Comprehensive Risk Management Analysis for Peach Construction Project

This report examines risk management within the context of a construction project undertaken by Peach Construction, focusing on the construction of a custom home. The report begins by identifying various project risks, including financial, technical, legal, health and safety, and weather-related risks, and then analyzes these risks based on their potential impact and probability. It presents a risk register detailing the identified risks and their characteristics. The report further explores the establishment of project treatments and controls, categorizing risk management strategies into avoidance, mitigation, transfer, and acceptance. It includes a sample risk assessment and matrix for risk management, along with a discussion on monitoring and controlling project risks through performance tracking, progress reports, and recommendations. The report also assesses the outcomes of risk management, emphasizing the importance of early problem awareness, quality decision-making, and improved communication. Finally, the report provides a comprehensive risk management plan, summarizing the key elements discussed throughout the analysis.

Running head: RISK MANAGEMENT
Risk Management
Name of the Student
Name of the University
Author Note

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Running head: RISK MANAGEMENT
Table of Contents
Introduction................................................................................................................................2
Identify project risk....................................................................................................................2
Analyse the project risk..............................................................................................................3
Risk register...........................................................................................................................4
Matrix for risk management...................................................................................................5
Establishments of project treatments and controls.....................................................................6
Sample risk assessment..........................................................................................................6
Matrix for risk management...................................................................................................8
Monitoring and controlling the project risk...............................................................................8
Assessing the risk management outcomes.................................................................................9
Risk management plan.........................................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................13

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Running head: RISK MANAGEMENT
Introduction
This paper follows about a construction company named Peach construction. The
company takes a project that is to construct a custom home with high quality. The company
needs to complete the whole project within $225,000. Some kinds of deliverables as well
technical requirements are needed to follow to complete the whole project. In this whole
project, there may occur different types of risks and the project manager always alerts about
the risk factors. Here in this following, the requirement is for the identification and analysis
of the project risks. For the completion of the project, risk treatments as well as risk controls
are necessary to establish. In this paper, it is also required to monitor and control the project
risks and also assessing the risk management outcomes.
Identify project risk
The Peach construction company has the responsibility to build up the custom home
with high quality within a limited budget. Here in this case study, as a project manager has
the responsibility to identify the following risks in a project. The identification of project risk
is the preliminary phase among the risk management system and by using it the cause and
classification of the risks can be identified [1]. Some of the risks are identified through the
identification process in the risk management. They are financial risk, health and safety risk
and also the physical risk. The economy related risks are considered as financial risk. Health
and safety risk means any accident related to the workers. Physical risks are referred as
weather factors like bad weather, flood, landslip etc. The accurate identification of project
risk ensures the effectiveness of project. The next stages belong in the risk management
system are the analysing and controlling of project risk always based on the identification of
the risk. There are always such kinds of techniques as the documentation reviews, SWOT
analysis as well as assumption analysis all are insisting to identify the project risks. The other

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Running head: RISK MANAGEMENT
techniques like gathering information in various ways like interviewing, brainstorming,
previously solved similar types of projects are helping to get an idea of the identification of
the risk. In the identification part, the ISO standards create an important role. In the
construction related projects, there are different kinds of ISO standards like ISO 9001, ISO
45001, and ISO 14001 etc. There are lots of benefits availing in construction industry by
using the certification of the ISO standards [2]. For the injury prevention of the labour, ISO
45001 is the most important standards for the health and safety management and by using it,
for any work related wounds as well as illnesses an economic compensation and the human
costs are always provided. The other type standard as ISO 9001 provides the quality
management and by it, the effectiveness of the project can achieved. It also improves the
transparency as well as the internal communication that helps to achieve the project goals.
ISO 14001 and ISO 50001 are also the two important factors for the energy management and
the environmental management and with the help of these standards it is efficiently crack the
requirements and grow the businesses in the new effective way.
Analyse the project risk
After the risk identification in the risk management system, the risk classification
occurs depends on the nature as well as the timing of the risk occurrence. There may happen
different kinds of risks like financial risk, technical risk, legal risk, market-rooted risk etc. In
the financial risk, the risks happen due to the financial as well as economic issues. In this
project, the financial risks may arise due to the funding problem or other issues like loan as
well as the demand issues like overruns, taxation etc. In the technical risk part, it is stated
about the failure of the project due to the technical issues like the failure of the development
of the project or some material issues like materials or equipment failure, limited work force
etc. In the legal risk, the project failure depends on the lacks of the both legal and institutional
framework [3]. In the institutional framework, it includes the organizational issues as well as

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Running head: RISK MANAGEMENT
the political issues created on the project. In the legal framework, it includes various types of
legal tools as laws, regulations and also contracts. In the market-rooted risk part, it is relevant
to the market problems in a particular project. This kind of risk represents the failure of the
investments of stakeholders or the failure of the market by the parameters of the construction
industry like maturity and structure etc.
Risk register
Sl. No. Risks Risks explanation Impact Probability Risk Owner
1. Financial
risk
Generally it is
finance related
risk and therefore
if the execution of
the project
exceeds the
estimated budget
of $225,000, then
this risk happens.
VH H Finance
manager
2. Technical
risk
If the project does
not follow the
technical
requirements, then
this kind of risk
may happen and it
induces due to
shortage of
expertise, shortage
H M Design
manager or
technicians

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Running head: RISK MANAGEMENT
of materials,
increment of
procurement
options etc.
3. Legal risk If the project does
not follow the
project structure or
design or the
owner land has
any dispute or
claim and at that
time permission
are not received.
Due to these
reasons legal risk
may happen
VH L Project
manager
4. Health and
safety risk
If any unexpected
situations
occurring in the
project site like
accidents on
worker related or
project related
then this risk may
happen
L L Project
manager

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5. Weather risk Assumption by
one constructor on
the effects of the
project methods
by other
constructor
M L Constructor
6. Time risk Failure of the
completion of the
project in time
H L Constructor
7. Designer risk Changes in the
designing
VH M Site engineer
Matrix for risk management
Probability
V HH 1
M 2 7
L 5 4,6 3
V l
V L L M H V H
Impact

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Running head: RISK MANAGEMENT
Establishments of project treatments and controls
After the identification of the risk in the project, risk treatment is the next step to
manage the risk factors. The risk treatments may generalized into four categories like
avoidance, mitigation, transfer and acceptation of the risk. In the risk avoidance, the risk
identification tis the important factor that can be accomplished through previous similar
projects [4]. The risk avoidance ensures not only avoid the whole risk from the project, but
also it considers to lose out on the possible gain in the project. Risk reduction or mitigation is
considered as the control process which helps to control or stops the risk before its
happenings. Some types of plans or software developed by modern technologies are required
to prevent the risk in the project. In the third part or transferring the risk is the better option to
share the risk to the third party and helps for diluting the effect of the risk in the project. In
that case, the effect of the risk is diluted so that it does not create any impact in the project
body and the external team is accepted the effect of the risk. In the section of the acceptation
or retention of the risk, the risks which are considers as unavoidable risk are accepted [5]. In
the case of small risk, the strategy of the risk is quite low or when the cost is bigger over
time, in this kind of situation, the risks are accepted because there is no other plan to resolve
the risk factors.
Sample risk assessment
Sl.
No.
Risk Who could be
affected
Severity Probability Risk rating Control
measures
1. Financial
risk
Project
implementation as
well as wages of the
VH H 1 Proper
planning of
measurement
of spending

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Running head: RISK MANAGEMENT
workers money in
project
2. Technica
l risk
Workers as well as
constructor
H M 2 Appropriate
measurement
of material
3. Legal
risk
Constructor and also
project manager
VH L 2 Maintain
proper laws
and rules and
regulations
4. Health
and
safety
risk
Workers L L 4 Follow the
ISO standards
5. Time
risk
Constructor, finance
manager, project
manager
H L 3 Maintain the
proper
schedule
6. Designer
risk
Site engineer VH M 5 Try to
implement the
proper
designing by
using
appropriate
tools before
starting the
project

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Matrix for risk management
Probability
V HH 1
M 2 6
L 4,5 3
V l
V L L M H V H
Severity
Monitoring and controlling the project risk
Monitoring and controlling part is one of the important part in the project
management. It is the system to maintain the tracking in the project and prevent the risk as
much as possible. It can be happen in variety of ways as real time monitoring of the team
performance, check the regular status and progress report, delivering suggestions as well as
recommendations, trying to implement the recommending plans [6]. The project manager
should has the responsibility to check the team performance because there may happen any
problem to construct the project or labour issues like that. It helps to reduce the risk factors in
the project management system. Apart from that, the checking of the regular basis progress
report is mandatory to move forward the project because there may happen any pending
action in the project or shortage of material as well as money [7]. To control the risk in the
project management system, the recommendations or suggestions are always provided and it

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may help to reduce the rate of the failure of the project plan. Not only providing the
suggestions, but also it is the equivalent important to ensure the implementation of the
recommendations actions. Because recommendation or suggestions are provided when there
may require any changes in the project and it is always cleared to the team members about
the changes of the project [8]. If all these methodologies are taken by the project manager in
the project management, it can be controlled the risk in the project.
Assessing the risk management outcomes
According to risk management, the advantages of this system comes from such
processes like identification, analysing, monitoring, and controlling the risks and also the
establishments of the risk treatments [9]. The project outcomes is the only way that helps for
measuring purpose of the effectiveness of the risk management system. They may be like-
 Easy to figure out the problems in the project:
With the help of risk management, it can ensure about the required attention
for the project and nature of the project. Applying the appropriate risk
management system, the performance of the project is properly analysed.
 Early awareness about the problem:
By using the risk management, an early awareness is created in the project by
which, the team members can communicate in better way about the project
challenges to mitigate the project problems before attacking in the project
[10]. Earlier managing the risks, help the project to move forward in an
efficient and also cost-effective way.
 Taking better quality decision making:

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Running head: RISK MANAGEMENT
By using the risk management system, it is easy for the project manager to
take the better quality decision for each and every field in the project that
makes the project more efficient.
 Elevation of communication:
The better quality risk management helps to elevate the communication. The
communication takes place between the team members, senior stakeholders as
well as suppliers to discuss about the project.
 Getting clearer escalations:
Using the risk management approaches, the risks can easily identified and
controlled by the supportive treatments and as a result, the failure of the
project can be reduced [11]. Therefore, escalations are cleared to the team
members as well as the project manager.
Risk management plan
Sl. No. Risk Risk levels Control
measures
Recommend
improvements
1. Financial risk 1 Proper planning
of measurement
of spending
money in project
Implement latest
technology for
resolving this
problem
2. Technical risk 2 Appropriate
measurement of
material
Use good quality
material in limited
quantity
3. Legal risk 2 Maintain proper
laws and rules
and regulations
Consult with good
lawyer as well as
political parties at

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Running head: RISK MANAGEMENT
the beginning time
of the project
4. Health and safety
risk
4 Follow the ISO
standards
Provide the correct
training to workers
5. Time risk 3 Maintain the
proper schedule
Use the modern
technology
6. Designer risk 5 Try to
implement the
proper designing
by using
appropriate tools
before starting
the project
Use latest software
designing tools
Conclusion
The Peach construction company may has faced a lot of risk in various fields like
financial, material, physical risks etc. all of these risks are reduced to install the proper risk
management system [12]. The risks can be detected by the process of identification. After this
process, the risks are analysed and monitored as well controlled by several treatments. With
the help of proper treatment, the rate of failure of the project can easily be controlled. Apart
from that, there are lots of benefits in the risk management and if bypassing the project
through the advantages of the risk management, the project becomes more effective and all
the limitations of the projects can be easily controlled.

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References
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[2] Glendon, and Sharon. Human safety and risk management: A psychological
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[3] Hopkin. Fundamentals of risk management: understanding, evaluating and
implementing effective risk management. Kogan Page Publishers, 2018.
[4] McNeil, Rüdiger, and Paul. Quantitative Risk Management: Concepts, Techniques
and Tools-revised edition. Princeton university press, 2015.
[5] Aven. "Risk assessment and risk management: Review of recent advances on their
foundation." European Journal of Operational Research 253.1 (2016): 1-13.
[6] Rampini, Amir, and Viswanathan. "Dynamic risk management." Journal of Financial
Economics 111.2 (2014): 271-296.
[7] Marcelino-Sádaba, et al. "Project risk management methodology for small firms."
International journal of project management 32.2 (2014): 327-340.
[8] Aven, Terje, and Enrico. "Foundational issues in risk assessment and risk
management." Risk Analysis 34.7 (2014): 1164-1172.
[9] Hinkel, et al. "Sea-level rise scenarios and coastal risk management." Nature Climate
Change 5.3 (2015): 188.
[10] Serpella, Alfredo et al. "Risk management in construction projects: a
knowledge-based approach." Procedia-Social and Behavioral Sciences 119 (2014):
653-662.