Managing Project Risk: Analysis and Response Plan

This document discusses the analysis of potential risks during project implementation and the development of risk response plans. It covers technical, external, organizational, and project management risks. The document provides insights on risk avoidance, transfer, mitigation, and acceptance strategies.

Section 4: Managing Project Risk
Question 5
(a) Analyse four (4) potential risks during the project implementation period, one from
each of the following categories: Technical, External, Organisational and Project
Management. You shall use Table 3 to present your answers.
Table 3: Risk Analysis
Item Category Description of Risk Consequence
Risk 1 Technical The technical risks that could affect
during the implementation period of the
project is that the hardware, software or
machine would not function properly.
The implementation period of the project
would involve several factors (Tenera &
Luís Carneiro, 2014). The technical
implications might lead to severe
implications for the project.
Based on the technical risks
within the project
implementation phase, it can
lead to severe form of
consequences within the
management of the project.
This kind of technical
difficulties during the
implementation phase of the
project would lead to delay
within the project and also
increase the project budget.
Risk 2 External The external risks in relation to the
project can be in the form of hydrological
or geological risks. These can be
tsunamis, earthquakes, volcanoes and
many others. These can leave a direct
impact on the project (Teller, Kock &
Gemünden, 2014). The people working
within the project would not be able to
join the team during such scenarios.
During the process of such kind
of natural disasters, the people
within the project management
team and working within the
project would not be able to
join their team. This would
primarily produce an effect
towards the entire project team.
The project would get delayed
and thus lead to severe after-
effects.
Risk 3 Organisational One kind of organisational risk during the
implementation phase of the project is
based on governance risks within the
project. There might be certain changes
within the management performance and
discrepancies within the board of
directors. Conflicts within the
organisation would lead to risks
approaching within the project
implementation.
Based on the risks due to
governance, there would be a
certain consequence of delay
within the delivery of the
project. Various conflicts
within the organisation or lack
of proper governance would
lead to improper form of
making of decisions within the
project.
Risk 4 Project
Management
The different kind of risks based within
the factor of project management is that
With the changes in the
expected cost of the project,

there might be risks based on increasing
costs, delay in scheduling of tasks within
the project. Based on the development of
the different stages of the project, there
might different kind of changes within
the making of costs incurred within the
project (Xu, 2019). Various costs might
also get incurred based on new
improvements and rising market prices.
There also be many kind of changes
within the scheduled tasks of the project.
This would mainly result due to the rising
number of expectations from the clients.
there would be a
mismanagement of the entire
schedule of the project. This
would further lead to the
redesigning of the project
schedule by the project
manager. The project would get
delayed and thus lead to
customer dissatisfaction and
many other consequences.
(12 marks)
(b) For each of the risk appraised in Question 5(a), develop a risk response plan. You
shall first choose the most appropriate risk response way, and then evaluate an
effective response. In total, you must use three or more risk response ways.
Note: You are not required to do any Risk Contingency Planning.
(12 marks)
The Risk Response Plan for the following risks are as follows:
Risks Avoid Transfer Mitigation Acceptance
Technica
l Risks
The technical risks
could be avoided by
keeping a check on the
technical devices that
are implemented
within the project.
Based on gathering
strategies, it could be
recommended that the
handling of devices
should be transferred to
a third party equipment
handler who would
keep a check on the
machines on a timely
basis.
The strategies
undertaken for the
mitigation of risks
would be based on
proper monitoring
of each aspects of
project (Marchewka,
2014). Each of the
changes affecting
the project should be
carefully noticed
and thus the project
manager could plan
accordingly.
The stakeholders
should be kept aware of
the approached risks
within the project.
They should cooperate
and thus hire experts
who would help in
mitigating the technical
risks within the project.
External
Risks
The external risks
based on natural
disasters could be
avoided by keeping a
proper backup of the
entire project.
Based on the estimation
of the approachable
risks, the project details
and the entire project
should be kept under a
secure place (Heagney,
2016). The hardware or
software should be put
in a secure place such
that they could be used
later.
The project
managers should
conduct a thorough
analysis of the
natural hazards or
risks. They should
conduct plans and
thus support the
efforts of the people
involved within the
project.
A successful securing
of the project assets
would be helpful for
conducting later work
on the project. This
would be critically
helpful in the assurance
of project acceptance.

Organisa
tional
Risks
The various kind of
conflicts within the
project should be
avoided by
maintaining a
disciplined and
organised structure of
management.
The risks could be
transferred to the legal
department who would
be responsible for
handling the risks.
The probability of
the risks should be
assumed earlier and
thus this would help
in mitigating of the
risks. The legal team
should take
necessary steps in
order to avoid such
kind of situations.
The organisational
risks should be
accepted by the
governing body of the
project and should
cooperate with the team
in order to understand
their concerns. This
would help in a proper
delivery of the project.
Project
Manage
ment
Risks
There project
management risks
based on increasing
costs or variances in
schedule could be
avoided by properly
defining them within
the scope of the
project.
The risks could be
transferred to the
project or governing
body of the project who
would be able to
understand the needed
changes and thus
suggest better
measures.
The project manager
would be able to
mitigate the risks by
defining a proper
project schedule by
understanding the
necessities of the
project.
Each of the risks that
approach to the project
should be accepted and
thus dealt with proper
kind of measures
(Turner, 2016).
NOTE: You should use course concepts and/or theories that are relevant to your discussion –
Please see attached for relevant material to apply.
 You must use credible references such as your course material, to define key concepts
and/or theories. You are also expected to do additional research using academic journals
(from databases such as Jstor, SOCIndex and others in the library’s e-resources) and
credible news sources from Factiva, Newslink, etc. Do NOT cite from generic sites such
as www.sociology.com, CliffsNotes, Wikipedia, or online study guides from universities
worldwide.
 Finally, remember to include in-text citations and a reference list in any social science
citation format. APA style format.

References
Heagney, J. (2016). Fundamentals of project management. Amacom.
Marchewka, J. T. (2014). Information technology project management. John Wiley & Sons.
Tenera, A. M. B. R., & Luís Carneiro, P. (2014). A Lean Six Sigma (LSS) project
management improvement model. SELECTED PAPERS FROM THE 27TH IPMA
(INTERNATIONAL PROJECT MANAGEMENT ASSOCIATION), 912-920.
Teller, J., Kock, A., & Gemünden, H. G. (2014). Risk management in project portfolios is
more than managing project risks: A contingency perspective on risk
management. Project Management Journal, 45(4), 67-80.
Turner, R. (2016). Gower handbook of project management. Routledge.
Brioso, X. (2015). Integrating ISO 21500 guidance on project management, lean construction
and PMBOK. Procedia Engineering, 123, 76-84.