BSBPMG517 Manage Project Risk Assessment Task 2022

Lonsdale Institute PTY LTD
Assessment Task
BSB51415 Diploma of Project Management
BSBPMG517 Manage project risk
TA102 FO Assessment Task Page 1 of 8
TA102 PP Assessment Management (SNR1.8-1.12) (ESOS 14.2) V2 Mar 2017
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
Declaration of authenticity
I, the above-named student, confirm that by submitting, or causing the attached
assignment (and any additional attachment associated with it) to be submitted, to
Lonsdale Institute Pty Ltd, I have not plagiarised any other person’s work in this
assignment and except where appropriately acknowledged, this assignment is my own
work, has been expressed in my own words, and has not previously been submitted for
assessment.
I do understand and accept the consequences of academic misconduct according to
Lonsdale’s Policies and Procedures.
Unit Code BSBPMG517
Unit Name Manage Project Risk
Assessment
Code
T2 Due Date See Training Schedule
Student Name Adrian Michael
Warde
Student ID LON0000904

Lonsdale Institute PTY LTD
Assessment Task
BSB51415 Diploma of Project Management
BSBPMG517 Manage project risk
TA102 FO Assessment Task Page 2 of 8
TA102 PP Assessment Management (SNR1.8-1.12) (ESOS 14.2) V2 Mar 2017
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
ASSESSMENT TASK
Research the terms and topics mentioned in each of the questions below. Please answer the questions in
your own words.
QUESTIONNAIRE
Answer the following questions.
1. Identify at least 2 project risks for each of the following risk categories:
Risk Category Project Risks
Operational Risks Sometime in project client provide time constraint regarding when
activity in a project should start. However, it is often seen that in
order to implement the project with that time constraint, the project
might not meet the initial deadline set for completing a particular
activity or a group of activities in the project 1.
In construction site injury to workers is an important operational risk
for a construction project.
Schedule Risks Construction is delayed for bad weather and therefore require
additional time for completing project compared to the original project
schedule.
Some of the construction activities that are included in the project
critical path has not been completed according to the project
schedule and therefore it increases overall time for completing the
project.
Budget Risks Cost of some materials has increased and therefore require an
additional budget for the project.
Funding for the project is not available investors are not interested in
implementing the project for lack of project value as estimated by the
investors.
Information Security Risks Important construction documents like construction design
architectural plan budget plan resource plan are illegally access by
some other companies by hacking system database where the
important documents are stored by the organisation.
Important projects documents are shared with competitors by some
internal employees and therefore affecting information security and
privacy as well.
Quality and Process Risks Materials are of a low quality which affects the overall quality of the
construction project.
Construction is not in accordance with quality standard of client.
Technology Risks Required materials for the construction are not available for lack of
proper resource planning2.
Construction design is not complete and therefore it is not easy to
complete the project according to consumer requirements.

Lonsdale Institute PTY LTD
Assessment Task
BSB51415 Diploma of Project Management
BSBPMG517 Manage project risk
TA102 FO Assessment Task Page 3 of 8
TA102 PP Assessment Management (SNR1.8-1.12) (ESOS 14.2) V2 Mar 2017
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
Supplier Risks Suppliers are delaying delivery of materials and therefore the project
is not started according to the project schedule.
Materials provided by the supplier are damaged during transit
Human Resource Risks Employees recruited for the project do not have the knowledge and
skills that are required for completing the construction project.
Employees are not properly motivated by the human resource
manager and it affects their performance which also affects the
quality of the construction project as well.
Business Environment Risks Lack of compliance with rules and regulations leading to legal issue.
Lack of investment in innovation leading to less effective construction
project.
2. List and describe the key components of a risk management plan:
In a construction project, their various type of risk and to complete a project successfully it is important to manage this
is in accordance with project scope and objectives. Effective risk management plan consists of some key component
and these components are the followings:
Identification of risk:
Risk identification in a risk management plan identification of risk is of prime importance3. If the risk is not properly
identified that it is not possible to mitigate those risks.
Risk analysis and prioritization:
After risk are identified in the project it then needs to be analysed and prioritise according to their impact on the
project.
Risk mitigation plan:
After risks are identified and prioritized in project, strategies for mitigating those risks are provided in risk mitigation
plan.
3. Research the industry sector risk classifications for three (3) of the industry sectors listed
in the table below and relate them to different risk contexts:

Lonsdale Institute PTY LTD
Assessment Task
BSB51415 Diploma of Project Management
BSBPMG517 Manage project risk
TA102 FO Assessment Task Page 4 of 8
TA102 PP Assessment Management (SNR1.8-1.12) (ESOS 14.2) V2 Mar 2017
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
Industry Sector Risk contexts (discuss at least one/industry)
Agriculture Price of agricultural products vary significantly according to government
policy and market conditions. It leads to low revenue and sometime
farmers do not get proper price as well
Art, leisure and hospitality
Manufacturing Lack of communication with suppliers often delays delivery of raw
materials and increases project cost significantly
Transportation, cargo and
maritime
Retail
Chemical and Plastics
Education
Food Lack of compliance with food safety regulation often require companies
to withdraw their products from market leading to significant monitory
loss in project
4. Choose an organisation that you are familiar with and summarise their organisational and
industry standard risk frameworks.
Analysis of risk framework:
Risk identification:
In order to identify risk input from stakeholders are requested along with justification regarding why they
think the risk is important for the project 4. Different stakeholders provide different risk for the project. For
example, monetary issues are provided by contractors, time constraint as a project risk is provided by the
organisation and occupational hazards and injury as a project risk is provided by construction workers as
well.
Risk analysis:
There are two risk analysis tools which are quantitative risk analysis and qualitative risk analysis. In
qualitative risk analysis interview with stakeholders and research on identified risks provided in this
context. In quantitative risk, analysis statistics are considered for identifying risks in the project as well.
Risk response:
After strategies for risk response are identified, then it is reviewed by the contractor and the workers’
union and after that they provide an alternative plan. This plan is then executed to mitigate risks in
project.
Risk monitoring and controlling:
Risks are controlled in accordance with best strategies and tools to control and monitor the risks 5. For
example, operational risks like time constraint and occupational hazards are monitored and controlled by
application of mission assurance as tool along with options and tools available in project as well.

Lonsdale Institute PTY LTD
Assessment Task
BSB51415 Diploma of Project Management
BSBPMG517 Manage project risk
TA102 FO Assessment Task Page 5 of 8
TA102 PP Assessment Management (SNR1.8-1.12) (ESOS 14.2) V2 Mar 2017
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
5. Identify and describe the characteristics, techniques and appropriate applications of at
least two qualitative and two quantitative risk management techniques and approaches.
Qualitative risk management techniques
1. Interview
Characteristics
In this risk management technique, input is encouraged from various project stakeholders and they are
asked to provide details regarding type of risk they think appropriate 6. It is done to get a complete
overview of relevant project risks. It is generally a conversation done with project stakeholders in a formal
setting.
Techniques
In order to conduct interview for risk identification it needs to follow some techniques and these are the
followings:
 First of all some questions are fist identified that needs to be asked to stakeholders for gathering
details regarding type of risks in project
 Some typical questions that are to be asked are details regarding type of risk, why it is important
for organization to consider in this project, how it is going to affect project success
 After response are obtained from stakeholders, it is then documented
 Person who is taking interview might record conversation with stakeholders and then transcribe it
later or they might even document key points during relevant to project risk management
Application
 Once risk interview is completed it is then considered for educating employees, executives an
also board members regarding project risks management strategies 7.
 Once risks are identified through interview, it is then considered to design effective risk
management plan for project as well
2. Brainstorming
Characteristics
Brain storming obtains strategy for risk mitigation and for this everyone involved in the project are invited
to share their thoughts and ideas for better risk management in the project. As ideas are invited from a
various people involved in the project it helps to generate effective and innovative ideas in less time while
ensuring quality of decision as well.
Techniques
Brain writing
In this technique, it is ensured that generation of ideas is separated from discussions. First of all team
leader would share risks in the project and then team members need to write about their ideas regarding
probability and impact of those risks along with techniques for mitigating those risks as well.
Figuring storming

Lonsdale Institute PTY LTD
Assessment Task
BSB51415 Diploma of Project Management
BSBPMG517 Manage project risk
TA102 FO Assessment Task Page 6 of 8
TA102 PP Assessment Management (SNR1.8-1.12) (ESOS 14.2) V2 Mar 2017
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
In this technique team members need to assume roles of managers or team leader and need to share
ideas regarding how they could have mitigate those risks if they were provided those roles in project 8.
This helps in ensuring that ideas are innovative and effective as well.
Stepladder technique
In this technique team members needs to share details regarding identification of possible risks in the
project, its impact on project and possible strategies for mitigating those risks as well 9. In this context,
team members first need to provide their ideas individually before being influenced by others so that
ideas are innovative and less biased therefore enhancing quality of decision as well.
Application
 To gather details regarding various risks in the project in less time
 To generate innovative ideas for risks management strategies
Quantitative risk management techniques
Monte Carlo analysis
Characteristics
In this technique, risk analysis is done by application of models that substitute a range of values and
provides possible results10. It applies a probability distribution for substituting values for a factor that
contributes to risk in the project.
Techniques
In this technique, probability distribution is applied for factors that contribute to project risk and then it is
calculated again and again and for each time a different set of values are applied which are chosen
randomly from probability functions. However, section of values depends on number of risk factors in
project and ranges which are specified for these risk factors.
Applications
It is applied for creating a probability distribution of risk in project and obtaining insight regarding project
risk11. It is then communicated with supervisors and investors for providing them insight regarding risk
management plan for project as well.
Decision tree analysis
Characteristics
Decision tree documents various decision regarding mitigating a specific risk in the project. In order to
provide optimum decision from a range of available option, it considers expected monetary value or EMV
analysis internally in accordance with impact of risks on project.

Lonsdale Institute PTY LTD
Assessment Task
BSB51415 Diploma of Project Management
BSBPMG517 Manage project risk
TA102 FO Assessment Task Page 7 of 8
TA102 PP Assessment Management (SNR1.8-1.12) (ESOS 14.2) V2 Mar 2017
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
Techniques
 In order to apply this tool for quantitative risk analysis it is required to consider future events that
might contribute to risk in project 11. The name of the events are then described through
rectangles and from this option lines are drawn.
 Then it is required to define decision nodes and chance nodes for drawing decision tree
 Probability values for each risks are defined on branch node and then cost for each risk or impact
of risk is defined at the end of the node
 Then calculations for branches are done and best decision is that decision which provides highest
positive value or low negative value according to the type of risk and its impact on project as well
Applications
It is applied in project to identify best strategy for mitigating risks from a range of available options. It is
preferred for making best decision regarding choice of risk mitigation technique to ensure that it reduces
impact of risk on project according to cost or impact of each risk on project as well.

Lonsdale Institute PTY LTD
Assessment Task
BSB51415 Diploma of Project Management
BSBPMG517 Manage project risk
TA102 FO Assessment Task Page 8 of 8
TA102 PP Assessment Management (SNR1.8-1.12) (ESOS 14.2) V2 Mar 2017
Lonsdale Institute Pty Ltd
Provider ID 21915 CRICOS Code 02836F
References
(1) Islam, M.; Nepal, M.; Skitmore, M.; Attarzadeh, M. Current Research Trends And Application Areas Of
Fuzzy And Hybrid Methods To The Risk Assessment Of Construction Projects. Advanced Engineering
Informatics 2017, 33, 112-131.
(2) Jebelli, H.; Ahn, C.; Stentz, T. Fall Risk Analysis Of Construction Workers Using Inertial Measurement
Units: Validating The Usefulness Of The Postural Stability Metrics In Construction. Safety Science 2016,
84, 161-170.
(3) Li, N.; Fang, D.; Sun, Y. Cognitive Psychological Approach For Risk Assessment In Construction
Projects. Journal of Management in Engineering 2016, 32, 04015037.
(4) Santos, R.; Jungles, A. Risk Level Assessment In Construction Projects Using The Schedule
Performance Index. Journal of Construction Engineering 2016, 2016, 1-8.
(5) Hayat, E. Risk Attitude And Risk Controllability: Their Implications On The Subjective Quantification Of
Risk In International Construction Projects. International Journal of Advanced Engineering Research and
Science 2017, 4, 33-45.
(6) Perez, D.; Gray, J.; Skitmore, M. Perceptions Of Risk Allocation Methods And Equitable Risk
Distribution: A Study Of Medium To Large Southeast Queensland Commercial Construction Projects.
International Journal of Construction Management 2016, 17, 132-141.
(7) Mikosch, T. Review Of A. J. Mcneil, R. Frey, P. Embrechts: Quantitative Risk Management. Concepts,
Techniques And Tools. European Actuarial Journal 2016, 6, 283-285.
(8) Zhou, C. Book Review: Quantitative Risk Management: Concepts, Techniques And Tools, Revised
Edition, By A.F. Mcneil, R. Frey And P. Embrechts. Princeton University Press, 2015, ISBN 978-0-691-
16627-8, Xix + 700 Pp. Extremes 2017, 20, 489-491.
(9) Gupta, V.; Thakkar, J. A Quantitative Risk Assessment Methodology For Construction Project.
Sādhanā 2018, 43.
(10) Elzamly, A.; Hussin, B. Quantitative And Intelligent Risk Models In Risk Management For
Constructing Software Development Projects: A Review. International Journal of Software Engineering
and Its Applications 2016, 10, 9-20.
(11) Lončarski, I. Risk Management (2016). Risk Management 2016, 18, 1-3.