Developing a Risk Management Plan for Eye Clinic Noble Park Project

This report develops a risk management plan for Eye Clinic Noble Park Project which covers several steps beginning from the assessment of risk to its reduction for successful management of the project. It addresses communication with stakeholders, dispute resolution, modification procedures, and implementation of risk control trigger mechanisms.

<University>
< Manage Project Risk>
by
<Your Name>
<Date>
<Lecturer’s Name and Course Number>
 <Your Name> 2017 1 of 20

Table of Contents
Introduction....................................................................................................................3
1. Developing a risk management plan......................................................................3
2. Addressing the following in the risk management plan.............................................8
A) Communication with stakeholders........................................................................8
B) Dispute resolution.................................................................................................9
C) Modification procedures.......................................................................................9
D) Implementation of risk control trigger mechanisms...........................................10
E) Measurement of actual progress against planned milestones..............................10
3. Reviewing project risk management outcome.........................................................11
a Determining the effectiveness of procedures and processes.................................11
4. Identifying and appropriately documenting risk issues and recommended
improvements...............................................................................................................12
5. Discussing stakeholders involvement and dissemination of risk improvement......14
Conclusion....................................................................................................................15
 <Your Name> 2017 2 of 20

List of tables
Table 1: Risk assessment................................................................................................5
Table 2: Risk management plan.....................................................................................7
Table 3: Risk issues and improvements.......................................................................13
List of figures
Figure 1: Risk management plan....................................................................................6
 <Your Name> 2017 3 of 20

Introduction
The risk management plan refers to the specific set of activities and action
implemented to deal with the negative outcome of a project (Loosemore and Phua,
2010). This increases the chances for the success of the project because proactive
actions are taken with the association of skilled and qualified team (Lundgren and
McMakin, 2013). In this context, the present report develops a risk management plan
for Eye clinic noble park project which covers several steps beginning from the
assessment of risk to its reduction for successful management of the project. Apart
from this, effectiveness of processes and procedures used for the project risk
management outcome have been reviewed. Along with that, the risk issues have been
documented and identified with the equal focus on the recommended improvements.
In addition to this, involvement of stakeholders has been discussed.
1. Developing a risk management plan
The management of potential risks coming to the project is the crucial task, which
assists project manager to determine the success of the project (Frewer, 2004). For the
management of risk, following mentioned plan has been used in the Eye clinic noble
park project- Identification of hazards-It is the first and foremost step wherein potential
risk associated with the project will be identified (Apollon, 2015). The current
project is prone to risk of using poor quality raw material and inclusion of
poor skilled staff. Furthermore, higher exposure of risk may cause accident of
workers on the site, loss of production and time. At this juncture, the onsite
hazards are important to be dealt with so that workers can work with higher
level of safety. Still the risk of increasing cost and time may have direct
impact on the project deliverable (Leslie, 2002). Therefore, accident on the site,
risk of collapse, extended time, cost overruns and inexperience employees
may affect the performance of overall project.
 <Your Name> 2017 4 of 20

Table 1: Risk assessment
Item Description Impact (High/H,
Moderate/M, Low/L)
Accident on-site The risk during
construction for staff
High
Risk of collapse Due to use of low
quality material the
chances of collapse of
buildings
Low
Extended time Time required for
making the things
good
Moderate
Cost overruns Cost overruns due to
additional expenses
on material and
quality control at the
end stage
Moderate
Inexperienced staff
or team members
Staff who do not have
people experience
related to the field
Moderate
 <Your Name> 2017 5 of 20

Figure 1: Risk management plan Evaluating the risks caused by the control measures-It is the most important
step wherein management of the business might face issue related to the
occurrence of additional risk through the risk control procedure (Agassi and
Meidan, 2016). For example, application of technology to reduce the accident
at workplace would further increase the risk of higher cost. Also, it might take
extra time to arrange for the same. Owing to this, consequences would be
understood and accordingly management of the business will put efforts to
reduce the impact of any kind of risks and train the employee for the same for
determining the successful completion of the project (Modarres, 2016). Control measures of risk-This step defines about the potential control
measures which can easily control overall risks associated with the project
(McNeil, Frey and Embrechts, 2015). This contributes towards deriving valid
outcome for stakeholders because appropriate actions are taken for the
successful completion of the project and minimum impact of the risk factors.
 <Your Name> 2017 6 of 20

The current project Eye clinic noble park will have following risk control
measures-
Table 2: Risk management plan
Item Without control Control Residual risks Action
Accident on-site Without control it
would increase
accident rate and
reputation of the
MECG company
will go down.
Also the project
will not be
completed on
time.
Use of latest
technologies for
carrying material
and use of ready
boundaries
Risk with the use
of technologies
Association of
engineers and
close
monitoring of
risk associated
with the
technologies
Risk of collapse Extensive risk of
loss of money and
time
Application of
high quality raw
material and
selection of
qualified vendors
Ineffective
inspection of
quality material
Close
supervision of
input or raw
material
department
Extended time Dissatisfaction of
clients and cost
overruns
Allocating time
effectively to
manage all the
activities, Use of
Gantt chart
Slow work on the
site
Evaluators’
appointment to
assess or ensure
the completion
of task on time
Cost overruns Dissatisfaction
among client or
stakeholders and
incomplete
Appropriate use
of resources and
application of
effective
Sudden
requirement of
budget due to
accident and
Allocation of
budget in the
right manner
 <Your Name> 2017 7 of 20

project techniques like
Critical path for
completing the
project in
relatively less
cost
shortage of raw
material
Inexperienced staff
or team members
The poor quality
of the project
Selecting right
team and offering
them on the job
training
Less focused staff
or team members
Setting reward
and punishment
system of team
 Risk management –On the basis of above table, the risk management team
will work towards the appropriate management of potential risk occurred in
the project (Gorzeń-Mitka, 2013). This would be helpful in taking the corrective
actions on the right time and the rate of accident on site of Eye clinic noble
park project will be reduced largely. In this context, staff or team members
will continually get the information that how their project can be affected by
the negative aspects and accordingly they can be taught to use the corrective
action. Also, the risk management plan may need certain amount of money
because emergency plan consisting team of skilled and experts people backed
by enough resources for managing the risk will be employed. This is the
emergency plan for the Eye clinic noble park project through expectations of
stakeholders will be met and project will be work successfully. Review of the plan-The overall risk management plan will be reviewed on the
basis of pre-defined objectives of the plan (Banaitiene and Banaitis, 2012). This
facilitates to control the risk because loopholes will be recorded and reporting
of the same will be done in the respective department. Also, the review
procedure will ensure that all the resources employed in the Eye clinic noble
park project have been properly utilised.
 <Your Name> 2017 8 of 20

 Modification-It is the last step wherein project management will modify the
risk plan by focusing on the certain aspects like free flow of communication,
involvement of stakeholders and setting the quality parameters on the priority
(Iqbal and et. al., 2015). Also, the recorded risk plan will be modified on the
basis of reports and outcome through which success of the project can be
determined to a great extent. Thus, risk management plan for Eye clinic noble
park project is helpful for to deal with the potential barriers and effectively
complete the related projects through the optimum utilization of limited
resources (Sharma and Swain, 2011). Apart from this, right modification in the
plan will lead further success in other projects so the outcome derived at this
stage will be communicated among the team members of the project.
2. Addressing the following in the risk management plan
A) Communication with stakeholders
While making the risk management plan then there should be proper
interaction with stakeholders because these are important people for the organization.
Stakeholders can be in an individual, group or organizations that have the major
contribution in the company (Lundgren and McMakin, 2013). So for the management
of the risk plan of Eye clinic noble park project, MEGC should focus on the
involvement of the stakeholders in the risk plan. Stakeholders of the construction of
Eye clinic can be vendors, suppliers, material handling team etc.
Further, manager will be able to understand the expectations of the
shareholders by organizing timely meeting, regular interfere in the processing and can
develop a software for the interaction. It will be helpful to manage the risk that how
the project will be affected in the form of time, cost and quality (Frewer, 2004). If all
these things will be communicated to stakeholders then it will be easy to handle the
risk and can be mitigated. Further, there may arise higher cost to communicate with
potential stakeholders but it will reflect the expected benefits through effective
consultation (Loosemore and Phua, 2010). Therefore, it reveals that involvement of
 <Your Name> 2017 9 of 20

stakeholders in the management of risk is beneficial for the company because with the
help of it risk will be effectively managed and fewer resources will be required.
B) Dispute resolution
Disputes are those which arise in the management of projects due to risk
factors because when the expectations do not match to reality then mismanagement of
projects can take place (Agassi and Meidan, 2016). Hence, the dispute may be with
suppliers, customers, employees and other business partners in the construction of Eye
clinic noble park project. So there can be several strategies to resolve the disputes
among partners and stakeholders.
All the documents and facts must be complied in a proper format so that so
that misconception regarding time, date, lease, warranty and service delivery,
contracts etc. On the other hand, project manager should communicate with the other
parties to get a better solution for handling of the disputes. Because in this, other
parties will also have experience regarding the normal disputes so they will be able to
provide the creative ideas for the win-win solution and tools for resolving the disputes
(Leslie, 2002). For instance, risk management always helps the physician to identify
the health risk for the patient and avoid the risk so that disputes cannot arise in the
clinic (Apollon, 2015). It shows that risk management always consists with the
disputes because both are interlinked. When the risk will arise then only disputes will
be and there will be requirement of resolutions for managing the risks.
C) Modification procedures
The project manager has to face several types of risk in the construction of the
Eye clinic of Noble Park like lack of communication, insufficient supply of material,
less availability of labor and higher cost of the labor etc. After starting the
construction process there can arise the problem in the construction design that what
design has prefixed that is not taking place in the building. Due to this, manager will
be liable for that mistake and he has to find another alternative for the better
construction of park.
 <Your Name> 2017 10 of 20

On the other hand, project manager can provide further training to the workers
so that effective construction can be done. For that new blueprints and layout should
be prepared by the constructor and modification should be done as per the
requirements. Hence, modification procedure will be costly for the construction
because it demanded for the extra cost, time and resources for the better construction.
D) Implementation of risk control trigger mechanisms
There are different types of risk which identified in the construction of the Eye
clinic noble park so for the mitigation of that risk these techniques can be used. With
the use of the tools risk can be controlled and project will be highly affected. It
includes cost and time estimating, expert judgment, decision tree and expected
monetary value analysis etc (Modarres, 2016). Further, as per these methods, project
manager can implement these two techniques- cost and time estimating and Monte
Carlo approach. Cost and time estimating techniques is very helpful to minimize the
risk because it will facilitates the expected time and cost of the project and it should
not exceeded than only the project will be cost effective (McNeil, Frey and
Embrechts, 2015). On the other hand, Monte Carlo approach can also be implemented
for the construction of the Eye clinic noble park because it is simulation techniques
which stimulate the results of cost and schedule of the project (Gorzeń, 2013).
Therefore, both are the techniques which preferred for the management of the
expected time and cost so that there cannot be major difference between decided and
actual results.
E) Measurement of actual progress against planned milestones
As per the construction of the Eye clinic noble park project, there should be
proper measurement of the actual results and planned outcomes. Because it will shows
the reality of the project that at what extent project is effective or there should be
modification. In this context, the department head of Eye clinic noble park will be
asked to provide the report and then the milestone will be considered to make the
comparison. For this purpose, evaluation stage will be completed in accordance with
the set standards and gap between the actual and expected outcome will be reduced to
 <Your Name> 2017 11 of 20

a great extent. Apart from this, the standard rate of accidents and the actual accident
rate will be compared and accordingly project management will assess how effective
the risk management plan was. Moreover, project management will be carry out the
comparative analysis in term of team performance, project objective, risk and budget
as well as time consumption etc. This would be helpful in assessing the actual
progress of the project so as to meet the expectations of all related parties.
3. Reviewing project risk management outcome
It is not always necessary that project risk management outcome will be
favourable because management have emphasize on other related areas through which
tight control can be established (Fernández-Sánchez and Rodríguez-López, 2010).
a Determining the effectiveness of procedures and processes
The procedure used for the risk management plan is effective as it focuses on
every single issue which may become hurdle in the completion of the current project.
This facilitates to cater the requirement of all related parties and derive the valid
outcome for the related stakeholders (Walker, 2015). However, the processes used for
the review of risk management plan are explained as follows-
 Preventive measures-In order to increase the positive outcome for the risk
management review, preventive measures will be used by the project manager,
For example, latest technologies are in use for the transfer of raw material so
that on-site accident related to workers can be reduced. Apart from this, team
members associated with the Eye clinic noble park project will be
communicated and provided all the safety equipments so that accidents can be
controlled effectively. This would further stimulate the growth of residential
construction project and initial and basic work of the project will be completed
with the speed.
 Raking of risk and final plan-The another processes used to derive the
positive outcome of risk management plan is ranking of risk and accordingly
implementing the suitable plan (Winch, 2010). For example, accident on the
 <Your Name> 2017 12 of 20

site is priority risk for which additional money has been incurred to get the
latest technologies transferring the raw material from the place of origin to the
place where it is needed (Zavadskas, Turskis and Tamošaitiene, 2010). However,
other risks such as cost and time overruns cuase moderate risk for the overall
Eye clinic noble park project, still the plan has been prepared to effectively
utilize the resources with the use of critical path method. By using this
method, both time and cost will be reduced because the longest path of the
project will be obtained and the entire team will work accordingly.
 Comprehensive programme-This comprehensive plan will target to maintain
overall quality of the project with the help of structured procedure. For this
purpose, project team will communicated regarding the quality parameters and
accordingly risk related to the project will be reduced to a great extent
(Loosemore and et. al., 2012). For example, the requirement or expectations of
stakeholders will be clearly communicated among team so they can comply
with the set regulations.
 Continuous improvement-The continuous improvement of the project will be
done with the help of training and development program. These procedures
would enable employees or project management to track the performance of
project and accordingly provide the review (Choudhry and Iqbal, 2012). Also,
the daily close supervision also facilitates to get the meaningful information
through which it becomes easy to work on the potential issues.
4. Identifying and appropriately documenting risk issues and recommended
improvements
The management of risk in the project is crucial tasks which require active
attention of people from different departments (Motiar Rahman and Kumaraswamy,
2002). The Eye clinic noble park project also has several risks in the completion of the
project; however, appropriate plan has been prepared for mitigation of those potential
risks. Still, the risk issues may affect the progress of the project to a great extent. It
has been explained as follows-
 <Your Name> 2017 13 of 20

Table 3: Risk issues and improvements
Risk issues Actions
Lack of risk decision making structure Stakeholders will be engaged
Lack of risk taking culture Appropriate corporate culture of taking
risks will be created with the inclusion of
reliable experts
Poor risk assessment process Inclusion of skilled staff to deal with risks
related issues
Inexperienced staff or project team Continuous monitoring of work and
training of team
Inability of project management to
address the risk
Evolve risk managing culture and keep
on learning
On the basis of above table, it has been found that Eye clinic noble park
consists of several risk issues including lack of risk decision making structure, risk
taking culture, poor risk assessment process and inexperienced staff or project team.
These different issues impede the overall performance of the project by weakening the
project completion procedure (Tang and et. al., 2007). Owing to this, appropriate
actions will be taken by project management to deal with risk issues. For example, if
risk management culture is absent in the project team then it is likely to have direct
impact on the implementation of risk management plan. This is because staff will be
less cautious towards the risks and they also will not be able to take the corrective
actions.
Another crucial risk issues is lack of risk assessment process through which
management cannot find the exact risks which might be faced in the project. For
instance, collapse of walls even in the natural normal disaster can affect the overall
success of the project. Since it provides good result at the early stage and later it
 <Your Name> 2017 14 of 20

affects the construction project to a great extent (Lyons and Skitmore, 2004). Owing to
this, risk assessment should be strong whereby management of project can plan for
the risk management in the right manner.
Inability of project management to assess certain critical risk is also the issue
through which project get affected (Banaitiene and Banaitis, 2012). For this purpose,
audit can be carried out and assistance of experts should be taken. This extensive
support would evolve project manager and provide the continuous learning in term of
management of management of the risks. Apart from this, different stakeholders
including vendors, suppliers, sponsors and client should be aligned or engaged so they
can effectively provide their views related to quality or specific requirement of project
(Iqbal and et. al., 2015). This would further be supportive in identifying the risk and
managing the same with the application of right strategy.
5. Discussing stakeholders involvement and dissemination of risk improvement
The involvement of stakeholders in the project management is the important
tasks as they also provide important insight regarding the management of some
specific tasks and resolving the potential issues in the right manner (Kalkhoran, Liravi
and Rezagholi, 2014). Owing to this, stakeholders will be engaged and the risk
improvement will be disseminated among them in the following manner-
 Weekly meeting-In order to deal with issues related to risks, project
management will be take the weekly meeting regarding the progress of the
project and understanding some specific requirement. For example, sponsors
and project management will be invited to provide their views for the work
done yet. This would help them to trace the current performance and
accordingly contribute toward in the same for further (Wang, Dulaimi and
Aguria, 2004). For instance, they will be communicated that latest technologies
will be used which will consume extensive amount of financial resources but
risk related to on-site accident will be reduced.
 <Your Name> 2017 15 of 20

 Common communication portal-The common communication portal will be
developed for Eye clinic noble park under which all stakeholders will be stay
connected. They will be allowed to comment and provide their suggestions
through that portal also they can easily ping to the respective member of
project. This procedure would although expand the span of control but the
progress of project will be appropriate (Sharma and Swain, 2011). In this
context, they can be provided information that employees or team has been
undergone through training program and drastic improvement has been seen in
term of quality of work.
 Proper reporting-In order to involve stakeholders, proper reporting will be
done and they will be asked to provide their comment. This reporting will be
done in term of present progress and risk which has been resolved yet. Also,
the potential risk related to quality, material, staff and others will also be
communicated along with the clear description of further requirement of
resources (Lyons and Skitmore, 2004). The respective head of the department
will do this reporting and response derived from stakeholders will be
incorporated into the risk management procedure.
 Asking for suggestions-Under this procedure project manager will
disseminate risk improvements and at the same time stakeholders will be
asked to provide their suggestions (Tang and et. al., 2007). The procedure of
taking their suggestions would assists management to bring further
improvement in the risk management plan and mitigate the potential risks in
the right manner. In this context, daily meeting can also be organized with
stakeholders having any specific issue regarding the risk related to the project.
Conclusion
The report concludes that risk management plan facilitates to derive valid outcome
for the business because the project management reduces potential risk by being
proactive. It can also be concluded that active involvement of stakeholders would
provide the right choice for project manager to control the risk and ensure free
 <Your Name> 2017 16 of 20

flow of communication between different parties who are directly or indirectly
connected with the success of the project. Apart from this, dispute resolution
procedure and selection of appropriate risk control trigger mechanisms are helpful
in deriving the success of the project as it provides clear path for the right way to
complete the project with the satisfaction of all involved stakeholders.
 <Your Name> 2017 17 of 20

Reference List
Agassi, J. and Meidan, A. (2016) Resolving a Dispute. In Beg to Differ (pp. 15-26).
Copernicus, Cham.
Apollon, G. (2015) The Intersection between Legal Risk Management and Dispute Resolution
in the Commercial Context. Pepp. Disp. Resol. LJ. 15, pp.267.
Banaitiene, N. and Banaitis, A. (2012) Risk management in construction projects. In Risk
Management-Current Issues and Challenges. InTech.
Choudhry, R.M. and Iqbal, K. (2012) Identification of risk management system in
construction industry in Pakistan. Journal of Management in Engineering. 29(1), pp.42-49.
Fernández-Sánchez, G. and Rodríguez-López, F. (2010) A methodology to identify
sustainability indicators in construction project management—Application to infrastructure
projects in Spain. Ecological Indicators. 10(6), pp.1193-1201.
Frewer, L. (2004) The public and effective risk communication. Toxicology letters. 149(1-3),
pp.391-397.
Gorzeń-Mitka, I. (2013) Risk identification tools—Polish MSMES companies
practices. Problems of Management in the 21st Century. 7, pp.6-11.
Iqbal, S., Choudhry, R.M., Holschemacher, K., Ali, A. and Tamošaitienė, J. (2015) Risk
management in construction projects. Technological and Economic Development of Economy.
21(1), pp.65-78.
Iqbal, S., Choudhry, R.M., Holschemacher, K., Ali, A. and Tamošaitienė, J. (2015) Risk
management in construction projects. Technological and Economic Development of
Economy. 21(1), pp.65-78.
Kalkhoran, S.H.A., Liravi, G. and Rezagholi, F. (2014) Risk Management in Construction
Projects. International Journal of Engineering Trends and Technology (IJETT). 10(3).
Leslie, D.W. (2002) Resolving the dispute: Teaching is academe's core value. The Journal of
Higher Education. 73(1), pp.49-73.
 <Your Name> 2017 18 of 20

Loosemore, M. and Phua, F.T.T. (2010) Stakeholder Engagement in Managing Risk.
In Proceedings of the 18th CIB World Building Congress ‘’Proceedings of the 18th CIB
World Building Congress.
Loosemore, M., Raftery, J., Reilly, C. and Higgon, D. (2012) Risk management in projects.
Routledge.
Lundgren, R.E. and McMakin, A.H. (2013) Risk communication: A handbook for
communicating environmental, safety, and health risks. John Wiley & Sons.
Lyons, T. and Skitmore, M. (2004) Project risk management in the Queensland engineering
construction industry: a survey. International journal of project management. 22(1), pp.51-
61.
McNeil, A.J., Frey, R. and Embrechts, P. (2015) Quantitative risk management: Concepts,
techniques and tools. Princeton university press.
Modarres, M. (2016) Risk analysis in engineering: techniques, tools, and trends. CRC press.
Motiar Rahman, M. and Kumaraswamy, M.M. (2002) Risk management trends in the
construction industry: moving towards joint risk management. Engineering, Construction and
Architectural Management. 9(2), pp.131-151.
Sharma, S.K. and Swain, N. (2011) Risk management in construction projects. Asia Pacific
Business Review. 7(3), pp.107-120.
Tang, W., Qiang, M., Duffield, C.F., Young, D.M. and Lu, Y. (2007) Risk management in
the Chinese construction industry. Journal of construction engineering and management.
133(12), pp.944-956.
Walker, A. (2015) Project management in construction. John Wiley & Sons.
Wang, S.Q., Dulaimi, M.F. and Aguria, M.Y. (2004) Risk management framework for
construction projects in developing countries. Construction Management and
Economics. 22(3), pp.237-252.
Winch, G.M. (2010) Managing construction projects. John Wiley & Sons.
 <Your Name> 2017 19 of 20

Zavadskas, E.K., Turskis, Z. and Tamošaitiene, J. (2010) Risk assessment of construction
projects. Journal of civil engineering and management. 16(1), pp.33-46.
 <Your Name> 2017 20 of 20