Risk Management Assessment and Reporting

This report discusses risk management assessment and reporting for the Lyle Construction Project. It covers the identification and impact assessment of various risks, as well as strategies to manage those risks. Stakeholders will be apprised of risk management activities through effective communication methods.

Risk Management Assessment and
Reporting

Table of Contents
INTRODUCTION...........................................................................................................................1
Risk identification and impact assessment.............................................................................1
Identify and explain how stakeholders will be apprised of risk management activities........5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
The term risk management refers to the practice of determining the various types of
potential risks in advance, evaluating those risks and taking precautionary measures to minimise
the impact of those risks (Wang and Ahsan, 2019). For example- Information technology related
risks, data related risk etc. The Report is based on The Lyle Construction Project. Don who is the
project manager of Atlay Company was assigned the Lyle contract. The Report will outline
various types of potential risks and their impact on the project, risk probability matrix for
prioritising the risks. Further, it will describe response strategies to manage those risks and risk
register. Moreover, it will explain the various types of risks.
Risk identification and impact assessment
Risk register
Risk identification
ID CATEGORY RISK NAME RISK DESCRIPTION RISK OWNER
1 Managerial Management Risk It is the most common type
of risk which is also faced by
Lyle Construction project in
which risk is related to
uncertain productivity of
resources.
Project
management
2 Transportation Logistic risk This type of risk includes
availability of transportation
facilities and availability of
equipment such as fuel.
Labor because it may leads
to project delay and losses as
well
Supervisor
3 Competitive
risk
Competitive risk It is another risk which Lyle
Construction project faces
because the supervisor Fred
Wilson also suggest Don to
Supervisor and
project manager
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complete the project on time
because company's rivals are
also in a process to build the
similar facility in same
location.
4 Administrative Poorly written contract It is the bid or agreement
which mention all the
activities and job roles of
entire team with specified
deadline. The company's
contract is poorly written
such that many times it reject
and sent back for making
addition correction and
resubmit.
Owner
5 Environment Environmental risk This type of risk includes
natural disaster, weather and
seasonal implication. This
type of risk commonly occur
when the entire team is
unfamiliar with local
condition.
Project manager
Risk Assessment
PROBABILITY
(1-5), 1= Low, 5= High
IMPACT RISK LEVEL
(H= High)
(M= Medium)
(MO=Moderate)
(L= Low)
3 Don Jung did not allocate Medium
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proper roles and
responsibilities to their
labor and as a result, it
affect the project and leads
towards delay. In addition
to this, his vice president
also state that if the
management is not
appropriate then it may
hamper the project ability
to finish on time and
budget.
3 As per the case study,
company spend addition 50
tons of structural steel
because of getting
damaging steel earlier and
as a result, company face
heavy loss.
High
5 This type of risk may
increase competition that
directly affect the overall
project in opposite way.
Therefore, it creates in
negative ways
High
4 this also leads to delay the
project and did not meet
the specific time. Thus, the
project manager of Lyle
Construction have to make
sure that about the written
contract which define
every stage of the project.
High
2 The environmental risk
creates direct impact upon
project such that it may
delay the construction
project or, it may lead to
heavy losses as well. As
Don faces pressure from
their supervisor that they
have to complete the
project without any delay
because of its rival also
think to build the same
construction project.
Moderate
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Therefore, at that time,
environmental risk may
affect the project in
opposite way.
Risk response
RESPONSE STRATEGY COURSE OF ACTION
Effective planning and provide
training session
To minimize the risk, project manager must develop a
solid plan in which they assign duties as per the
employee's efficiency, skills and abilities (Aven,
2016).
Further, project manager may get training session in
order to learn how to manage things in appropriate
way. And then start keep good records that will help
in their future as well.
Proper supervision by hiring
specific person
In order to mitigate the risk, project manager make
sure that all the raw material which a firm get is in
proper condition so that company may not bear any
extra expenses. Further, project manager may also
hire a specific person who may check the material and
manage that risk up to own level (Glendon and
Clarke, 2015). Further, it is also analyzed that good
risk management requires high level of collaboration
and communication with all parties who are involved,
so that taking views from all stakeholders will help to
generate bets results that leads to attain the aim in
defined time.
Proper competitive analysis As the probability of competitive risk is high,
therefore, project manager have to develop strategies
that helps to minimize the risk up to some level. Such
that use advance technology and invest more in
research and development activities so that it will help
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to keep track on development that takes place in
primary field. Keep monitoring the market dynamics
so that it will help to develop best market
opportunities. During a project, make sure that
company develop that project which help to generate
more profit for the firm in near future.
Reviewing the contract twice In order to mitigate this risk, project manager have to
review the entire contract twice so that it will not
affect the entire project (Drach‐Zahavy, Goldblatt
and Maizel, 2015). Moreover, project manager also
consult with stakeholders in order to determine the
loopholes and then correct them as well so that
contract will not reject again and again.
Testing and applying KPI Project manager should test everything because
testing will help to flush out problems and it might
bring the project into steady way. Make sure that
there is proper communication between entire team
such that all get right information related to plan and
perform the work accordingly (Giannakis and
Papadopoulos, 2016).
Moreover, the project manager may also use key
performance indicator in order to determine the
environment situation.
Identify and explain how stakeholders will be apprized of risk management activities.
Risk Communication strategy
STAKEHOLDER COMM.
METHODS
FREQUENC
Y
RESPONSIBLE
FOR COMM.
Top management-It
includes president,
There should be
proper plans and
Communicatio
n will happen
Further, Don Jung
should ask top
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directors, corporate
operating committee,
division managers of the
company. They provide
support to risk
management team to
effectively deal with the
risks related with the
project. To deal effectively
with top management of
Atlay company such as
vice president John etc
(Newton, 2017)
milestones should be
developed that
project manager
should get approved
by top management
during the stage of
design and planning
of the project.
The technique of
interactive
communication will
be used.
yearly. management that is
director and vice
president of the firm
for their information
reporting
requirements and
frequency.
The project team-It
consists of all those people
who are dedicated towards
the project. It is the
responsibility of project
manager that is Don Jung
of Atlay company to
provide necessary
guidelines, direction and
leadership to the project
members. This will also
help to communicate the
information regarding risk
management activities to
the members regarding
risks such as improper
man-hour allocation,
logistics risk, delay risk etc
(Snyder, 2013)
Push communication
method will be used
by project manager
to send information
directly to particular
employees.
Communicatio
n will happen
monthly.
Project manager may
communicate details
to project team with
the help of audio
conference, video
conference, computer
assisted conference
etc.
Manager-Generally, the
boss decides what the
project is and who will
work in collaboration with
project manager in respect
of the project. It is
important for the project
manager of Atlay company
to communicate the
activities related with risk
management to the
Manager (Hopkin, 2018).
Interactive
communication will
be used by Don Jung
to communicate with
manager.
Information
will be
communicated
monthly or
quarterly.
Meetings should be
conducted by Don
Jung to provide
information to the
Manager in respect
of risk management
activities.
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By communicating
effectively to the manager
it will be easy to manage
various types of risk that
happens due to wrong
management such as
improper man-hour
allocation.
Internal customers-They
are the people working
within the firm who are
also called customers for
the project that satisfy the
needs of internal clients.
The customer is having
power to reject or accept
the work of project team. It
is necessary to effectively
communicate with internal
customers of Atlay
Company for clarifying,
negotiating and
documenting the
deliverables and
specifications of the
project. The activities that
are related with risk
management can be
informed to internal
customers by arranging
meetings (Grace and et.al,
2015)
The strategy of pull
communication will
be used to
communicate mass
through reports etc.
Project
manager will
communicate
the activities
regarding
project
management
yearly.
After the project
starts, it is essential
for Don Jung to
communicate
effectively with
internal customers to
stay tuned with
issues and concerns
and keep internal
customers informed.
Further, they should
also clarify the
requirements and
specifications to
internal customers in
a written agreement.
External customers-These
individuals are the
customers when project is
marketed to outside
customers. External
customers are the
individuals that pay
amount in respect of the
project. The project
manager of Atlay company
will use various types of
communication methods to
The technique of
push communication
will be used to
communicate
information to
external customers.
Communicatio
n will happen
quarterly or
within six
months.
Manager will help to
better understand the
perception of
external customers in
relation with the risks
such as risk of delay
in communication,
risk of wrong man-
hour allocation etc.
that can impact the
project.
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communicate the details of
risk management activities
to external clients
(Heldman, 2013).
Government-The
government manages and
controls the industries with
the help of legislation. The
degree and type of
legislation have an impact
on the industry as a whole.
The project Manager of
Atlay company is
responsible to convey the
information regarding risk
management activities that
will be conducted for
managing different types
of risks (Bromiley and
et.al, 2015).
The strategy of push
communication will
be used to
communicate
information through
email and reports.
The
communicatio
n will take
place monthly.
There must be proper
cooperation between
management and
government.
Government can be
informed regarding
risk management
activities with the
help of conference
and seminars etc.
CONCLUSION
The above Report has outlined that there are various types of risks related with the
project undertaken by the project manager of Atlay company. It involves the risk of wrong
allocation of manpower hours, risk of competitors starting the project in similar location, disaster
risk etc. There are various types of stakeholders that plays a major role in risk management. It is
important to communicate risk management activities to stakeholders like top management,
project team, customers etc.
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REFERENCES
Books and Journals-
Aven, T., (2016). Risk assessment and risk management: Review of recent advances on their
foundation. European Journal of Operational Research. 253(1). pp.1-13.
Bromiley, P., and et.al, (2015). Enterprise risk management: Review, critique, and research
directions. Long range planning. 48(4). pp.265-276.
Drach‐Zahavy, A., Goldblatt, H. & Maizel, A., (2015). Between standardisation and resilience:
nurses' emergent risk management strategies during handovers. Journal of Clinical
Nursing. 24(3-4). pp.592-601.
Giannakis, M. & Papadopoulos, T., (2016). Supply chain sustainability: A risk management
approach. International Journal of Production Economics. 171. pp.455-470.
Glendon, A. I. & Clarke, S., (2015). Human safety and risk management: A psychological
perspective. Crc Press.
Grace, M. F., and et.al, (2015). The value of investing in enterprise risk management. Journal of
Risk and Insurance. 82(2). pp.289-316.
Heldman, K. (2013). PMP Project Management Professional Exam Study Guide (7th ed.).
Indianapolis, IN: Wile.
Hopkin, P., (2018). Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers.
Newton, D. G., (2017). Managing Operational Risk and Performance Drift as a Function of
the" Nuclear Work Model" (Doctoral dissertation, The George Washington University).
Snyder, C. S. (2013). A project manager’s book of forms: A companion to the PMBOK guide
(2nd ed.). Indianapolis, IN: Wiley.
Wang, L. & Ahsan, D., (2019). Stakeholders' perceptions on risk and risk management
strategies: the case of Chinese dock-less bike-sharing enterprise. International Journal of
Green Economics. 13(2). pp.146-165.
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