Project Risk Management and Leveling

This assignment focuses on analyzing project risks by evaluating their likelihood and potential impact. Students are tasked with categorizing risks into five levels: Very Low, Low, Medium, High, and Very High. Each level corresponds to specific response strategies that should be implemented. The assignment also requires referencing relevant literature on project management, demonstrating a comprehensive understanding of risk assessment and mitigation techniques.

Assessment task 1: Establish the project
Project Charter
Project
Background
Hydraulink is one of the greatest multinational brands that provide hydraulic
fittings and hose solutions through many countries. Competition is the biggest
challenge for current industries and this project charter will be helpful in maintain
the leading position for it in the market.
Project Purpose
and Justification
This project aims at becoming the leading industry among its competitors for supplying Hydraulic
hose and fitting supplies.
High Level
Project Scope
Statement -
Project
Objectives and
Success Criteria
Specific: The company will be able to sustain its position as a leader in the market.
Measurable: Company’s revenue will be increased from $2.4 million to $3 million.
Achievable: Practice innovative way to put the customers at the centre
Realistic: Expand the targeted customers through increasing the supply across two more countries.
Time: One year is the expected time for the company.
High Level
Project Scope
and
Requirements
 In
scope
 Out of
scope
In Scope
 Enhancement in the company’s revenue
 Maintain the leading position
 Expanding products and service delivery across two more countries
Out of Scope
 Expand the product and service delivery across the whole world
 Enhancement in the communication services with the consumers
Assumptions
The main
assumptions are:
All resources are available
Labour cost is within the budget
Important stakeholders participate in all the meetings
Reliability of vendors
Constraints
The main
constraints are:
Business constraints: Availability of employees 24x7 for mobile communication with the consumers
Budget will go on as per the budget planning
Resources will be available at same price even in rainy season.
Project Information
The Project is about Hydraulink Australia Pty Ltd. Their goal is to become the leading industry
in their respected field in Australia and New Zealand. To achieve this goal, the company has to
market their products more to bring in new customers from in land and overseas. The short-term
goalfor the company is to reach $3 million a month in sales (currently making $2.4 million) and
long-term goal is to become the leading Hydraulic hose and fitting supplier in Australia and
New Zealand.
More Information about Hydraulink Australia in on their website.

Technical constraint: Hydraulink will be able to provide services and product as per the
estimation.
Limited employees will be available for communicating with the consumers.
Project
Methodology and
Approach
The phases are:
PERT (Programme Evaluation and Review Technique) methodology can be implemented for
enhancing the performance of the project. Activities involved in the project are:
 The activities involved in this project will be drawn up in a sequential
relationship in manner to highlight the objectives.
 The scheduled timing for the activities will be noted and estimated on the
network.
 Critical project objectives will be determined
 Project probability and duration of the project completion will be calculated.
Project Structure
Project
Stakeholders and
Authority
The major stakeholders and their authority level on this project are shown below
Name Title Authority Level
Sponsors Approval on the budget
planning and estimations
High
Managing Director Evaluate the work’s quality High
CEO Project Plan approval High
Organization Owner Plan approval High
Employees/staffs Meetings and organization
objectives
Low
HR and administration
team
HRM support and
administrative approaches
Medium
Project high level risks
Rating scales and categories
The risk categories are:
 Financial: Budget might not be able to meet the requirements of the
project. Contingency plan estimate increases due to certain
unforeseen event that was necessary for the project.

 Marketing and Sales: A new competitor arrives in the market with
same products and services with cheap price.
 Resourcing: Resources might not meet the requirement or
employees or staffs might not be available all the time.
 Technical: Data management system gets destroyed due to certain
factors.
 Legal: Money paid to the suppliers and items not received.
High level risk register Below are the top 5 risks:
Risk
No.
Category Risk Description Likelihood Impact
1 Scope Creep Negative 1 5
2 Project team availability Negative 2 4
3 Availability of resources Negative 1 4
4 Budget risk Negative 2 5
5 Schedule risk Negative 4 5
6 Resistance to change Negative 3 3
7 Technology risk Negative 3 4
8 Project dependencies on pre-events Positive 2 3
9 Stakeholders Negative 1 5
10 Legal Risk Negative 1 3
11 Natural Disaster Negative 2 5
12 Data Loss Negative 2 4
Summary Schedule
Phase or Milestone Preferred
completion date
Status
Delivering draft of the project plan January 2018 Completed
Budget estimation January 2018 Completed
Services and policies for the staffs
including their impacts
January 2018 Completed
Approval for the project charter January 2018 Completed
Utility and stakeholder training January 2018 Pending
Communication plan and meetings January 2018 Pending
Pilot Scheme Launch January 2018 Pending
Summary Budget
Category of Cost Best Estimate ($) Worst Estimate ($) Most Likely ($)
Investment for goods 20000 25000 22500
Wages for employees 10000 12000 11000
Advertisement 4000 6000 5000
Investment in communication with
customers
7000 7500 7200

Summary Budget
Category of Cost Best Estimate ($) Worst Estimate ($) Most Likely ($)
New licenses in other country 5000 5500 5300
Travelling charge for the delivery
of product
1000 2000 1500
Warranty claims 3000 3500 3200
Contingency budget 4000 4700 4500
J Document Quality Control
Version Control
Version Date Author Comments
Approvers
Name Title Signature
Reviewers
Name Title Signature
Definitions
TERM/
ABBREVIATION
FULL NAME DESCRIPTION
Assessment task 2: Undertake project planning and design processes
2.1. Describe the tools and techniques that you would use to develop the project
management plan?
Proper planning, maintaining risk management, setting milestones and executing the plan
will be the techniques used in this project. Gannt Chart preparation is the chosen tool for
the execution of the project as per the planning and scheduling the activities in the
project. Project Planning tools can be classified into different groups including scope
planning, which can be done by WBS chart and WBS dictionary tools. Secondly, Schedule

planning that can be executed by milestone chart, Task Chart and Gannt Chart. Thirdly,
Budget/Resource Planning that can be accomplished by either WBS or Gannt Chart
inclusing all activities of the project. Fourth technique is the Project estimating technique,
which can be accomplished by Risk assessment and risk severity matrix including the
triangular scope of the project management.
2.2. Describe how the project work is to be executed to accomplish the project objectives,
including the dependencies and interactions among each knowledge area of the project?
Project execution tools and techniques can be used in manner to accomplish all the
objectives of the project that was estimated while project planning. The major focus will
be on the application of resources in an efficient manner including the collection of
information related to the output of the project. Conducting procurement and
implementing PMIS (Project Management Information System) will be helpful in
eliminating the possibilities of negative risk and collection of the information related to
the operational activity of the project. Using spreadsheet for the collection of information,
conducting brainstorming within the team, and regular meetings with the vital
stakeholders are the main activities for the execution of the project.
2.3. What are the organisation’s environmental factors you used to plan and deliver the
project?
Hydraulink has already spread into many countries and adding additional supplies in two
more countries could be an easy factor. It is already one of the leading industries in the
Australia, which results in a good reputation of the organization. This is a plus beifit of
the organization. Since outsourcing and globalization market is already being practiced
by the organization, this will add additional benefits for introducing some innovative
products and services in the market. Communication and delivery of the products can be
improved and customer experience could be enhanced through this existence
infrastructure. Information could play much vital role than any other objectives, and
implementing PMIS for the collection of data and mediating such information between
partners could be an effective way to enhance the performance of the organization. For
example WalMart has enhanced its performance through sharing information with other
organization.
2.4. What organisational processes were used to develop the project management plan?
Your answer should include any standardised guidelines, work instructions, proposal
evaluation criteria, performance measurement criteria, change control procedures,
historical information and lessons learned.
The basic project management process include planning, executing and controlling in
manner to devise the scheme of accomplishing the objective related to the success of the
project. Executing includes the practice of the objectives those were determined while
planning process, which was the very first stage of the project initiation. Controlling
includes monitoring and controlling the stakeholders in manner to achieve the respective
goal of the organization. In this case, the planning, execution, and controlling will be
delivered in manner to enhance the performance and output of the organization of value
$3 billion.
2.5. How was the integrity of your project baselines to be maintained throughout the
project life cycle? Who was responsible for this work?

Baseline was set in manner to allow the measurement of deviations. Scope for baseline
was established in manner to be resulting in new baseline if any modification occurs while
executing the project relating the schedule, budget, and resources available for the
execution of the project. This baseline will be helpful in estimating the inputs to the
oversight sub-process and project tracking and being compared with the efforts and
actual dates with respect to the each task.
2.6. Provide details of how approval would be obtained for the project management plan?
Preparation related to the handeling of questions such as project can be finished earlier
or not. Budget can be reduced or not? These questions will be answered in alternative
ways of how the project can be completed. The answers of these questions will be
prepared to be handled with “trade-off-options” in manner to state the possibilities of the
success of the project. This tradeoffs will provide executive data about how the project
can be finished in minimum time this will include rate of 10 to 20 % earlier and in less
budget. Less alternatives will be presented in manner to be presented in the in manner to
get the approval for the specified project.
Assessment task 3: Execute project in work environment and manage project control
3.1. What work performance data did you collect about the completion status of
deliverables during this phase of the project?
After the completion of the first deliverable, change control will be applied including the
building blocks, software, and documents. The configuration management procedures and
tools will configure these activities. The work performance data that will be collected will
include technical performance measures in manner to insure the number of employees
attending calls will be sufficient as the number of customer increases. Key performance
indicators will also be calculated in manner to ensure that the direction that employees
are following is a correct path.
3.2. Describe one example of a review of the impact on late completion of a deliverable
and how you managed its impact and implementation of any agreed changes?
Issue management will be practiced in manner to present review of the impact on late
completion of a deliverable and priority will be given to such activities. Change control
procedure will be another attempt to review impacts on such deliverables.
3.3. Explain how you resolved conflict that may have negatively affectively the
accomplishment of the project objectives?
Developing reular meeting and recording feedbacks from each stakeholder will be the
first priority in this manner. The second objective will be to conduct brainstorming and
ensuring that; new and innovative ideas will be presented by them including the relative
responses to the issues raised during the same session.
3.4. Outline the reporting procedure for project status and progress to relevant
stakeholders

Relative stakeholders will be informed through regular meeting with respect to put their
concern on the topics related to the progress of the project through presenting actual
report on the progress of the project.
3.5. Explain how you analysed and submitted impact analysis of change, required
for approval?
if you were not required to do this in your project, explain the standard procedure.
This will include five steps including firstly, identifying the sequences in which the
activities should be performed and relating them with the running planned activities.
Secondly, determining whether there is need for change in the critical path analysis or
not. Third objective is related to estimating the impact of the change of the budget and
schedule of the project. Fourth step includes evaluating the priority of the changes and
lastly, reporting the results related to the impact of the change o the project.
3.6. Which project plans/logs and registers would you need update to Direct and
Manage Project Work? Why would they change?
Risk register, stakeholder register, activity list, requirement documentation, project
charter, contracts, statement of work, issue logs will be needed to be updated in manner to
manage and direct project work.
Assessment task 4: Manage project finalisation
4.1. Provide a post implementation report for your project showing performance measured
against objectives and success criteria. In your report you must:
Project closure is as important as rest of the project objectives that includes various
closure documentations related to each sector of the project. Presenting the responsibilities of
both the parties is the most crucial paper while finalizing the project closure. This will
include the responsibilities of the contractors and suppliers and default of one party will also
be introduced in manner to introduce the extensions in the life cycle of the project. The
efficiency of the output as per the needs and demands of the customers and competitive
market will also be presented in documentation form. Documentation should be done on the
lessons learnt after the completion of the project and enlisting the drawbacks and issues will
also be noted.
A checklist will be better option for preparing whether all the objectives have been
completed or not. This checklist will be including the quality of the deliverables, whether it
was up to the mark of the expectation or not. This will help in ensuring that all the debts have
been paid regarding the invoices and cross charges. Final cost of the project should also be
stated in that checklist in manner to ensure that the project was around the estimated budget
as per the plan. Project documentation that includes every aspect of the project with initials of
every head of the department should also be documented. Last but not the least, the managers
commentary will be there to introduce all the related objectives, issues, assumptions and
several other activities with his experience.
After the checklist benefits of the project should be stated in separate document that
will state what are the modifications have been done in the project in manner to make sure
that the outcomes are positive. Another objective related to this document is the performance
against the original schedule or planning and should be presented in reference with the
baseline set for the accomplishment of the project. Resources and Costs those have been

presented during the project initiation should also be compared with the performance and
finalization of the project. The expectations those have been raised and the impact of changes
those were approved by the head of the departments should also be introduced with the
project closure documentation.
Finally, there should be summary related to the issues those have been raised while
executing the project including their resolutions should also be introduced in that document.
These documents must be handover to the client within one to six months after the
completion of the project. Lessons learns should be introduced after all the above processes
have been complete should be the very last and one of the most crucial of the project closure
statement.
Likelihood Scales
Very Low 1 Highly unlikely to occur; however, still needs to be monitored as certain
circumstances could result in this risk becoming more likely to occur during
the project
Low 2 Unlikely to occur, based on current information, as the circumstances likely
to trigger the risk are also unlikely to occur©
Medium 3 Likely to occur as it is clear that the risk will probably eventuate
High 4 Very likely to occur, based on the circumstances of the project
Very High 5 Highly likely to occur as the circumstances which will cause this risk to
eventuate are also very likely to be created
Impact Scales
Very Low 1 Insignificant impact on the project. It is not possible to measure the impact
on the project as it is minimal
Low 2 Minor impact on the project, e.g. < 5% deviation in scope, scheduled end-
date or project budget
Medium 3 Measurable impact on the project, e.g. 5-10% deviation in scope, scheduled
end-date or project budget
High 4 Significant impact on the project, e.g. 10-25% deviation in scope, scheduled
end-date or project budget
Very High 5 Major impact on the project, e.g. >25% deviation in scope, scheduled end-
date or project budget

Risk Matrix: Likelihood X Impact = Overall Level/Rating
LIKELIHOOD
IMPACT
Very Low
1
Low
2
Medium
3
High
4
Very High
5
Very Low 1
Low 2
Medium 3 R.10 R.8 R.6
High 4 R.3 R.2, R.12 R.7
Very High 5 R.1, R.9 R.4, R.11 R.5
Overall Level/Rating
0 – 1 = Very Low 2 – 4 = Low 5 – 8 = Medium 9 – 14 = High 15 – 25 = Very High

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