Risk Management

Running head: RISK MANAGEMENT
Risk Management
Name of the Student:
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1RISK MANAGEMENT
1. Risk Monitoring and allocation of responsibilities and roles for risks
Risk monitoring is a process which can track as well as evaluate the risk level in a
business organisation. Reed and Card (2016, p.149), pointed that it is a discipline which
tracks as well as evaluates efficiency of the risk management strategies. In this project plan,
each of the project risks are identified, so that all the project risks are monitored promptly by
means of strategies. Bromiley et al. (2015, p.171), argued that risk monitoring can control the
project lifecycle so that no project risk can impact on the performance level of this project.
The risks which can affect organisations have consequences based on economic performance
as well as environmental reputation. Management of the project risks will help the
organisation manage all project work well in an uncertain environment. In this particular
project risk plan, the risks are monitored by means of the ISO® 31000 standard, which
provides a framework plus processes to manage the risks (Barafort, Mesquida, & Mas 2018,
p.61). This standard is used in business organisations based on their size and sector. The ISO®
31000 will help business organisations to increase the likelihood of achieving project
objectives, as well as improving risk identification. The resources are allocated to each of the
project risks so that all are mitigated by selected responsible person.
The project resources uses a risk matrix, as a risk management tool, to monitor the
project risks by providing guidelines for internal as well as external audit programmes. The
organisation has used this standard for project management purposes and providing principles
for effective risk management (Adrian, Covitz& Liang 2015, p.358). The following, are the
project roles with their respective risk responsibilities:

2RISK MANAGEMENT
Role of the person Responsibilities
Senior Executive i. The executives are responsible for developing risk
consciousness among the project owner, contractor as well
as project suppliers.
ii. The executive approves requests for investment to level of
authority and manages entire financial budget for
redevelopment of Adelaide Oval Hotel.
iii. The executive interacts with the senior management for the
project reporting.
Project Manager i. The manager oversees the risk management for the project.
ii. The managers are responsible for ensuring that risk policies
are properly implemented within the business organisation.
iii. The managers are responsible for managing as well as
monitoring the identified risks.
iv. They are responsible for maintaining a lessons learned
document.
Contractors i. The contractors are responsible for applying risk
management practices within the project.
ii. Review project tasks and identify project risks occurred in
the development plan.
iii. Actively commit to applying risk management processes
throughout the project.
Risk Manager i. Identifies and analyses economic losses within the project
organisation.
ii. Prepares and manages the risk management costs of project

3RISK MANAGEMENT
activities.
iii. Maintains a claims process to make sure that all claims are
managed efficiently.
Integrated project team i. Perform face-to-face meetings to discuss project risks with
the project manager
ii. Inform the project manager regarding project risks which
have occurred.
2. Explanation of risks and risk mitigation and treatment plan
Risk 1: Suppliers do not turn up all
Actions Required
Reasons for selection of Action Options
Based on the risk treatment methods, risk avoidance is best suitable for the supplier risk. Avoidance
method is focused on strict selection of the suppliers, alternative process of outsourcing of the products
as well as back up of the suppliers to overcome with the supplier risk.
Reference: Project Document
Risk identified and likely impact
In case of redevelopment work of the hotel, the management of hotel is looking for the raw materials
as well as finished products from the suppliers. In this project plan, there is risk that the suppliers are
not turning up into partners; therefore it is difficult to cut the project costs. There is no improvement
over the design or development of the hotel besides funding of new marketing effort. There is not right
selection of the suppliers as well as vendors as a part of the development plan. The performance of
hotel development work is not effective as there is not smooth running of the suppliers operations. The