7204ENG - Risk Management Report: ABC Pvt Ltd Lean Production Project

This report provides a comprehensive risk analysis and management strategy for ABC Pvt Ltd, a manufacturing company implementing lean production for gearboxes. It covers risk identification, assessment, response planning, and implementation, addressing potential challenges in the new process and ensuring minimal disruption to existing production. The report also details the risk tracking, monitoring, and control system, alongside a real-life incident example, offering insights into effective risk mitigation. The analysis considers the company's stakeholders, contract type (Design Bid Build), and potential risks associated with the transition to lean production.

Running head: RISK ANALYSIS AND MANAGEMENT
Risk Analysis and Management: ABC Pvt Ltd Company
Name of the Student
Name of the University
Author’s Note:

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Executive Summary
The main aim of this report is to understand the case study of ABC Pvt Ltd Company. ABC
Pvt Ltd Company is a manufacturing organization that manufactures gear boxes for FORD
Automobiles. The respective production department of this company has recognized a new
process, called lean production for the same products, they would be manufacturing. For this
purpose, the director, Mr. Smith has hired a risk management consultant to identify and
analyze the various risks in the project. He has selected a Guarantee Maximum Price Contract
with the sharing clause of 50/50. The project delivery contract is design bid build. The
process of risk management in any specific project comprises of four distinct steps, which are
risk identification, risk assessment, risk response development and risk response control. The
results of this risk identification process are usually being documented within a risk register
that majorly involves the list of all the identified risks and their respective sources. The entire
plan of risk management majorly involves the various processes of the organizations to
identify as well as control the threats for the digitalized assets like intellectual properties,
proprietary corporate data and the personally identifiable information or PII details of the
customer of that project. This report has properly demonstrated the risk identification, risk
response planning, risk plan implementation and various other details for ABC Pvt Ltd
Company for their initiation of the new process.

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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................5
1. Description of the Scenario................................................................................................5
2. Overview of the Organization, Product or Services and Key Stakeholders......................6
3. Elaboration on Risk Identification with Examples............................................................9
4. Few Important Risks with Relevant Details.....................................................................13
5. Development of Risk Response Planning........................................................................20
6. Implementation of Risk Plan in ABC Pvt Ltd Company.................................................26
7. Development of Risk Tracking, Monitoring and Control System...................................27
8. Identification of One Incident Related to the Risks with Details.....................................31
9. Elaboration of Effectiveness of TMC System for Handling or Dealing with Incident....32
10. Summary of the Key Issues of this Scenario.................................................................33
Conclusion................................................................................................................................34
References................................................................................................................................37

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Introduction
The risk analysis is the basic technique that is utilized for the proper identification as
well as assessment of factors that might easily jeopardize or put in danger the success criteria
of the project or achievement of goals and objectives (Glendon Clarke & McKenna, 2016).
The technique of risk analysis is even helpful for defining the prevention measures to
minimize the basic probability of all these factors like occurrence and identification of
counter measures to properly deal with the basic constraints whenever they develop for
averting the possible negative effects over the competitiveness or competitive advantages of
any specific organization (McNeil, Frey & Embrechts, 2015). The most popular and effective
method for performing the risk analysis is known as facilitated risk analysis process or
FRAP. There are some of the basic assumptions of this facilitated risk analysis process. The
additional efforts are taken into consideration for the proper development of precisely
quantified threats and these are not at all cost effective. The major reasons for these
assumptions are that they are extremely time consumption. Moreover, the procedure of risk
documentation is quite voluminous for the practical usage and the loss estimates are not
required for the determination when the controls are required (Chance & Brooks, 2015). As
soon as identification and categorization of risks is completed, the risk analysis team
identifies the various controls for mitigating those risks. There are several methods that are
effective and efficient for the successful mitigation of such risks in any specific organization.
Risk management is the proper identification, prioritization or even evaluation of the
various risks that is eventually followed by economical as well as coordinated application of
the resources with the major purpose of minimizing, monitoring and finally controlling the
impact or probability of the several unfortunate events or the maximization of opportunity
realization (Hopkin, 2018). These risks usually come from various types of sources like

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threats due to failure of projects, credit risks, deliberate attacks, unpredictable or uncertain
root causes, uncertainty in the financial markets, natural causes and many others. There are
two distinct types of events, which are negative and positive events. The negative events are
called the risks and the positive events are called opportunities. Various risk management
standards are present that are utilized for dealing with the several risks related to finance,
safety, procurement, design, contract, innovation and technology (Pritchard & PMP, 2014).
The few methods, goals and objectives widely vary as per the method of risk management
within the context of financial portfolios, public health, public safety, security, industrial
processes, project management, engineering and actuarial assessments. There are several
strategies that are utilized for the basic management of threats or the uncertainties with few
negative consequences.
The five major processes of the risk management are identification of risks, analysis
of those identified risks, assessment as well as evaluation of the analyzed risks, proper
mitigation of the risks and finally monitoring or taking proper follow ups of the risks by
implementing various strategies (Wolke, 2017). There are some of the major and the most
significant approaches of this risk management. When the various risks of the specific project
are being identified properly and the process of risk management is being implemented, four
distinct strategies are applied within the project. These are known as approaches of risk
management. The first and the foremost approach is risk avoidance. With this approach, the
threats are deflected for the purpose of avoiding the expensive as well as disruptive
consequences. The next approach is risk reduction, where the several risks are being reduced
on the processes of the project (Sadgrove, 2016). The third approach is risk sharing, where
the risks are shared with a specific third party like vendor. Finally, the risk retaining approach
helps to retain the risk level within the project.

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Project risk management is the most significant aspect in project management. Project
risk is the uncertain condition or event, which when occurs has a positive effect or a negative
effect on the objectives of that project. This project risk management helps to solve risks like
operational and financial (Wynne, 2016). The project risk management usually starts either
with recognition or identification of threats or by examining the opportunity. The significant
analysis of several alternatives and generation of costs are done in this type of management.
The following research report outlines a brief description on the risk analysis and
management for a manufacturing company, namely ABC Pvt Ltd. This particular company is
responsible for manufacturing gear boxes for FORD automobiles. The report provides a
proper elaboration of risk identification, and describes five major risks for this organization.
Moreover, the development of risk response planning and implementation of risk plan will
also be provided here. This report even demonstrates the appropriate risk tracking,
monitoring and control or TMC system and elaboration of TMC system in one real life
incident. The final part of the report depicts the important issues in the organization of ABC
Pvt Ltd.
Discussion
1. Description of the Scenario
ABC Pvt Ltd Company is a manufacturing organization that manufactures gear boxes
for FORD Automobiles. The respective production department of this company has
recognized a new process, called lean production for the same products, they are
manufacturing. The direction of ABC Pvt Ltd Company, Mr. Smith will be approaching the
production department for building a plan and providing the cost breakdown to develop a
brand new process. They would be undergoing this step for the purpose of manufacturing the
existing products. The production manager of ABC Pvt Ltd Company reports to Mr. Smith

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that the development of these new processes majorly includes complexities and hence he
does not have any experience in the company for building or developing the new process. Mr.
Smith has kept a major condition that during the development of the new process, the existing
production must not be affected at any cost and even the employees must be trained well. He
wanted to make sure that the organization does not face any issue regarding the development
of the new processes. Mr. Smith has set a Guarantee Maximum Price Contract with the
sharing clause of 50/50. The project delivery contract is Design Bid Build and a local
contractor has accepted the project. The proper identification and analysis of the risks should
be done for this project and the handling of subjective and objective risks should be done
accordingly.
2. Overview of the Organization, Product or Services and Key Stakeholders
ABC Pvt Ltd is manufacturing company that is responsible for manufacturing gear
boxes for FORD Automobiles. They manufacture gear boxes with several machines, tools,
chemical processing or formulations. They have includes all types of intermediate procedures
that are needed for the production or integration of their products’ components. Since, they
are manufacturing gear boxes for cars; the process of fabrication is also used. The product
designing and material specifications are done in this ABC Pvt Ltd Company and then the
materials are modified with the help of manufacturing processes for becoming the required
part. Now, this organization has identified a new process known as lean production for their
existing products of gear boxes. The Director and the production manager of this organization
want to analyze the risks that are common for this new process. Moreover, training is also
required for the employees for not affecting or hampering the procedure of existing
production.
The products or services of this particular organization of ABC Pvt Ltd Company are
manufacturing gear boxes for the popular automobile organization called FORD

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Automobiles. The stakeholders of any organization can be defined as the individuals or
groups, who are majorly linked or have relevant concern for the company. These stakeholders
could eventually affect or be affected by the various actions, policies, procedures and
objectives of the organization. The negative impact on the stakeholders occurs when that
particular company requires to cut the costs and then plans for a round of layoffs. The various
changes or modifications in the company are because of the stakeholders or movements of
the stakeholders. The several stakeholders of this manufacturing organization of ABC Pvt Ltd
Company are director, Mr. Smith, production manager, creditors, employees, suppliers,
shareholders or owners, communities from which the business has drawn the resources,
government as well as the agencies. All of the above mentioned stakeholders are directly
related to the growth and development of the business in ABC Pvt Ltd Company.
The project delivery contract type that Mr. Smith, the director of ABC Pvt Ltd has
selected is design bid build (Bolton, Chen & Wang, 2013). This design bid build or design
tender is a specific method for delivering projects, where the owner or the enterprise
eventually contracts with the different entities for design as well as construction within the
project. This particular method of design bid build is completely different from the design
build method. There are three major sequential phases, which are the design phase, the
bidding or the tender phase and the construction phase (Ho et al., 2015). In the design phase,
the owner of the project retains an architect for designing as well as producing the bid
documents like technical specifications and construction drawings and on these specifications
and drawings the several general contractors would be bidding for executing the project. The
completed bid documents are substantially coordinated by the owner and the architect for
issuing the general contractors in the next bidding phase. The design fees are usually within
5% to 10% of the total cost of the project (Burke, 2013). The next phase is bidding or tender
phase, where the various general contractor bid on that project for obtaining the copies of bid

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documents and then putting them to the several subcontractors for bidding on the sub
components of the project. When bids are received, the respective architect reviews these
bids and then seeks any clarification about the bidders and investigates about the
qualifications of the contractors. The owner might even reject the bids. There are few options
that are available for the owner, which are re bidding or re tendering of the entire project,
abandoning the project, issuing the work order for having the architect revise the entire
design for making the project smaller and more efficient and even selecting the general
contractor like the lowest bidder or any experienced estimator of costs for assisting the
architect with the changes in design (Edwards & Bowen, 2013). The final phase in the design
bid build contract is the construction phase. When the construction of the specific project is
being awarded to the contractor; all the bidding documents like technical specifications and
approved construction drawings are not changed.
The contract type of this project according to Mr. Smith in ABC Pvt Ltd Company is
Guaranteed Maximum Price or GMP contract is the cost type contract, in which the
contractor is compensated for the original costs that are being incurred with the fixed fee
(Hillson & Murray-Webster, 2017). This contractor is solely responsible for the cost overrun,
unless and until this type of GMP contractor is being incremented through formal change
order. Mr. Smith has also set the sharing clause of 50/50 in his project. This is one of the
most popular and significant clause that is present in the Construction All Risk Insurance
Policy. In any project, it is mandatory and important for the project owner to safeguard the
raw materials, work in progress and the capital investments that are eventually brought
together for the utilization within the project against all types of damages and losses (Wu,
Chen & Olson, 2014). This particular policy of clause 50/50 helps to save the project by
simply safeguarding the liability against the claims of third party that might arise from the
activities of the construction. The clause 50/50 policy even involves the fire insurance policy

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for covering damages and losses caused due to fire. As soon as the goods are arrived at the
contract site, the respective policy holder would inspect the materials for finding all possible
and probable damages incurred during transit (Giannakis & Papadopoulos, 2016). The
organization of ABC Pvt Ltd Company hence would be benefitted with the involvement of
this clause.
3. Elaboration on Risk Identification with Examples
Risk identification is the major procedure to determine the risks, which could
substantially prevent the enterprise, investment, program or process to achieve their goals and
objectives. The first and the foremost objective of the risk identification process is to
continuously identify those events, which when occur, have negative effects on the ability of
that project from achieving the desired outcomes or desired performances (Kardes et al.,
2013). These types of risks usually come from several external sources or even from within
the project. Various types of risk assessment are present for a project, like risk assessment for
supporting the investment decisions, alternative analysis, program risk assessment, cost
uncertainty, assessment of program risks and many more.
The significant risk identification technique is the first and the most important step in
the entire process of risk management (Woodward, Kapelan & Gouldby, 2014). This
identification of risks helps to assess the probability as well as consequences of the identified
risks to a greater level so that risk impact assessment is easily done. After this step, the
consequences might involve costs, impacts of technical performances, project schedule and
many other factors. The risk identification requires matching the type of assessment that is
majorly required for supporting the risk informed decision making process (Soin & Collier,
2013). The very first step is to identify the goals and objectives of the program and then a
common understanding is being fostered in the team that the major requirements for a
successful program.

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The risk register is the living document, which is regularly updated in the entire life
cycle of a project (Hinkel et al., 2015). It is the significant part of project documents and is
also included within the historical records, which are being utilized for the future projects.
This is extremely vital for the project risk management consultant to know about the sources
of the risks, since; it is required for their proper mitigation. The risk register of the project
also comprises of the potential risk responses and risk categories. The updated risk categories
store the risks that are possible in that particular project (Mikes & Kaplan, 2013). The major
categories of risks within a project are external risk category, internal risk category, technical
risk category and unforeseeable risk category. The external risk category is either related to
the market, environment, regulatory or the respective government. The internal risk category
is related to customer satisfaction, costs, qualities and services of the organization that is
executing the project. Any minor or major change or alterations within the previously
existing technology is the technical risk category (Hwang, Zhao & Toh, 2014). Finally, the
last risk category is unforeseeable risk, which is unknown for the project manager and the
clients of the project. These types of risks are about 9% to 10% in any project and could not
be calculated beforehand.
There are some of the major tools and techniques of risk identification process. The
most significant and important tools and techniques of this risk identification process for any
particular project are as follows:
i) Documentation Reviews: This is the first and the most common technique for
identifying the risks in any project. It is the standard practice that helps to identify the major
risks by simply reviewing the various project related documents like lessons learned, article
review, assets of organizational procedure and many more (Matyas & Pelling, 2015). These
above mentioned documents are solely required to know about the current scenario in any
particular organization. Documentation reviewing is considered as one of the most techniques

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for risk identification that is being utilized in almost every organization by the respective
project risk management consultant. The periodical review of documents is mandatory in all
companies to maintain a risk free company and this is even responsible for detection and
prevention of probable risks.
ii) Technique for Information Gathering: The second important and popular
technique that is used in any organization to identify the risks or execute the risk management
process is the basic technique for gathering information (Grace et al., 2015). There are
various techniques for this information gathering and they are given below:
a) Brainstorming: The first and the foremost technique for information gathering is
brainstorming. It is the specific technique of group creativity, through which major efforts are
made to find the respective conclusion for any particular issue by simply gathering the list of
ideas that are contributed by the team members (Farrell & Gallagher, 2015). Brainstorming is
the situation, in which the project members eventually meet for generating the new solutions
and ideas and for risk identification, they find out the probable risks in the project.
b) Interviewing: The next technique to gather information is interviewing. It is again
one of the major and effective techniques for information gathering within the project. An
interview is being conducted with all the members of project, experts, customers, suppliers
and all other stakeholders of that particular project for the proper identifying of the risks.
c) Root Cause Analysis: The third important technique for information gathering in
any project regarding the risk identification is the specific root cause analysis (Bowers &
Khorakian, 2014). The root causes are being determined for all the identified risks in the
project. All the root causes that are determined by this analysis are further utilized for the
identification of any additional risk.

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d) SWOT Analysis: Another important and significant technique for gathering relevant
information regarding any project is the SWOT analysis. SWOT analysis refers to the
strengths, weaknesses, opportunities and threats for that specific project (Carvalho &
Rabechini Junior, 2015). This information is important to learn about the risk determination
within the project. The proper identification of the strengths, weaknesses, opportunities and
threats is extremely important for all projects to identify, analyse and resolve the risks.
e) Checklist Analysis: The next technique for gathering of information is the
respective checklist analysis. The proper checklist of all the risk categories is eventually
utilized for coming up with the additional risks within the project (Eckles, Hoyt & Miller,
2014). This type of checklist helps to document the various risk categories within the project.
f) Delphi Technique: It is again one of the most popular and significant techniques for
information gathering, where a team of experts is being consulted in the project
anonymously. Next, a list of the required information is being sent to particular team of
experts (Teller, 2013). In the next step, the responses are eventually complied and finally the
results are sent back to them for more review until and unless a consensus is reached.
g) Assumption Analysis: This particular technology of information gathering can be
defined as the identification of various assumption of any project for the successful
determination of the validity and further helping in the proper identification of the risks
within the project.
These above mentioned tools and techniques for the process of risk identification are
quite popular and vital for all types of projects (Grötsch, Blome & Schleper, 2013). The
various types of projects like quality management, automation, lean production, process
optimization, process engineering and many others can easily implement these tools and
techniques for successfully identifying the risks in the projects. Moreover, various other tools

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are also present that help in risk analysis only after the risks are being identified properly.
The most significant and noteworthy tools and techniques for the proper analysis of those
identified risks in any project are probability and impact matrix, which helps to identify those
specific risks that need the most immediate and direct response (Van Deventer, Imai &
Mesler, 2013). This matrix is usually customized as per the project requirements and the
project managers leverage the standardized templates of this matrix. The next technique is the
performing qualitative risk analysis, which helps to identify the risk response of urgent
attention and exposure of risk to that project. The other important tools and techniques for
risk analysis in any project are risk data quality assessment and performing quantitative risk
analysis. In these two techniques quality as well as the reliability of the data of the projects
are determined and the data integrity is checked (Webb et al., 2014). Moreover, in
quantitative risk analysis, the specific numerical analysis of individual risks is being
completed.
4. Few Important Risks with Relevant Details
There are various important risks that are quite common for project and contracts. The
project risks are the various uncertain events or conditions, which when occur have the
significant and noteworthy effects and impacts on all types of project objectives (Osipova &
Eriksson, 2013). The process of risk management then focuses on the successful
identification as well as assessment of risks to that project and hence managing the risks for
the major purpose of reducing the impact over the project. ABC Pvt Ltd Company is a
manufacturing company that is responsible for manufacturing gear boxes for the popular
organization of FORD Automobiles. The director of this organization has decided to build a
plan and then provide the cost breakdown structure to develop a new process, called lean
production for manufacturing their existing products. The respective production manager of
this organization of ABC Pvt Ltd Company has given the report to Mr. Smith that the

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development of the new process subsequently involves various complexities and he does not
have experience on this process (Serpella et al., 2014). For this purpose, the director has hired
a risk management consultant for successfully identifying as well as analyzing the risks
within the project and contract.
There are two distinct types of risks, namely subjective risks and objective risks. The
objective risks are those risks, which could be easily and properly measured either directly or
indirectly and also quantified (Falkner & Hiebl, 2015). Almost all the significant risks can
become objective, when the number of these types of incidences usually become significant
for the statistically estimation of its probability. On the other hand, the subjective risks are
less quantifiable and could not be measured directly or indirectly easily. The organization of
ABC Pvt Ltd Company might be facing various risks within the new process development of
lean production. Since, this particular organization will be having the project delivery
contract as Design bid build and the Guaranteed Maximum Price Contract with the respective
sharing clause of 50/50, the risks will be related to these (Brustbauer, 2016). The few risks to
this new process of lean production are given below:
i) Failure of Design Team: The first and the foremost risk for the design bid build for
lean production development in the organization of ABC Pvt Ltd Company is that the failure
of the specific team of designing is current with the costs of construction and the potential
costs would be incrementing during the phase of design in this type of contract (Wiengarten
et al., 2016). This kind of increase in the potential costs could subsequently result into major
project delay, of the documents of the construction is not redone for the core purpose of
minimizing the risks.
ii) Dispute of Redesigning Costs: The second important and significant risk that is
possible for the lean production development in the organization of ABC Pvt Ltd Company

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would be the redesign expenses or costs could be disputed if the contract of the architect is
not properly addressing the issue of revisions that are required for the proper reduction of
costs (Marle, Vidal & Bocquet, 2013). When these redesign costs would be disputed, the
project will be delayed to a high level and hence the resources like time and cost usage are
quite high.
iii) Selection of Lowest Price Bidder: The third and another important risk with this
lean production development in the organization of ABC Pvt Ltd Company is that the
development of any cheaper product would be better is major thought within the general
contractors while they are bidding for the project (Aven, 2014). Hence, there is the significant
tendency of seeking out at the lower cost sub contractors within the given market. In the
stronger markets, the general contractors have the major ability for being selective regarding
the choice of projects that are to be bid, however in the lean production; the specific desire
for the work substantially forces the lowest bidder of all the trades to be selected. Hence,
there is an increase in the risk for the general contractors and could also compromise with the
respective quality of the construction (Teller, Kock & Gemünden, 2014). ABC Pvt Ltd can be
even claim dispute for such products and the thus the quality of the final product is degraded
and the organization might face major losses.
iv) Less Opportunities for Inputs: Another important and significant risk for the lean
production development in the organization of ABC Pvt Ltd Company is that since the
general contractors are brought to the respective team post designing, there are extremely
little opportunities for inputs over the effective alternatives that are being presented (Peng,
Peng & Chen, 2014). This could be a major issue for the organization since they will not be
able to increase the opportunities for the respective inputs or alternatives within the project.
Therefore, changing the project or making few alterations within the project t will not be
possible at all.

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v) Dispute Due to Pressure: The fifth specific risk for the development of lean
production process within this organization of ABC Pvt Ltd Company is that the pressures
might be exerting over the design as well as construction teams for the various competing
interests that might be majorly leading to several disputes within the general contractor and
the architect of this project and is responsible for bringing subsequent delays in the project of
ABC Pvt Ltd.
These above mentioned risks would be quite common for the design bid build project
delivery contract of ABC Pvt Ltd (Ibelings et al., 2014). However, apart from these risks, few
other common risks are also possible for the project execution of lean production in this
company. These risks are as follows:
i) Delays and Disruptions in Supply Chain: The first and the foremost risk that is
common for any manufacturing company like ABC Pvt Ltd is the delay or disruption in the
total supply chain. This type of risk is responsible for affecting the supply chain in the project
massively. These risks are sub divided into two major areas, which are disruptions and delays
(Khan, Rathnayaka & Ahmed, 2015). The delays might occur due to the transportation issues
and even could come from the issues related to quality control with the supplier of this
particular organization of ABC Pvt Ltd for their new process of lean production. This specific
organization should select such suppliers, who are close to them for avoiding or reducing
these types of risks. Moreover, the frequent quality control issues with the supplier might
even indicate that a new supplier is to be found out for the proper diversification of the
suppliers that are being used. The disruptions could be harder for prediction. The most
significant examples of the disruption risks are labour strikes, fires and natural disasters (Li et
al., 2015). These types of risks are difficult to avoid; however, with proper precautions, these
risks could be minimized to an extent.

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ii) Third Party Vendors: The second popular and significant risk for the development
of lean production within the organization of ABC Pvt Ltd Company is with the presence of
third party vendors (Zhao, Hwang & Low, 2013). The subsequent management and control of
the third party vendors must be done by them on the basis of the risk that each and every
vendor is posing. They should also concentrate on the billing and payroll of their project and
should take into consideration about the financial and sensitive information about the vendor
selection. The location of the vendors should not be changed at any cost and the regulatory
risks should be considered (Lave, 2013). ABC Pvt Ltd Company must conduct a thorough
and complete risk assessment of the vendors and then perform the required due diligence with
the respective third party relationships for the reduction of the vendors’ risks. Hence, the
control and monitoring of the vendors should be done after the proper identification of due
diligence.
iii) Information Technology: The third important and significant risk for the
development of lean production in the organization of ABC Pvt Ltd Company is with the
information technology (Van Westen, 2013). This is one of the most common risks in any
project in which the sensitive information is to be protected. For the purpose of mitigation of
these types of risks, the data should be stored in the cloud; however, the cloud storage
requires constant up gradation. When the involved data are at risk, the significant risk of
regulatory non compliance is being run within the information technology. The data
movement is required in this case before the required data are moved to the cloud systems
(Aldunce et al., 2015). The risks related to the information technology must be continuously
monitored and tracked and even the systems should be updated periodically.
iv) Staff Management as well as Succession Planning: The next popular risk for the
organization of ABC Pvt Ltd in their new project is the staff management and succession
planning. The respective profit margins are properly improved with the internal processes and

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another important element is to be checked in this case, which is the staff of this organization
(Patankar & Taylor, 2017). Since, the production manager is responsible for any type of new
production or new development in ABC Pvt Ltd Company, the organization should manage
their staffs or labours properly and look for their problems or issues. Since, Mr. Smith does
not wish to hamper the production of the existing products, he should also check the staffs or
labours are working comfortably and the development of new process is not a burden for
them.
Since, this lean production is of Guaranteed Maximum Price contract, there could be
possibility of few other risks as well and these risks are given below:
i) Nature of Variations: The first and the foremost risk factor that is common for the
Guaranteed Maximum Price contract is the nature of variations (Gao, Sung & Zhang, 2013).
The instruction of an engineer or architect is classified in either the variation of GMP that is
liable for adjusting the agreed target cost value in design developing change or in contracts.
This particular risk of nature of variation could eventually lead to the major source of
disputes within the Guaranteed Maximum Price contract schemes. Moreover, the alterations
in building services installation as well as the structural building frame erection could be
classified as the design development items that cannot change the contract value of
Guaranteed Maximum Price contract (Alviniussen & Jankensgard, 2015). The expenses
would be higher in this type of change and these changes are deemed to have been covered
within the fixed lump sum price of the direct works of the main contractor.
ii) Quality and Clarity in Tender Documents: The second contractual risk for the
development of lean production process in the organization of ABC Pvt Ltd Company is the
clarity and quality of tender documents. The specific contract document comprises the
several tender documents for allocating the risks (Tao & Hutchinson, 2013). When this type

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of risk occurs within the contract, the huge number of conflicts and disputes would take place
within the project and the unnecessary contract variations can also occur in the post contract
stage. The respective contractor of the organization of ABC Pvt Ltd Company has to cover
typical risk of inaccuracy of the various firm quantities within the Bill of Quantities or BOQ
within the project.
iii) Change in Scope of Work: Another popular and significant risk that could be
possible for the Guaranteed Maximum Price contract for ABC Pvt Ltd Company is the
change in the scope of work (Sweeting, 2017). Disputes could eventually occur due to these
types of changes or alterations within the scope of their works. When the various standard
specifications of the client or the architect changes, the standard of the Guaranteed Maximum
Price contract projects will also change and alter accordingly. As the unexpected change
within the scope of work might also generate the considerable number of variations in these
contracts; it would last till the overall development programmes and the specific cost
estimations are being escalated within the project (Xin & Huang, 2013). The improper
handling of the issues might even bring out disputes within the project and the organization
of ABC Pvt Ltd might face major losses of the resources.
iv) Fluctuations in the Material Price: The distinct and popular risk for the
Guaranteed Maximum Price contract for the organization of ABC Pvt Ltd Company’s new
process of lean production is the massive fluctuations in the material prices. This is
considered as one of the most significant and common type of risk for any Guaranteed
Maximum Price contract (Covello et al., 2013). Several projects and organizations have
suffered losses due to this particular risk. This type of fluctuations in material price majorly
affects the contractor and the owner of the project suffers losses for the sharp increment
within the material prices. Since, the director of ABC Pvt Ltd Company has set a clause of
50/50 in the all risk insurance policy; they might not be facing this problem directly. The

20
RISK ANALYSIS AND MANAGEMENT
capital investments as well as the materials of the project that are brought for use would be
eventually protected against the several types of damages and losses (Le et al., 2013). The
insurer applies the 50/50 clause within the construction all risk insurance policy and hence
protects the data in a high level.
These above mentioned risks clearly depict the types of risks possible within the
development of new process of lean production for the organization of ABC Pvt Ltd
Company.
5. Development of Risk Response Planning
The risk response plan for all the above mentioned risks for this particular
organization of ABC Pvt Ltd Company is provided below:
Seri
al
Nu
mbe
r
Identified
Risks
Risk Description Risk Impact Risk
Response
1. Failure of
Design
Teams
The design team fails to complete the
work with the current budget of the
project and construction costs are
increased (Heazle et al., 2013). This
results in project delays.
The impact of
this risk is high
as it would
result in
project delay.
Transfer
2. Dispute in
Redesigning
of Costs
This occurs when the architect of the
contract is not addressing the revision
issues properly and hence these costs
are disputed (Bachev, 2013).
The impact of
this risk is
moderate as
the issues
Mitigatio
n

21
RISK ANALYSIS AND MANAGEMENT
could be done
revision again.
3. Selection of
the Lowest
Price Bidder
Often the project owner in the lean
production selects the lowest price
bidder for the project and increases the
risk of quality and time consumption in
the project. Moreover, disputes are also
claimed here.
The impact of
this risk is high
as it could
affect the
entire project.
Avoid
4. Lesser
Opportunities
for Inputs
Since the general contractors are
brought to the respective team post
designing, there are extremely little
opportunities for inputs over the
effective alternatives that are being
presented (Kull, Mechler & Hochrainer‐
Stigler, 2013). Due to the lesser
opportunities, project alterations are
always not possible here.
The impact of
this risk is low
since changes
could be
brought in the
project.
Avoid
5. Disputes due
to Excess
Pressure
The excessive pressure on the designing
and construction teams for the several
competing interests might also lead to
project dispute for the architect and the
general contractor of the project. It is
quite common for the design bid build
project delivery contract (Fenz et al.,
2014).
The impact of
this risk is
moderate as
the pressure
over the
designing and
construction
teams could be
Accept

22
RISK ANALYSIS AND MANAGEMENT
reduced.
6. Delays and
Disruptions
in the Supply
Chains
This type of risk is responsible for
affecting the supply chain in the project
massively. The delays in the project
occur for the issues in transportation
and could even come from the few
problems related to the quality control
with the respective supplier of that
project. The second type of risk is the
disruption, which is hard to predict in
any project (Chan & Wong, 2015). The
examples of disruption risks are natural
disasters, fires and labour strikes.
The impact of
this risk is high
since it would
bring project
delays and
disputes.
Transfer
7. Third Party
Vendors
The proper management and control of
the third party vendors must be done by
them on the basis of the risk that each
and every vendor is posing. They
should also concentrate on the billing
and payroll of their project and should
take into consideration about the
financial and sensitive information
about the vendor selection (Huber &
Scheytt, 2013). As the vendors are
responsible for bringing the various
changes within the project, the progress
The impact of
this risk is high
as vendors are
responsible for
bringing
success in the
project.
Avoid

23
RISK ANALYSIS AND MANAGEMENT
is also affected due to this.
8. Information
Technology
Failure
The failure of information technology
leads to the loss of sensitive and
confidential information or data. This
type of risk is extremely common for all
organizations and hence should be
mitigated on time.
The impact of
this risk is
moderate since
it is common
for all projects.
Mitigatio
n
9. Staff
Management
and
Succession
Planning
The staffs are the most important assets
of a project. They should be properly
managed and should be checked that
they are not pressurized unnecessarily
for the required progress in the project.
Moreover, when anyone of the staff or
labour is leaving the project, who would
be taking his place and position. This is
a major risk within the project (Brindley,
2017).
The impact of
this risk is low
as staffs could
be managed
properly
without many
complexities.
Accept
10. Nature of
Variations
The proper instruction of any engineer
or architect can be classified in either
the variation of GMP that is liable for
adjusting the agreed target cost value in
design developing change or in
contracts. This particular risk of nature
of variation could eventually lead to the
major source of disputes within the
The impact of
this risk is high
as it could lead
to project
dispute.
Avoid

24
RISK ANALYSIS AND MANAGEMENT
Guaranteed Maximum Price contract
scheme (Fadun, 2013). Furthermore,
alterations are also not possible due to
this risk.
11. Quality and
Clarity in
Tender
Documents
This contractual risk ceases the project
from gaining quality as well as clarity
within the tender documents. This type
of risk is responsible for bringing
various unnecessary contract variations,
conflicts and disputes. The inaccuracy
of the firm’s quantities in the BOQ or
bill of quantities is the next effect of this
risk (Choi, Chan & Yue, 2017).
The impact of
this risk is high
since the lack
of quality and
clarity in the
tender
documents
leads to major
failure in the
project.
Avoid
12. Change in
Scope of
Work
This type of risk brings disputes within
the projects. If the project is changed
completely, it would bring both the
consumptions of resources like time and
cost. As the unexpected change within
the scope of work might also generate
the considerable number of variations in
these contracts; it would last till the
overall development programmes and
the specific cost estimations are being
escalated within the project (Embrechts
The impact of
this risk is
moderate as
this risk could
be avoided.
Mitigatio
n

25
RISK ANALYSIS AND MANAGEMENT
& Hofert, 2014). Moreover, there is also
an improper handling of several issues.
13. Fluctuations
in the
Materials’
Price
This type of risk eventually occurs
when there is massive fluctuation in the
price of the materials that are being
utilized within the project for executing
this project (Bertinetti, Cavezzali &
Gardenal, 2013). This type of
fluctuations in material price majorly
affects the contractor and the owner of
the project suffers losses for the sharp
increment within the material prices.
The impact of
this risk is low
as major
fluctuations
could not bring
problem for
the project
because of
50/50 clause.
Transfer
Table 1: Risk Response Plan for ABC Pvt Ltd Company
As per the risk response plan, there are four risk responses for the thirteen identified
risks for the organization of ABC Pvt Ltd Company. These four risk responses are as follows:
i) Avoid: This response refers to the fact the specific threat should be eliminated and
the project should be protected from its impact (Manuj, Esper & Stank, 2014). The most
common actions for threat elimination are changing project scope, extending deadline for
timely project completion.
ii) Transfer: This response refers to the fact the specific threat should be moved to a
third party. The direct methods could be use of performance bonds, warranties and insurance.
The indirect methods are using unit price contracts instead of lump sum and legal opinions.

26
RISK ANALYSIS AND MANAGEMENT
iii) Mitigation: This response refers to the fact the probability or impact of the risk
should be minimized and a proper balance should be maintained for the threat (Wu, Olson &
Dolgui, 2015).
iv) Accept: This particular response refers to the fact that since all projects comprise
of risks, some of the risks could be accepted within the project. It is a strategy that provides
better output to the project.
6. Implementation of Risk Plan in ABC Pvt Ltd Company
The risk plan implementation in ABC Pvt Ltd Company for the identified risks within
the risk response plan is as follows:
i) Failure of Design Teams: The response for this risk is transfer, which depicts that
this risk should be transferred to the third party vendors by indirect method of unit price
contract (Boyle, 2015).
ii) Dispute in Redesigning of Costs: The response for this risk is mitigation, which
depicts that the risk could be mitigated for reducing the impact of the risk.
iii) Selection of the Lowest Price Bidder: The response for this risk is avoid, which
depicts that the risk should be eliminated and the project should be saved (Didraga, 2013).
iv) Lesser Opportunities for Inputs: The response for this risk in ABC Pvt Ltd
Company is avoid, which depicts that the risk should be eliminated and the project should be
saved.
v) Delays and Disruptions in Supply Chain: The response for this risk is transfer,
which depicts that this risk should be transferred to the third party vendors by indirect method
of contracts.

27
RISK ANALYSIS AND MANAGEMENT
vi) Third Party Vendors: The response for this risk is avoid, which depicts that the
risk should be eliminated and the project should be saved (Cagliano, Grimaldi & Rafele,
2015).
vii) Nature of Variations: The response for this particular risk is avoid in ABC Pvt
Ltd Company, which depicts that the risk should be eliminated and the project should be
saved.
viii) Quality and Clarity in Tender Documents: ABC Pvt Ltd Company should avoid
this risk for solving the issues related to project (Zou, Kiviniemi & Jones, 2017).
ix) Change in Scope of Work: The response for this specific risk is mitigation, which
means the risk should be mitigated properly.
7. Development of Risk Tracking, Monitoring and Control System
The system of risk tracking, monitoring and controlling or TMC is required to track,
monitor and control the various identified risks. The requirements of this particular system of
risk TMC are as follows:
i) The first and the foremost requirement of this type of risk tracking, monitoring and
controlling system is for ensuring the proper execution of the several risk plans and then
evaluating the effectiveness for the reduction of the identified risks (Wu, Olson & Birge,
2013).
ii) The second important and significant requirement of the risk TMC system is for
keeping subsequent track of all the identified risks and even the watch list.
iii) The next important requirement of this risk TMC system is to monitor the several
trigger conditions for the contingencies within the project to be executed.

28
RISK ANALYSIS AND MANAGEMENT
iv) Another vital and noteworthy requirement of the risk tracking, monitoring and
controlling system is to monitor the residual risks and also to identify the new or additional
risks that are arising while executing the specific project (Kerzner & Kerzner, 2017).
v) The subsequent up gradation of the organizational process assets is the next
important requirement for this particular system of risk TMC.
The main purposes of the risk TMC system are given below:
i) The major purpose for implementing this system is to determine that the risk
responses are being implemented as per planned.
ii) The actions of the risk response are as efficient and effective as per expectations or
if the new responses are being developed (Marchewka, 2014).
iii) Another purpose of this risk tracking, monitoring and controlling system is to
determine that the project assumptions are valid and a risk trigger has occurred.
iv) The next purpose of this system is that the risk exposure has changed from the
previous state with proper trend analysis.
v) The fifth purpose of the risk TMC system is that the various policies as well as
procedures are being followed (Larson et al., 2014).
vi) The other purpose for developing this system of risk tracking, monitoring and
controlling is to check that the additional risks have occurred that were not previously
identified.
The various inputs for the risk system of tracking, monitoring and controlling are as
follows:

29
RISK ANALYSIS AND MANAGEMENT
i) Risk Management Plan: This plan of risk management helps to manage the risks
and comprises of the risks that are being identified in the process.
ii) Risk Register: The second input is risk register, which comprises of the outputs of
all the additional processes (Fleming & Koppelman, 2016). These outputs are identified
owners and risks, warning signs, risk responses and triggers.
iii) Approved Change Requests: These approved changes involve modifications like
the scope, schedule, contract terms and methods of work. The risk analysis also has a major
impact on the existing risk management plan.
iv) Work Performance Information: The performance reports and the status of the
project is important to track, monitor and control the risks.
The various tools and techniques for setting the system of risk TMC are as follows:
i) Risk Reassessment: This technique helps to review the project risks in the team
meetings (Walker, 2015). It even reviews the major milestones and the risk ratings as well as
prioritization might change in the project life cycle. The changes might even need additional
quantitative and qualitative risk analysis.
ii) Risk Audits: This technique examines and documents the effectiveness of the risk
response plan for controlling the risks.
iii) Variance and Trend Analysis: This technique is used to monitor the total costs
and schedule performance of the project after updated identification of risks.
iv) Reserve Analysis: When the execution comes closer, few risks could bring
positive or negative impacts on the costs and schedule (Harrison & Lock, 2017).

30
RISK ANALYSIS AND MANAGEMENT
v) Status Meetings: This technique ensures that the risk management could be
addressed properly by inclusion of subject in the project meetings.
The respective outputs of this system of risk tracking, monitoring and control are as
follows:
i) Risk Register Update: The first output that is possible from the specific system of
risk tracking, monitoring and control is risk register update (Heagney, 2016). These updates
involve outcomes of the risk reassessment, audit and the risk review. The update might affect
the risk’s probability, response, rank and impact.
ii) Corrective Action: This correction action comprises of the performance of the
contingency plans or the workarounds. This workaround is previously unplanned response to
the emerging risks.
iii) Recommended Preventive Action: The recommended preventive action is utilized
for directing the project towards compliance with the specific project management plan.
iv) Project Change Request: The implementation of workarounds or contingency
plans eventually result in the major need of changing the entire project plan for responding to
the risks. The overall change controls manage the issues of change requests (Choi, Chan &
Yue, 2017).
v) Organizational Process Assets Update: This particular output occurs after gaining
the information by the risk management procedures for keeping them safe to use in the future
projects. The information that is gained is probability impact matrix, lessons learned,
template for the risk management plan and risk register.
vi) Project Management Plan Update: The various updates to the plan of project
management is the distinct result of the requested changes in the projects.

31
RISK ANALYSIS AND MANAGEMENT
These above mentioned factors clearly complete the entire system of risk tracking,
monitoring and controlling for any particular project.
8. Identification of One Incident Related to the Risks with Details
The clarity and quality of tender documents is one of the most significant risks that
occur in any project. Tendering is the major stage in the construction project, which needs
extra information as well as exchange of documents (Kull, Mechler & Hochrainer‐Stigler,
2013). The specific procedure that is being utilized by several customers of constructions for
the major purpose of obtaining the program and price to build any typical project is known as
tendering. The customers provide the general contractors with the set of tender documents for
a bid proposal on which the contract could be executed. These types of tender documents
comprise of the information regarding the project plans of the customer so that the general
contractor could price them (Huber & Scheytt, 2013). However, many a times, the tender
documents are not always proper, sufficient, clear and consistent. Hence, the evaluation of
the tender program as well as price for the respective construction project is quite difficult.
The various aspects of the construction management in the project majorly imply the poor
quality of the tender documents. These tender documents of the project eventually comprise
of the design or specification of the requirement of the customer. It is the same document that
the bidders require for calculating the price (Bertinetti, Cavezzali & Gardenal, 2013). The
various documents like the rates of schedule, bill of quantities, instructions to the tenders,
conditions of the contracts, specifications, drawings, contract form and the list of enclosures.
In XYZ Company, a construction project suffered subsequent losses due to the lack of
clarity and quality in the tender documents. The tender documents of this particular
organization had major disparities within the bill of quantities, drawings and specifications.
Furthermore, the distinct specifications were poorly written and these raised several issues
within the tender documents (Manuj, Esper & Stank, 2014). The first and the foremost

32
RISK ANALYSIS AND MANAGEMENT
problem that this organization of XYZ Company faces is the inaccurate estimate, extremely
high margins in the bids and claims. They were unable to deal with the situation easily and
hence were undergoing significant losses. The most unfortunate incident that occurred due to
this type of the risk of lack of clarity and quality in the tender documents was dispute in the
project (Zou, Kiviniemi & Jones, 2017). The risk management consultant was unable to
provide correct estimate of the project budgets and hence the budget increased to a higher
level. Moreover, the contractor of their project raised a high bid for the project and this
increased the issue to a high level. The overall costs of the project were raised drastically due
to this and the investors decided to cancel the project in the middle. This organization of
XYZ Company then finally decided to implement the system of risk tracking, monitoring and
controlling to handle as well as deal with the incident (Cagliano, Grimaldi & Rafele, 2015).
9. Elaboration of Effectiveness of TMC System for Handling or Dealing with Incident
The organization of XYZ Company decided to implement the system of risk tracking,
monitoring and controlling within their project for successfully handling as well as dealing
with this risk of lack of clarity and quality in the tender documents (Fleming & Koppelman,
2016). The risk TMC system ensures that the risk plan is being executed properly and hence
the effectiveness of these risk plans is evaluated. This organization of XYZ Company
checked for the risks in their project by giving the inputs of risk register and approved change
requests.
The risk register is the specific scatter plot that is being utilized as a major tool for
risk management and even for fulfilling the regulatory compliances acting as the repositories
for the risks that are being identified eventually. This risk register consists of the probability,
impact, mitigation and contingency of the identified risks. Hence, finding out the most
significant risk in a project is quite easy in this case (Kerzner & Kerzner, 2017). There are
various items in this risk register like a risk category to the group similar risks, the respective

33
RISK ANALYSIS AND MANAGEMENT
risk breakdown structure identification number, a concise description of the identified risk for
making that risk much easier to discuss, the consequence or the impact of the risk and if that
risk occurs what kind of negativity is possible, probability or likelihood of the occurrence,
risk rating or risk score and the common steps for mitigating these identified risks. The
organization of XYZ Company was able to track this particular risk of lack of clarity and
quality in the tender documents by implementing risks register and by involving risk TMC
system (Harrison & Lock, 2017). The procedure of risk monitoring and control helped them
in monitoring the identified risk and also in identification of the new risks. Moreover, the
proper and perfect execution of the planned risk response as well as the total efficiency and
effectiveness of this risk management plan is also checked by the risk TMC system.
They even gave the input of approved change requests in the project and identified
that the project requires some of the major changes. These changes were to be done as soon
as possible since XYZ Company was already suffering from losses (Gao, Sung & Zhang,
2013). The input of approved change requests in a risk TMC system involved various
modifications like the scope, schedule, contract terms and work methodologies. They were
able to identify the new risks by this and hence were able to solve the issues faced by them.
10. Summary of the Key Issues of this Scenario
ABC Pvt Ltd Company manufactures gear boxes for the organization of FORD
Automobiles. A new process of lean production is to be developed by them. The director, Mr.
Smith has approached to the production department for building a plan and providing cost
breakdown structure to develop this new process (Zhao, Hwang & Low, 2013). The director
does not want to hamper the previously existing productions of products and even wants to
train the employees. Mr. Smith sets a Guarantee Maximum Price Contract with sharing
clause of 50/50 and the project delivery contract is design bid build. He has hired a risk
management consultant for identifying and analysing risks in the project and contract and

34
RISK ANALYSIS AND MANAGEMENT
also for highlighting the subjective and objective risks that are to be handled for the project
(Khan, Rathnayaka & Ahmed, 2015). The stakeholders of this organization are director, Mr.
Smith, production manager, creditors, employees, suppliers, shareholders or owners,
communities from which the business has drawn the resources, government as well as the
agencies. The entire process of risk identification is properly explained for the company.
Various risks like delays, third party vendors, quality and clarity in the tender documents,
failure of information technology, changing scope of work and several others are being
identified and quantified for ABC Pvt Ltd Company. Moreover, the risk response planning
and implementation of the risk plan is done properly for this particular organization (Teller,
Kock & Gemünden, 2014). An appropriate risk tracking, monitoring and control or TMC
system is being developed and one real life incident related to the risk of lack of quality and
clarity in the tender documents is being identified. Finally, an elaborate explanation is
provided for the effectiveness to handle and deal the risk tracking, monitoring and control
system for the identified incident.
Conclusion
Therefore, from the above discussion, it can be concluded that the procedure of risk
management helps in proper identification, assessment and finally control of the various risks
and threats to the earnings and capitals of any particular organization. All of these risks and
threats could easily and promptly start from wider variety of sources, such as the financial
uncertainties, strategic management errors, natural disasters, accidents and legal liabilities.
The information security risks and the data related risks as well as the risk management
strategies are major strategies for reducing these effects in the project.
There are several important and significant standards of risk management. Since the
beginning of the year 2000, various government bodies and industries have expanded the

35
RISK ANALYSIS AND MANAGEMENT
rules for regulatory compliance, which check or scrutinize the risk management plans,
procedures and plans of the organization. The board of directors or the owners of the
organization need to review as well as report over the sufficiency of the processes of
enterprise risk management. As a result, the internal audits, risk analysis and the other types
of risk assessment have eventually become the main components of the business strategy.
The respective risk management standards are being developed by various organizations like
AS/NZS IS031000:2009. All of these standards are substantially designed for helping the
various companies to identify the various threats or risks, assess the unique vulnerabilities for
the successful and proper determination of the risks, identification of ways for properly
minimizing the risks and finally implementation of the risk reduction efforts in the project as
per the organizational strategies. Various frameworks are being provided by the standards
and principles for the improvement of the process of risk management, which could be easily
utilized in any project, irrespective of the size of the project.
There are some of major target areas and principles, which should become the parts of
the complete process of risk management as per AS/NZS IS031000:2009 standard. These
target areas mainly include process must create significant value for the project, must be an
integral part of the project life cycle, must explicitly address the uncertainties, must be
structured as well as systematic, should be on the basis of information gathering by relevant
techniques, should be adaptable, must take into consideration about the potential errors and
must be transparent enough for all the stakeholders of that particular project.
There are five distinct steps in a complete process of risk management for any specific
project, which are risk identification, risk analysis, risk assessment or evaluation, risk
mitigation and finally risk monitoring. In the risk identification step, the potential risks are
being identified that would negatively affect the project. The second step is risk analysis;
when the risk identification is completed; all the identified risks are properly analyzed for the

36
RISK ANALYSIS AND MANAGEMENT
purpose of understanding the consequences of those risks. The next step is risk assessment as
well as evaluation; the risk is evaluated further after the proper determination of the overall
likelihood of occurrence of the risks only after combining with the overall consequences. The
decision making process depends on this step. After the risks are being assessed and
evaluated, a proper plan is made for the project risks for mitigating them with the help of
several risk controls. The plans mainly involve risk mitigation process, contingency plans and
risk prevention tactics. The final step in the risk management process is risk monitoring. The
major portion of the risk mitigation plan involves the follow up on both the risks as well as
the complete planning for continuously monitoring and tracking the new or the previously
existing risks. Few approaches of risk management are also present for any project, which are
risk avoidance, risk reduction, risk sharing and finally risk retaining.
The above report has properly outlined the entire case study of ABC Pvt Ltd
Company. It is a manufacturing company that manufacturer gear boxes for FORD
Automobiles Company. Recently they have started a new process called lean production and
for this purpose, the director of this company, Mr. Smith has hired a risk management
consultant for identifying, evaluating and managing the probable risks or threats within the
organizational new process. Moreover, he is concerned about the subjective and objective
risks in the project. This report has properly evaluated the situation of ABC Pvt Ltd Company
and key stakeholders and products or services are being identified. Furthermore, the risks are
identified properly and development of risk response planning is being done eventually. The
risk plan of the identified risks is being implemented and a correct risk TMC system or risk
tracking, monitoring and control system is developed for this organization. The final part of
the report has described about a real life incident and the effect of TMC system in that
incident for handling the situation.

37
RISK ANALYSIS AND MANAGEMENT
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