Risk Management Plan for WSI Blue Mountains TAFE Project

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
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© 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.
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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)
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© 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.
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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
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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?
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