Risk Management Report: Launch a Real Estate Agency

The report provides an idea of the implementation process of launching a real estate agency. It discusses the background, assumptions, constraints, schedule, budget, communication plan, and major risks associated with the project.

Running head: RISK MANAGEMENT REPORT
Risk Management Report: Launch a real estate agency
Name of Student
Name of University
Author Note

1
RISK MANAGEMENT REPORT
Executive Summary
The report provides an idea of the implementation process of a project that is based on
launching of a real estate agency. The idea of the implementation approach to be followed in
the real estate agency launch is discussed in the report. The background of the project along
with the major assumptions and the constraints associated with the implementation of the
chosen project is indicated in the report. The schedule and the budget needs of the project is
further discussed in the report. Since communication is an important need of project
management, it is required to prepare a proper communication plan, which is followed in the
report. The report further identifies the major risks that are to be addressed in a project.

2
RISK MANAGEMENT REPORT
Table of Contents
Introduction...................................................................................................................... 3
1. Project Description/ Details..........................................................................................3
1.1. Scope Statement...................................................................................................3
1.2. Background........................................................................................................... 4
1.3. Benefits of the Project............................................................................................4
1.4. Objectives of the Project........................................................................................4
1.5. Start and Finish Date.............................................................................................5
1.6. Monetary Value.....................................................................................................5
1.7. Constraints............................................................................................................5
1.8. Key Assumptions...................................................................................................6
1.9. Expected Outcomes..............................................................................................6
2. Work Breakdown Structure..........................................................................................6
3. Gantt Chart.................................................................................................................. 7
4. Network Diagram.......................................................................................................10
5. Stakeholder Analysis..................................................................................................11
6. Communication Planning...........................................................................................13
7. Risk Management......................................................................................................16
Conclusion..................................................................................................................... 18
Bibliography................................................................................................................... 20
Appendices.................................................................................................................... 22

3
RISK MANAGEMENT REPORT
Introduction
The risk management report aims in detailed evaluation of the project management
concepts to identify and analyze the risks associated with the launch of a real estate agency.
The chosen project of developing and launch of a real estate agency is subjected to a number
of hazards and risks which will be analyzed in this research report. The report provides an idea
of the scope of undertaken agency development project, the background of the chosen agency
development project, the monetary value, the key constraints along with the assumptions that
are considered in successful implementation of the agency launch project. The WBS and the
Gantt chart provides the details of the tasks that are linked with the implementation. The report
gives an idea of a communication plan and the risk management plan and the plan for mitigation
of the risks and issues associated with the implementation of the agency launch project. The
scope and the deliverables of the agency project is evaluated in the paragraphs below.
1. Project Description/ Details
This section of the risk management report will cascade the details related to scope and
background of the agency project, the benefits and the objectives of the agency project. The
details of the constraints and the assumptions linked with launch of the agency project are
discussed in the following sections.
1.1. Scope Statement
Project aims in development and launch of agency. The project will consider
incorporation of all the necessary attributes that are needed to be considered in implementation
and management of the agency launch project. The in scope requirement of the real estate
agency launch project is indicated as follows-
 A realistic project schedule is prepared for successful project implementation

4
RISK MANAGEMENT REPORT
 The project will involve planned risk management process
 The schedule and the budget of the project is estimated taking in consideration
and time and the resources needed for completion of the project.
The out-of scope requirements of the project are as follows-
 The agency project is will not the post project review, analysis and
maintenance.
1.2. Background
Launch of an agency project is undertaken by the project team. The real estate agents
mainly make money through the commissions that are paid directly to the brokers for a
particular service. Therefore, launching a real estate agency requires prolonged planning and
execution. The project is expected to be completed in a set timeframe and within the set budget.
1.3. Benefits of the Project
The successful launch of an agency will prove to be an excellent business opportunity.
Choosing a location where there is a lack of good real estate agency can prove to be a good
business boon for the project owner. Furthermore, the launch of a real estate agency will
provide excellent job opportunity to many, which is another significant advantage or benefit of
the real estate launch project. Therefore, it is recommended to implement the chosen project in
a planned manner. The successful execution of the project add to the experiences that the
project team will gain regarding the launch of a real estate agency.
1.4. Objectives of the Project
The identified objectives that is linked with the planning and implementation of the
project is indicated as follows-

5
RISK MANAGEMENT REPORT
 To identify the schedule and the resources needed for successful execution
of a project
 To develop a realistic schedule that can help in completion of the undertaken
project on time
 To assign accurate resources to the task
 To ensure that the project is executed on a set time-frame
By the end of the project, it is expected that all the identified objectives will be fulfilled. A
project plan is needed to be prepared considering all above identified objectives. This will help
in implementation of the project in an effective manner.
1.5. Start and Finish Date
Fri 10-05-19 (start) Wed 22-01-20 (Finish).
1.6. Monetary Value
The cost of implementation of the project is $169,280. This include mainly the labour and
the cost of equipment that are needed for successful project implementation.
1.7. Constraints
The main constraints of the agency project are as following-
1. The project is to be executed in a limited time within the time allocated which is a
major project constraint.
2. The project team does not have an experience on the implementation of real estate
project, which is another significant project constraint.
3. The project does not involve training the staffs regarding the business requirement of
a real estate agency

6
RISK MANAGEMENT REPORT
1.8. Key Assumptions
The key assumptions linked with real estate project are as following -
1. It is indicated that the agency project can be delivered within the set time frame.
2. It is expected that no budget issue will arise in implementation of the project
3. It is assumed that the resources chosen for the project will be continuously available
for implementing the project in a set timeframe.
4. It is assumed that the project plan that is developed will enable the team members to
complete the project in a successful manner.
1.9. Expected Outcomes
The report indicates preparing of a work breakdown structure and the schedule Gantt
chart of the project. The agency development project plan that is prepared is expected to ensure
successful execution of a project. By the end of the project, a real estate agency should be
launched in a successful manner, within the set timeframe.
2. Work Breakdown Structure

7
RISK MANAGEMENT REPORT
The work breakdown structure of the chosen agency launching project is indicated in the figure below-
Figure 1: Representing the WBS
3. Gantt Chart
The Gantt chart of the agency launching project is shown in the following picture-

8
RISK MANAGEMENT REPORT

9
RISK MANAGEMENT REPORT
Figure 2: Representing the Gantt chart
4. Network Diagram
The network diagram for the chosen project is indicated as follows-

10
RISK MANAGEMENT REPORT
Figure 3: Representing the Network Diagram
5. Stakeholder Analysis
Identification and analysis of the stakeholders linked with the launching of a real estate
agency is necessary to ensure that the identified stakeholders will remain engaged with the
project. The main stakeholders linked with the launch of the real estate project is indicated as
follows-
1. Project Manager
2. Contractor
3. Clients
4. Project Sponsor
5. Project Team
The power or influence and the interest of the stakeholders linked with the real estate
agency launch project is indicated in the table below-
Stakeholders Description Power Interest
Project Manager The manager is a key
stakeholder as this
person has the
responsibility of
execution of a project
in a planned manner.
Medium High
Contractor The contractor is
responsible for
Medium Medium

11
RISK MANAGEMENT REPORT
undertaking the real
estate agency launch
project and delivering
the project on time.
Clients The clients are one of
the most important
stakeholders of the
project as business
of real estate agency
is largely dependent
on its clients.
High Low
Project Sponsor The sponsor is an
important stakeholder
and has a high
influence on the
project
High High
Project Team The team is a vital
stakeholder as the
team will ensure
successful execution
of the project.
Medium Medium
The power and the interest of the identified stakeholder is illustrated in form of the
stakeholder map below-

12
RISK MANAGEMENT REPORT
Figure 4: Representing the stakeholders’ power, interest grid
6. Communication Planning
Communication planning is a significant need of project management as it helps in
cascading the information that is required to plan and execute a project. Communication
planning is important for launching of a project related to real estate agency to ascertain that all
the related stakeholders are being communicated with the progress and the issues that the
project might face. For ensuring that the stakeholders are communicated with issues and project
progress a communication plan is prepared. The communication plan is indicated in the table
below –

13
RISK MANAGEMENT REPORT
Stakeholder Purpose of
Communication
Frequency of
Communication
Vehicle of
communication
Format for
document
sharing and
storage
Project Manager The project
manager will be
communicating
the progress and
the issues
persisting in the
project team
The project
manager will be
communicating
to the team
member daily
Email and
telephonic
conversation
along with face-
to-face meetings
pdf
Contractor The contractor
will
communicate or
escalate the
major issues
that can be
faced by the
contractor while
implementing
the real estate
launch project.
Once in a week Telephonic
conversation
and email
DOc
Clients The clients are
an important
stakeholder of
the project and a
Once in a month Emails Doc

14
RISK MANAGEMENT REPORT
communication
plan is prepared
to communicate
their
expectations
from the project.
Project Sponsor The project
sponsor will be
communicating
the
specifications
that is to be
followed for
implementing a
project
Once in a month Email Pdf
Project Team The project team
is responsible
for
communicating
the progress of
the project to
other
stakeholders of
the project.
Daily Telephonic and
face-to-face
communication
along with email
doc

15
RISK MANAGEMENT REPORT
Table 1: Communication Plan
The above table provides an idea of the communication plan to be followed by all the
stakeholders of the real estate agency launch project. This was an important step to ascertain
that all the stakeholder remain engaged with the proposed project.
7. Risk Management
Managing the project risk is a specific consideration of project management as it helps in
analyzing the critical issues that can significantly affect the normal implementation of a project.
The most significant risks related to the launch of an agency (real estate) is indicated in the
table below. The table categorizes the risks in accordance to the severity and probability of
occurrence. A risk ranking is provided to each of the risks examined and the responsibility of the
risk is given to a particular member of the project team. The detailed risk table is indicated as
follows-

16
RISK MANAGEMENT REPORT
Risk Probability of
occurrence
(on a scale of
1-5)
Severity of the
risk (on a
scale of 1-5)
Risk
Rank/Ratings
Risk
responsibility
Risk Response Timeframe
Schedule Risk 5 4 20 (High) Project Manager Risk Control 1 month
Project team not
getting an
access of a good
location for open
an agency
3 5 15 (Medium) Contractor Risk Avoidance 1 month
Incompetent real
estate agents
4 4 16 (Medium) Business Analyst Risk Control 15 days
Scope Creep 3 4 12 (Low) Project Manager Risk Avoidance 10 days
Resource
shortage
3 3 9 (Low) Resource
Manager
Risk
Acceptance
1 month
Budget issues 3 3 9 (Low) Finance Manager Risk Control 1 month
Table 2: Risk Table

17
RISK MANAGEMENT REPORT
The risks identified in the table above is represented in the matrix below-
Figure 5: Representing the Risk Matrix
Conclusion
The report introduces a chosen project of development of a real estate agency. The
report provides an idea of the work breakdown structure, and the project schedule to be
followed in launching of a real estate agency. The schedule indicates the tasks that are needed
to be completed to ensure that the agency launching project is executed in a successful
manner. The report further provides a detailed communication plan that the project team should
follow to communicate to with the stakeholders linked with the project. The report further
discussed about engagement of the stakeholders with the process and embarks on a detailed

18
RISK MANAGEMENT REPORT
stakeholder analysis. The most significant risks associated with this particular project is
analyzed and a risk register is developed. The responsibility of each risk is provided to a specific
person who will ensure that the risk does not return to the project. A timeframe is allocated for
mitigation of each risk that are identified. It is expected that the set timeframe is enough to
eliminate the risk linked with the said project. The estimated schedule and budget of the project
is considered to be enough for launching a real estate agency.

19
RISK MANAGEMENT REPORT
Bibliography
Kerzner, H. and Kerzner, H.R., 2017. Project management: a systems approach to planning,
scheduling, and controlling. John Wiley & Sons.
Schwalbe, K., 2015. Information technology project management. Cengage Learning.
Larson, E.W. and Gray, C.F., 2017. Project management: The managerial process. McGraw-Hill
Education.
Fleming, Q.W. and Koppelman, J.M., 2016, December. Earned value project management.
Project Management Institute.
Heagney, J., 2016. Fundamentals of project management. Amacom.
Leach, L.P., 2014. Critical chain project management. Artech House.
Harrison, F. and Lock, D., 2017. Advanced project management: a structured approach.
Routledge.
Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking project
management performance and project success. International journal of project
management, 32(2), pp.202-217.
Crawford, J.K., 2014. Project management maturity model. Auerbach Publications.
Marchewka, J.T., 2014. Information technology project management. John Wiley & Sons.
Verzuh, E., 2015. The fast forward MBA in project management. John Wiley & Sons.
Too, E.G. and Weaver, P., 2014. The management of project management: A conceptual
framework for project governance. International Journal of Project Management, 32(8), pp.1382-
1394.

20
RISK MANAGEMENT REPORT
Kerzner, H., 2018. Project management best practices: Achieving global excellence. John Wiley
& Sons.
Binder, J., 2016. Global project management: communication, collaboration and management
across borders. Routledge.
Joslin, R. and Müller, R., 2015. Relationships between a project management methodology and
project success in different project governance contexts. International Journal of Project
Management, 33(6), pp.1377-1392.
Kerzner, H., 2019. Using the project management maturity model: strategic planning for project
management. Wiley.

21
RISK MANAGEMENT REPORT
Appendices
The work activities to linked with the project are indicated in the figure below-
.