Project Management: Diploma of Business Management

This document provides comprehensive information about project risk, risk management, and risk assessment in project management. It covers topics such as the impacts of risks, how to control and mitigate risks, different types of risks and their sources, risk assessment tools and techniques, legal and legislation breaches and their resolutions, workplace policies and procedures for risk management, and developing a risk management strategy for implementing an information system.

Running head: PROJECT MANAGEMENT
Project Management: Diploma of Business Management
Name of the student:
Name of the university:

1PROJECT MANAGEMENT
Answer to Question 1
a) Project risk is referred to as uncertain event or condition that occurs during project
progress period and impacts negatively any project outcome.
b) The process through which theses risks can be managed or mitigated are known as risk
management.
c) Risk management process can easily spot the reasons for which project success or
outcome are interrupted, escalations become clear and easier. The decision making becomes
focused and the communication becomes elevated.
Answer to Question 2
Examples of potential impacts of risks are as follows:
 Healthy and safety
 Sustainability
 Time and reputation
Answer to question 3
Various project parties may face major risks throughout project progress period such as
finance party, third party, stakeholders, sponsors etc.
 If the budget for the project is not estimated accurately with feasibility study then
the entire project will face issues with budget over allocation.
 If the stakeholders and resources for a specific project are not properly designed
then both budget overflow and overrunning cost issue may occur.

2PROJECT MANAGEMENT
 If useful resources are not accurately pointed then the entire project will fail to
deliver expected objectives and outcomes.
Answer to question 4
a) Risks from external sources
 Risks from the competitors
 Law and legislation risks
 Risks with externally emerging technologies
b) Risks from internal sources
 Technical risks such as unforeseen changes
 Physical risks
 Operational risks
Answer to Question 5
The steps of risk assessment are as follows:
 Identification of risks or hazards
 Analysis of the risks
 Evaluation of the risks
 Prioritizing the risks
 Mitigating the risks

3PROJECT MANAGEMENT
Answer to Question 6
The sources of information that could be used for gathering information regarding
potential risks and are as follows:
 Risk register and risk report designed by the organization itself
 Issues log
 Audit reports
 Business Impact analysis
 Internal and external reviews
Answer to Question 7
All identified risks can be controlled through different approaches and these are as
follows:
 Elimination of the risks: In this phase the risk can be
 Substitution of the risks
 Isolation of the identified project hazards
 Minimization of the risks through rearrangement
Answer to Question 8
There are different ways through which the organizational risks can be minimized d and
the steps are as follows:
 Identification of potential risks at the project initiation phase
 Communicate regarding the risks by considering possible opportunities

4PROJECT MANAGEMENT
 Prioritizing the risks after fully understanding the negative impact of the risks
 Developing response to the risks through register project risks
Answer to Question 9
From the prior to completing the risk assessment, I would like to take help from the hotel
manager. Firstly, I would prepare a list of possible risks regarding current financial condition,
operational status and ongoing functional activities, health and safety concern of the visitors in
the hotel. Then the consequences of these risks will also be elaborated and presented to the hotel
manager. It is expected that after analyzing the possible risks the hotel manager will definitely
support the receptionist.
Answer to Question 10
The risk assessment tools are as follows:
 A1 tracker: A1 tracker provides solution to the User Interface related and web based
risks.
 Risk management studio: This versatile tool is applied to resolve the issues of gap
analysis, risk assessment and treatment.
 Enablon: This is one f the most widely used risk management tool used in
 Isometrix: Best suited for cloud based application and large industry based risks.
Techniques are as follows:
Risk avoidance: According to this process the risks are all avoided by project team
members to ensure the

5PROJECT MANAGEMENT
Risk acceptance: In this phase the potential risks are all accepted and accordingly
mitigation plans are also developed.
Risk Transfer: In this phase the risks are all transferred instead of accepting those.
Risk reduction: Different strategies are developed and evaluated in this phase to reduce
all operational and functional risks.
Answer to Question 11
The different types of legal and legislation breaches that are applicable for these gives
scenario are as follows:
c) Fundamental legal breach is the legal breach which is occurring in this scenario. It is
the responsibility of the complex maintenance manager to design the structure of the balcony
hand rails for reconstruction.
d) In the given second scenario the circumstances shows material breaches and these
issues can be resolved through the implementation of certain technical specification. For
maintaining the data confidentiality it is very much crucial for sally to use technical platform for
storing patient’s records. Technical specifications will reduce the rate of unauthenticated data
access.
Answer to Question 12
It has been identified that Andrea is the best suited employee for this position but the
manager does not want to appoint her therefore, in such scenario whatever risk the company will
be faced include high rates employee turnover and dissatisfaction from the employee end. In

6PROJECT MANAGEMENT
order to accommodate Andrea for desired designation the action that has to be taken is
arrangement of technical training and development program for her.
Answer to Question 13
a) The list is as follows:
 Professional liability insurance
 Product liability insurance
 Business interruption insurance
b) Professional liability insurance: The professional Liability insurance cover business
against the claimed negligence for the harm which results from performance and failures. Based
on the type of business the liability insurance varies.
Product liability insurance: Whenever the business manufactures different products in
the general market for sale then the product liability insurance stands very much import for
minimizing risks.
Business interruption insurance: In order to minimize the risks with catastrophic events
or operational disaster the business interruption insurance is very much crucial.
Answer to Question 14
Principles are as follows:
1. Creating and protecting values
2. Be an integral part for the organizational process
3. Become part in decision making

7PROJECT MANAGEMENT
4. Explicit addressing in uncertainty
5. Systematic, well structured and timely
6. Be tailored
7. Based on best available information
8. Be transparent as well as inclusive
9. Be dynamic and iterative
10. Facilitating continuous improvement for the business organization
11. Considering human and cultural factors
Assessment Task 2
Part 1
The list of workplace policies and procedures in term of resources those have been
accessed are as follows:
 Code of conduct
 Recruitment policies
 Health and safety policy
 Anti discrimination policy
The project which is being identified for this section includes implementation of
Information System in the business organization. The risk assessment plan developed for this
project contains details of financial, social, economical and human resource based risks and the
ways through which these difficulties can be minimized.
Strength of Information system implementation

8PROJECT MANAGEMENT
 Business efficiency will increase
 Risks will be minimized
 Rate of data hijacking will get reduced
 Data will be managed easily
 Information access will be easy
Weaknesses for Information System implementation
 Inadequate resource
 Lack of managerial support
 Improper supporting platform
 Lack of skills among employees
 Lack of operational arrangement
Goals: To design and implement an information System for the business organization to
increase the business efficiency and minimize the rate of functional and operational risks.
Political risk: The government has not professionally supported the business
organization while implementing the Information System.
Economical risks: In order to design and develop the information system whatever net
economic support was required are not measured by the company.
Social risk: Cultural barrier is the major issue which interrupted the workplace culture of
the organization.
Technical risks: The experts who are being hired for the project are not technically that
strong. Additionally, lack of security is another technical issue that occurred.

9PROJECT MANAGEMENT
Part 2: Risk assessment for the workplace
Risks Impact Probability Score Responsible
person
Mitigation
strategy
Lack of
communication
High Likely High Project
manager
In order to
resolve the
issues of
communication
errors the
project
manager needs
to design and
consider open
communication
so that the
employees feel
free to
communicate
with all the
project team
members.
Lack of skills
and knowledge
of the
High Very likely Extreme Resource
manager
Based on
project and
workplace

10PROJECT MANAGEMENT
associates requirements
the resource
manager needs
to arrange
professional
training and
development
program for
the project
associates so
that they can
increase their
degree of skills
and knowledge
Cultural barrier High Possible High HR manager The HR
manager
requires to
design cultural
atmosphere in
the workplace
so that all
working
employees can

11PROJECT MANAGEMENT
freely take part
in the decision
making and
other activities
Scope creep Low Likely High Project
manager
It is the role of
the project
manager to
develop timely
document and
controlled
project status
report so that
the issues of
scope creep.
This will
successfully
resolve the
errors of scope
creep in the
workplace
environment.

12PROJECT MANAGEMENT
Part 3
Risk management strategy for Information System implementation
The issue of Information System implementation project will be completely resolved if
proper risk management strategies are being designed and developed by the project manager.
The steps those are taken for implementing the risk management plan are as follows:
Identification of the risks: Before identifying the target consumers of the project the
possible risks that may interrupt the success and function of the Information System are all
identified in this phase. For improving the skills and knowledge areas for project associates it is
mandatory for the project manager to arrange training and development program.
Assessment of risks: In this phase all identified risks are properly assessed by project
manager. Based on their negative impact the risks are prioritized and ranked accordingly.
Risk Evaluation: In this phase the possible risks are evaluated by the project manager
and resource manager
Risk mitigation: In this phase, based on the identified risks and their ranking proper risk
mitigation approaches are required to be implemented by the project manager. The risk
management strategies are always required to be aligned to the project requirements and
consumers objectives.
In order to monitor the identified risks the possible steps that are to be implemented are
as follows:
 Aligning project progress with the project plan
 Stakeholder engagement

13PROJECT MANAGEMENT
 Consumer’s satisfaction
 Team motivation and accountability
 Management of the external vendors
The risk management plan that has been implemented for this specific project called
Implementation of Information system in a business organization is successful enough. In a score
scale of 1 to 5 for the risk management plan that I have implemented should be scored a 3 marks.

14PROJECT MANAGEMENT
References
Bilgihan, A., & Bujisic, M. (2015). The effect of website features in online relationship
marketing: A case of online hotel booking. Electronic Commerce Research and
Applications, 14(4), 222-232.
Bilgihan, A., Nusair, K., Okumus, F., & Cobanoglu, C. (2015). Applying flow theory to booking
experiences: An integrated model in an online service context. Information &
Management, 52(6), 668-678.
Binder, J. (2016). Global project management: communication, collaboration and management
across borders. Routledge.
Boud, D., Cohen, R., & Sampson, J. (Eds.). (2014). Peer learning in higher education: Learning
from and with each other. Routledge.
Eskerod, P., Huemann, M., & Savage, G. (2015). Project stakeholder management—past and
present. Project Management Journal, 46(6), 6-14.
Fleming, Q. W., & Koppelman, J. M. (2016, December). Earned value project management.
Project Management Institute.
Harrison, F., & Lock, D. (2017). Advanced project management: a structured approach.
Routledge.
Heagney, J. (2016). Fundamentals of project management. AMACOM Div American Mgmt
Assn.

15PROJECT MANAGEMENT
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.
Kerzner, H., & Kerzner, H. R. (2017). Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Mir, F. A., & Pinnington, A. H. (2014). Exploring the value of project management: linking
project management performance and project success. International journal of project
management, 32(2), 202-217.