Effective Management of Risks in an Organisation

Running head: EFFECTIVE MANAGEMENT OF RISKS IN AN ORGANISATION
Effective management of risks in an organisation
Name of the Student
Name of the University
Author Note

1EFFECTIVE MANAGEMENT OF RISKS IN AN ORGANISATION
Executive Summary
It is necessary for every project management team to devise a risk management plan that
would critically identify the potential risks involved in the project. The purpose of this report
is to devise a risk management plan with the concerned risks in the Lewis Project. The risk
management plan for the Lewis project gives an idea of the potential risk that may be
involved in the execution of the project. The identification and assessment of the risks have
been done with the help of a risk register and the risk matrix. Later the reporting of the risks
have mentioned with the help of the response strategies and the risk management activities.

2EFFECTIVE MANAGEMENT OF RISKS IN AN ORGANISATION
Table of Contents
Introduction................................................................................................................................3
Risk identification and impact assessment.................................................................................3
Risk Management and Reporting...............................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

3EFFECTIVE MANAGEMENT OF RISKS IN AN ORGANISATION
Introduction
Successful execution of any project takes place with the effective collaboration of the
project management team involving the project manager, the project engineers, the project
control manager and the project secretaries. It is necessary for every project management
team to devise a risk management plan that would critically identify the potential risks
involved in the project (Lam, 2014). The risk management plan would also focus on
assessing the potential risks thereby providing solutions for the mitigation of the risks. The
Lewis project is one of such projects that were facing a lot of challenges. It was a
construction project for a new coal liquefaction pilot plant. The risk identification and the
assessment of the impacts along with its reporting is the crux of this report.
Risk identification and impact assessment
It is really very necessary for the identification of the potential risks in the completion
of the project (Iqbal et al., 2015). This is the initial step of the risk management procedure
that is focussed on delivering the idea of the potential risks involved in the Lewis Project
undertaken by the Robert L. Frank Construction Company.
Category of the Risks Impact of the Risks
Delay risk Delivery of
Vendor’s
material not on
time
For the execution of the Lewis project, it is very important
for the delivery of the Vendors’ materials within the
stipulated timeframe. If there is not a stipulated timeframe,
the delivery of the materials will not take place in time and
the project will suffer an undesirable delay (Hossen, Kang
& Kim, 2015). This will not only affect the fluency of the