Risk Management Plan for Honda Car Servicing and Repairing Company
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This report discusses the design, development, and documentation of a risk management plan for Honda Car Servicing and Repairing Company. The plan aims to reduce accidents, prevent operational discontinuity, and address environmental impact issues. It includes risk identification, analysis, response planning, and monitoring processes.
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Introduction The main aim of the report is to design, develop and document a risk management plan related to the reduction of accidents and incidents related to employees, prevention of operational discontinuity, need for change in process or procedures and environmental impact issues in Honda Car Servicing and Repairing Company. The company has been the largest motorcycle manufacturer ever since 1959 (Miyakawa, 2017). Honda Car Servicing and Repairing is a multinational conglomerate popular known for repairing aircraft, power equipment and motorcycles. In, 2015, Honda Car Servicing and Repairing was ranked as an 8thlargest automobile manufacturer in the world(Schilling & Johng, 2017).Apart from the motorcycle business, Honda Car Servicing and Repairing services other products such as power generators, personal watercraft, marine engines and garden equipment. Risk implementation plan for Honda MotorHonda Car Servicing and Repairing Company Context and scope of the plan Honda Car Servicing and Repairing will take an approach of assessing risk and managing risks by use of the methodical process which provides the project team with ability to identify risks, assesses the impact of risks, rank various risks and determine the course of actions of reducing or eliminating risk. The impacts of risks and their likelihood will be added to the plan in order to make sure the responsible personnel takes the necessary steps of implementing mitigation response at the right timeframes. The responsible personnel will provide their progress of assigned duties of risk management in the monthly project team. After the project is complete, the project team leader (risk manager) will analyze all the associated risk identified by the project team. Based on the results and findings from the risks identified by the project team,
project leader (risk manager) will identify areas of improvements that should be considered for future projects concerning risks management. Risk identification Risk identification is defined as a process of determining the risk that might prevent an organization from achieving its objective(Vijayakumar & Arun, 2017).In the phase of risk identification, the plan will provide explanation of the entire process through which all risks and hazards connected with the Honda Car Servicing and Repairing will be identified, methods used by project team to identify risks, the forum where the process will be conducted and ways of recording the risks. The typical methods that will be used to identify the risks in Honda Car Servicing and Repairing will include conducting assessment meetings, conference and seminars with key stakeholders and project team, review of historical information from similar projects and expert interview. In an expert interview context, the risk management team will reveal several risks which will be included in risk register and the project. In meeting context, the risk assessment group meeting will be conducted with key stakeholders and project team members for identification of the risks connected with potential hazards. In Historical review context, the responsible project team members will revisit the history of previous projects to come up with list of risks and hazards and further the approaches or activities that can be taken to mitigate those risks. Generally, the phase of risk identification will involve evaluation of environmental factors, appropriate stakeholders, project team, management plan including scope and organizational culture. In addition, attention will be given to resource plan, cost estimates, assumptions, deliverables and other crucial project documents. The likely types of risks that will be identified include workplace risks, business continuity risks and environmental risks. Workplace risks will include risks such as injuries and deaths, business continuity include risks
such as compliance risks and impacts of macro environment factors and environmental risks include risks associated with climate change, floods, earthquakes, etc. Risk analysis After the risks are identified, it is essential to determine the degree of risks impact and probability of each risk for allowing the project team leader (risk manager) to prioritize mitigation strategy as well as risk avoidance. Therefore, in risk analysis, all risks identified by the project team will be assessed in order to determine the range of possible outcomes of the project. The qualification strategy will be used for examining the risks that will be prioritized and the one which will be ignored. The risk having low impact and with unlikeness to occur will have low priority while risks which have more likelihood of occurring and possess a significant impact will be prioritized. The prioritization of risk will be conducted using a tool called “an impact tool matrix”. Probability and impact assessment analysis probabilityimpact High (greater than 80% probability of occurrenceRisks with a high potential of impacting costs and performance of Honda Car Servicing and Repairing Medium (between 40% to 80%) probability of occurrence Risks with the potential of slightly impacting the costs and performance of Honda Car Servicing and Repairing Low (0% to 30%) probability of occurrenceRisks that have relatively little impact on the costs and performance of Honda.
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The risk matrix tool will allow project team leader (risk manager) to prioritize risk by basing on the impact it has to Honda Car Servicing and Repairing. All risks assigned an occurrence probability (likely or unlikely) and impact (either low or high) will be placed on appropriate position on chat and the project team leader will move to the next process of “avoidance plan or risk mitigation. Risk assessment matrix The risks falling on green zones have low impact and unlikely. However, all risks falling under YELLOW and RED zones will have immediate risk response planning that includes both contingency and mitigation plan. Risk Response Planning and Risk management treatments, In risk response planning, major risks falling under both yellow and red zones in relation to Honda Car servicing and repair will be assigned to a nominated project team member for the purpose of advanced monitoring. The approaches that will be selected for addressing the major and minor risks such as avoidance, mitigation, acceptance and transfer of risks (insurance). In risk avoidance approach, the identified risks will be eliminated by eliminating the cause. In a risk mitigation approach, the project team will identify the method of reducing the impact or probability of risk occurrence in Honda Car Servicing and Repairing. In risk acceptance, the company will accept that nothing can be done with risks and move on. In risk transfer, the Impact H M L LMH Probability
company will make third parties responsible for risks (For example, Honda Car Servicing and Repairing may opt to outsource some risks or advance insurance covers). Furthermore, all risks that will be mitigated, the project team will come up with measures of reducing the likelihood of the risk occurring or preventing the risk from occurring. The preventive measures may include additional of human and capital resources, addition of tasks to the project schedule and use of prototyping. Some of the resources that will be needed in this stage include notebooks, printed historical risks handouts and printed WHS policies. Monitoring, controlling, reporting and evaluation processes According to research conducted byHu, Cui, Demeulemeester & Bie (2016), the main purpose of risk monitoring and controlling is to enhance continuous evaluation throughout the risk management process and include the identification of condition for the entire process of risk and documentation process. All the risks associated with Honda Car Servicing and Repairing will be tracked, monitored, evaluated and reported to the risk management department. The entire change request on implementation of a new process will be analyzed for their impacts and possibilities to be identified. The project leader (Risk manager) will provide notification to management about the essential changes of risk status on project status report. The Company will monitor the risks by including highest scoring risks to the project schedule and assign them to responsible team members. The addition of risks with the highest scores will assist the manager to see the risks in need of close monitoring and the expected time for the project team leader to provide status updates every month. Furthermore, the project team leader will ensure appropriate team members are assigned with responsibilities of “monitoring the risks” and providing the essential status updates including, the status of risk, conditions of risks and documentation of the risk’s response results.
The project leader will offer effective leadership to the team members during the process of developing responses of identified risks. With risks being identified and qualified, the risk manager (project team) will develop mitigation and develop avoidance risk management strategies. There will be inclusion of risks to the project plan and risk register. Furthermore, the risk management plan will also be updated to ensure risks are monitored in timely manner. The risks for Honda’s company risk management project will be monitored, controlled and managed within the constraints of costs, time and scope. The evaluation process will be conducted on the identified risks for determining how the risks impact the scope, time and costs of the Company. The risk register will also be used during the process of controlling and monitoring the risks. According toPapke-Shields, & Boyer-Wright (2017), risk management project must maintain a risk register for associating mitigation strategies and tracking down the risks. The risk register that will be used in Honda Car Servicing and Repairing is a log containing all risks identified, risk category, impact to the company and timeframes of risk occurrence. Based on timeframes, identified risks will be included to the project plan. Furthermore, the project leader will ensure there is a response of status of the risks assigned to team members during the team meeting (conducted on monthly basis) for the planning of risk timeframes. By the end of the risk management process, the expected outcome will see all risks involved in world place identified, the number of injuries reduces, products insured, business operating in a sustainable environment and the possibility of future continuity of business. Research results for Risk management plan Category of Risk risklikelihoodimpactProposed Action ResourcesResponsible person Time framesDeadlineExpected outcome Success metrics Workplace risks -employee injuries -deaths - reduced Very likelyhigh-Adherence of WHS policies and procedures -Helmets -Printed WHS policies and Group A (project team member) -Report progress during monthly 1/6/2019-Reduced number of injuries and any other kind of accident or in -Low accidents reported -Healthy
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wellbeing -Damage of hearing -proceduresmeetings. -Final risk management results on 5/7/2019 1/7/2019 relation to the workforce in the Honda Car Servicing and Repairing employees Business discontinuity risks -compliance -political instability -change in the economy (e.g. inflation) lowVery high-Honda Car Servicing and Repairing to comply with all revenant policies and procedures Human resource Group B (consisting of selected team members) 5/7/20191/7/2019-Continuity of the business -Effective compliance and sustainability of the company. -Continuity of the business -sustainability of business Environment al risks-earthquake -floods unlikelyVery high-insurance on all company products -relocation of the business to areas with low environmental risks -printed historical information about the previous environment al risk Project risk team leader (project manager) 5/7/20191/7/2019-business operating in a safe environment that can sustain environmental issues -Insurance of all Assets of employees including employees Insurance covers -Relocation of business in areas with a high possibility of environmental risks such as coastlines Tools used assessment process and in the research design The tools used in the risk assessment process and research design include information gathering techniques such as experts’ interviews, surveys, meetings with relevant stakeholders and documentation of results. The root-cause analysis also was used to identify a problem, discover the cause that led to it and develops the preventive measures. Risk probability and impact assessment tool was used to determine the likelihood of a risk and potential effect on the organization such as performance, quality and costs. The probability and matrix list were used to rate quantitative risks analysis. The result from the tools indicates that Honda Car Servicing and Repairing has many hidden risks that might affect the workforce and organization. Most of the risks associated with the company have a very highimpact and their possibility of occurrence is high. Conclusion
The results from the business plan, development and design show that if the Honda Car Servicing and Repairing approaches the risk with effective preventive measures the number of accidents in the organization could significantly reduce. In addition, the business could also comply with all regulatory bodies such as WHS and further enhance its sustainability. References Hu, X., Cui, N., Demeulemeester, E., & Bie, L. (2016). Incorporation of activity sensitivity measures into buffer management to manage project schedule risk.European Journal of Operational Research,249(2), 717-727. Miyakawa, Y. (2017). The transformation of the Japanese motor vehicle industry and its role in the world: industrial restructuring and technical evolution. InRestructuring the Global Automobile Industry(pp. 88-113). Routledge. Papke-Shields, K. E., & Boyer-Wright, K. M. (2017). Strategic planning characteristics applied to project management.International Journal of Project Management,35(2), 169-179. Schilling, M. A., & Johng, J. (2017). Honda insight: Development and launch of a hybrid electric vehicle. InNew Horizons in Research on Sustainable Organisations(pp. 125-145). Routledge.
Vijayakumar, K., & Arun, C. (2017). Automated risk identification using NLP in cloud based development environments.Journal of Ambient Intelligence and Humanized Computing, 1-13.