Risk Analysis at Corwin Corporation

This document provides a risk analysis of Corwin Corporation, including the identification of risks, assessment of impact, risks associated with the case study, and a risk management plan. It also discusses appropriate response strategies and how to apprise stakeholders. The document is relevant for students studying risk management or project management.

Running head: RISK ANALYSIS AT CORWIN CORPORATION
Risk Analysis at Corwin Corporation
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1RISK ANALYSIS AT CORWIN CORPORATION
Table of Contents
1. Introduction............................................................................................................................2
2. Identification of risks and assessment of its impact...............................................................2
3. Risks associated with the case study......................................................................................4
3.1 Selection of the project and competencies of staff...........................................................4
3.2 Support of the management and the culture of the organization.....................................5
3.3 Issues in the communication between external and internal stakeholders.......................5
4. Risk Management Plan..........................................................................................................6
4.1 Introduction......................................................................................................................6
4.2 Risk categories.................................................................................................................6
4.2.1 Impact and probability table......................................................................................6
4.2.2 Impact and probability matrix...................................................................................6
4.2.3 Actions recommended for the mitigation of risks.....................................................7
4.2.4 Risk Register of the Corwin Corporation Case Study..............................................8
5. Risk Management and reporting............................................................................................9
5.1 Appropriate Response Strategies.....................................................................................9
5.2 Apprising Stakeholders....................................................................................................9
6. Conclusion............................................................................................................................10
References................................................................................................................................11

2RISK ANALYSIS AT CORWIN CORPORATION

3RISK ANALYSIS AT CORWIN CORPORATION
1. Introduction
The Corwin Corporation is an organization that deals with the manufacturing of the
rubber components that are of low cost as well as of high quality. The organization is said to
focus on the different hardware stores, their department stores as well as automotive part
distributors for selling their rubber products that are associated with the industry. The
organization’s reputation in the market was so good that it started to acquire projects from
different consultants. In this context, the Peters Company has offered a specialty product
assignment to Corwin Corporation that was further confirmed by Corwin Corporation. The
case study deals with the overall conversation between the representatives of the management
team of both the organizations in which the overall planning procedure is carried out (Lock,
2017). The peters company requires a proposal as well as acceptance of that proposal form
Corwin Corporation.
2. Identification of risks and assessment of its impact
After analysing the case study, mainly four issues are identified. These are stated as
follows:
Standard policy deviation: The organization of the Corwin Corporation has been identified
with an informal management of project standard that are used to assess the inquiries of the
special products (Hopkinson, 2017). Moreover, from the past evidences it was clear that the
organization had accepted many project before from the Peters Company based on the
follow-on contracts. However, in this case the organization was not capable of assessing the
various aspects of the Peters Project, which led to the disruption of the product line that
existed in the organization. The frequent changes in the field of the project manufacture as
well as in the matrix of testing led to the difficulty of the staff to effectively schedule the time
of the procedure of execution (Heagney, 2016).

4RISK ANALYSIS AT CORWIN CORPORATION
Inappropriate specifications and shortage of bid preparing time: The specifications of the
project that was provided by the Peters Company was inappropriate and Corwin Corporation
was provided with only 48 hours for the delivery of the bid. The requirement results was
incomplete as provided by the Peters Company attained a high level of risks as the
requirement as incomplete (Sadgrove, 2016). This happened due to the complexities that
were involved in the decision-making procedure that persuaded difficulties regarding the
determination as well as managing the scope of the project. Moreover, the preparation of the
bid time was not adequate so it lead to some errors that tapped an overall negative aspect on
the management of the contract regarding the project offered by Peters Company (Hulett,
2016).
Lack of crucial decision makers: The decision of the acceptance as well as rejection of the
bid was very dependent on the committee of the Corwin Corporation that consisted of four
main persons associated with the same organization (Binder, 2016). At the instance when
Peters Company offered the project to the Corwin Corporation, most of the employees were
not present in the organization rather than the vice president of the engineering as well as
marketing that dealt with the deliberation of the project. As providing bid is a complex
procedure, it involves effective decision makers that will understand the complexity and bid
accordingly (Hopkin, 2018).
Static contract price: Based on the previous bidding provided by the Corwin Corporation it is
determined that there exists an uncertainty for which the overcompensation is provided by the
bidders of the project (Schwalbe, 2017). However, in this case of Corwin Corporation the
contract was fixed in a predetermined stage. In the context of the Peters Company, the
preparation time of the bid was very small; hence, Corwin Corporation included only first
five-week test methodologies to the project, in place of thirty-week test methodologies were
to be included (Kerzner, 2019). This indicated the incomplete of the project specifications as

5RISK ANALYSIS AT CORWIN CORPORATION
well as the test matrix, which further lead to the high risk associated with the project, thus the
static contract price was hampered.
3. Risks associated with the case study
There are different risks incorporated with the Corwin Corporation case study are
briefly explained below:
3.1 Selection of the project and competencies of staff
Issue Reason
The lack in the proper evaluation of the fixed
price contract of the organization was the major
mistake made by the management of Corwin
Corporation (Bromiley et al., 2015).
The vice president of the marketing department
violated the boundaries of the costing regarding
the Peters Company for gaining the financial
incentives.
The lack of experience of the project manager as
the manager of Corwin Corporation spend the
whole budget for the raw materials (Nyberg &
Wright, 2016)
The selected scientist of the R & D development
as the role of the project manager as they do not
have any experience regarding the management
of the external projects.
3.2 Support of the management and the culture of the organization
Issue Reason
After Corwin Corporation accepted the contract,
the staffs delayed the initiation of the project
There was a lack in the work place relationship
among the employees present in the organization
The team members were deserted by the
executives (Grace et al., 2015)
The conflict within the department as well as the
employee personalities present in the
organization

6RISK ANALYSIS AT CORWIN CORPORATION
3.3 Issues in the communication between external and internal stakeholders
Issue Reason
The support staff were included in a very short
notice
This occurred due to the lack of the experience of
the project manager.
The communication gap occurring at the testing
procedures
This occurs if the planning is not carried out at
the initiation of the project. The matrix of testing
was not highlighted in the conversation between
the two organizations.
The continuous rescheduling problem Lack of communication within the various
stakeholders of the organization as well as the
stubborn behaviour implicated with the
employees.
Thus, the above stated risks are identified and the risk management plan can be
developed based on the above stated criteria, which is followed in the next section.
4. Risk Management Plan
4.1 Introduction
From the above sections, it can be evaluated that there are different risks associated
with the Corwin Corporation case study (Olson & Wu, 2015). The issues that evolved in the
bidding of the Peters Company project can be evaluated in the form of a risk management
plan which is described below.

7RISK ANALYSIS AT CORWIN CORPORATION
4.2 Risk categories
4.2.1 Impact and probability table
Impact and Probability Ratings
Scale Probability Quality (in view of both Cost & Time features)
EH Extremely High 70% Extreme impact on the whole functionalities
H High 51-70% Noteworthy impact on the whole functionalities
M Medium 31-50% Enhanced impact in prime functionalities
L Low 11-30% Negligible impact on whole functionalities
EL Extremely Low 1-10% Negligible impact on secondary functionalities
NIL NIL <1% No change in functional areas
4.2.2 Impact and probability matrix
Grade: Combined effect of Likelihood/Seriousness
SERIOUSNESS
LIKELIHOOD
EXTREMELY
HIGH – =<1.0
HIGH
<0.9
MEDIUM
<0.7
LOW
<0.5
EXTREMELY
LOW <0.3
NIL –
<0.1
EXTREMELY
HIGH =<1.0
1.0 0.90 0.70 0.50 0.30 0.1
HIGH <0.9 0.90 0.81 0.63 0.45 0.27 0.09
MEDIUM <0.7 0.70 0.63 0.49 0.35 0.21 0.07
LOW <0.5 0.50 0.45 0.35 0.25 0.15 0.05
EXTREMELY
LOW <0.3
0.30 0.27 0.21 0.15 0.09 0.03
NIL <0.1 0.1 0.09 0.07 0.05 0.03 0.01
4.2.3 Actions recommended for the mitigation of risks
Actions recommended for risk grades
Grade Actions for mitigation of risks
EH Pre-emptive actions for the mitigation of these risks are needed.
Identify the risks and provide the solutions to mitigate them as soon as possible.
H These risks are quite vulnerable for the project.
Identify appropriate solutions for the mitigation of the risks.
M Identification of the risk contingency plans and provide solutions to it.
The appropriate solutions are to be necessarily implemented.
L Regular monitoring of the overall project is needed. Development of a reactive
mitigation plan is required.
EL No action is to be implemented but regular monitor of the project is needed.
N No action is needed unless the grading of this project is necessary.

8RISK ANALYSIS AT CORWIN CORPORATION
4.2.4 Risk Register of the Corwin Corporation Case Study
Condition Cause Consequence
Likelihood
Seriousness
Grade
Mitigation
1. Lack in the
evaluation of the
fixed price contract
Violation of the laws
by the vice president of
marketing department
Resulted in the
financial constraints
regarding the execution
of the project
L H H The proper knowledge about the
procedure should be provided to all the
employees associated with the bidding
of the fixed price contract
2. Risk assessment
plan is hampered
Lack of the assessment
skills of the project
manager
This can lead to the fail
of the project
L M L A serious risk assessment analysis is to
be executed by the persons involved
while bidding
3. Delayed initiation
procedure
Lack of the skills
possessed by the
employees as well as
the project manager
This can hamper in the
proper delivery of the
project thus hampering
the relationship
between the two
business organizations
EL H EH This risk can be mitigated by providing
knowledge and skills by the project
manager to the employees associated
with the project.
4. Inter-clash within
the employees
Lack of the guidance
provided by the project
managers
This can put an adverse
effect in the project
execution procedure
H M L This can be mitigated by maintaining a
track on the overall project.
5. Communication gap
between the
employees and the
associated project
managers
The ineffective
communication
carrying out in the
organization
This can hamper the
overall execution
procedure as well as the
confusion among the
stakeholders
M H EH These risks are to be mitigated by
providing conceptual training as well as
knowledge skills for the employees.
6. Organizational
Silence of
employees
Lack of the motivation
among the employees
Quitting of jobs by the
current employees
M H H Training sessions to be conducted at
regular intervals.

9RISK ANALYSIS AT CORWIN CORPORATION
5. Risk Management and reporting
5.1 Appropriate Response Strategies
According to the Risk analysis, it can be predicted that the response strategies are the
solution, which are to be implemented by the organization of the Corwin Corporation to
mitigate the risks associated with the project. These solutions includes the proper knowledge
and training that are to be provided to all the employees that are currently employed in the
organization (Lundgren & McMakin, 2018). The appropriate analysis of the project manager
and his authorities of making decisions must be effectively introduced within the organization
so that there is no chance of occurrence for the issue presented in the case study in near
future. Moreover, the effective communication is also a primary fact regarding the emergence
of any risks for near future. This can be implemented with the help of training modules
provided to the employees of the organization in accordance to the management team of the
organization.
5.2 Apprising Stakeholders
The stakeholders associated with the Corwin Corporation must be made aware of the
fact regarding the various training modules that are to be conducted for the enhancement of
the communication, the planning methodology, the training session for the betterment of the
employee skills in various fields of the organization (Haimes, 2015). These sessions are to be
duly informed to the employees and it is important for the management to motivate the
employees as well as encourage them to attend those meetings that will help the organization
to mitigate any kind of future risks as well as lead the organization to effectively attain the
projected goals of the organization. The present stakeholders should also be informed and
expressed the importance regarding the rescheduling issues present at Corwin Corporation as
this multiplies the chances of business relationship breakdown between two organizations

10RISK ANALYSIS AT CORWIN CORPORATION
(Kanki, 2019). The lack of the effective and frequent communication among the different
stakeholders of the organization can lead to the breakdown of the project within the
organization of the Corwin Corporation. Thus, the communication between the various
stakeholders associated with the project might follow a strategic communication plan that can
be effective for carrying out communications within the organization .
6. Conclusion
Thus, the above stated report depicts the case study of the Corwin Corporation
incorporated with the Peters Company. The analysis of the overall case study is provided
clearly, based on which the risk assessment is carried out for the identification as well as the
mitigation of the risks. In the context of the risks assessed, the risk management plan is
carried out and the risk register is constructed. From the above case study it can be depicted
that the communication is the most important part for the integration of the project
management procedure. Thus, it is concluded that the above assignment specifically analyses
the overall case study of the Corwin Corporation with Peters Company, further analysing the
risks associated with the relevant case study.

11RISK ANALYSIS AT CORWIN CORPORATION
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