Risk
avoidance
20/03/2019
R3 Logistic risks The operation
manager should
establish secured
contract to the
logistic companies
during the supply
of raw materials
Operation
manager
Risk
acceptance
22/03/2019
R4 Improper
resource
management
The resource
manager is
required to identify
the possible
resources. After
identifying the
resources they
should analyse the
gathered data from
them.
Resource
manager
Risk
avoidance
24/03/2019
R5 Poorly
written
contract
The contractors
should take
support from the
government to
prepare the project
contract
professionally
Contractor Risk
transfer
28/0/2019
LA018343 Assessment 2 BSBPMG508A Ed 3 13
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

5 Risk Monitoring
The risk monitoring and control approach is required to make sure that the risk management
plan is properly executed with proper assistance of the project team members. In addition to
this, effectiveness of the designed risk management plan must be monitored by the project
team members. Each of the risks can be easily tracked with the help of the risk monitoring
approach including the watch list. It helps to make sure that the organizational process
assets are all managed without any interruption. Risk monitoring can monitor the residual
risks ad also helps to identify other possible risks those may arise during the project
progress period.
A review of the risk and issue register will be undertaken on a monthly basis. The entire
project team will be involved in the risk and issues review register. The risk categories
identified for the WSI Blue Mountains TAFE project are technical, contractual, logistic, and
financial and construction oriented. Each of these risks is monitored with appropriate actions
on a fortnightly basis. The designed risk register will never be maintained as a separate
document rather it will be considered as a part of the risk management plan. The risk
register will identify the possibilities, impact and ultimate score of the identified risks. The
updated risk register for consideration are monthly provided by the project steering
committee, senior project manager and project sponsors. The risk status report will be
reported to the project manager and project sponsors on a monthly basis.
6 Roles and Responsibilities
Steering Committee
The assigned project steering committee members are responsible to provide needful inputs
required for the design and construction of the project. The construction project evaluation
strategies also guide to prepare the project budget. These strategies help to achieve the
expected project outcomes. The responsibilities of the project steering committee members
are to monitor the risks in terms of cost and timelines. These strategies can identify and
prioritize the risks to improve the quality of the project. The construction company would be
able to make effective decision regarding the company benefits and company.
6.2 Project Manager
The key responsibilities of the construction project manager are as follows:
 The project manager is responsible to prepare work for the entire project team
including cost estimation and timeline scheduling
 Responsible to take effective construct ion decision making followed by the project
case
 Whether the project is progressing towards correct direction or not should be
monitored and controlled by the project manager
 The project manager should review the project activities frequently to avoid
operational and functional errors
 Moreover, the exact responsibility of the project manager is to accomplish the entire
project within the preliminarily set schedule and budget
 The project manager should ensure that the team members are following the
Australian standards for risk management to identify and mitigate the risks.
6.3 Project Team
The responsibility of the assigned project team members are to support and assist the
project manager to evaluate the project successfully within the assigned budget and time as
well. Preparation of a work Breakdown structure will help to reduce project complexity by
dividing it into smaller segments. For each of the segments individual project team members
14 LA018343 Assessment 2 BSBPMG508A Ed 3
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

are assigned by the project manager. For this specific project the assigned team members
are project manager, finance manager, contractors, sub contractor, operation manager,
sponsors, labours, civil engineer and architect. Throughout the project development life cycle
each of the project team member needs to monitor the project activities. Coordination among
the project team members will ensure the project success and reduce the chances of
internal team conflict.
LA018343 Assessment 2 BSBPMG508A Ed 3 15
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

16 LA018343 Assessment 2 BSBPMG508A Ed 3
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

References
Alias, Z., Zawawi, E.M.A., Yusof, K. and Aris, N.M., 2014. Determining critical success
factors of project management practice: A conceptual framework. Procedia-Social and
Behavioral Sciences, 153, pp.61-69.
Braglia, M. and Frosolini, M., 2014. An integrated approach to implement project
management information systems within the extended enterprise. International Journal of
Project Management, 32(1), pp.18-29.
Chih, Y.Y. and Zwikael, O., 2015. Project benefit management: A conceptual framework of
target benefit formulation. International Journal of Project Management, 33(2), pp.352-362.
de Carvalho, M.M., Patah, L.A. and de Souza Bido, D., 2015. Project management and its
effects on project success: Cross-country and cross-industry comparisons. International
Journal of Project Management, 33(7), pp.1509-1522.
De Mooij, M., 2018. Global marketing and advertising: Understanding cultural paradoxes.
SAGE Publications Limited.
Drury-Grogan, M.L., 2014. Performance on agile teams: Relating iteration objectives and
critical decisions to project management success factors. Information and Software
Technology, 56(5), pp.506-515.
Engineering.com. 2019. Under Armour Implements Autodesk’s Generative Design to
Engineer the Perfect 3D-Printed Shoe. [online] Available at:
https://www.engineering.com/3DPrinting/3DPrintingArticles/ArticleID/11747/Under-Armour-
Implements-Autodesks-Generative-Design-to-Engineer-the-Perfect-3D-Printed-Shoe.aspx
[Accessed 14 Jan. 2019].
Golini, R., Kalchschmidt, M. and Landoni, P., 2015. Adoption of project management
practices: The impact on international development projects of non-governmental
organizations. International Journal of Project Management, 33(3), pp.650-663.
Guo, F., Chang-Richards, Y., Wilkinson, S. and Li, T.C., 2014. Effects of project governance
structures on the management of risks in major infrastructure projects: A comparative
analysis. International Journal of Project Management, 32(5), pp.815-826.
Hornstein, H. A. 2015. The integration of project management and organizational change
management is now a necessity. International Journal of Project Management, 33(2), 291-
298.
Joslin, R., & Müller, R. 2015. Relationships between a project management methodology
and project success in different project governance contexts. International Journal of Project
Management, 33(6), 1377-1392.
Kaiser, M.G., El Arbi, F. and Ahlemann, F., 2015. Successful project portfolio management
beyond project selection techniques: Understanding the role of structural
alignment. International Journal of Project Management, 33(1), pp.126-139.
Kerzner, H., 2017. Project management metrics, KPIs, and dashboards: a guide to
measuring and monitoring project performance. John Wiley & Sons.
Lappe, M. and Spang, K., 2014. Investments in project management are profitable: A case
study-based analysis of the relationship between the costs and benefits of project
management. International Journal of Project Management, 32(4), pp.603-612.
Marcelino-Sádaba, S., Pérez-Ezcurdia, A., Lazcano, A.M.E. and Villanueva, P., 2014.
Project risk management methodology for small firms. International journal of project
management, 32(2), pp.327-340.
LA018343 Assessment 2 BSBPMG508A Ed 3 17
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

Olsen, M.C., Slotegraaf, R.J. and Chandukala, S.R., 2014. Green claims and message
frames: how green new products change brand attitude. Journal of Marketing, 78(5), pp.119-
137.
Pinto, J.K., 2014. Project management, governance, and the normalization of
deviance. International Journal of Project Management, 32(3), pp.376-387.
Popaitoon, S. and Siengthai, S., 2014. The moderating effect of human resource
management practices on the relationship between knowledge absorptive capacity and
project performance in project-oriented companies. International Journal of Project
Management, 32(6), pp.908-920.
Risselada, H., Verhoef, P.C. and Bijmolt, T.H., 2014. Dynamic effects of social influence and
direct marketing on the adoption of high-technology products. Journal of Marketing, 78(2),
pp.52-68.
Sánchez, M.A., 2015. Integrating sustainability issues into project management. Journal of
Cleaner Production, 96, pp.319-330.
Sears, S.K., Sears, G.A., Clough, R.H., Rounds, J.L. and Segner, R.O., 2015. Construction
project management. John Wiley & Sons.
Silvius, A.J. and Schipper, R.P., 2014. Sustainability in project management: A literature
review and impact analysis. Social Business, 4(1), pp.63-96.
vom Brocke, J. and Lippe, S., 2015. Managing collaborative research projects: A synthesis
of project management literature and directives for future research. International Journal of
Project Management, 33(5), pp.1022-1039.
18 LA018343 Assessment 2 BSBPMG508A Ed 3
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

APPENDIX A:<RISKS IN WSI BLUE MOUNTAINS
TAFE PROJECT>
> RISK REGISTER (AS AT 20/03/19)
Rating for Likelihood and Seriousness for each risk
L Rated as Low E Rated as Extreme (Used for Seriousness
only)
M Rated as Medium NA Not Assessed
H Rated as High
Grade: Combined effect of Likelihood/Seriousness
Seriousness
Likelihood
low medium high EXTREME
low N D C A
medium D C B A
high C B A A
Recommended actions for grades of risk
Grade Risk mitigation actions
A Mitigation actions, to reduce the likelihood and seriousness, to be identified and
implemented as soon as the project commences as a priority.
B Mitigation actions, to reduce the likelihood and seriousness, to be identified and
appropriate actions implemented during project execution.
C Mitigation actions, to reduce the likelihood and seriousness, to be identified and costed for
possible action if funds permit.
D To be noted - no action is needed unless grading increases over time.
N To be noted - no action is needed unless grading increases over time.
Change to Grade since last assessment
NEW New risk  Grading decreased
— No change to Grade  Grading increased
LA018343 Assessment 2 BSBPMG508A Ed 3 19
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

Id Description of Risk Impact on
Project
(Identification of
consequences1)
L2 S3 G4 Change Date of
Review
Mitigation Actions
(Preventative or
Contingency)
Individual/
Group
responsible
for mitigation
action(s)
Cost Timeline
for
mitigation
action(s)
WBS5
R1 Inaccurate allocation
of resources for the
construction project
This specific risk
occurs during the
project design
and development
phase
<Change
in Grade
since last
review>
<Date of
last
review>
<Specify planned
mitigation strategies:
 Preventative
(implement
immediately);
 Contingency
(implement if/when
risk occurs).>
<Specify who
is responsible
for
undertaking
each
mitigation
action(s)>
<Specify
timeframe
for
mitigation
action(s) to
be
completed
by>
R2
1 This can be useful in identifying appropriate mitigation actions.
2 Assessment of Likelihood.
3 Assessment of Seriousness.
4 Grade (combined effect of Likelihood/Seriousness).
5 Work Breakdown Structure – specify if the mitigation action has been included in the WBS or workplan.
20 Assessment 2, LA number LA018343, Unit code BSBPMG508A, Edition number 3
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Archive version 1, June 2014

R3 Steering Committee
unavailable
Triggers include:
 Steering
Committee
meetings
repeatedly
rescheduled due
to lack of
availability;
 Members do not
attend despite
prior
confirmation of
attendance.
Lack of
availability will
stall progress (ie.
delayed decisions
will defer output
finalisation,
extend project
timelines and
staff resources
will be required
for longer than
anticipated)
H H A NEW 15/02/06 Preventative:
 Highlight strategic
connection - link
Project Objective to
relevant Agency
strategic objectives
 Confirm 2006
meeting schedule
in January
 Confirm SC
membership
 Widen
representation
(include other
Agencies)
Project
Manager
NA 15/03/06 Y
R4 Inadequate funding to
complete the project
Triggers include:
 Funding is
redirected;
 Costs increase
(poor quality
materials/
inaccurate cost
estimates)
Budget blow out
means cost
savings must be
identified – ie.
reduce output
quality, extended
timeframes,
outcomes
(benefits) will be
delayed
M M B No
change
15/02/06 Contingency:
Re-scope project,
focusing on time and
resourcing
Project
Manager TBC TBC N
LA018343 Assessment 2 BSBPMG508A Ed 3 21
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014

R5 Staff reject new
procedures
Triggers include
 Staff don’t
participate in
training (not
prepared for
new roles);
 New procedures
not applied
(work-arounds
still used).
Rejection means
additional time
and resources
required to
achieve
successful
implementation -
ie. some outputs
languish; more
training is
required
(additional cost,
time delays);
potential for
‘falling back into
old ways’ (more
change mgt
required); loss of
credibility for
project
(perception of
failure).
H H A NEW 15/02/06 Preventative:
Reinforcement of policy
changes by
management;
Provide opportunity for
staff feedback/input prior
to policy/procedure
finalisation;
Develop Training Plan
that allows for repeat
attendance (perhaps 2
stage training?);
Identify staff ‘champions’
to promote adoption of
new procedures (buddy
system);
Circulate information to
staff that
 promotes how new
procedures have
improved
processes (eg. 10
steps reduced to 4
steps etc);
 proportion of staff
that have
successfully
completed the
training.
 Identifies local
‘buddies’ for
troubleshooting.
Sponsor
Project
Manager
Consultant
Project
Manager
Project
Manager
NA
NA
$3,00
0
NA
NA
21/02/06
21/02/06
30/03/06
30/03/06
30/04/06
Y
Y
N
N
N
Note: This example is in brief and more detail would be added as required. For example, in larger projects separate documentation might be developed for each
major risk providing much more detail regarding mitigation strategies and costings.
22 Assessment 2, LA number LA018343, Unit code BSBPMG508A, Edition number 3
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Archive version 1, June 2014

Checklist
I have:
 Completed ALL tasks in this assessment
 Included my name, student number, unit number, assessment number
 Reviewed and spell checked my document
 Saved a copy of the assessment on my own computer.
LA018343 Assessment 2 BSBPMG508A Ed 3 23
© New South Wales Technical and Further Education Commission, 2014 (TAFE NSW – WSI), Version 1, June 2014