Project Management: Risk Management, Methodologies, and Importance of Careful Completion

This project discusses risk management, including a risk register, the importance of careful completion of a project, and analysis and critique of methodologies such as Waterfall, Agile, and Prince 2. The article also includes examples of failed projects due to poor risk management and ineffective project closure.

Project Management
Table of Contents

INTRODUCTION...........................................................................................................................1
A: Risk management........................................................................................................................1
Risk register............................................................................................................................1
B. Importance of Risk Management and need for careful, correctly managed completion of a
project..............................................................................................................................................8
C. Analysis and critique of methodologies......................................................................................8
Waterfall.................................................................................................................................9
Agile.......................................................................................................................................9
Prince 2...................................................................................................................................9
Conclusion and recommendation...................................................................................................10
REFERENCES..............................................................................................................................10

INTRODUCTION
The Risk management basically comprises of the process of effectively identifying,
assessing and controlling all the possible threats to an organization's or project related with its
capital and earnings. These threats, or risks, could stem from a wide variety of sources, including
financial uncertainty, legal liabilities, strategic management errors, accidents and natural
disasters (Wu and et. al., 2021). On a wider sense the risk is divided and incudes three main
categories i.e Business Risk, Non-Business Risk, and Financial Risk which are mainly faced
while undertaking an investigation. The current project comprises of a discussion about risk
management along with a risk register. Further, explanation of the need for careful, correctly
managed completion of a project and analysis and critique of methodologies (Agile, Waterfall
and PRINCE2) is also included in current project.
A: Risk management
With respect to current project that is based on tiered seating that can be retracted,
together with acoustic panels on the walls to make it a better teaching space which supports
improved and better availability of the spaces for business students through effectively managing
and ensuring the refurbishment and redevelopment of the London/Birmingham/Manchester.
Risk register
For effective assessment and identification of possible risk use of following risk
assessment task is made in order to effectively determine the hazardous factors and potential
threat and cause of harm that might impact the efficiency level of the current project (Guertler
and Sick, 2021). Risk is a vital and most effective project management tool that allows better
analysis and determination of potential risk the main purpose of which is to record and mitigate
all possible risk in an effective manner.
Severity prior to mitigations Severity after mitigation
Proba
bility
Imp-
act
Rat-
ing
Mitigation Proba
bility
Imp
act
Rati
ng
Contingency Statu
s
Own
Health and Safety Risk
1.Electric
shock Risk
2 3 3  ensure that
during the
project all the
1 2 1  Make a call on
112 or
emergency
Acti
ons
appr
Proje
mana
1

tools, plugs and
cables are safely
deigned.
 Effective use of
main voltage
operated tools to
reduce the
chance of
electric shock
during the
project and
construction.
 Provide
effective
training to staff
and employees
about the subject
of electric shock
on site.
number for help.
 Provide first aid
to the victim.
oved
2. Risk of
Fire
1 3 3  Proper fire risk
assessment
should be
carried out at
construction and
project site
 Availability of
facility of fire
extinguisher
 Adequate staff
should be
effectively
1 2 2  Pull off and
raise the alarm
and call for help
in 999 or 112.
 Start the
evacuation of
the building as
soon as possible
 Use Fire
extinguisher to
control fire
Acti
on
Appr
oved
Proje
mana
2

trained to make
use of fire
extinguishers at
the time of fire
accident.
 Proper fire exits
and escape
routes at project
site
 Conduct out an
effective test fire
alarm before the
start of the
construction of
the project
Financial risk
3. Risk of
unexpected
cost
3 3 3  Effectively
prepare a proper
budget for
project
 Check and
control all the
current and
future expense
of the project at
each stage
 An extra amount
of 15% should
be taken out for
contingency and
1 1 1  Ask for
providing extra
funding and
amount to the
project sponsor
Acti
ons
are
appr
oved
Finan
direc
3

unplanned
expenses.
4.
Increasing
price of
material
3 2 2  Have a written
contract and
agreement with
the supplier for
delivery of
material at
specified price.
 Search for other
suppliers as
alternative for
cheaper material
 Keep a
contingent
amount of 10%
from budget.
1 2 2  Make written
contract and
source material
from cheaper
suppliers
 Ask for
additional
funding from
sponsor of the
project.
Acti
ons
Appr
oved
Direc
Finan
Stakeholder risks
5. Risk
related
with
ineffective
communic
ation
3 2 2  Use of effective
communication
channels
depending on
the needs.
 Proper
monitoring and
check on
communication
to ensure proper
mitigation of
identified issue
and problem at
2 21  Arranging
proper meeting
and regular
discussion to
solve the faced
problem.
 Appointment of
proper arbitrator
to properly
resolve the
ineffective
communication
and raised
Acti
on
appr
oved
Proje
mana
4

early stage.
 Implication of
digital or online
communication
channel to
ensure
anonymously
reporting of the
risk and
information by
the project
manager.
disputes.
6. Refusal
of
approval
from local
authorities
1 3 3  Properly
conducting the
research before
start of the
project to
minimize the
risk of omission
of any required
document and
approval.
 Effective check
of all application
and document
before final
submission.
1 1 1  Properly
applying and
undertaking all
permits and
licences for
construction and
modification.
Acti
ons
appr
oved
Proje
mana
Design risk
7.
Imperfect
and
1 3 3  Appointment of
proper engineer
and designer
1 1 1  Change in the
schedule of the
work
Acti
on
appr
Proje
mana
5

inadequate
design
who have
experience in
design the
required
modification
and changes in
the construction
project.
 Proper
discussion and
consultation
with the QAHE
teachers and
students to
ensure proper
design of the
teaching space.
 Appointing
more
experienced
designer and
engineer
oved
8.
Selection
of wrong
materials
2 1 2  Proper testing of
sample of
material that are
going to be used
in the
construction of
the project
 Material used
should be
certifies and
used after testes
1 1 1  Replacing the
material with
better quality
material by
increasing the
budget of
project
Wor
k in
progr
ess
Proje
mana
Construction Risk
9.
Technical
3 2 2  Appointment of
technical experts
2 1 1  Change in
project plan with
Wor
k
Proje
mana
6

problem and engineers
for the project
 Proper
consultation
between the
designer and
contractor prior
the start of
actual
construction and
modification for
early detection
of technological
problems.
 Regularly
conducting site
survey
some relevant
solution for
arisen
construction
issue.
undu
e
progr
ess
10. Risk of
low quality
work
2 3 3  Proper selection
of contractor
and engineers on
the basis of past
work
 Regular control
and check in the
work along with
requiring
contractor to
ensure the
quality of work.
1 2 2  Appointment of
new contractor
with more
experience and
past of quality
work.
 Taking
compensation
 Reporting
incompetency of
contractor
Acti
on
appr
oved
Proje
mana
7

B. Importance of Risk Management and need for careful, correctly managed
completion of a project
It has been analysed that risk management is highly important and vital the main purpose
of which is not to eliminate all risks and potential target to ensure improved success of the
project. Use of risk management is vital to minimize the potential negative consequence of the
risks by the way of ensuring improved working with risk managers as well as other employees
and stakeholders so that smart risk decisions can be made to improve the chance of rewards and
success of the project (Hackman, 2021). Further, implication of the risk management also
enhances the availability of managers to identify and eliminate the risk thus, ensures higher
confidence level to have better performance and success of project.
There are various example available in the business environment which gets failed because
of not having proper project closure on which the overall success and failure of a project
depends. For instance, thee poor risk management and ineffective project closure lead to failure
of the launch of the automotive industry of the PT Cruiser model by Chrysler as limited number
of vehicles became available mainly due to manufacturing restrictions and poor manufacture
efforts that is mainly due to lack of proper risk management and ineffective closure of the project
(Kang and et. al., 2021). It has been analysed and find out that the project completion is the last
stage of project management process which reflects the end of the project. At this, phase all the
stages are completed and preparation and review of the project begins which supports better
future and improved outcome. Proper records such as the risk register, project plan, quality
documentation, etc. are made at this project. Further, use of Statistical tools such as KPI (Key
performance indicator) are also made at this stage to have and ensure better check and control
over the project, even at the time of its colure to ensure free flow of services and effective
success of the project through having improved monitoring and control over its performance (He
and et. al., 2021).
C. Analysis and critique of methodologies
With respect to the information provided by the Filippetto, A.S., Lima, R. and Barbosa,
J.L.V., 2021, it has been analysed that the project management methodology basically comprises
of the set of techniques and methods that supports systematic undertaking of various activities
and task.
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Waterfall
It is taken as most straightforward and liner form of methodology and approach that is
progressive in nature where the progress of the project flows from downward to one direction.
Under this methodology the project is arranged in various phases and all the actions within a
current phase should be authorised and finished before going to next stage and phase. Under
Water fall approach the Project development tend to starts from concept which is followed by
design, implementation and verification stages, and finally ends up at the maintenance phase
which reflects that it is a strict process which does not permit any adjustments and flexibility in
work (Grandage, 2021).
Strengths of waterfall- Simple and straightforward approach that is easy to understand and
use. Provides well documented structure and rigidity that creates it easy for manager to
effectively process and evaluate each stage and phase.
Drawback- Lack of flexibility is the biggest drawback of waterfall model as current
business environment is highly dynamic. Waterfall models also leads to higher amount of risk
and uncertainty as does not permit reflection and revision and require long planning.
Agile
It is cyclical form of approach in which project is broken down in small incremental builds
which goes through a series of stages. Thus, Agile methodology is a way of managing project
through proper bifurcation and breaking it up into several phases and task that involves constant
collaboration with stakeholders and continuous improvement at every stage (Wu and et. al.,
2021).
Benefits of agile approach- It is suitable approach for both Fixed as well as changing
environment of project as it is easy to manage and not long planning is required. It also supports
quicker recognition of challenges and greater awareness for success of project.
Disadvantage- Not suable for managing and undertaking the complex dependencies along
with higher dependency on interaction and communication with client.
Prince 2
The full form of Prince 2 comprises of project within a controlled environment whereas
2 stands for its second version. It is a well-structured project management approach that has been
extensively supported and used by the government of UK which allows management of project
with frequent evaluation of the recent stage along with effectively determining the progress of
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next stage. With respect to the information provided by Pan, Y. and Zhang, L., 2021, it has been
analysed that the Prince 2 approach is a flexible method that effectively guides a manager
through effectively meet and fulfil the essentials for managing successful projects, regardless of
its type or scale (Guertler and Sick, 2021).
Benefits- Prince 2 is a high predictability approach that supports effective break down of
project in small stage so that each stage can be effectively conducted in a planned way. It is also
most cost and time efficient approach based on high standardisation which ensures effective
communication and understanding.
Disadvantage- Very bureaucratic in nature and require lots of paper work (Hackman, 2021).
Conclusion and recommendation
On the basis of analysis of above three approaches, for current project based on t is a
flexible method that guides you through the essentials for managing successful projects,
regardless of type or scale, use of Waterfall Approach is most suitable as it supports uses of clear
structure and ensures effective determination and accomplishment of end goals in improved
manner. Further, Prince 2 method are not appropriate as it require very high level of
documentation and bureaucratic in nature while agile method is also not appropriate as it
involves undertaking of the complex dependencies along with higher communication with client.
Further, on the basis of current study, a summarisation can be made that Risk management and
risk register supports effectively determination of the hazardous factors and potential threat that
cause of harm and impact the efficiency level of the project. Further, closure of project also
forms a vital part as it supports and leads to overall success and failure of project in form of end
result.
REFERENCES
Books and journal
Filippetto, A.S., Lima, R. and Barbosa, J.L.V., 2021. A risk prediction model for software
project management based on similarity analysis of context histories. Information and
Software Technology, 131, p.106497.
Grandage, A.J., 2021. Advancing capital project management. Journal of Public Budgeting,
Accounting & Financial Management.
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Guertler, M.R. and Sick, N., 2021. Exploring the enabling effects of project management for
SMEs in adopting open innovation. International Journal of Project Management, 39(2),
pp.102-114.
Hackman, D.C., 2021. Quantifying heterogeneous individual perceptions in project management
research. International Journal of Managing Projects in Business.
He, T. and et. al., 2021. QUALIFLEX method for evaluating human factors in construction
project management. Journal of Intelligent & Fuzzy Systems, (Preprint), pp.1-12.
Kang, J.N. and et. al., 2021. A social learning approach to carbon capture and storage
demonstration project management. Applied Energy, 299, p.117336.
Pan, Y. and Zhang, L., 2021. A BIM-data mining integrated digital twin framework for advanced
project management. Automation in Construction, 124, p.103564.
Wu, C. and et. al., 2021. Ontological knowledge base for concrete bridge rehabilitation project
management. Automation in Construction, 121, p.103428.
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