BSBMGT517 Project: Developing Contingency Plans for Operational Risks

This project centers on developing and analyzing an operational plan, specifically addressing risk management and contingency planning within the context of an office relocation project. The student identifies potential risks associated with the operational plan, such as fluctuating resource costs and quantities, and develops corresponding contingency plans. The project includes assessing risk levels, outlining corrective actions, and specifying timelines and resources needed for implementation. Furthermore, it encompasses the specification of physical resources, like office furniture, including technical and desired features, and the monitoring of performance against the plan. The project also involves a purchasing budget variance report, analyzing expenditure items and identifying over-budget or under-budget areas. The student provides recommendations for improved plan execution and addresses budget management strategies. The project covers various aspects of project management, including resource procurement, performance monitoring, and financial analysis, all aimed at ensuring the successful implementation of the operational plan.

PROJECT MANAGEMENT

Developing contingency plans
Task 6.1
Potential risks of the activity in the operational plan
Research and analyzing the resources could be difficult task or activity to perform
because the requirement of the resources could be fluctuating and it might become difficult to
analyze the resources in the initial stages Heckmann.et al.(2015) The two potential risks
associated with the activity of operational plan are:
 Cost of the resources can change
The cost of the resources is never fixed due to which the analysis of the budgeting and
requirement can be disturbed Kamalahmadi & Mellat-Parast (2016). If the resources
are not analyzed properly at the initial stages then the further estimation can go
wrong.
 The quantity of the resources could fluctuate as per the circumstances
The demand and requirement of the resources can fluctuate as per the situation and
contingent situations. During an operation there comes situation when the uncertain
situations can disturb the functioning of the operational activity.
Strategy Actions/Activities
Wor
k
plan
no.
Resources
required
Timelines
No. days Completion
date
Consult with all
relevant
staff ,marketing
manager ,marketing ,
HR,Finance and IT
Mainntenance
Meeting to discuss requirement
/resources
1 Human 2 July 3
Procurement of
resources
Research and analyse resources 2 Researchers ad
analyst
3 July 6

Strategy Actions/Activities
Wor
k
plan
no.
Resources
required
Timelines
No. days Completion
date
Clean new office
(prepare new office)
3 Cleaners 2 July 8
Recruit new staff 4 Human resource
managers
2 JULY 8
Relocate marketing
staff
Budget to be drawn up 5 Marketers 2 July 10
Induct New staff 6 Meeting room
Research
documentation
2 July 10
Training for adobe
shop
7 budget 2 July 12
Priority risk chart
Severity Low Medium High
Low
Medium
High
Probability

Performance management
Activity KPI Data sources Monitoring
method
Identified risk Risk level
Fluctuating
cost of the
resource
Past reports Screening
method
Cost variations Low
Table 1 Performance and risk management
Strategy Action/Activity Performance measurement Risk management
Transfer strategies and action/activities from
Section 2: Activities KPI Data
sources
Monitoring
method
Identified
risks
Risk
level
Cont.
plan no.
Consult with all
relevant
staff ,marketing
manager ,marketing ,
HR,Finance and IT
Mainntenance
Procurement of
resources
Acquiring the
resources
Past
informatio
n
Success case
method
Cost
fluctuation
Modera
te
1
Clean new office
(prepare new office)
Clean the office
premises
- - Personal
observing
Hygienic
factors
High 2
Recruit new staff Recruitment
activities
- - Tests and
interview
Inefficient
employees
High 3
Relocate marketing
staff
Marketing activities - - Recruitment
interviews
Inefficient
employees
Low 4

Strategy Action/Activity Performance measurement Risk management
Transfer strategies and action/activities from
Section 2: Activities KPI Data
sources
Monitoring
method
Identified
risks
Risk
level
Cont.
plan no.
Induct New staff Recruitment and
selection
- - Selection
method
- High 5

Task 6.2
Contingency plan for the risk

Contingency plan Contingency plan number:
Operational plan /
project name
Risk The cost of the resources is unstable due to which the research and
analysis could not be conducted properly.
Impact rating (1 - 6) The rating of the risk will be 5.
Consequences of
risk occurring
The consequences of the risk will:
 The budget will be disturbed
 The cost will not be estimated properly
 The further activities will be affected
If the costing of the resources will increase heavily then the cost will
be disturbed Carvalho & Rabechini Junior (2015).
Contingency plan
trigger
The contingency plan trigger will be the alternative solutions through
which the risk can be controlled and the impact of risk can be
measured
Person responsible
for action
The researchers and analysts will be responsible for improper
functioning of the operational activity. The contingency plan will be
developed by the researchers so that proper functioning can be
implemented.
Planning actions
(actions taken prior to
implementation of
operational plan)
The actions which needs to be planned are:
 The entire operational plan needs to be evaluated
 The pre and post planning activities should be conducted
properly
The people working in the operational department should be
consulted

Contingency plan Contingency plan number:
Incident corrective
actions
(actions taken when
trigger point achieved
and contingency plan
activated)
 The functioning of the contingency plan will be measured
 The cost should be estimated on the basis of past and future
Extra costing should be estimated so that the cost can be adjusted
Sadgrove, (2016).
Timeframe for
implementation
The operational risk will be managed within a time frame of 3 weeks.
Resources required The resources required to manage the potential risk will be:
 Past data of the cost
 The past data of the resources required
Computer system with suitable applications
Indicator of
completion
If the circumstances of the risk will be reduced then it will be a sign
that the project is completed properly Giannakis & Papadopoulos
(2016).
Alternative
suppliers
Name: Price quoted:

Answer 1) Seeking approval from the authorities
The project plan will be shown to the national managers and the approval will be
gained from them so that necessary changes can be implemented. The contingent plan needs
to be consulted from the national manager of human resources and finance department so that
the approval could be gained. These two members are the high authorities of the relevant
department and the cost fluctuation needs to be discussed by the national manager of the
finance department Galli, (2017). In the contingency plan several people will be required
which will be assigned by the national manager of the human resource department and they
will look after the requirement of the various other resources.
Answer 2) I would communicate with the national managers to discuss the components of the
contingency plan and the operational plan so that the activities can be commanded. The
national managers are the higher authorities who would help in performing the plans
effectively Hopkin, (2018). I would use Email or oral communication to communicate the
basic components of the plan.
Acquire physical resources
Task 8.1
Specification for one physical resources
Small equipment specification: Staff work stations and office desk
Item: telephones, round tables, chairs, wall-mounted white board, power plugs etc

Location
Work house, conference
halls, reception area Intended use
For performing various office
activities
Location
conditions
Airy, wide and ventilated
rooms and halls. The
colour of the office
premises should be light.
No. users 12
Budget $50000 Cost centre
WHS
requirements
The hygiene and safety
requirement should be
kept foremost. The office
premises and work station
should be fire
extinguisher.
Constraints
The budget might not be easily
approved by the higher
authorities due to whom the
functioning could be delayed.
Other
considerations
(delivery
deadlines,
installation,
warranties, etc.)
The resources should be delivered within 2 weeks of the order so that further
activities can be completed properly and delay in the activities can be
removed. If the functioning of the operational work will be delayed that the
deadlines will not be matched. The installation activities will be conducted
by the member of the store itself Wiengarten.et al.(2016).
Key features
 The chairs should be comfortable and comfy so that employees can
comfortably perform their job there.
 The furniture should be of black colour
 The plug points should be in brown colour
 The installation charges will be included in the costing of the equipment
 High quality products should be delivered on time
Desired
features
The chairs and tables should be rotating so that the employees can perform
the tasks easily. Leaning chairs will be appreciated in the same costing. If not
so that the bet quality chairs should be designed as per the size of the office.

Technical
specifications
(if known)
The plug points should be placed near the office desks and it should be safe
and secured so that the current is not leaked and employees are not harmed
Boban.et al.(2017).
Prepared by:
Authorised by:
Monitor performance system
Task 11.1
The furniture of the work station is delivered on 4/6/xx and its due date was 12/6/xx
which means that the order is delivered in advances so that sufficient time is there to adjust
the placement. All the chairs are delivered on 4/6/xx which means the purchase plan is in
sync and there are lesser chances of errors and mistakes. Some of the furniture was delivered
on 8/6/xx and this is also delivered before the due date. As discussed in the purchasing
documents the functioning and costing of the resources are appropriate and this will help in
completion of the project on time. If the office equipment and furniture is not delivered on
time then there could be a problem but for now all the tasks and operations are being
performed effectively Bititci.et al.(2016). All the operational activities are being performed
as per the plan and all the KPI’s are identified effectively. All the activities are complete on
time which means there will be sufficient time to manage the functioning of the errors and
mistakes. The entire of the furniture is $246 and the costing is in the set budget.
Answer 1) Yes the main goal of the office reallocation will be achieved because all the tasks
and operations are conducted on time and this will help in effectively achieving the set targets
Ur.et al.(2018). The reallocation of the office will be completed by 14/6/xx because all the
furniture and equipment have reached the premises.
Answer 2) I would suggest to check and monitor the functioning of the plan at all the stages
so that chances of mistakes and errors can be reduced. If the tasks and activities will be
conducted on time then sufficient monitoring can be conducted. The company needs to work

on the specifications of the equipment so that right material is being delivered in the office.
The functioning of the operational plan should be approved by the higher authorities so that
high quality of the functioning can be implemented Glenny.et al.(2018). All the roles should
be assigned to the dignified person so that the chances of mistakes can be reduced and
effective functioning can be imposed.
Task 11.2
Purchasing budget variance report
Operational plan – Office relocation as at 8th June
Expenditure item Budget Actual Variance
Amount $ Amount $ %
Total computer hardware 17,700 19,500 18%
Office furniture
Workstations 3,000 4000 10%
Workstation seating 3,000 3000 0%
Reception furniture 4,000 3000 -10%
Meeting furniture 2,500 1500 -10%
Shelving and storage 3,000 4000 10%
Room dividers 1,000 1200 2%
Filing systems 3,000 3500 5%
Miscellaneous 2,500 2060 -4.4%
Total office furniture 22,000 22,260 2.6%
Through this table the cost, actual cost and variance will be calculated.