Risk & Control.

Risk & Control
Part A
There are several risks that can emerge in the project and the case is the same for Travel’s
Fun Pty Ltd. Project management has been implemented as a discipline in the organization.
The estimation of the schedule, budget, scope, and effort is done as per the guidelines
included in the project management methods. However, there are certain unexpected
situations that may come up during the project timeline. The occurrence of such situations
can have adverse implications on the project areas if the management is not properly done.
The presence of risk management methodology and protocols in advance will make sure that
the intended goals are achieved.
One such sudden and urgent news has come up from the Senior Manager of Dixon Co. The
company has its headquarters located in Melbourne. The news has come to keep the storage
tanks in the Yarraville terminal facility in the good condition and these shall be ready in
about 5 weeks. The company is expected to receive 4 million litres of fuel and the storage
tanks shall be ready to receive the same. The company does not want to lose the associated
revenue of $2 Million on a per month basis. Also, if it does not fulfil the demand then there
will be a penalty of $3 Million per month (Zhang, 2011).
With the emergence of such sudden and urgent news, there are new project risks that have
emerged. The current project schedule is behind its estimated schedule by 5 days. With the
emergence of the new requirement, there will be another 15 days that will be needed to
accomplish the task. The project at the client-side is also running behind the schedule by 10
days. There is a risk of schedule overrun that is observed and it cannot be tolerated in this
condition. The demand of keeping the storage tanks ready in the next five weeks is essential
and cannot be played with. The schedule risks associated with the project can be avoided by
rescheduling the project activities (Aven & Zio, 2013). The reworking on the schedule needs
to be done by reallocating the resources in such a manner that the operational time spent by
every resource is enhanced and the project activities are balanced. If the schedule will
increase from its estimated values then there will be negative impacts on the associated costs.
The cost overrun is a major risk that can emerge and it will not be tolerated in the project.
This is because the customer has millions of dollars at stake and the organization will not be
able to bear such losses. The re-forecasting of the schedule and budget will be done so that
the trade-off is maintained and the deadlines as well as budget constraints are met.
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Risk & Control
The urgent news will have negative implications on the stakeholders and the resources as
well. It is possible that the conflicts among the project stakeholders emerge in order to meet
the new demands from the clients. Some of the stakeholders may agree with the client and
may support the requirements that are put forward. There are also stakeholders that may
disagree with the customer demands and may not agree with the decision to incorporate these
demands. As a result, the conflicts among the interest and perspective of the stakeholders will
be observed (Hallegatte & Rentschler, 2014). Communication will be the key to deal with
such a situation. The senior management and the steering committee will look in to the
feasibility of the customer demands with respect to the availability of the resources. The
perspectives of all the stakeholders will also be put forward and the discussions will take
place to reach consent. There will be resource risks that may also emerge due to the
introduction of such changes. If the management agrees to meet the customer demands, there
will be a lot of pressure on the resources. The resources will be over-burdened for at least five
weeks and they will have to devote additional hours to meet the customer demands. This may
lead to the reduction in the resource interest, efficiency, and productivity levels. The
avoidance and prevention of such risks will be possible with the aid of proper communication
and additional benefits to the resources. The management must communicate the need for
change and the benefits that it will provide to the project and to the organization. Also, the
benefits in terms of flexible work hours, rewards, etc. shall be explained to the resources to
keep them engaged (Bier & Lin, 2013).
The urgent news and changes requested from the client can take a toll on the ongoing project
activities which may negatively implicate the entire set of project areas. The operational
continuity may be affected with the occurrence of the risk. The risk will be resolved with the
use of adequate project management techniques. The re-distribution of the schedule and
budget will be done in such a manner that the operational continuity is not impacted.
The risks of urgent situations and circumstances in the project are a common occurrence. It is
necessary that the project team and management are prepared in advance to deal with such
situations. The development of a risk management framework assists in the same and a step
by step methodology for dealing with the risks is also obtained. In this case, the project would
have additional resources in spare to utilize to deal with such a situation if the prediction is
done in advance. It is necessary that the identification of the risks is done on the basis of all
the available sources of information. The same attention shall be paid to the subsequent levels
in the risk management process. The analysis of the risks along with the evaluation of the risk
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