Project Risk Appraisal and Management

Project Risk Appraisal and Management

TABLE OF CONTENTS
INTRODUCTION.......................................................................................................................................................................................3
Business risk context...............................................................................................................................................................................4
A project risk evaluation that identify the risks related to the proposed project.....................................................................................8
Critically evaluating the project risk analysis technique.......................................................................................................................16
Learning log...........................................................................................................................................................................................18
CONCLUSION..........................................................................................................................................................................................19
REFERENCES..........................................................................................................................................................................................20

INTRODUCTION
Risk management is the process through which an individual or a company can identify, assess and control the threats to an
organization’s capital so that its brand image will not be affected in a negative manner. That is why, the process of identifying,
assessing the risk is essential because after that, a company can make effective steps to mitigate the risk accordingly. Further, in the
present era, to minimize the risk Project Risk Appraisal is used that examining how the project outcomes and objectives might change
by causing a direct impact on a risk. That is why, the current study also helps to gain a deep understanding pertaining to the same,
which in turn helps to improve the risk by implementing effective outcome to overcome the same. The current study is based upon the
case study of Royal Dutch Petroleum and Shell merger in 2005, where both Royal Dutch Petroleum Company and Shell Transport &
Trading Company became parent company known as Royal Dutch Shell Plc. In this, 40% interest in the group is registered in Shell
and remaining one is Royal Dutch. The company now engages in oil and gas exploration production, refining, transportation and
marketing to meet the basic needs of customers.
The rationale for these merger is to response to a scandal over the reduction of oil reserves and this help to improve the
business performance as well as raise the customer satisfaction level. Through merger, companies get an advantage of using resource
from both companies in order to get better response. That is why, with the help of merger, company get effective outcome and
improve the business performance in near future.
The report will shed light upon business risk context related to mergers, which includes the key risks involved within the same.
Further, the project risk evaluation will be discussed in which a risk register matrix will be performed that helps to determine ways
through which risk can be minimized. Moreover, a critical evaluation of the project will be performed that determines the reason for
not covering the anticipated risk and then with the help of a learning log, the report will reflect on learning.

Business risk context
Recently Royal Dutch Petroleum Co. and Shell Transport & Trading Company got merged together and formed a new
company called Royal Dutch Shell Plc. This action could lead to heavy risk in the business. The major reason behind this merger and
acquisition that took place is to avoid competition in the business (Mescall and Klassen, 2018). In the market, competition is a major
threat businesses face as it restricts the business to approach the whole market. Preventing competition is required as it attempts to
eliminate the risk of losing the brand identity and image in the same target market. It directly affects the position of the brand in the
same target market.