PROJ6003: Risk Management Plan for Frank Construction Company Project

This report presents a comprehensive risk management plan for the Robert L. Frank Construction Company, focusing on the Lewis coal liquefaction pilot project. It begins with an executive summary highlighting the identification of risks and proposed mitigation strategies. The report delves into risk identification, impact assessment, and the creation of a risk register that categorizes risks by commercial and security aspects, assessing their likelihood and impact. The analysis reveals critical risks such as ambiguity in project objectives, communication breakdowns, and inadequate monitoring. The plan proposes mitigation strategies, including improved project planning, enhanced communication protocols, and the implementation of robust monitoring and control mechanisms. Stakeholder engagement is emphasized to ensure the plan's effectiveness and successful project execution. The report concludes by emphasizing the importance of effective risk management in achieving project success.

Running head: RISK MANAGEMENT PLAN
RISK MANAGEMENT PLAN
Name of the student
Name of the university
Author note

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Executive summary
The report focused on identifying the different risks that are being encountered by the concerned
organization, Frank Construction Company and the different mitigation strategies that might be
adopted by the same. The research analyzed the issues that are being faced by the organization
from the very beginning and thereby analyzed the different potential risks that might affect the
successful implementation of the project. On the other hand, the report prioritized the different
issues and thereby suggested recommended activities for the organization to resolve and avoid
the risks that are being confronted by the venture.

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Table of Contents
Part B: Risk management plan (Case of Robert L. Frank Construction Company)........................3
Introduction......................................................................................................................................3
1.Risk identification and impact assessment...............................................................................3
2. Risk management and reporting..............................................................................................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

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Part B: Risk management plan (Case of Robert L. Frank Construction Company)
Introduction
Risk assessment and management is one of the major parts of a project which supports in
maintaining the efficiency of the operations in alignment with the objectives of the same. Taylan
et al. (2014) opined that the changes that are initiated by the organizations are reliant on the
assessment of the risks and the mitigation of the same. On the other hand, the risk assessments
made by the organizations supports in maximizing the rate of preventive activities which again
ensures the success and sustenance of the business (Marcelino-Sádaba et al., 2014). In this
relation, the report will aim at identifying and assessing the risks that are being faced by Frank
Construction Company and the required steps that might be commenced by the same with the
objective of mitigating the issues that are being faced by the same while operating in alignment
with the needs of sustenance of the venture.
1.Risk identification and impact assessment
Assessment of the risks
The assessment of the risks and the prioritization of the same supports in defining the key
activities that might be undertaken by the organizations in order to support the successful
implementation of a project. In this relation, the section would reflect on analysing the issues that
are being faced by the concerned organization while implementing a project and thereby
prioritizing the risks as per the likelihood and consequences. The rate of employment in the
Frank Construction company steadily increased due to the Rovery Project, valuing $600 million,
which started from the year 1997. However, after the completion of the project in the year 2001
left the company with lots of employments with insufficient tasks to be allocated. The excess of

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human resource started costing the organization with maximum operational costs which affected
the profitability of the venture. Therefore the concerned organization started downsizing with the
objective of retaining the sustainable edge of the same while operating in the different markets.
However, the organization managed to get hold of a new coal liquefaction pilot project
named Lewis. The concerned organization employed its most experienced human assets in the
project with the objective of enhancing the scope of success. Moreover, a unique feature of the
project was based on the fact that Frank would hold award meetings with the vendors after every
purchase. The lack of purposive interactions lagged the scope of the project to complete the
operations on time which resulted to the schedule overruns. On the other hand, from the
conversations held by Lewis’s representative with Larry clarified the rate of delays in the
operations and the lack of clarity in the process might cause issues in the project implementation
phase. On the other hand, it was noticed that the lack of proficient communication between the
employees in the later phases and the increasing response time again affected the collaborative
functioning of Frank and Lewis in the project’s progress. The major risk that is being
encountered by the project is due to the maximization of man/ hour costs which is greater than
the completion of a milestone. It denoted that apart from the schedule overrun, the concerned
project also experienced a cost overrun which might result to project failure.
Therefore, the major risks that might be faced by the organization while undertaking the
project are:
 Lack of clarity in the objectives of the project
 Lack of purposive communication among the stakeholders
 Lack of appropriate monitoring and control mechanisms
 Lack of suitable planning and budgeting operations

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Risk Register
R
i
s
k
R
e
f
.
N
o
.
Ris
k
Cat
ego
ry
Risk Description Risk Cause
Risk
Consequen
ces
Imp
act
Likeli
hood
R
ati
ng
1
Co
mm
erci
al
Ambiguity in the systems Lack of efficient
planning
Cost and
Schedule
overruns
5-
Cata
strop
hic
4-
Likel
y
Ex
tre
me
2
Sec
urit
y
Improper reporting of
project status
Lack of
purposive
communication
Ambiguity
in the
process
design
4-
Majo
r
5-
Almo
st
Certai
n
Ex
tre
me
3 Co Differences in the reports Lack of Lack of 3- 4- Hi

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mm
erci
al
that are prepared by
executives of Lewis and
Frank
monitoring and
controlling
operations
informed
decision
making
Mod
erate
Likel
y
gh
Risk probability and impact matrix
Risk
codes 1 Insignificant 2 Minor 3 Moderate 4 Major 5 Severe
3 Low (3) Medium (6) Medium (9) High (12) High (15)
2 Low (4) Medium (8) High (12) High (16) Extreme (20)
1 Medium (5) High (10) High (15) Extreme
(20) Extreme (25)
The risk reference 1 and 2 are extremely likely to occur while affecting the progress of
the project and resulting to failure. However, the risk reference 3 is moderate which indicates
that the organization must take steps to act on the risks that are identified as their first priority
with greater impact. The assessment and prioritization of the risks is aimed at assisting the
organization in enhancing the situation that is being faced by the same while operating towards
the successful implementation of the project.
2. Risk management and reporting
Response strategies
R
is
k
R
ef
.
N
o.
Trea
tme
nt
Stra
tegy
Treatment Description Treatment
Resources Risk Owner
Dea
dlin
e
1 Miti Developing extensive and agile project Planning project 2

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gate planning methodology based
resources
manager,
coordinator,
CEO
mo
nths
2 Miti
gate
Increasing the rate of purposive
communication
Developin
g IT
resources
IT Personnel
1
mo
nth
3 Miti
gate
Implementation of extensive monitoring and
controlling mechanisms for cross checking
the reports
Quality
checker Quality Analyst
4
wee
ks
Stakeholder engagement in the risk management activities
The active involvement of different stakeholders in the organizational operations would
support the organization in maintaining the efficiency of the operations. In this relation, the
project manager would be playing an important role in managing the resources and the priorities
with the objective of avoiding the risks. The project manager would take steps to encourage the
involvement of the project engineers, and the controllers in the risk management activity to
ensure the efficiency of the ongoing processes. On the other hand, maintaining the transparency
of the communication is the topmost priority which would be enhanced by the project manager
through conduction of purposive interactions with the teams and Lewis’ representatives.
Efficient links of communication would support the project manager in gaining the cooperation
of the costing, scheduling and purchasing departments for the coordinated functioning with the
objective of avoiding the risks that could lead to project failure.
Conclusion
Therefore, from the above analysis it might be noted that the different risks that are being
faced by Frank Construction Company while undertaking the safe implementation of the project
might be mitigated through the implementation of effective risk management related activities.
The research aimed at identifying the concerns and risks that are being encountered by the

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organization and suggested recommended activities after prioritizing the risks. It would support
the organization in enhancing the scope of successful implementation of the project.

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References
Marcelino-Sádaba, S., Pérez-Ezcurdia, A., Lazcano, A. M. E., & Villanueva, P. (2014). Project
risk management methodology for small firms. International journal of project
management, 32(2), 327-340.
Taylan, O., Bafail, A. O., Abdulaal, R. M., & Kabli, M. R. (2014). Construction projects
selection and risk assessment by fuzzy AHP and fuzzy TOPSIS methodologies. Applied
Soft Computing, 17, 105-116.