BSBPMG508A: Risk Management Plan for Eye Clinic Noble Park

This report presents a risk management plan for the Eye Clinic Noble Park project, covering risk assessment, control measures, and stakeholder communication. It identifies potential hazards such as accidents, material quality, and cost overruns, and proposes mitigation strategies like technology implementation, quality control, and staff training. The plan emphasizes stakeholder involvement, dispute resolution, and modification procedures to ensure project success. The report also reviews the effectiveness of risk management processes, documents risk issues, and recommends improvements for future projects. This document is available on Desklib, where students can find a variety of past papers and solved assignments.

<University>
< Manage Project Risk>
by
<Your Name>
<Date>
<Lecturer’s Name and Course Number>
 <Your Name> 2017 1 of 20

Table of Contents
Introduction....................................................................................................................3
1. Developing a risk management plan......................................................................3
2. Addressing the following in the risk management plan.............................................8
A) Communication with stakeholders........................................................................8
B) Dispute resolution.................................................................................................9
C) Modification procedures.......................................................................................9
D) Implementation of risk control trigger mechanisms...........................................10
E) Measurement of actual progress against planned milestones..............................10
3. Reviewing project risk management outcome.........................................................11
a Determining the effectiveness of procedures and processes.................................11
4. Identifying and appropriately documenting risk issues and recommended
improvements...............................................................................................................12
5. Discussing stakeholders involvement and dissemination of risk improvement......14
Conclusion....................................................................................................................15
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List of tables
Table 1: Risk assessment................................................................................................5
Table 2: Risk management plan.....................................................................................7
Table 3: Risk issues and improvements.......................................................................13
List of figures
Figure 1: Risk management plan....................................................................................6
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Introduction
The risk management plan refers to the specific set of activities and action
implemented to deal with the negative outcome of a project (Loosemore and Phua,
2010). This increases the chances for the success of the project because proactive
actions are taken with the association of skilled and qualified team (Lundgren and
McMakin, 2013). In this context, the present report develops a risk management plan
for Eye clinic noble park project which covers several steps beginning from the
assessment of risk to its reduction for successful management of the project. Apart
from this, effectiveness of processes and procedures used for the project risk
management outcome have been reviewed. Along with that, the risk issues have been
documented and identified with the equal focus on the recommended improvements.
In addition to this, involvement of stakeholders has been discussed.
1. Developing a risk management plan
The management of potential risks coming to the project is the crucial task, which
assists project manager to determine the success of the project (Frewer, 2004). For the
management of risk, following mentioned plan has been used in the Eye clinic noble
park project- Identification of hazards-It is the first and foremost step wherein potential
risk associated with the project will be identified (Apollon, 2015). The current
project is prone to risk of using poor quality raw material and inclusion of
poor skilled staff. Furthermore, higher exposure of risk may cause accident of
workers on the site, loss of production and time. At this juncture, the onsite
hazards are important to be dealt with so that workers can work with higher
level of safety. Still the risk of increasing cost and time may have direct
impact on the project deliverable (Leslie, 2002). Therefore, accident on the site,
risk of collapse, extended time, cost overruns and inexperience employees
may affect the performance of overall project.
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Table 1: Risk assessment
Item Description Impact (High/H,
Moderate/M, Low/L)
Accident on-site The risk during
construction for staff
High
Risk of collapse Due to use of low
quality material the
chances of collapse of
buildings
Low
Extended time Time required for
making the things
good
Moderate
Cost overruns Cost overruns due to
additional expenses
on material and
quality control at the
end stage
Moderate
Inexperienced staff
or team members
Staff who do not have
people experience
related to the field
Moderate
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Figure 1: Risk management plan Evaluating the risks caused by the control measures-It is the most important
step wherein management of the business might face issue related to the
occurrence of additional risk through the risk control procedure (Agassi and
Meidan, 2016). For example, application of technology to reduce the accident
at workplace would further increase the risk of higher cost. Also, it might take
extra time to arrange for the same. Owing to this, consequences would be
understood and accordingly management of the business will put efforts to
reduce the impact of any kind of risks and train the employee for the same for
determining the successful completion of the project (Modarres, 2016). Control measures of risk-This step defines about the potential control
measures which can easily control overall risks associated with the project
(McNeil, Frey and Embrechts, 2015). This contributes towards deriving valid
outcome for stakeholders because appropriate actions are taken for the
successful completion of the project and minimum impact of the risk factors.
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The current project Eye clinic noble park will have following risk control
measures-
Table 2: Risk management plan
Item Without control Control Residual risks Action
Accident on-site Without control it
would increase
accident rate and
reputation of the
MECG company
will go down.
Also the project
will not be
completed on
time.
Use of latest
technologies for
carrying material
and use of ready
boundaries
Risk with the use
of technologies
Association of
engineers and
close
monitoring of
risk associated
with the
technologies
Risk of collapse Extensive risk of
loss of money and
time
Application of
high quality raw
material and
selection of
qualified vendors
Ineffective
inspection of
quality material
Close
supervision of
input or raw
material
department
Extended time Dissatisfaction of
clients and cost
overruns
Allocating time
effectively to
manage all the
activities, Use of
Gantt chart
Slow work on the
site
Evaluators’
appointment to
assess or ensure
the completion
of task on time
Cost overruns Dissatisfaction
among client or
stakeholders and
incomplete
Appropriate use
of resources and
application of
effective
Sudden
requirement of
budget due to
accident and
Allocation of
budget in the
right manner
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project techniques like
Critical path for
completing the
project in
relatively less
cost
shortage of raw
material
Inexperienced staff
or team members
The poor quality
of the project
Selecting right
team and offering
them on the job
training
Less focused staff
or team members
Setting reward
and punishment
system of team
 Risk management –On the basis of above table, the risk management team
will work towards the appropriate management of potential risk occurred in
the project (Gorzeń-Mitka, 2013). This would be helpful in taking the corrective
actions on the right time and the rate of accident on site of Eye clinic noble
park project will be reduced largely. In this context, staff or team members
will continually get the information that how their project can be affected by
the negative aspects and accordingly they can be taught to use the corrective
action. Also, the risk management plan may need certain amount of money
because emergency plan consisting team of skilled and experts people backed
by enough resources for managing the risk will be employed. This is the
emergency plan for the Eye clinic noble park project through expectations of
stakeholders will be met and project will be work successfully. Review of the plan-The overall risk management plan will be reviewed on the
basis of pre-defined objectives of the plan (Banaitiene and Banaitis, 2012). This
facilitates to control the risk because loopholes will be recorded and reporting
of the same will be done in the respective department. Also, the review
procedure will ensure that all the resources employed in the Eye clinic noble
park project have been properly utilised.
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 Modification-It is the last step wherein project management will modify the
risk plan by focusing on the certain aspects like free flow of communication,
involvement of stakeholders and setting the quality parameters on the priority
(Iqbal and et. al., 2015). Also, the recorded risk plan will be modified on the
basis of reports and outcome through which success of the project can be
determined to a great extent. Thus, risk management plan for Eye clinic noble
park project is helpful for to deal with the potential barriers and effectively
complete the related projects through the optimum utilization of limited
resources (Sharma and Swain, 2011). Apart from this, right modification in the
plan will lead further success in other projects so the outcome derived at this
stage will be communicated among the team members of the project.
2. Addressing the following in the risk management plan
A) Communication with stakeholders
While making the risk management plan then there should be proper
interaction with stakeholders because these are important people for the organization.
Stakeholders can be in an individual, group or organizations that have the major
contribution in the company (Lundgren and McMakin, 2013). So for the management
of the risk plan of Eye clinic noble park project, MEGC should focus on the
involvement of the stakeholders in the risk plan. Stakeholders of the construction of
Eye clinic can be vendors, suppliers, material handling team etc.
Further, manager will be able to understand the expectations of the
shareholders by organizing timely meeting, regular interfere in the processing and can
develop a software for the interaction. It will be helpful to manage the risk that how
the project will be affected in the form of time, cost and quality (Frewer, 2004). If all
these things will be communicated to stakeholders then it will be easy to handle the
risk and can be mitigated. Further, there may arise higher cost to communicate with
potential stakeholders but it will reflect the expected benefits through effective
consultation (Loosemore and Phua, 2010). Therefore, it reveals that involvement of
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stakeholders in the management of risk is beneficial for the company because with the
help of it risk will be effectively managed and fewer resources will be required.
B) Dispute resolution
Disputes are those which arise in the management of projects due to risk
factors because when the expectations do not match to reality then mismanagement of
projects can take place (Agassi and Meidan, 2016). Hence, the dispute may be with
suppliers, customers, employees and other business partners in the construction of Eye
clinic noble park project. So there can be several strategies to resolve the disputes
among partners and stakeholders.
All the documents and facts must be complied in a proper format so that so
that misconception regarding time, date, lease, warranty and service delivery,
contracts etc. On the other hand, project manager should communicate with the other
parties to get a better solution for handling of the disputes. Because in this, other
parties will also have experience regarding the normal disputes so they will be able to
provide the creative ideas for the win-win solution and tools for resolving the disputes
(Leslie, 2002). For instance, risk management always helps the physician to identify
the health risk for the patient and avoid the risk so that disputes cannot arise in the
clinic (Apollon, 2015). It shows that risk management always consists with the
disputes because both are interlinked. When the risk will arise then only disputes will
be and there will be requirement of resolutions for managing the risks.
C) Modification procedures
The project manager has to face several types of risk in the construction of the
Eye clinic of Noble Park like lack of communication, insufficient supply of material,
less availability of labor and higher cost of the labor etc. After starting the
construction process there can arise the problem in the construction design that what
design has prefixed that is not taking place in the building. Due to this, manager will
be liable for that mistake and he has to find another alternative for the better
construction of park.
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On the other hand, project manager can provide further training to the workers
so that effective construction can be done. For that new blueprints and layout should
be prepared by the constructor and modification should be done as per the
requirements. Hence, modification procedure will be costly for the construction
because it demanded for the extra cost, time and resources for the better construction.
D) Implementation of risk control trigger mechanisms
There are different types of risk which identified in the construction of the Eye
clinic noble park so for the mitigation of that risk these techniques can be used. With
the use of the tools risk can be controlled and project will be highly affected. It
includes cost and time estimating, expert judgment, decision tree and expected
monetary value analysis etc (Modarres, 2016). Further, as per these methods, project
manager can implement these two techniques- cost and time estimating and Monte
Carlo approach. Cost and time estimating techniques is very helpful to minimize the
risk because it will facilitates the expected time and cost of the project and it should
not exceeded than only the project will be cost effective (McNeil, Frey and
Embrechts, 2015). On the other hand, Monte Carlo approach can also be implemented
for the construction of the Eye clinic noble park because it is simulation techniques
which stimulate the results of cost and schedule of the project (Gorzeń, 2013).
Therefore, both are the techniques which preferred for the management of the
expected time and cost so that there cannot be major difference between decided and
actual results.
E) Measurement of actual progress against planned milestones
As per the construction of the Eye clinic noble park project, there should be
proper measurement of the actual results and planned outcomes. Because it will shows
the reality of the project that at what extent project is effective or there should be
modification. In this context, the department head of Eye clinic noble park will be
asked to provide the report and then the milestone will be considered to make the
comparison. For this purpose, evaluation stage will be completed in accordance with
the set standards and gap between the actual and expected outcome will be reduced to
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a great extent. Apart from this, the standard rate of accidents and the actual accident
rate will be compared and accordingly project management will assess how effective
the risk management plan was. Moreover, project management will be carry out the
comparative analysis in term of team performance, project objective, risk and budget
as well as time consumption etc. This would be helpful in assessing the actual
progress of the project so as to meet the expectations of all related parties.
3. Reviewing project risk management outcome
It is not always necessary that project risk management outcome will be
favourable because management have emphasize on other related areas through which
tight control can be established (Fernández-Sánchez and Rodríguez-López, 2010).
a Determining the effectiveness of procedures and processes
The procedure used for the risk management plan is effective as it focuses on
every single issue which may become hurdle in the completion of the current project.
This facilitates to cater the requirement of all related parties and derive the valid
outcome for the related stakeholders (Walker, 2015). However, the processes used for
the review of risk management plan are explained as follows-
 Preventive measures-In order to increase the positive outcome for the risk
management review, preventive measures will be used by the project manager,
For example, latest technologies are in use for the transfer of raw material so
that on-site accident related to workers can be reduced. Apart from this, team
members associated with the Eye clinic noble park project will be
communicated and provided all the safety equipments so that accidents can be
controlled effectively. This would further stimulate the growth of residential
construction project and initial and basic work of the project will be completed
with the speed.
 Raking of risk and final plan-The another processes used to derive the
positive outcome of risk management plan is ranking of risk and accordingly
implementing the suitable plan (Winch, 2010). For example, accident on the
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