Internal And External Stakeholder

RISK MANAGEMENT
RISK MANAGEMENT
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Table of Contents
Introduction......................................................................................................................................3
Part 1................................................................................................................................................3
SWOT analysis............................................................................................................................3
Pestle analysis..............................................................................................................................4
Identification of the internal and external stakeholders...............................................................7
Identification of the risks.................................................................................................................7
Part 2................................................................................................................................................9
Reference list.................................................................................................................................16
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Introduction
Town and Country services is working with the objective to strategize is business plan of
opening an office within the regional city of Orange, that is located in New South Wales. The
objective is to provide a wide range of architectural services which comprises of a panel of
consultants that visits the office at least a day per week and making Apartments with the local
people so that they can interact with the consultants and based upon their interaction drawing are
made as per plan for the builders and owners. Objective is to supervise the construction of the
projects as well as conduct dispute mediations within the local authorities and the individuals
that are involved in the planning process of the building matters. Moreover, the report
emphasizes the necessary budget that should be allocated with an objective to maintain no
profitability till the end of second year however the operational activities will come to work
within 5 months of the starting of the construction projects after which collection of fees and the
charges for service delivered will be undertaken.
Part 1
SWOT analysis
Strength
The major strength of the business activity is it support from the local government for opening
new business opportunities and facilitate maneuver for serving local customer base within the
standardized time frame of construction projects. It is been found that enough political and
economic support are being provided to the construction initiatives since the regional population
of the city have a sound economic growth and it has become one of the important employment
centre.
Weakness
The weakness of the company is related to ability to cover up the whole construction project
wither objective of maintaining not profitability to the second year of the accomplishment of the
project which is quite a big challenge. Ensuring the labor force involved as well as the staff
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members can effectively work for fulfillment of the objective it requires that the preparation of
the budget and the choice of resources followed by allocation of them for utilization of all funded
capital, increased labor force, utilized land and Entrepreneurship activity can be optimized within
the stipulated time frame.
Opportunities
The major opportunity of the construction project is the presence of sound economic growth
within the city and its importance for becoming one of the significant employment centers with
support from both regional population as well as the local government. The plant approach of
Town and Country services in student and office at the street level was sufficient space will be
enabled for meeting purpose very interaction between the visiting consultants as well the dispute
mediation services with the local government and local people will be accomplished. This
provides a greater opportunity very interaction between all the stakeholders both external and
internal will take place and based upon their feedbacks it will help in construction of the projects
in an efficient manner. Moreover, there should be presence of video conferencing in order to
communicate with remote clients and ensuring that the dispute mediation within individuals can
take place effectively.
Threats
It is quite a big challenge for the construction project to attract the target consumer base for
which it have undertaker the objective to create their office with high Technology based and
spectacular feet out that can reflect the values and quality e of the design that Town and Country
service will provide equivalent Li to the target consumer base that requires both residential as
well as building for the corporate offices. Inclusion of four full-time and four part-time staff
members is also so significant challenge since all the full-time staff member will require quality
experience in the architectural service providers field as well as will be adhered with the
knowledge regarding the local environment and will have familiar with the local government in
order to sanction the plan within stipulated time frame.
Pestle analysis
Political factors
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From the political perspective it is been found that the local government is ready to provide
political assistance for the construction projects. Moreover, recruitment of the staff members
who work full time for the projects are made effectively depending upon their experience with
architectural services as well as their quality relationship with the local government. She is the
recruited professionals will work for full time bases and quality relationship government
excellence from local and regional areas in this will boost the performance of the project in the
long run and will be able to gain extensive support from the local people in the construction
projects which will help it to takes place with efficiency and with the stipulated time interval.
Economic factors
From Economic perspective it is been found that the regional areas of the city is economically
sound and it have a good growth potential for which infrastructural development will be highly
appreciated. This will not only help to enhance development within the area but also will create
sufficient provision for Employment generation and hence it is economically viable and feasible
followed by gaining credibility from the local government as well as the local people involved in
the process for strengthening the architectural industry design.
Social factor
The social factors comprises of the environment in which the activities undertaken for the
construction projects and it is found to be quite supportive from both the local government as
well as the local people who are excited for the construction projects. This is because of the fact
that the local government have good relationship with the recruited full-time staff the local
people essentially get both growth and development from the infrastructural point of help them
to gain employment in near future and hence they support will be a natural outcome when the
project will be ultimately accomplished. This is because of the fact that it is been found that the
construction project will lead to Employment generation and enhancement of inclusive growth
followed by qualitative change in the form of development hence social economic support is a
common result after the construction project activities and the undertaken endeavors by Town
and Country services gets accomplished (Brownsword, 2019).
Technological factors
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From the technological prospective it is been found that the company have initiated the
implementation of environment friendly as well as industry friendly technological equipment
which are affordable within the budget limitations and will help to accomplish the construction
projects within the stipulated time frame. Utilization of Advanced Technological instruments
will create a platform for advancement from infrastructural and developmental. Process will be
appreciated. Both the external and internal stakeholders’ plays an important role in the process in
their involvement and making them experience with the utilization of the technological advanced
equipments will lead to accomplishment of the construction project within a shorter span of time.
Moreover, there will be presence of interaction within the private rooms between the remote
lions through video conferencing and their interaction with the consultants as well as the local
people and government will enhance the visibility of the construction projects.
Legal factors
The legal factors comprises of implementation of consumer law, healthcare law, safety and
security law, as well as labor and Employment law as per the Town and Country services
management policy and procedures and AS/NZ ISO 13000 Risk Management Overview. The
support from the local government will allow the activities to offer by analyzing the potential of
external factors and the critical success factors depending upon the business goals and
identifying the flaws and fortes construction project based upon regular evaluation and
monitoring of each and every activity. The consequence criteria as well as the probabilistic
likelihood of success of the project should be given priority based upon the legal norms and the
process of ethical business practice (Brownsword, 2019).
Environmental factors
The construction projects with lottery undertaken with object is to provide corporate and
residential buildings but also its objective will be to ensure long-run sustenance of the
construction projects without any profitability for the coming 2 years however it will be made
effective from the commencement of the construction projects and its accomplishment after 5
months. The project planning process as Incorporated the provisions for parks, community halls,
gyms, cafeterias, shopping marts, eco friendly water areas, etc. and other areas of recreational
interest in between the corporate buildings as well as given priority to separate the manufacturing
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hubs to that of the financial Hubs and marketing Hubs for which each and every areas will be
pollution free. Recycling of all the sewage and waste management activities with systematized
procedures and regular maintenance and hence it will attract more amounts of people from the
locality as well as from abroad. This will attract the local people to get at head with a smarter
business environment which is both economically sound and allowed infrastructural
development to take place followed by employer as well as it is able to satisfy the local people
along with the local government for establishing a construction project which is environmental
viable and socially feasible.
Identification of the internal and external stakeholders
Stakeholder management is an essential part in any organizational strategic project management.
A project comprises of both internal as well as external stakeholders. In the present project, the
internal stakeholders are:
 Top management
 Risk assessment Manager
 Resource manager
 internal customers
 Project team members
 Marketing managers
 IT managers
 Peers and other competitors
While the external stakeholders and inclusive of:
 Local Government
 Contractors
 Subcontractors
 Material suppliers
 Customers
Identification of the risks
The identified risks are:
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 Skills shortage
 Infrastructural access
 Social licensing
 Capital project execution
 Interruption to supply
 Price and currency volatility
 Fraud and corruption
Apart from this there are other risk involved in the process which comprises of the designing
risk as well as the time risk and the budget risk. In the design in there may be lack of acceptance
from the investors regarding the design proposals are there may be presence of delays and
difficulties in obtaining the permits. There is presence of video conferencing to interact with the
clients and the consultants but there may be conflict among designing members. Defective
assessment of employee workload can hinder the progress and incorrect information form
investor due to lack of clear guidelines can lead to acceptance of unrealistic deadlines in contract
which is indicated by the time risk involved in the process. Moreover underestimation of the
design budget can lead to deterioration in the design quality of the construction projects within
the stipulated time interval.
The risk it is based upon the risk scoring criteria can be represented by the scoring matrix:
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The allocation of the probabilistic measurement are made in order to identify and quantify the
impacts based upon the rate to the risk rating in conjunction with the priority of actions that is
given below in the action plan as follows:
Part 2
The detailed risk assessment procedures and the management process for mitigating the risk
involved are being discussed visit a project team of 5 people comprising of the risk manager as
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well as the other four stakeholders among which two are from external stakeholders and the
other two are the internal stakeholders. The internal stakeholders are the project team members
and risk assessment manager while the external stakeholders are the local government as well as
the contractors. All of them interacted with in Skype in a simulated workplace and organized the
requisite communication that was required for identifying the risk provide the support
management for mitigating the risk involved with appropriate convention as well as with the
fishbone diagram for negotiating with stakeholders and understanding their point of
organizational perspective and improvise the managerial initiatives for reducing the risky
outcomes
The major risk involved in the process can be divided into 7 criteria which are:
1. Skills shortage: This is the major concern of the local government in terms of regulating
the prioritized utilization of local workforce followed by disseminating the imbalance
present in the skilled workforce availability with respect to the demand that exist in the
market for accomplishment of the construction project within the duration as determined.
It is quite a big challenge and hence risk is involved for reducing lower productivity and
ensuring that longer project duration do not take place. Due to this it is essential to
anticipate the balancing composition between the external workforce and the local
workforce. Based on the project schedule the skill shortage belongs to “very likely"
likelihood and the impact is significant as well as the diff level is quite high. The
expected duration is most likely to be six months why there is high chance for 8 months
and lotions for 4 months.
The mitigation plan for the risk is concerned with the fact that the local major contractor
should be communicated for conducting technical training and workshop programs which
will increase the skill level and knowledge of the local workforce in an efficient manner.
2. Infrastructural access: There is presence of very little provision in terms of electrical
power supply and list accessibility in the transportation can impact upon the productivity
of the construction activity is followed by concrete plant and welding machines. This will
create critical situation for the infrastructure and hence need to be mobilized without
interruption of the power supply which we impact the schedule of construction period.
Here the project schedule belongs to “very likely" likelihood and the impact is significant
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as well as the risk level is quite high. Where is the activity mat take place within 4
months while most likely. There is no liability of expected duration of 4 months. It is
essential that the contractor should provide redundant power supply which is inclusive of
road access improvement which will create more scope for doing the involved
construction activities within stipulated time frame work as well as the work will be able
to minimize the unnecessary transport incidence.
The fish bone diagram gives a clear emphasis on the design related issues in the meeting:
Figure 1: Fishbone Analysis of the COST
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Figure 2: Fishbone Analysis of the DELAYS
3. Social licensing: The contractor as well as the company should avoid conflicts with the
community maintain their Goodwill in a healthy and safety as well as environment friendly way.
The watch case create sufficient disturbance in the construction projects and can impact upon it
resulting in the shutdown of the project activities and creating environmental violation due to
fertility which can cross the limits of social boundaries. It belongs to "likely" likelihood as well
as there are significant chances of impacting upon the project schedule and there is high risk
level. The expected duration may become 8 months which is highly possible however the most
likely expected duration is of 6 months there is low expected duration of 4 months. In order to
avoid such situation it is important to develop proper environmental analysis and remain abide
by the government regulations by initiative CSR programs within the area of construction.
4. Capital project execution: The major concern is related to implementation of the project
activities which can impact the water project schedule performance through innovation project
management, bad control and cost management, inefficient contracting strategy, bureaucracy,
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low performers from the suppliers as well as another ability of handover plan on management
maneuver. The probabilistic estimate suggests that this belongs to " likely" likelihood and the
impact is quite significant with high risk level. The most likely expected duration for the project
is of 3 months it may take nearby four months and there is low expected duration of 2 months.
The risk mitigation initiatives comprises of development and improvement in the relationship of
the best project management practices between all the stakeholders involved in the project and
enable the construction project activities to get implemented with a simplified procedure.
5. Price and currency volatility: Presence of high unpredictability in terms of commodity
decisions may change over the procurement plan. The initial budgets are constructed depending
upon the resources that will be necessary for the construction project to get started. However, it
may happen that significant increase in the steel prices of the prices of Siemens country got the
selection of efficient buying from the contractors and hence it can take longer decision time
duration regarding restart of the project taking a consideration the Purchase orders decision
making. It belongs to very like likelihood and the impact is marginal though the risk level is
moderate.
The risk mitigation plan involves avoiding alteration in the Purchase procedure for other Giving
more attention and focus on the major material purchase that are necessary for the construction
projects and a sensitive to the exchange and commodity rate volatility. There should be presence
of significant cost risk assessment in details in these parts to avoid the worst case scenario which
may impact the project due to those selected items.
6. Interruption to supply: The demographics of the major suppliers of materials must be
identified with relation to the seasonal conditions and the aspects of natural disaster or
Geography facility. It may happen that some of the material suppliers are located at a highly
intense Earthquake areas where seasonal flower decor distance Mein impact there material
transfer for shipping within the schedule time duration. This belongs to "likely" likelihood with
marginal impact upon the project duration while the risk level is considered to be moderate. The
expected duration is hike to take place in 6 months why is the most likely time frame is of four
months and there is low expected duration of the action to take place within two months.
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In order to implement the risk mitigation plan it is important to diversify the supply location in
order to mitigate the risk involved in the process under the worst-case plan should be used to
measure item supply from hiring Geographic area should be taken care of specifically.
7. Fraud and corruption: It is important to note that less amount of transparency in the contracts
and procurement process will comments the process of fraudulence and corruption within the
project in as well as the stakeholders involved. Moreover this will block into corruption act as
well as situation where fraudulent activities may take place that can hinder the construction
project within the teams involved and will reduce the water flow as well as the decision making
process which as a consequence will lead to lower performance and will undertake greater time
duration for the project activities to get accomplished. It belongs to "likely" likelihood while the
impact is marginal and the involved risk level is moderate. The expected time duration can be
maximum 6 months why there is most likely expected duration of 4 months and low likely
duration of 2 months.
The risk mitigation plan involves appropriate procurement of transportation and contractual
process is with the use of electronic and automated systems with legal online and offline
approval from the local government and the concerned authorities those of which are related with
the project in order to minimize the situation.
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