Risk Management Plan for ABC Construction: Comprehensive Analysis

This report presents a comprehensive risk management plan tailored for ABC Construction, a company operating in the high-risk construction sector. The plan begins by emphasizing the need for risk management to proactively identify and address potential issues, ensuring the achievement of proj...Read More

Running head: RISK MANAGEMENT PLAN
RISK MANAGEMENT PLAN
Name of the Student
Name of the Organization
Author Note

1
RISK MANAGEMENT PLAN
ABC
ABC is an organization within the construction sector which is considered to be a
very risky business. This organization is known for performing general construction as well
as some tasks which are highly specialised. It even prepares some components which are
structural as well as materials that are semi-finished and even known for carrying out
repairing as well as the maintenance of the machinery of construction. It can be said that
there are several kinds of risks which may be associated with accidents, injuries, operational
discontinuity, issues of the impact of the environment, alternation in procedures and so on.
Need for Risk Management
There is huge need for identifying all of the various potential risks within the
organization ABC. The main purpose of managing risk is to properly identify all of the
various problems which are potential before they will be occurring such that all of the various
activities of handling risk may be properly invoked as well as planned as required.
Management of risk is considered to be a procedure which is both continuous as well as
forward looking which is really an essential part of several procedures of business. The risk
management will also be helping a lot in addressing all of the various issues which can be
endangering the huge achievement of all of the various objectives which are highly critical.
This plan of risk management must be applied in an effective way for both mitigating as well
as anticipating several risks which possess a greatly critical impact upon ABC.
Scope of the Plan
The main scope of the risk management plan for ABC is the achievement of the
control of risk in all of the various phases of several projects or works of the organization.
There will be the establishment of a structure for managing various risks within the

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RISK MANAGEMENT PLAN
organization where all of the various basic parameters in which several risks will be properly
defined as well as managed. The risk management plan will be identifying various potential
risks within ABC.
Identification of risks
Identification of risks is mainly the procedure of properly listing several potential
risks for the company ABC (Edwards and Bowen 2013). The information of the identification
of risks is greatly utilised for the proper analysis of risk which will be turn will be definitely
helping a lot for particularly supporting the creation of various responses to all the risks
which have been identified. All of the various risks which have been associated with ABC
will be involving:
1. Injuries to workers
2. Poor workmanship
3. Faulty work
4. Missed deadlines
5. Defect in construction
6. Fire
7. Risk of Wearable technology
8. Availability of resources
Analysis of the risks
Injuries to workers- No matter how much hard one may be striving for the creation of a
very safe area for work, the specific construction site of ABC is really a dangerous place
which is full of several hazards which are potential (Aminbakhsh, Gunduz and Sonmez
2013).

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RISK MANAGEMENT PLAN
Poor workmanship- The poor workmanship can be causing the specific quality of the work
of construction not meeting with all the various standard needs. A Contractor possess with
various responsibilities for ensuring the work of construction meets all of the various needs of
the contract.
Faulty work- The business of ABC may be greatly liable for all the various projects which
are already finished and that are unsound structurally or rather faulty in some kind of way. If
the work does not at all comply with all the various federal regulations of the building, the
client can be losing a lot of money (Kardes et al. 2013).
Missed deadlines- Within ABC any specific number of obstacles which are unforeseen can
be hugely preventing a specific work from being properly completed on the exact schedule. It
may be happening that several materials of building can be delivered quite late and tools can
also be broken. Several plans may have to be totally withdrawn if there may be a discovery of
something which is totally unexpected (Smith, Merna and Jobling 2014).
Defect in construction- With some of the workforce which are very less experienced, there
may a huge rise of several defects in the construction (Kelly, Male and Graham 2014). Such
defects in the construction may be referred to any specific defect within the design,
workmanship or rather within several materials which have been utilized on a construction
work. Such defects may be hugely resulting in huge failures of several building or rather
structures and this can be actually leading towards a lot of damage to property as well as
injury to humans.
Fire- Some activities of hot work, if managed poorly, within a construction which is
specifically wood framed can be hugely resulting in huge losses of high cost. Risk of fire is
really very much high for the business of ABC. One single spark from either an electric wire,
welder or rather sender can be causing fire which can be very much harmful for each and
every worker of the company (Mahendra, Pitroda and Bhavsar 2013).

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RISK MANAGEMENT PLAN
Risk of Wearable technology- Whenever utilized appropriately, the technology which is
wearable can be greatly enhancing the work’s quality and also the safety of various
employees on all the various sites of construction. ABC is found to be investing a lot in this
technology which has brought up various risks. Such devices can be very much vulnerable to
several malfunctions as well as hacking. All of the employees who are very much less
experienced about this technology can be really posing various risks to security within the
organization (Osipova 2014).
Implementation Monitoring and Evaluation Processes
The monitoring of risks will be addressing how all of the various risks will be
properly monitored and how all of such risks can be tried to be mitigated (Kaplinski 2013).
This will be involving the verification of the particular compliance with several decisions of
risk response by particularly ensuring that the enterprise will be perfectly implementing
several measures of the response to risk and will also be properly determining the ongoing
specific effectiveness of several response measures of risks. It will even be identifying
various alternations which will be impacting the posture of risk. Several monitoring activities
of risk at several levels of the enterprise must be properly coordinated as well as
communicated within the enterprise (Langford et al. 2014). This can be involving the sharing
of results of the assessments of risks which will have an impact throughout the enterprise to
all the responses of risk being properly implemented or rather planned. ABC must be
properly determining proper response to all the various risks which have been identified with
the help of the assessment of risk or rather various activities of risk monitoring (Carvalho and
Rabechini Junior 2015). The organization must be facilitating several responses which are
consistent to the risks in the proper alignment with levels of risk tolerance by the
identification of responses which are preferred. It must also be standardizing several
approaches within which the enterprise will be both selecting as well as evaluating various

5
RISK MANAGEMENT PLAN
responses to all the risks. There is the development of proper risk management plan as well as
risk management matrix which will be helping a lot for the evaluation of the risk
management (Renuka, Umarani and Kamal 2014).
Risk Management Matrix
CONSEQUENCE
LIKELIH
OOD
Insignifi
cant
Min
or
Mode
rate
Maj
or
Extre
me
Rare Low Low Low Low Low
Unlikely Low Low
(4)
Low Med
ium
Medi
um
Possible Low Low Mediu
m
(1) (3
)
Med
ium
Medi
um
Likely Low Med
ium
Mediu
m
High
(2) (
6
)
High
(7)
Almost
certain
Low Med
ium
Mediu
m
(5)
High Extre
me
Risk Management Plan

Running head: RISK MANAGEMENT PLAN
RiskI
D
Risks Descriptio
n
Consequen
ce
Likeliho
od
Probabili
ty
Controls Responsib
le Person
Due date Resource
s
Expected
outcomes
1 Injuries to
workers
There are
several
injuries
which are
very much
common in
the
company
ABC which
deals with
various
constructio
n activities
(Lock
2016). Any
constructio
n site is
quite very
much
dangerous
because of
all the
various
potential
hazards
(Goh and
Abdul-
Rahman
2013).
Moderate Possible Medium Enforcement
of various
safety
regulations
and offering
training to
the crew for
the safety in
the site of the
work will be
helping a lot
in the
minimization
of several
risks to
injury or
accidents.
Business of
ABC must be
liable for
covering all
the medical
costs Perera
et al. 2014).
Owner of
ABC
21.1.202
0
Safety
jackets,
gloves
Lower
accidents
and
injuries.
2 Poor Poor Major Likely High Offering Training 26.1.202 Training Enhanced

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RISK MANAGEMENT PLAN
workmansh
ip
workmansh
ip can be
leading
towards not
meeting all
of the
various
needs of the
customers
regarding
any
constructio
n. Such
kind of
workmansh
ip can be
hugely
leading
towards
decrement
in the status
of the
company.
training to all
the various
employees.
Arrangement
for a training
and
development
program
within the
enterprise
(Kuo and Lu
2013).
Departmen
t
0 materials,
training
document
s, training
sessions
workmansh
ip
facilitating
growth of
ABC
Taylan et
al. 2014.
3 Faulty
work
Faulty work
may be
leading
towards
huge loss of
money. The
business of
ABC can be
liable for
Moderate Possible Medium Properly
complying
with several
building
codes as well
as standards
of safety will
be the best
way for the
Owner 3.2.2020 License Excellent
service to
each and
every
clients as
well as
customers.

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RISK MANAGEMENT PLAN
several
projects
which are
finished and
that
particularly
unsound
structurally
or faulty.
prevention of
this (Jia et al.
2013).
Carrying a
specific
license as
well as
permit bond
can be also
demonstratin
g that the
business of
ABC will be
following
several
building
regulations.
4 Missed
deadlines
It may be
happening
that there
may me
some
unknown or
rather
unforeseen
obstacles
which can
be greatly
delaying a
lot of work
and hence
can miss
Minor Unlikely Low Keeping
several
communicati
on lines
totally open
with that of
the customer
or client.
Manager 15.02.20
20
Contacts
with all
the
various
clients
Reduced
missed
deadlines
and
customer
satisfaction
(Van
Staveren
2018).

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RISK MANAGEMENT PLAN
several
deadlines
(Khodeir
and
Mohamed
2015).
5 Defect in
constructio
n
Some
untrained or
rather
inexperienc
ed
workmen
can be
causing
several
kinds of
defects
within the
constructio
n. This may
be causing
several
defects in
some
designs or
rather
structures
that
ultimately
leads
towards bad
service of
Moderate Almost
certain
Medium Training all
of the
various
workers
regarding the
utilization,
maintenance
and also the
storage of
equipment.
Owner 25.02.20
20
Trainings
sessions
and
materials
Lower
defects in
the
constructio
n and thus
enhancing
the
reputation
of the
company.

4
RISK MANAGEMENT PLAN
work by
ABC.
6 Fire This risk is
quite a
common
risk for
ABC. This
is because
of the fact
that some
types of
constructio
ns which
are mainly
wood
framed can
be causing
fire and
huge loss of
money. In
such a
business,
certain
sparks from
any electric
wire can be
easily
catching
fire which
can be harm
the workers
as well as
Major Likely High Development
of various
safety as well
preventive
regulations
will be
helping a lot
preventing
fires.
Wearing
safety jackets
or possessing
some safety
measures
will also be
helping.
Owner 3.03.202
0
Safety
jackets
and
gloves
Reduced
fire
accidents
and the
developme
nt of a safe
environmen
t.

5
RISK MANAGEMENT PLAN
properties.
7 Risk of
Wearable
technology
Some
inexperienc
ed
employees
can be
bringing in
several
risks of
security as
such people
do not
possess
enough
knowledge
regarding
the
technology
and the
proper use
of it. Such a
lack of
knowledge
can be
bring in
chances of
hackers to a
great
extent.
Extreme Likely High Providing a
proper
training of
the use of
new
innovative
technology
in the
organization.
Software
developer
17.03.20
20
Training
materials
of
wearable
technolog
y
Obtaining
all the
various
advantages
of the
wearable
technology
for the
company.
Obtaining
perfect use
of the new
technology.

Running head: RISK MANAGEMENT PLAN
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