Risk Management Report for Adelaide Oval Hotel Redevelopment Project

This report presents a detailed risk management plan for the Adelaide Oval Hotel redevelopment project. It outlines the allocation of responsibilities, risk monitoring processes, and the application of the ISO 31000 standard. The report identifies and evaluates two key risks: supplier non-performance and ineffective contractual agreements. For each risk, a qualitative and quantitative assessment is provided, along with recommended mitigation strategies, including risk avoidance and the implementation of contract management systems. Cost-benefit analyses are included to justify the chosen approaches, and performance measures and stakeholder communication plans are defined to ensure effective risk management throughout the project lifecycle. The roles and responsibilities of key stakeholders, such as the Senior Executive, Project Manager, and Contractors, are clearly defined to ensure accountability and effective risk control.

Running head: RISK MANAGEMENT
Risk Management
Name of the Student:
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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:

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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

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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

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suppliers are missing delivery and production of the capabilities even if the project manager is using
advanced production capabilities. Due to supplier risk, it is not possible to get quality product as well
as raw materials for the development work. There are huge consequences of this risk on the business
functions such as project delay as well as rise into the supplier cost. There is low impact of this risk.
Summary of recommended response
The project suppliers should be selected based on the skills and knowledge required to conduct the
project work. There is outsourcing of the products as well as back up of the suppliers to overcome with
the supplier risk.
Resource requirement
Risk compensation is involved with acceptance of the supplier risks throughout contingency while the
risks are transferred to deal with the actions such as contract management.
Performance measures and constraints
Management of the supplier risks allowAdelaide Oval Hotel to create cost and benefit strategies to turn
the risk in competitive advantage. It helps to determine whether it is helpful for the company to
conduct customer interventions so that the potential outcomes can become interventions. There are
lower supplier costs which put a better position of the hotel to address the supplier’s liabilities. The
supplier risk can provide impact on the project delay and increase in the project cost.
Responsibility
The project manager
Costing and source of Funds
The cost is around $700 and the sources of funds are Australian Government.
Timing

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It takes 5 days to mitigate the identified risks.
Reporting and monitoring required
The supplier risk mitigation method is based on controlling risk among the suppliers like constant
project monitoring as well as periodic review.
Stakeholder Communication
The suppliers should conduct weekly meeting with the project manager.
Compiled by: Project Manager Date: 20th May, 2019
Reviewed by: Project Manager Date: 20th May, 2019
Cost benefit analysis
Risk description: Suppliers do not turn up
Project Title: Adelaide Oval Hotel
Author: Project Supplier Date: 20th May,
2019 Version: V1.1
Cost Benefit Analysis Chart
Proposed Action
/ Alternative
Benefits Benefit Impact
High – 3
Medium – 2
Low – 1
Costs Costs Impact
High – 3
Medium – 2
Low – 1
Ratio
Benefits /
Costs
Ranking

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Strict selection
of right suppliers
$250 Medium $200 Medium 1.25 2
Outsourcing of
the products
$300 Medium $300 Medium 1 3
Back up of the
suppliers
$300 High $200 Medium 1.50 1
Risk 2: Ineffective contractual agreements
Actions Required
Reasons for selection of Action Options
In order to overcome with the ineffective contractual agreements, the company is required to prepare
an accurate contract for the redevelopment work of the Adelaide Oval Hotel. Contract management
system is used to prevent these ineffective contractual agreements. It is an easier way to automate the
contract lifecycle throughout use of technology.
Reference: Project Document
Risk identified and likely impact
This redevelopment plan of the hotel requires to involve form of written contract, due to time pressure
into daily activities, required diligence is required to prepare the contract weakens which is resulted in
poor drafting of the agreements. There are ineffective contracts when it is downloaded from internet
and not changed or modified correctly. Ineffective contractual agreements will result into increase in
legal cost and loss when contract disputes are raised to reduced that was fictional to agree. There are
various concerns which are raised due to ineffective contracts such as discharge of the breach of
repudiation, frustration, inherent unsuccessful due to unenforceable, illegal and incomplete because of
breakdown of the contract negotiations. The licensing agreements can restrict amount of time that the
hotel uses intellectual property belongs to other party. Ineffective workflow of the contractual
agreements can cause delay as well as destroy the contractual deals. It can cause disruptions into the
flow of company’s deals that can lead to frustration plus business losses. Poor contract visibility is a

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contract management failure which has put the company at higher risk due to loss of revenue plus
added contract cost. It has low impact on the project.
Summary of recommended response
Contract management system is used to prevent these ineffective contractual agreements. The senior
executive is required KPI driven reporting so that it can get advance notice of the issues before
disasters are occurred and provide effect on the completion time of the redevelopment plan.
Resource requirement
The contract management system can offer centralized location for people and documents which can
streamline the workflow plus increase in capability to collaborate with the parties.
Performance measures and constraints
The senior executive is required KPI driven reporting so that it can get advance notice of the issues
before disasters are occurred and provide effect on the completion time of the redevelopment plan.
There is required to contract with right party which is required to maintain the contractual rights.
Responsibility
Project Manager
Costing and source of Funds
The cost is $650 and the source of fund is Australian Government.
Timing
It takes 10 days to overcome with this risk.
Reporting and monitoring required
In order to overcome with this risk, it is required to identify the contracting parties those are providing
a legal contract for the redevelopment work.
Stakeholder Communication
The suppliers should conduct weekly meeting with the project manager.
Compiled by: Project Manager Date: 20th May, 2019

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Reviewed by: Project Manager Date: 20th May, 2019
Cost benefit analysis
Risk description: Ineffective contractual agreements
Project Title: Adelaide Oval Hotel
Author: Project Supplier Date: 20th May,
2019 Version: V1.2
Cost Benefit Analysis Chart
Proposed Action
/ Alternative
Benefits Benefit Impact
High – 3
Medium – 2
Low – 1
Costs Costs Impact
High – 3
Medium – 2
Low – 1
Ratio
Benefits /
Costs
Ranking
Accurate
contract for the
redevelopment
work
$200 Medium $150 Medium 1.33 1
KPI driven
reporting
$250 Low $200 Low 1.25 2
Contract
management
system
$400 Medium $350 Low 1.14 3

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References
Adrian, T., Covitz, D. & Liang, N., 2015. Financial stability monitoring. Annual Review of
Financial Economics, 7, pp.357-395.
Barafort, B., Mesquida, A.L. & Mas, A., 2018. Integrated risk management process
assessment model for IT organizations based on ISO 31000 in an ISO multi-standards
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Bromiley, P., McShane, M., Nair, A. & Rustambekov, E., 2015. Enterprise risk management:
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Reed, J.E. & Card, A.J., 2016. The problem with plan-do-study-act cycles. BMJ Qual
Saf, 25(3), pp.147-152.

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